ibm in the growth markets

Growth Markets Unit

© 2013 IBM Corporation

Contents

What is driving clients to change?

What are our clients doing to change the world?

What is IBM‟s strategy in the Growth Markets?

How is IBM investing to help our clients?

What does the future hold?

2


WHAT IS DRIVING CLIENTS TO CHANGE?

Section 1


Several major macro trends impacting Growth Markets clients…

$6 trillion in government

& private spending

3.3 billion people

live in cities today

93% of the middle class

will be from emerging

markets

Growth Markets is 86% of

the world population

82% of GDP gains

from 2013 to 2016

50% of gross domestic trade

Brazil, Russia, India &

China still largest economies

4

© 2013 IBM Corporation 5

…coupled with accelerated numbers of social networks are driving a deluge of unmined data and an untapped competitive edge


…customers and citizens, better informed on company and government policy, are demanding greater accountability. This is forcing enterprises and governments to rethink the end-to-end client experience…


In response, leaders are redefining their agendas and reprioritizing investments focused on reshaping business models to meet the needs of clients


WHAT ARE OUR CLIENTS DOING TO CHANGE THE WORLD?

Section 2


Case Study: Banorte-Ixe, Mexico

20% return on equity

by creating a new customer-

centric banking model

Close to 40% in improved

efficiencies across the bank

Personalized products &

services – unique to each

customer

Transforms operational processes, risk models and IT infrastructure in its client-centric banking model - enabling the bank to know, and service, its 20 million customers as individuals.

Business Solution

Better utilize Big Data,

analytics, cloud

computing and social

business

"At Banorte-Ixe we start today with a solid

business foundation that has positioned us as the

third Bank in the Mexican market. We know it is

time to move to the next level and evolve totally

focused on our clients. We are fully satisfied with

the agreement reached with IBM as it joins the

best talent, both from the ranks of IBM and

Banorte-Ixe, and is in line with our ongoing

search for technological tools necessary to

attract, retain and serve our customers in an

individualized manner always with the best

service and attention, keeping us at the forefront

of innovation. We are confident that this

collaboration with a leading global company will

help us to improve and meet our goals“.

Alejandro Valenzuela,

CEO, Grupo Financiero Banorte

© 2013 IBM Corporation 10 10

Case Study: Sichuan Geophysical Company of Petroleum Administration Bureau (SCGC) China

Avoids dry hole drilling to

improve energy affordability

Reduced turn around times

on Data Analysis cycle from

27 days to 7 days

Renders large amounts of complex data in more

intuitive ways for better decision

making and production

effectiveness

Integrates seismic and

geological data from multiple

sources, and uses advanced

modeling to quickly and

more effectively make

decisions to increase oil

exploration and production.

Business Solution


analytics, cloud


business

“Today many of the systems and

processes associated with the oil and

gas industry are not efficient enough to

be sustainable. An oil field exploration

can generate one terabyte of data daily,

and a petroleum engineer may devote

up to 70 percent or more of time mining

this data. In order to increase our

seismic imaging capabilities, reduce the

risk of drilling “dry holes” and leverage

our vast geographical region faster, we

need to analyze at least seven times

more data and do that much faster than

before.”

Deng Yali, Deputy Chief Engineer, SCGC.


Case Study: Qantas Australia

60-75% reduction

in check-in times for domestic

travelers across Australia

Nearly 100% faster in

Pre-departure process through

efficient and automated Next

Generation Kiosks

Improved brand loyalty through a faster, better passenger

experience

Qantas, the leading airline in

Australia, created an

automated, mobile check-in

system that streamlines and

improves the passenger

experience

Business Solution


analytics, cloud


business

“Next Generation Check-in

provides our customers with a

smarter, faster check-in

experience and we're excited to

be delivering this technology for

customers in our regional ports.

The Q Bag Tag is a cutting edge

innovation and Qantas is proud to

be the first airline to introduce this

world-leading technology to our

customers.”

Mr Alan Joyce, CEO of Qantas.

© 2013 IBM Corporation 12 1 October 2013 12

Case Study: Ministry of Health in Saudi Arabia

A more secure easy to use

application to collect, share and

analyze health information.

More than 180,000 immunizations and more than

1,000 investigations done in

seven months

Enhanced tracking capabilities to record and forecast

immunizations – tracking exact

locations of vaccines.

Is implementing a Public

Health Solution that

provides health

professionals with tools to

better protect the health of

the Kingdom‟s citizens.

Business Solution


analytics, cloud


business

“HESN will enhance the public health

across the Kingdom and contribute to

the unification of efforts toward better

health for individuals, families and

communities. The program will also

provide health professionals and

decision makers with accurate

information that enables them to offer

high-level services.”

Dr. Abdullah Al-Wehaibi, adviser to

the minister and general supervisor

of ICT


Case Study: Jet Airways India

$6M in savings per annum

due to the transformation of the

core IT Infrastructure

Can evaluate Carbon

footprint at the fleet and aircraft

levels.

Most eco-friendly operations in the industry.

Advanced analytics map the

carriers carbon emissions and fuel

usage.

Jet Airways India uses

advanced analytics to

accurately calculate and

report aircraft emissions,

enabling rapid decision

making and ultimately

reducing the impact the

airline has on the

environment

Business Solution


analytics, cloud


business

“Two years ago, we engaged IBM

to help us transform our core IT

Infrastructure to keep pace with

rapid business growth projections

and add to our competitiveness in

the marketplace. Since then, our

relationship with IBM has grown

from strength to strength,

allowing us to save approximately

$6 million per annum currently.” Sudheer Raghavan,Chief

Commercial Officer, Jet Airways.


WHAT IS IBM’S STRATEGY IN THE GROWTH MARKETS?

Section 3


IBM‟s Growth Markets Unit (GMU) is organized into eight Growth Market Teams with headquarters in Shanghai

Latin America

Greater China

Central & Eastern Europe

Middle East Africa

India South Asia

ASEAN

Korea

Australia, New Zealand

15


The Growth Markets is one of IBM‟s 4 key growth initiatives and is on track to meet the goals set in the 2015 roadmap

*Sum of geographic profit not equal to IBM gross profit

SMARTER

PLANET

GROWTH

MARKETS

BUSINESS

ANALYTICS

CLOUD

COMPUTING

Growth Markets

2015 Roadmap

Objectives

Growth Markets

2012 Performance

2010–2015 ~ $17B

incremental revenue

80% of IBM ‟10 – ‟12

revenue growth

Grow faster than market >30 countries grew

double digits

Outpace Major Markets

growth > 8 points

Outpaced Major

Markets by 8 points

Approach 30% of IBM

geographic revenue

24% of IBM geographic

revenue

Drive margin expansion 61% of IBM ‟10 – ‟12

gross profit growth*

16


Growth Markets success is due to 3 strategies: expanding market reach; developing IT infrastructure; and leading in key industries

17

Industry Leadership

IT Infrastructure Development

Market Expansion By Geography By Category

By Client

1 Winning the $30 trillion decathlon: Going for gold in emerging markets, McKinsey Quarterly, August 2012 2 Unlocking the potential of emerging-market cities, McKinsey Quarterly, September 2012

440 emerging-market cities, very few of them “megacities”,

will account for close to half of expected

global GDP growth between 2010 and 20252

More than half of all global

Internet users are in emerging

markets1

Rapidly growing economies, urbanization and a

demographic shift are impacting most industries

and create a high demand for industry

expertise

Growth Markets Strategy


Russi

a

Australia

Brazil

Chile

Mexico

Saudi

Arabia

South Africa

China

Russia

Vietnam

South Korea

Czech Republic

Poland

UAE

Thailand

Philippines

Indonesia

Singapore

Malaysia

India

Taiwan

By prioritizing 20 countries, market expansion has been more effective with growth in these 20 countries outpacing the growth markets overall

Market Expansion – By Geography

PRIORITIZATION CRITERIA

• IT Market Size & Growth

• IT as a % of GDP

• Macro-economic

• Business Environment

• Political Environment

• Human Capital

• Physical Infrastructure

• Economic Recovery

• Government Effectiveness

18


IBM‟s geographic expansion initiative includes:

• New branches and facilities

• Recruitment of new staff

• Recruitment of business partners

• Investment in training, marketing and citizenship programs

IBM‟s market expansion goes where the IT opportunities are biggest by also moving outside major countries and cities

IT opportunity outside major cities:

GMU 53%, China 64%, India 59%1


1 IBM Market Insights estimate 19

Recife

Salvador

Johannesburg

Cape Town

Casablanca

Durban

Mumbai

Cairo

Dubai

Karachi

Tunis

Zagreb

Budapest

Riga

Warsaw

Islamabad

Moscow

Sofia

Prague

Istanbul

Bucharest

Lahore

Kiev

Kuala Lumpur

Hanoi Bangkok

Singapore

Jakarta

Delhi

Bangalore

Beijing

Guangzhou

Manila

Melboure Canberra

Perth

Brisbane

Darwin

Perth

Shanghai

Seoul

Busan

Wellington

Auckland

Christchurch Hobart

Guadalajara

Monterrey

Barranquilla

Medellin Valenci

a

Caracas

Mexico City

Bogota Cal

i Quito

Mendoza

Tucuman

Santiago

Antofagasta

Lima Arequipa

Cordob

a

Sao Paulo

Porto Alegre Montevideo

Buenos Aires

Fortaleza

Brasilia

Belo Horizonte Rio de Janeiro


In 2012 IBM opened 144 new branches in high-growth cities and regions to tap markets beyond the major cities

20

Brazil: Caxias do Sul Caxais do Sul has experienced strong

economic growth in recent years

becoming an important exporter of

rolling stock, automotive parts and

machinery.

Philippines:

Pampanga IBM opened a new branch in

Pampanga, Central Luzon – a region

which has two of the country‟s premier

economic zones – Clark and Subic Bay

Freeport Zones - and other industrial

areas that generate jobs and revenue

for the country.

Poland: Katowice &

Wroclaw Traditionally known for mining and heavy

industry, today these cities have seen an

increase in high-tech and growth in the small and

medium sized business sector.

Mexico: Puebla In Mexico, the new Puebla

office is IBM‟s sixth in Mexico

after those in Mexico City,

Guadalajara, Monterrey,

Querétaro and Toluca.

Morocco:

Rabat A new office in Rabat

enhances the company‟s

existing Casablanca

operation and strengthens

IBM‟s ability to provide

solutions and services to a

rapidly expanding base of

customers and partners. Qatar: Dohar The opening of a new branch office

in Doha demonstrates IBM „s

investment in the Middle East and

the opportunities presented by high

growth rates and an increasingly

competitive market.

China: Yantai &

Yinchuan IBM opened two new branch

offices in the Chinese cities of

Yantai and Yinchuan,

bringing its total number of

locations in the country to

over 50.

Russia: Voronezh, Ufa,

Khabarovsk, Tyumen,

Chelyabinsk, Nizhny

Novgorod, Samara,

Krasnodar IBM opened 10 new branch

offices across Russia and the Commonwealth of

Independent States (CIS) in 2012 as part of a

major initiative to capture regional business

growth and increase its presence in the fastest

growing markets in the world.

Vietnam: Da Nang Da Nang is one of Vietnam‟s key economic,

cultural, scientific and technological centers.

In recent years, the Da Nang government has

turned to technology to help enhance the

quality of public services.

India: Ludhiana The Ludhiana (Punjab) branch is

IBM's seventh new office to be

opened in India in the past 12

months. It follows Coimbatore,

Indore, Guwahati, Dehradun, Raipur

and Visakhapatnam.



IBM accelerates the building of client relationships by recruiting trusted Business Partners in new markets

21

Marketing & Training

IBM Growth Markets Unit has over 64,900 Business Partners

Over $1 billion invested by IBM in joint

marketing efforts and training programs

Expertise

133,000+ professional certifications

held by Business Partners

Financing of Partner Clients

In November 2012, IBM announced $4 billion for its global ecosystem

of Business Partners in financing for credit-qualified clients – 25%

located in the growth markets.


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Note: each Partner

arrow represents

approximately 3,000

IBM Business Partners


The social, mobile and data explosions are driving growth markets companies to embrace cloud, big data & analytics, mobile and social

Enterprise Mobility

Cloud

Big Data & Analytics

Social Business

Data Explosion

Mobile Connectivity

Social Networking

Billions of Devices & Sensors

Billions of People

Collaborating

Urbanization

Demographic Shift

Economic Rebalancing

22

Market Expansion – By Category


What are big data & analytics, enterprise mobility, social business, and cloud?

23

Collect Data

+Interconnect Social Data

+Analyze Data (in real-time)

+Recognize Patterns

______________________

=Unlock Insights

+Predict the Future

+Execute Next Best Action

Make Mobile Call

+Relevant context

+Consistent brand experience

+Secure, trusted transaction

__________________________

=Incremental revenue

Public or private cloud

+ Rapidly scalable IT resources

+Pay for what you use

+Self-service access

__________________________

=Efficient & Agile IT solutions

Build social network

+Share ideas

+Respond to issues

+Locate knowledge

__________________________

=Create advocates

+Build relationships

+Find better employees, faster



Countries and companies in the growth markets are leapfrogging legacy technologies and embracing the new worlds of big data, mobile, social & cloud

BIG DATA &

ANALYTICS In Brazil, AES Sul, an electric power

company that serves 118 cities, is

using Big Data Analytics software to

identify fraud.

BIG DATA &

ANALYTICS In China, RenRen Games is using

big data & analytics to better

understand player demands and

improve game design.

CLOUD In Philippines, MediCard, a health

maintenance organization (HMO) has

selected IBM SmartCloud Enterprise

Object Storage to deliver faster and

easier access to electronic patient

health records.

CLOUD In Sri Lanka, Lanka Bell is a privately owned

telecommunication operator that has adopted

IBM SmartCloud Provisioning to help revamp

and advance its existing IT infrastructure.

SOCIAL BUSINESS In South Africa, McDonalds is using IBM

social business software to facilitate its

expansion into new markets.

MOBILE

ENTERPRISE Daegu Health College in South

Korea is using IBM mobile solutions

to deploy mobile apps and meet the

growing demands of its students.

SOCIAL BUSINESS In Korea, Kyobo Life Insurance

deploys IBM social business

software to enhance collaboration

among employees.

MOBILE

ENTERPRISE In China, Lenovo preinstalls 3 IBM

mobile apps into it‟s enterprise

tablet to enhance social business

functions.

24



IBM is unlocking new opportunities within our client base by creating capabilities for marketing, finance and other line of business buyers

Market Expansion – By Client

Human

Resources

Customer

Service

Sales

Marketing

Finance

Logistics

Technology

& Product

Development


IBM‟s solutions for Lines of Business address the challenges faced by non-IT personnel in these rapidly growing markets

FINANCE - CASH

FLOW FORECASTING To help Australia Post overcome the

problem of manual cash flow forecasting,

it decided to implement IBM‟s SPSS

predictive analytics software and Cognos

TM1 enterprise planning software

MARKETING - CAMPAIGN

MANAGEMENT Vectra Group in Poland uses IBM Unica to manage

multichannel marketing campaigns targeted at

cable TV, broadband Internet and fixed-line

telephony subscribers.

FINANCE –

BUSINESS

MANAGEMENT The Bangkok Hospital Group in

uses IBM Cognos TM1 software to

provide detailed reporting on

operating performance, margins

and rates of returns on investments.

HUMAN

RESOURCES –

STAFF TURNOVER Deloitte Australia is hoping to reduce

staff turnover by identifying employees

who are likely to leave the firm through

the use of IBM SPSS predictive

analytics software.

MARKETING -

SEGMENTATION Cora Romania, a retailer in Romania,

deployed IBM SPSS to align product

offerings with customer preferences

through optimized segmentation.

SUPPLY CHAIN -

OPTIMIZATION Kordsa, a nylon and polyester yarn, cord

fabric and single end cord producer in

Turkey, uses IBM ILOG to optimize

management of its supply chain through

better planning and scheduling.

RISK - EXPOSURE Cetip, the leading marketplace for

private fixed income securities and

OTC derivatives in Latin America,

chose IBM Algo Market Risk to

calculate exposure associated with

OTC derivatives positions.

MANUFACTURING -

ASSET MANAGEMENT ZA Pulawy, a fertilizer/chemical company in

Poland, boosted manufacturing

effectiveness by automating asset

management using IBM Maximo and FileNet

solutions.

26

Market Expansion – By Client


Interactions between billions of devices, sensors and people requires powerful hardware, integrated software and industry-expert services

Massive-scale Data Processing

Integrated Enterprise Software

Industry Expertise


Billions of People

Collaborating

Urbanization

Demographic Shift


Software (for IT and Line of Business) • Convert massive amounts of data into high

quality decisions

• Improve collaboration, with everyone

• Deliver enterprise mobility

• Build flexible processes and applications

• Accelerate product and service innovation

• Optimize IT and business infrastructure

• Manage risk, security and compliance

Hardware • Efficiently handle massive data volumes,

with minimal risk and maximum scalability

• Efficient storage that handles data growth

• Accelerate time to market and improve

efficiency using cloud

SITUATION REQUIREMENTS

Services • Flexible deal structures

• Industry-specific business and IT consulting

• Outsource processes as required

• Financing


27


Demand for high-end IBM systems and software solutions is driven by growth in both public and private infrastructure

ENERGY

OPERATIONS ANCAP, an integrated energy

company in Uruguay, deployed IBM

Business Analytics to run the day-

to-day operations of the company

and has reduced reporting from 15

days to one day and budget

consolidation from 60 days to just

two.

GAS EXPLORATION China's Sichuan Geophysical Company of

Petroleum Administration Bureau has

adopted an IBM Smarter Computing

solution based on PureSystems to speed

up gas exploration & shorten time to "first

gas".

EMERGENCY

RESPONSE In China, the Beijing Municipal

Commission of Transport is using

IBM‟s Intelligent Operations Center

solution to improve emergency

response times.

BANK

TRANSFORMATION In Nigeria, Keystone Bank deployed an

IBM Smarter Computing solution to

improve the bank‟s back-end

operational processes resulting in a

60% reduction in operating costs.

HEALTHCARE In Poland, the National Healthcare

Fund is using a DB2 database and

IBM System i5 platform to manage

patient identification in the

healthcare system.

TRAFFIC

SYSTEMS In Korea, the Seoul

Metropolitan Government is

deploying IBM software to track

traffic conditions, rapidly

identify problems and

communicate bypass roads.

SMARTER PORTS In China, the Zhou Shan Port is

using IBM software to make better

use of available data to improve

port operations.


28


IBM Services delivers a broad range of solutions to clients to support booming economies

CUSTOMER

SERVICE In Mexico, Banorte has signed a 10

year strategic alliance with IBM to

set new standards in customer

service using IBM consulting

services and research &

development.

TRANSIT

PLANNING In Turkey and the USA, IBM

Researchers are helping city

managers to plan new transit

routes and improve transit

planning.

LOGISTICS In Singapore, IBM services has

helped DB Schenker, a global

transportation provider, manage it‟s

logistics IT systems across 20

APAC countries.

HR

TRANSFORMATION In China, IBM helped Asiainfo-Linkage,

the second biggest BSS/OSS supplier

in the world, to manage the HR

transformation following a merger.

OUTSOURCING In Poland, Sharp Electronics Europe is

outsourcing Purchase to Pay, Order to

Cash and Sales Admin Support for their

major European countries to IBM

centers in Poland and India. SUPPLY CHAIN IBM Global Business Services

helped China Tobacco Zhejiang

Industrial Company deploy

solutions to improve their supply

chain management process.

PENSION SYSTEM In Korea, the National Pension

Service has tasked IBM Korea with

the design of their new integrated

“green” data center.

ASSET

MANAGEMENT In China, IBM Global Business

Services helped Huaneng Group

improve their asset utilization using

an enterprise mobility solution.


29


Urbanization, a demographic shift and economic rebalancing are driving demand for IBM‟s IT solutions and industry expertise

Urbanization

Demographic Shift


TELCO

ENERGY

TRANSPORT

RETAIL

INSURANCE

HEALTHCARE

BANKING

GOVERNMENT

NATURAL RESOURCES

Agriculture management

Electrical grids

Energy efficient systems

Traffic systems

Port operations

Emergency response

Social services

Education management

Hospital management

Online banking

Fraud detection

Internet infrastructure

Mobile connectivity

Telecom data centers

Online shopping

Increased

consumption

Competition for

talent & expertise

Higher expectations

of government

Investment in

physical capital

Industry Leadership

30


Smarter Planet principles are delivering client value by solving industry specific problems in the growth markets

31

Enable business service and product

innovation

Drive enterprise operations'

effectiveness and efficiency

Turn information into insights Increase agility Connect and empower people

Manage risk, security and compliance

Industry Leadership


Clients are using IBM‟s industry leadership to deploy the required infrastructure and expand their enterprise capabilities

RETAIL In Australia, David Jones is

using IBM's Sterling

Commerce order fulfillment

and warehouse management

system to help pickers find

the most efficient routes to

more than 75,000 storage

locations on 8.5 kilometers of

shelving.

INSURANCE Working with IBM Business Partner

Musala Soft Ltd., Bulgarian

Guarantee Fund developed a

solution that uses sophisticated

data mining and visualization

techniques to uncover duplications

and falsifications.

TELECOM IBM provided Mobilis, a leading

telecommunications operator in Algeria,

with an integrated solution that

modernized its IT systems to take

advantage of market growth in new

services such as mobile data.

HEALTHCARE In Slovenia, Kemofarmacijia turned

to IBM to increase their healthcare

product web sales through more

targeted advertisements and

promotions.

ENERGY MRSK Holding, a large energy

company, implemented IBM

Cognos 10 to collect data from

distributed branches across Russia

for reporting purposes.

BANKING In Argentina, Banco Nación,

deployed collaboration software

including Lotus Dominio, Lotus

Notes, Sametime and the

implementation of Websphere

Portal.

TRANSPORT In China, Municipal Government of Zhenjiang

uses its Intelligent Operations Center to

effectively collect and analyze data about

transport flows and bottlenecks in real time.

GOVERNMENT In Vietnam, the city of Da Nang is

delivering specialized e-learning

courses to increase the use of

technology by local government

agencies over the next five years.

NATURAL

RESOURCES JSC Altyntau Resources, a leading

gold producer in Kazakhstan, is

implementing IBM Cognos to help

the company improve gold yields and

increase the profitability of its

operations.

Industry Leadership

33


Mobile

Connectivity

Data

Explosion

Social

Networking

Summary: Growth Markets trends align with IBM Solutions and the IBM Growth Markets strategy

Powerful High-End Hardware

Integrated Enterprise Software

Industry Expertise

IBM

Solutions

Industry Leadership


Market Expansion

Growth Markets

Strategy

Growth Markets

Trends


Billions of People

Collaborating

Urbanization

Demographic Shift


34


HOW IS IBM INVESTING TO HELP OUR CLIENTS?

Section 4


IBM invests in four core areas in the Growth Markets to help our clients

36


IBM Centers of Expertise are designed to meet any client need or outcome

37


Russia

Croatia

Bulgaria

Romania

Hungary Slovakia

Saudi Arabia

Ukraine

Russia

China

Slovenia

Czech Republic

Costa Rica

Hong Kong Taiwan

Venezuela

Colombia

Chile

Nigeria

New Zealand

Indonesia

Mexico

Peru

Morocco

Thailand

Brazil

Argentina

Poland

Turkey

Egypt

Kenya

South Africa

India

Australia

Singapore

Malaysia

South Korea

Vietnam

Philippines

38

IBM invests in capability to support high value systems, solutions & services

Croatia

Research Lab

Global Delivery Center

Micro-financing Hub

Cloud Computing Center

Software & Hardware Lab

Innovation Center

Industry Centers of Expertise

Client Center

Smarter Cities Center


Recent Investments: First Research Lab in Africa

39

• Established in 2012, IBM Research - Africa

is IBM‟s 12th global laboratory and the first

science and technology research lab on

the continent conducting both applied and

far-reaching exploratory research.

• IBM Research‟s presence in Kenya will

engage local entrepreneurs and

innovators to develop solutions to the

challenges faced by the region and other

fast-growing markets around the world.

• Research will initially focus on water and

transportation, vital for the African

continent.

“IBM Research- Africa will conduct basic and applied research focused on addressing some of Africa's

biggest challenges and opportunities and contributing to the building of a science and technology base for the

continent."

Dr John Kelly III, IBM Senior Vice President and Director of IBM Research

Kenya Research Lab


Recent Investments: Smarter Data Center in Mexico

• This new Smarter Data Center is part of

IBM‟s $70 million investment in Mexico

toward high value technology initiatives.

• The Center provides clients with unique

tools for IT infrastructure planning and

modelling as well as real-time virtual

access to tools enabling monitoring of

system performance for more informed

and timely decision making.

• Predictive and intelligent data

analytics, will enable clients to maximize

operational performance and decision

making as well reduce costs.

“We are proud to be able to offer to Mexican companies new opportunities to innovate and achieve greater competitive advantage. We aim to support Mexico's and our clients' development and capabilities, seeking to provide high transformational value and contribute to our Smarter Planet agenda,”

Hugo Santana, President & General Manager, IBM Mexico

Mexico Smart Data Center

40


For more than 100 years, IBM has integrated corporate citizenship & social responsibility into every aspect of our business

Communities

TECHNOLOGY,

SERVICES &

EXPERTISE Education

Initiatives

K-12

Volunteering

On Demand

Community

Disaster

Response

World

Community

Grid

SME

Toolkit

Corporate

Service

Corps

Smarter

Cities

Challenge

Tangible impact in local communities

Used IT to

enhance early

warning systems

and coordinate

effective disaster

response in

Philippines

Developed a plan

to improve food

safety and

security in the

meat production

industry in Egypt

“EVERYTHING

WAS MORE

THAN WE

EXPECTED. Most

importantly we

have a plan that

we can implement

directly,“ Sedef

Özer, Head of

Program Unit, izmir

Development

Agency. Turkey

Developed Postal Service transformation strategy, and information

infrastructure for tracking cervical cancer vaccine

in Kenya

Developed

analytics solution

to support deeper

outreach and

training of SMB

entrepreneurs in

Chile


Ghana Nigeria

S. Africa

Egypt

Kazakhstan Romania

Poland

Sri Lanka

Russia

Turkey

Malaysia

Indonesia

New

Zealand

India

Thailand

Cambodia

Morocco

Taiwan

Brazil

Peru

China

Philippines

Kenya

Tanzania

Vietnam

Korea

Mexico

Colombia

Argentina

Chile

UAE Bangladesh

Senegal

Corporate Service Corps

Smarter Cities Challenge

2013 Destinations

42

• Corporate Services Corp - over 2,000 participants to nearly 30 countries & close to 200 teams by the end of 2012

• Smarter Cities Challenge – over 100 IBM leaders to 16 cities

Pro-bono business and community service builds foundational relationships

and has tangible impact in communities

Communities

Australia


People and Skills

A culturally diverse workforce across

more than 140 countries and

10 time zones

Expertise developed through more than 5 million learning

hours & a technical community of more

than 120,000 professionals

Attracting and

retaining top talent

and recognised as

#1 most admired

company in the IT

industry

– Fortune 2012

IBM works with more

than 1500

universities in the

Growth Markets and

provides funding to

approximately 75

universities

33% of the recipients of IBM's PhD

Fellowship program came from the

Growth Markets

IBM invests in developing and retaining top talent and creating skills for the future


WHAT DOES THE FUTURE HOLD?

Section 5


Driven by real world challenges, IBM Researchers across the Growth Markets are working on projects with a common goal: progress

45

AFRICA

Focused on Next-Generation

Public Sector solutions so that

information is collected and

analysed from various sources

to improve planning, scheduling

and tactical decision making for

the region.

CHINA

Analyzing real-time data such as

timetables and capacity

utilization around traffic

conditions to improve congestion

so passengers can make

choices on the best method of

transportation to take.

BRAZIL

Collaborating with colleagues

in 11 other labs across the

globe, the Researchers use the

unique environment to create

new transformative

technologies and advances

around natural resource

discovery, smarter cities and

human systems, smarter

devices and service systems.

AUSTRALIA

Pushing the boundaries

of life sciences with a

focus on natural

resource management,

disaster management

and healthcare analytics.

INDIA

Focused on promoting

advanced

telecommunications

and mobile solutions.


We are making progress with a new era of computing powered by cognitive systems


IBM Watson combines transformational technologies and represents the beginning of a great shift in a new era of computing

47


Imagine if….

… financial advisors had

access to everything they

need to know about a

customer‟s portfolio, with

a click of a button, to

usher that customer into

the retirement they

deserve?

We need to better serve our

2 million wealth customers

Watson can enable smarter,

faster financial

recommendations – yielding

a customer experience that

is simple, personalised and

steeped in data-informed

insights

Joyce Phillips,

CEO, ANZ Bank

That‟s exactly what a

major financial institution

in Australia did.


5 in 5

5 senses

5 innovations

This year IBM

presents the 5 in 5 in

five sensory

categories, through

innovations that will

touch our lives and

see us into the future.

In the future....cognitive capabilities will be infused into aspects of technology to enhance our senses and enrich our lives

49


5 in 5: Touch


5 in 5: Sight


5 in 5: Hearing


5 in 5: Taste


5 in 5: Smell


This presentation was created by IBM GMU Marketing & Communications

Karen Davis

Helen Kingham

Tony Hocevar

Michele Wilshire

Kelly McKenzie

Natalie Harms

For information or queries about this presentation please contact:

Karen Davis, Director, GMU External Relations – [email protected]

https://twitter.com/#IBMGrowthMkts

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mailto:[email protected]