© 2014 IBM Corporation

SB106: Social Business in the Context of IBM's Overall StrategyAndrew Warzecha, IBM, VP Strategy, IBM Software Group Arthur Fontaine, IBM, Program Director, Collaboration Solutions

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Agenda

The Social Business The Social World What changes? How to act strategically

The Smarter Enterprise Balancing optimization and innovation Watson, Big Data, and Analytics MobileFirst and Security Cloud and DevOps

Q&A

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The Social Business:Unlocking the collective knowledge of people

Five years ago, IBM observed the planet was becoming instrumented, interconnected, and intelligent. 20,000 engagements later, here's what we know and believe about social business.

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We are living in a social world

Knowledge is being created and shared at unprecedented rates Social networking is a societal and economic phenomenon People are self-organizing around projects and communities

The views and activities of people are far more accessible Interactions are now shared, creating greater visibility into sentiment, activities,

performance and behavior Social is pervasive: not just personal interaction but business and commercial

engagement

Organizations are functioning with far greater transparency 70% of employees are engaged in social activities both internally and externally Nearly everyone on the front lines building new relationships, the flow of information

has become more difficult to contain. Leaders are prioritizing mutual trust, empowerment, responsiveness

#1 use of the internet 2 billion social connections 3 billion expressions per day

66% participating in professional communities

81% engaging in brand conversations

61% evaluating what others think and do

65% updating organizational designs, policies, operating principles and business processes for social

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What changes?

Social is the new production line for the

knowledge age

Social is the new intelligence for driving

business outcomes

Social is the future for how modern enterprises

work

Build distinctive expertise through collective knowledge

Improve productivity through collaborative models

Expand customer sales, loyalty and advocacy through personalized value

Apply a human face to workforce and marketplace data

Unlock stronger relationships by creating a more analytics-driven environment

Optimize workforce talent with systems to recruit, motivate, improve and retain 'best fit' talent

Embrace a new style for a more collaborative, responsive, transparent and authentic way to work and engage

Create a culture of trust that empowers people to engage and act, with social governance policies that employees understand, comply with and respect.

Enable your business processes for social engagement, with full mobile/cloud support

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How to act strategically

Empower people Understand people Trust people

Activate a digital ecosystem for both customers and employees

Start with your workforce: Deploy an enterprise social platform across your workforce

Extend into the marketplace: Transform the customer experience across the spectrum of inter action

Adopt new crowdsourcing models: Deploy collaborative portals that manage crowdsourced methodologies and processes

Apply analytics to gain actionable insight from social data

Build a stronger workforce: Re-invent the discipline of human capital management by applying behavioral sciences across the talent lifecycle

Unlock actionable insights: Create new strategies to cultivate data-supported decision making, transform cultures and improve the effectiveness of how your workforce and marketplaces interact

Use data to engage with people as individuals, personalizing value at every touch point

Pervasively harness a transparent and authentic way of working

Re-imagine your business design: Systematically evaluate how your organization works today and manage toward desired change

Enable your processes to be inherently social: Empower your people with a new way of working, by automating social capabilities in the context of key business processes

Protect the enterprise: Apply new security, privacy and compliance controls, so you can easily monitor, identify and preemptively address any regulatory issues, threats and/or inappropriate behavior that may occur.

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How IBM can help leaders thrive with social business

Drive enterprise-wide collaboration

IBM Connections™ Platform

Optimize workforce talent and culture

IBM Smarter Workforce™ (Kenexa)

Create exceptional customer experiences

IBM Smarter Commerce™IBM Customer Experience Suite

Apply behavioral sciences and analytics

IBM Social & Digital Analytics Suite

Design and implement social strategies

Organization & People Strategy

Manage operational policy & risk

IBM Security Intelligence Solutions

IBM Global Business Services®

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Smarter enterprises are able to balance optimization with innovation

Innovatehow we engage, make decisions and work

Optimizeour IT infrastructure, data and processes

Line of Business LeadersMarketing Leaders

Sales Leaders

Finance & HR Leaders

Technology LeadersChief Information Officers

Technology Architects

Dev & Ops LeadersDrives Investment

Drives Need

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Four technologies and organizational traits define the smarter enterprise

Constantly adapts to changing market dynamics, buyer demands and disruptive technologies

Client-centric, digitally savvy in its use of cloud, mobile, social and big data platforms to transform

Embraces data in all forms to apply analytics, unlock insight, and make fact-based decisions

Creates value in new ways by forging deeper relationships with clients and between employees

BIG DATABIG DATAANALYTICSANALYTICS

SOCIAL SOCIAL BUSINESSBUSINESS

ENTERPRISEENTERPRISEMOBILITYMOBILITY

CLOUD CLOUD COMPUTINGCOMPUTING

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Dannon combined new era solutions to become a smarter enterprise

IBM SmartCloud for Social Business drives the digital front office including mail and calendar

IBM real-time, cloud-based analytics to predict future

demand and buying behavior

Fully integrated with Dannon’s existing POS

and supply chain systems

IBM Connections supports knowledge sharing and collaboration worldwide

Strong partnership between IT and business leaders in purchasing decision

98% accuracy in annual sales forecasts; forecasting time improved by 100%

Dannon is using Big Data & Analytics, Cloud and Social to drive better outcomesDannon is using Big Data & Analytics, Cloud and Social to drive better outcomes

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Watson's intelligence and capabilities are expanding

Understands natural language

Generates and evaluates hypotheses

Adapts and learns

Explores

Reasons

Visualizes

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Bringing Watson to market

Transforming industries and professions.

Advancing cognitive computing across the enterprise.

Delivering the cognitive experience to the masses..

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IBM SmartCloud® is a primary delivery vehicle for new era solutions

180 million IBM client transportation transaction events every year

300,000 global trading entities connected for

IBM clients

5.5 million daily transactions exchanged

via IBM B2B cloud

60,000 users of IBM digital marketing tools send 130

million monthly emails

e

xx

More than 100 new era solutions delivered through IBM SmartCloudMore than 100 new era solutions delivered through IBM SmartCloud

120 million candidate records on Kenexa’s talent management platform…

…accessed daily by 80,000 candidates and more than a million hiring managers

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Watson Foundations - The IBM Big Data & Analytics Platform …

…Discovers fresh insights• Predictive and content analytics to

uncover patterns not yet known• Interactive exploration across all data

…Operates in a timely fashion• Real-time analytics as data flows through an

organization • Enterprise-class Hadoop that runs 4x faster • In-memory computing for speed of thought

…Establishes trust so I can act with confidence• Governance across complete data lifecycle including

Hadoop• Security and privacy with compliance• Transparency and context to decision-making process

WATSON FOUNDATIONS

DecisionManagement

Planning &Forecasting

Discovery &Exploration

Business Intelligence & Predictive Analytics

ContentAnalytics

Information Integration & Governance

Data Mgmt &Warehouse

HadoopSystem

StreamComputing

Content Management

WATSON FOUNDATIONS

DecisionManagement

Planning &Forecasting

Discovery &Exploration

Business Intelligence & Predictive AnalyticsBusiness Intelligence & Predictive Analytics

ContentAnalytics

Information Integration & Governance

Data Mgmt &Warehouse

HadoopSystem

StreamComputing

Content Management

The capabilities to fuel Watson and big data & analytics for our clients

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Delivering the cognitive experience to the massesThe Watson Ecosystem

engaged innovators million equity investments subject matter experts

Watson Developer

Cloud

Watson Content

Store

Watson TalentHub+ +

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This will be Watson

Understands natural language

Generates and evaluates hypotheses

Adapts and learns

Reasons

Explores

Visualizes

Experiences

Sees

Hears

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Our new era solutions are built on IBM’s Big Data & Analytics foundation

Big Data & Analytics Platform

Mob

ile

Soc

ial

Clo

ud /

S

aaS

C-Suite and Line of Business

Industry Solutions Integrated by Design

New Delivery Models

Analytics Services

Big Data & Analytics Foundation

Predictive CognitivePrescriptiveDescriptive

Expert Integrated SystemsIT Capabilities and Platforms

SmarterWorkforce

Smarter Cities

WatsonSolutions

Smarter Analytics

SmarterCommerce

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IBM Software: A broad portfolio of market-leading capabilities

Business Analytics Data Management Big Data Data Warehousing Enterprise Content Management Information Integration and

Governance

Turn information into insights

Optimize IT and business infrastructure

Manage risk, security and compliance

Deliver enterprise mobility

Mobile Development and Connectivity

Mobile Management and Security

Mobile Insights and Analytics

Connectivity, Integration and SOA Application Infrastructure Business Process Management

Cloud and IT Optimization Asset and Facilities Management Enterprise Endpoint Management Expert Integrated Systems

Accelerate product and service innovation

DevOps Complex and Embedded Systems Enterprise Modernization

Application Security Data Protection Identity and Access Management Infrastructure Protection Security Intelligence and

Compliance Analytics

Deepen Engagement with customers, partners and employees

Social Collaboration Unified Communication Web Experience Commerce Procurement Enterprise Marketing Management Smarter City Operations Talent and Workforce Management

Enable the agile business

Business Need Capabilities Business Need Capabilities

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Business Analytics Data Management Big Data Data Warehousing Enterprise Content Management Information Integration and

Governance

Turn information into insights

Optimize IT and business infrastructure

Manage risk, security and compliance

Deliver enterprise mobility

Mobile Development and Connectivity

Mobile Management and Security

Mobile Insights and Analytics

Connectivity, Integration and SOA Application Infrastructure Business Process Management

Cloud and IT Optimization Asset and Facilities Management Enterprise Endpoint Management Expert Integrated Systems

Accelerate product and service innovation

DevOps Complex and Embedded Systems Enterprise Modernization

Application Security Data Protection Identity and Access Management Infrastructure Protection Security Intelligence and

Compliance Analytics

Deepen Engagement with customers, partners and employees

Social Collaboration Unified Communication Web Experience Commerce Procurement Enterprise Marketing Management Smarter City Operations Talent and Workforce Management

Enable the agile business

Business Need Capabilities Business Need Capabilities

Organic & acquisitive investment in strategic categories and base capabilities:

500+ new & improved products

43 labs, 25,000+ developers

IBM Design global initiative & studio

Continued commitment to Open technologies

IBM Software: A broad portfolio of market-leading capabilities

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IBM enables clients to transform their business and gain competitive advantage

Big Data & Analytics

Capitalize on today’s informational explosion

to quickly sense and respond

MobileLeverage mobile to

engage with anyone, anywhere,

and at anytime

SecurityProtect the network

from the edge to the user

and the device

CloudSpeed the delivery of

new products and services

in highly dynamic markets

2013 Acquisitions

Data analysis and governance

Process automation and

application integration

Cloud infrastructure and

services

Document image

viewing

Cloud-based mobile messaging

Fraud and advanced security threat protection

Customer and network analytics for

Communications Service Providers

Mobile management and

security

Accelerate software release and deployment

®

® ®

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Systems SecurityOn premise, Cloud, As a service

Storage

IBM Watson Foundations

IBM Big Data & Analytics Infrastructure

New/Enhanced ApplicationsAll Data

Real-time analytics zone

Enterprise warehouse data mart and analytic appliances zone

Information governance zone

Exploration, landing and archive zone

Information ingestion and operational informationzone

What could happen?

Predictive analyticsand modeling

What action should I take?

Decisionmanagement

What is happening?Discovery and

explorationWhy did it happen?

Reporting, analysis,content analytics

CognitiveFabric

A new foundation for leveraging all analytics and harnessing all data

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An unprecedented year of innovation & leadership in Big Data & Analytics

DB2 with BLU Acceleration

8x to 25x faster reporting and analytics

BIG SQL2x to 10x faster stream

processing

PureData™ System for Hadoop

8x faster deployment

New Big Data Platform Capabilities

Predictive Analytics for Big Data

Improved visualization and automation

Business IntelligenceAnimated charting, extensive

visualization

Risk, Finance, and CloudDisclosure management,

accelerated internal reporting

New Analytics Capabilities

New Infrastructure Capabilities

Analytics on POWER® 714x lower TCO

System x®

Open analytics on Linux

X-8640% better performance

efficiency

IBM Flash SystemsLow latency analytics

1.1. Build a culture that infuses analytics everywhereBuild a culture that infuses analytics everywhere2.2. Be proactive about privacy, security, and governanceBe proactive about privacy, security, and governance3.3. Build a master plan and invest in a Big Data and Analytics platformBuild a master plan and invest in a Big Data and Analytics platform

Three steps for strategic actionThree steps for strategic action

A streaming analytics platform to help astronomers analyze

1+ exabyte of data

collected daily from

3,000 radio telescope

dishes

Image & data identification accelerated by

99%, making

information available in days instead of weeksIBM Products• InfoSphere Streams• SPSS® Modeler

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IBM MobileFirst Client Imperatives

Integrate mobile into the organization • Drive revenue and productivity• Transform the value chain

Optimize: CIO, CISO, IT Exec

Connect with customers in context

Engage: CMO, LOB

Transform: CXO, LOB

Create new value at the moment of awareness

Develop and run applicationsBuild: VP Apps, Developer

• Maintain visibility and control over the mobile enterprise

• Enable our employees to work anytime and anywhere

• Ensure trusted mobile interactions • Create deeper engagement by delivering

contextually relevant experiences• Discover new opportunities using mobile

information

• Deliver differentiated mobile apps that run on any device, continuously, with a feedback loop

• Unlock back office capabilities to create better front office engagement

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Momentum since Feb 2013 launch

IBM MobileFirst portfolio of capabilities

IBM & Partner Applications

Application & Data Platform

IBM

Se

rvic

es

Management AnalyticsSecurityTrusteer

Worklight

IBM Endpoint Manager, Fiberlink IBM MessageSight, Tealeaf®

IBM Services700+ mobile professionals

IBM Endpoint ManagerMobile device management

Worklight®

Cross platform mobile app development

UrbanCodeContinuous delivery for mobile

TrusteerSecure B2C transactions

IBM Security Access Manager

Policy based access

Cognos®Business Intelligence

XtifyMobile customer engagement

TealeafImprove the mobile customer experience

The Now FactoryEnable service providers to analyze their

mobile data

IBM Rational® Test WorkbenchIBM Jazz™ Hub

IBM Mobile Quality Assurance (beta)

Rapidly assess app quality

IBM Software• IBM Worklight

Elmec Mobile is a portal for easy access to services, including:

A catalog of 6000+ computer products, office equipment and supplies

Management of rental items by

geo-location and barcode recognitionInitiate computer support tickets

24x7

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IBM Security leverages our strengths in analytics, integration, and global skills to secure clients and capture new growth

QRadar Vulnerability

ManagerDiscover and address

security exposures

2013 Highlights

QRadar

Trusteer

Professional Services

Cloud & Managed Services

Security Access Manager for Mobile

Extend user access protection to mobile and

cloud environments

Security Intelligence with

Big DataSecurity expertise

with analytical insights

XGS Network Threat

ProtectionNetwork visibility

and granular control

Mid-Year Security report8,000+ vulnerabilities disclosedRise in exploitation of trusted relationshipsIncreasing sophistication of mobile malware

Security Intelligence and Analytics

Advanced Fraud Protection

PeopleIdentity & Access

Mgr

DataGuardium

ApplicationsAppScan

InfrastructureNetwork XGS

Fiberlink

Advanced Security and Threat Research X-Force®

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IBM is pioneering DevOps for continuous software delivery that enables clients to seize market opportunities and reduce time to customer feedback

OSLC

Monitor and OptimizeMonitor and OptimizeIBM Tealeaf CX, IBM SmartCloud Application Performance Management

Continuous Innovation, Feedback & Improvements

Plan & MeasurePlan & MeasureRational Focal Point

Develop & TestDevelop & TestRational Team Concert

Rational Test Workbench

Release & DeployRelease & DeployIBM UrbanCode Deploy

IBM SmartCloud Orchestrator

Best

Best

Pra

cti

ces

Pra

cti

ces

2013 HighlightsIBM JazzHub on

SoftLayerCollaborative

development on the cloud

IBM Rational Test Workbench

mobile interface for Worklight

Service virtualization & integration testing

IBM UrbanCode Deploy

Automate release & deployment of apps & services

IBM Rational Development &

Test Environment for System z

Automate code review and unit testing

50% increase in software quality over three

years

90% on-time delivery with DevOps

approach

50% increase over prior waterfall method

70% decrease in user downtime

IBM® Rational® Products• Asset Analyzer• Developer for System z®• Development and Test

Environment for System z• Requirements Composer • Team Concert™• IBM Software Services for

Rational

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IBM Design: Intentionally differentiate IBM products, services & relationships through great design

Tight integration across core

technologies

Interoperability with complementary

technologies

Common lookand feel

Enables easyskills transfer

Focuses on the user & the user’s story

Spans the product lifecycle (learn, buy,

adopt, maintain)

Designing an IBM that…

Designcamp for Executives

IBM Design Studio Austin

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An unmatched set of Cloud capabilities

Business Processas a Service

Enabling business transformation

Business ProcessSolutions Application Application Application Application Application

Softwareas a Service

Marketplace of high value consumable business applications

Platformas a Service

Composable and integrated application development platform

Infrastructureas a Service

Enterprise class, optimized infrastructure

Built using open standards

Compute Storage Networking

Built using open standards

Smarter Commerce

Smarter Analytics

Smarter Cities

Smarter Workforce

Watson solutions

IBM Service Engage

Service PlatformOpen Standards-based Middleware Solutions

IBM SmartCloudEnterprise +

Public. Private. Dynamic Hybrid.Infrastructure solutions

ExternalEcosystem Industry Collaboration Human

ResourcesBig Data & Analytics Commerce Marketing IT

Management

Software solutions

DevOps Big Data & Analytics Security Integration Mobile Social Traditional

WorkloadsManagement

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IBM Cloud is a growth engine for business

Think It.Strategize how to use cloud to drive savings and revenue growth.

Build It.Build and run your private or hybrid cloud.

Tap into It.Utilize cloud services delivered from IBM’s SmartCloud

• 37,000 experts with deep industry knowledge

• $6+ billion in cloud-related acquisitions since 2007

• 80% of Fortune 100 companies use IBM cloud capabilities

• #1 in EMA Radar™ for Private Cloud Platforms

• #1 in annual world-wide server revenue

• OpenStack founder• 50% reduction in IBM’s IT

labor cost with Dev / Test Cloud

• More than 21,000 SoftLayer clients in 140 countries

• SoftLayer is up to 10X faster than other cloud providers

• More than 100 cloud SaaS solutions

The most flexible cloud services for building,

integrating and securing cloud enterprise applications

New cloud services that empower the individual with the insight of

big data and analytics

The industry’s highest performing, end to end enterprise class cloud

infrastructure

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