Frank Kern Senior Vice President Global Sales and Distribution Innovating for growth.

Frank Kern Senior Vice PresidentGlobal Sales and Distribution

Innovating for growth

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Change is inevitableChange is inevitable

© 2008 IBM Corporation3

New Model for the 21st Century International Exporting

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New Model for the 21st Century Multinational Country Silos

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New Model for the 21st Century The Globally Integrated Enterprise

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Globalization Removes Barriers to Innovation

Traditional barriers to innovation are no longer game stoppers

Innovation can spring up anywhere in the world

New players can enter industries overnight

New and disruptive business models can be created anywhere

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Innovation is Key for Social and Economic Growth

Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value

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Why Innovation Matters

Spurs productivity, economic growth

Meets societal needs

Creates national and global markets

Generates jobs, wealth creation

Results in higher standard of living

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Open

Collaborative

Multi-disciplinary Global

The Changing Nature of Innovation

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Global Integration and InnovationChallenges and Opportunities

GlobalizationGlobalization InnovationInnovation

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Strategic location

Mexico is Well Placed to Drive Innovation that Matters

Education Investments

Global trade agreements

Foreign investments

Competitive Infrastructure

New generation of skills

© 2008 IBM Corporation13

Three Pillars of Innovation

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Conclusions

The world is diversified

In the global economy, innovation is key

Mexico is well placed to drive innovation that matters