IBM Overview

Global Business Services

© 2007 IBM Corporation

13 Sept 2007

IBM Overview prepared for

NDTA, Tampa Bay Chapter

Mark NixonSenior Managing ConsultantSupply Chain ManagementGlobal Business [email protected]

IBM Global Business Services

© 2007 IBM Corporation2March 1, 2007

Agenda

Differentiators


IBM’s Internal Supply Chain

Research and Development



Why IBM…our key differentiators

On Demand Services

Reach-back – Behind every IBMer there are thousands of resources available

Open Architectures & Open Standards - “we are agnostic to solutions”

Largest Integrator of ERP & COTS

IBM – “We want to solve yourmost difficult problems”

We transformed ourselves– SCM & Distribution

– Workforce & Knowledge Management

– Lean Six Sigma & Component Business Model

Our solutions are built on innovation & best commercial practices; supported by Services Oriented Architectures



49% Hardware

7% Other

17% Services

27% Software

$62 Billion Revenue

1993

$91.1 Billion Revenue

17% Software

27% Hardware

1% Other

52% Services

3% Finance

2005

49% Hardware

7% Other

17% Services

27% Software

$62 Billion Revenue

1993

$91.1 Billion Revenue

17% Software

27% Hardware

1% Other

52% Services

3% Finance

2005

Over the past 15 years IBM has made a major transformation from a hardware company to a services led business



IBM exports our logistics and supply chain successes for our clients….

In the last 3 years alone, transformation has produced impressive results!!



IBM Global Business Services is a partner of unmatched breadth and depth

Consultants and professional staff in more than 160 countries globally

Deep experience and expertise in 17 industries

Partnerships with leading-edge Independent Software Vendors

Broad set of services spanning Strategy and Change, Customer Relationship Management, Supply Chain Management, Financial Management, Human Capital Management, Application Innovation

Over 8500 Supply Chain consultants worldwide, with 1000 working in the Public Sector

Industry Sectors Service Lines

Strategy & Change

Supply Chain Management

Human Capital Management

Customer Relationship Management

Financial Management

Business Transformation Outsourcing

Application Services

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Business Consulting Services has a suite of offerings, many of which have active IBM DoD projects today

FinancialManagement

• Finance Transformation Strategy

• Data Warehousing / Decision Support / BIS

• ERP / Finance Infrastructure

• iAnalytics

Customer

Relationship

Management

• CRM Vision• Customer

Analytics• Integrated

Multichannel Solutions

• CRM ACCEL

Supply Chain

Management

• Integrated ERP• Procurement• Adv Planning and

Scheduling• Fulfillment and

Logistics• Collaborative

Product Commerce

• Maintenance and MRO Mgmt

• Retail & Financial Institution Ops

• Collaborative Value Chain Solutions

Strategy & Change

• Corporate Strategy

• Operational Strategy

• Organizational Strategy

• Change Management

• Information Technology

• e-Business• e-Transformation• e-Globalization• Mergers &

Acquisitions

ApplicationInnovation

• Emerging Technologies

• Enterprise Application Integration

• Information Technology Infrastructure

• Reseller• Web Services• New World

Networks

Human CapitalSolutions

• Employee Portals• Human Capital

Transformation• ERP

Implementation• Human Capital

Data Warehousing and Decision Support

Transform and Operate Solutions

• Business Process Management Solutions

• Application Management Solutions

• Infrastructure Management Solutions

• Operate

Active IBMProjects

• Army • Defense Agencies

• Army• Air Force• Defense

Agencies

• Air Force•Army•Air Force•Navy•Defense Agencies

• Army• Navy• Defense

Agencies

•Army•Air Force•Navy•Defense Agencies



IBM’s Internal Supply Chain operates on a vast scale of tremendous complexity to achieve our distribution mission

18,000 employees at 100 locations in 61 countries

Approximately $40 billion, or roughly 50%, of IBM’s total cost and expense

Moves more than 2 billion pounds of production materiel, end items, and parts annually

Handles over 78,000 products, with more than 3 million configurations

45,000 business partners worldwide

33,000 suppliers are connected to IBM through the Web

Approximately 350,000 updates are made a day to the 6.5 million customer records from 1.7 million orders a year in North America alone

In November 2005, IBM supply chain ranked 3rd

in AMR Research’s Top 25 supply chains



Enterprise Asset Management

and Operations

Supply Chain Planning

Supply Chain Strategy

Logistics

Product Lifecycle

Management

Procurement OperationsAnalytics

Supply Chain Enterprise

Applications

Process Change

Technology Enablement

Business Transformation Outsourcing

Transformation

Supply ChainManagement

IBM GBS Supply Chain Practice Area consists of eight Solution Areas that deliver an array of offerings to address supply chain needs from transformational strategy to outsourcing. It also offers advanced frameworks and technologies to enable agile, flexible, and adaptive value net.



IBM Research – with eight labs worldwide, we have more than 3600 Researchers

high performance/low power VLSI design and tools, system-level power analysis, and new system architectures

VLSI design, verification technology, storage subsystems, e-business and security, computer systems, programming languages and environments, advanced applications, applied mathematics, multimedia, and service technologies

software technology, systems technology, pervasive computing, Internet technology and applications

semiconductors, physical & computer sciences, Life sciences and mathematics

electronic commerce, media mining, fingerprint matching, speech recognition, weather forecasting and wireless networks

Zürich Beijing

Austin

Delhi Tokyo

communication systems, computer science, selected science and technology projects, and industry solutions and services research

language processing, speech & handwriting recognition, pervasive computing, mobile computing, multimedia, and e-business technologies & solutions

computer science, database, user interface, web software, storage systems software & technology, physical sciences, materials science, nanotechnology, life sciences, services research

Almaden Watson

Haifa



São Paulo, Brazil

IBM RFID Centers of Excellence – 10 Worldwide CentersHelping our clients understand the business value and the physics of RFID

Yamato, JapanLa Gaude, France

Markham, CanadaDublin, Ireland

Washington, DC USA

Raleigh, NC USACharlotte, NC USA

Dallas, TX USA

RTP, NC USA



Wireless Center of Excellence – Research Triangle Park, NC

RFID-Enabled Pallet Wrapper Conference Room

Wireless Center of Excellence

Building 311 - RTP Campus

RFID-Enabled Fork Lift (2)Connected to WLAN

RFID-Enabled Dock Door Area

RFID-Enabled High Speed Conveyor

RFID Technology Lab(Printer Area Shown)



Sea Enterprise Business TransformationNearly $26B* in Cost Savings

Navy Supply Chain challenges: distributed/duplicative supplier mgmt, procurement, and logistics functions

2005Early 1990s

Cost Cost ReductionReduction

Internal Cash Cash

GenerationGeneration

Customer Customer SatisfactionSatisfaction

Priorities of IBM Transformation (akin to Sea Enterprise)

Supply Chain Transformation 1. Integrated the supply chain2.Rolled out strategic IT platforms3.Optimized supply chain sourcing

One dayOne monthPurchase Order Process Time

95%<20%Electronic Purchases

<0.2%>35%"Maverick buying”

92%55%Acceptable Business Controls

35,000<500Enabled Suppliers

2800Electronic Catalogs

80%40%Client Satisfaction

99%85%Supplier Quality

3300Procurement Centers

People

IBM Supply Chain Transformation

The Changing Business Landscape -- A Recent Navy View of IBM

*normalized for Lenovo



Sea Enterprise Business Transformation

NFOTS 2005

IBM

IBM Profile vs. Navy Profile

Driven by market competition, IBM is further along in their journey…

Navy 2005

Is Navy today more like IBM under Akers or IBM under Gerstner? Are we making progress? How can we accelerate change?

Fortune 100 ranking: 10th

Total 2005 Revenue: $91.1B

Total Staffing: 329,000 HR Staff 4,000

% Executive Mgmt: 0.01% # of Pay Bands: 15 Distinct Business Areas: 6

Total Networks: 1 Total IT Applications: 4,100 Financial Mgt. Apps. 406 HR Apps. 300

Supply Chain Budget: $40B

Fortune 100 ranking: 7th

Total FY05 Revenue: $103.7B

Total Staffing: ~900,000 HR Staff 29,500

% Flag & SES: 0.09% # of Pay Bands: 24 Distinct Echelon IIs: 27

Total Networks: 850 Total IT Applications: 23,755 Financial Mgt. Apps. 1,083 HR Apps. 708

Supply Chain Budget: $57B

The Changing Business Landscape -- A Recent Navy View of IBM



IBM Overview

Documents

supply chain

services research

life sciences

pervasive

wireless center

2007 ibm corporation

business

rfid