© 2014 IBM Corporation Smarter Workforce Services Business Process Innovation

© 2014 IBM Corporation IBM Global Process Services: Business Process Innovation 430,000 IBMers, in 170 countries, speaking 165 languages 1,110 software products in the IBM portfolio 3,000 active researchers, including 5 Nobel Laureates 120,000 Global Business Partners 6,478 U.S. patents in 2012 alone 20 consecutive years of U.S. patent leadership 9,000 business analytics consultants with industry experience USD 6B invested in research and development each year 20 consecutive years of U.S. patent leadership USD 16 B in analytics software acquisitions alone since 2005 Rich enterprise cloud computing capabilities with over USD 5B in cloud acquisitions to date 65,000 Service Delivery personnel A Smarter Workforce has access to the full breadth and depth of IBM capabilities.

© 2014 IBM Corporation IBM Global Process Services: Business Process Innovation 33 A combination of forces presents promising opportunities, higher expectations and new challenges Analytics Cloud 85% of consumers expect a seamless experience across all channels from a retailer 95% of airlines plan to increase mobile interactions in the next 5 years 67% of global consumers want to use mobile devices to check out 72% of bank CEOs identify customer insights as the most critical area for investment 80% of new apps will be distributed or deployed via the cloud 33% of consumer data will be stored in the cloud by 2016 Social Analytics CloudMobile

© 2014 IBM Corporation IBM Global Process Services: Business Process Innovation The Customer Activated Enterprise CxOs plan to collaborate much more extensively with their customers 90% Customer collaboration 73% CFOs in outperforming enterprises anticipate working with an expanded partner network Expanded partner networks 61% CxOs foresee partnering to increase value as a major change to impact the business landscape with more than half sourcing innovation from outside External partner collaboration CSCOs plan to break down barriers by integrating their supply chains and making them more visible 74% Supply chain integration Source: IBM Institute for Business Value - The C-suite Study 2013, The Customer Activated Enterprise. Study results based on in person interviews with 4,183 top executives across 20 industries in 70 countries representing both private and public sector organizations C-suite collaboration 92% of outperforming enterprises often have C-suite leaders that collaborate and work together better …driving C-suite leaders to collaborate more broadly to enable and accelerate innovation 44

© 2014 IBM Corporation IBM Global Process Services: Business Process Innovation 55 Value by the numbers—snapshot of business process innovation across multiple industries 120 M customer calls are handled in a year from 42 delivery centers around the world USD 5 B annuity assets are under administration with us and 75,000 new insurance policies are issued annually USD 57 B in procurement spend is managed on behalf of our clients 1.6 M employees are served including 263,000 retirees through our HR operations across 104 countries and 27 languages 28 M customer interactions in a year are supported through non-voice channels such as , chat, text messaging, social media and web, leveraging our multi-channel capability 60 M transactions are managed for banking clients annually across customer support, product servicing, trade finance, collections and risk management

© 2014 IBM Corporation IBM Global Process Services: Business Process Innovation 66 Services enabling organizations to create a Smarter Workforce Behavioral Sciences Behavioral Assessments Fit Assessments Skills Assessments Talent Analytics Retention Analytics Survey Analytics Talent Optimization Social Learning Offerings Learning Content Marketplace Learning Analytics and Dashboards Talent Acquisition High Volume Hiring Industry Alignment Quality of Hire Analytics