© 2005 IBM Corporation The Globalization Landscape Customer Inhibitors, Opportunities and Outlook Susan Mills Globalization Executive IBM Corporation

2 Vision: Excellence in the Total User Experience Mission: To optimize business value and customer success through excellence in the total user experience as a result of continuous improvement in people, process, tools and technologies. Make IT Easy by designing ease of use into the total user experience enabling users to do what they want, when they want, how they want with a high level of satisfaction. Make IT Clear by creating intuitive, accessible, global information and interfaces driving faster implementation and decreasing time to value by providing the right content, to the right person, at the right time. Make IT Global by delivering globalized offerings decreasing the time to deploy e-business applications worldwide and enabling reach to a wide range of customers in their language with their cultural preferences. Make IT Accessible by providing the same value proposition to all people. Improve Customer Satisfaction and Quality by monitoring, measuring, and acting on customer feedback to drive continuous improvement.

3 Business Transformation: The On Demand Challenge  Characteristics of an on-demand business Responsive: Capable of sensing changes in the environment and responding dynamically Variable: Able to adapt to cost structures and business processes to reduce risk and drive higher levels of productivity Focused: Concentrated on core competence Resilient: Prepared for challenges and threats  Characteristics of an on-demand operating environment Integrated: Capable of integrating with, and transforming, business processes to link processes and applications Open standards-based: Using open technical interfaces and agreed-upon standards Virtualized: Allows distributed computing resources to be shared and managed Autonomic: Takes care and manages itself.

© 2004 IBM Corporation 4 Globalization is a business imperative for IBM Globalization requires focus and appropriate investment Same value proposition for all customers worldwide

© 2004 IBM Corporation 5 What is globalization? Globalization is the trend toward an integrated worldwide economy Politics has created the opportunities.... Economics has provided the incentives... and now... Technology is providing the way!

© 2004 IBM Corporation 6 Customers need Globalization when...  They want to expand to other countries eBay Germany /

© 2004 IBM Corporation 7 Customers need Globalization when...  They want to expand to other countries  They want to attract and serve specific ethnic groups in their existing markets TD Canada Trust in Canada

© 2004 IBM Corporation 8 Customers need Globalization when...  They want to expand to other countries  They want to attract and serve specific ethnic groups in their existing markets  They need to protect their own markets from international competitors Toyota US – in Chinese

© 2004 IBM Corporation 9 Customers need Globalization when...  They want to expand to other countries  They want to attract and serve specific ethnic groups in their existing markets  They need to protect their own markets from international competitors  They have global customers who demand support for their business with them around the world IBM Corporation

© 2004 IBM Corporation 10 Across languages, cultures, local business conventions Bridge the gap between business and IT globally

© 2004 IBM Corporation 11 I have a GMS solution for you? I have TM that supports TMX Machine translation is perfect for you I have translation services? We support XLIFF … I can sell you a Unicode library I would like to expand to China. What should I do?

© 2004 IBM Corporation 12 We need to understand customers’ globalization challenges Business strategy and directions Business requirements –Insufficient understanding of the company business directions –Limited understanding of the associated requirements –IT organizations do not know who the application is for. And nobody is asking... Governance –Ambiguous objectives lead to differing solutions –Organizational conflicts reduce effectiveness –Gaps in responsibilities caused mismatches in solutions

© 2004 IBM Corporation 13 We need to understand customers’ globalization challenges IT Infrastructure, architecture and processes Lack of methodology and processes  G11N = translation. Some issues not perceived as globalization issues  IT frequently has no knowledge of the basic globalization guidelines  Lack of framework and processes to develop & manage multilingual content  Dependence on service providers that also lack the same skills IT organizations may be using the wrong development and delivery platforms  Poor knowledge of the features available in their development platforms  Lack of access to technologies to handle locale and languages  Lack of tools for the end-2-end process to model, define, design, develop, test, & deploy global applications

© 2004 IBM Corporation 14 Our company is expanding to China Our system works? Engage help Make necessary Globalization changes Need translation? Define Trans- lation process Need new systems? Acquire new systems Select Translation vendor Implement Process - which applications? -new software? -- new hardware? -- communication infrastructure? -Business infrastructure? - Code changes? - new applications? - distributed, central, or hosted? Yes No/don't know Expand Yes No Yes No End to end globalization Assessment Question for us Can we guide our potential customers every step in the business process and identification of their globalization requirements and needs?

© 2004 IBM Corporation 15 On the road to globalization Crawl Walk Run Customers at a loss adopting the appropriate technologies Globalization vendors selling ad-hoc technologies Globalization solutions more mature Vendors compete for market & mindshare Understand & respond to customer needs The G11N industry is here Competition WW Regulation Technology Trends Demographic Shifts Business Transformation Compliance Opportunity

© 2004 IBM Corporation 16 So, where are the opportunities?  “Reverse” Localization –Emerging Markets: China & India –Move across Asia and into Europe  Small and Medium Enterprises –The biggest globalization growth in the next 3 to 5 years (Aberdeen Group) –Business Partner & ISV solutions with no prior experience in globalization. –A highly price sensitive market.  Business Integration and Business Transformation –Globalization is a “discrete service”, integrated into a larger Enterprise Business Transformation effort –Customers are looking for partners who understand their business strategy and requirements –Not just products & offerings, more importantly…Business Processes

© 2004 IBM Corporation 17 What do we need to do?

© 2004 IBM Corporation 18 Outside In Design: Key to Enterprise Responsiveness  Outside In Design is a single discipline, made up of complementary approaches that bring the customer voice to development enabling enterprise responsiveness. Business Opportunity User Expectations Conceptual Design Detailed Design Milestone Process

© 2004 IBM Corporation 19 Globalization for an On Demand world!  Understanding the marketplace –Business requirements –Emerging markets –Unicode consortium, LISA –Gather customer requirements  Building and educate the globalization community –Globalize your On Demand website –Support IGS on customer engagements –Support IBM Business Partners integrate G11N technologies to IBM solutions  Business Transformation and Change Management: define and implement a streamlined & integrated Localization Supply Chain across IBM –Analyze the end- to-end translation process (BCS) –Model appropriate on demand, modular, lightweight, translation services offerings (WBI) –Develop supporting tools and IT infrastructure (DITA driven) –Execute: align people and resources to build a stronger community of localization skills –Monitor: measure progress and success Enterprise responsiveness is all about time to value and turn around time

© 2004 IBM Corporation 20 Model Business Process Analyze Develop Monitor Execute Scope/ Planning Author / Creation Packaging / Submission Pre- Processing Translation Post Processing Validation Publish / Manufacture Translation/Localization Process WebSphere Business Process Integration: model a set of rapid on demand, lightweight service offerings needed to develop global components Aligning people & resources in order to build a stronger global community of specialized localization skills Translation Workflow Management System based on IBM’s framework of –business intelligence, –business integration, –service management Integration of People, Process, Tools to Drive Improvement In the Turn Around Time of the translation business

© 2004 IBM Corporation 21 What is next?  The market is dramatically changing  The globalization industry will change and adapt  We need to capitalize on opportunities to deliver on “Turn around Time”  We need to listen to customers and provide faster “Time to Value”

© 2004 IBM Corporation 22