© 2009 IBM Corporation Building a Smarter Planet: The Challenge for Next-Gen Leaders Linda Sanford, Senior Vice President | Enterprise Transformation University of Miami College of Engineering, January 25, 2010

© 2009 IBM Corporation Our world is becoming INSTRUMENTED. Our world is becoming INTERCONNECTED. All things are becoming INTELLIGENT. Infusion of Intelligence into the Way the World Works Smart traffic systems Smart traffic systems Smart energy grids Smart energy grids Smart healthcare Smart healthcare Smart retail Smart retail Smart supply chains Smart supply chains Smart food systems Smart food systems

© 2009 IBM Corporation The World is Getting Smarter – Because It Must percent of electrical energy is lost due to inefficiencies in the grid. In one small business district in Los Angeles alone, cars burned 47,000 gallons of gasoline just looking for parking. Our healthcare “system” can’t link from diagnosis to drug discovery, providers, insurers, employers and patients. Weather-related events inflicted $1 trillion in damage from Only 22 percent of reserves are extracted from the world’s existing oil wells.

© 2009 IBM Corporation The World is Getting Smarter – Because We Want It to Smart traffic systems Smart water management Smart energy grids Smart healthcare Smart food systems Intelligent oil field technologies Smart regions Smart weather Smart countries Smart supply chains Smart cities Smart retail

© 2009 IBM Corporation

The Essential for Our Next Generation Leaders  Natural-born collaborators

© 2009 IBM Corporation7 The Eras of IBM Research “The World Is Now Our Lab” Isolated Research Joint Projects Radical Collaboration ’50s — ’90s ’90s — ’00s ’00s … IBM Divisions, Clients, Universities In-world Research, Smarter Planet Research Hardware + Software & Services + Smarter Planet

© 2009 IBM Corporation8 IBM Research: Collaborative Innovation China Watson Almaden Austin Tokyo Haifa Zurich India IBM Research Lab Global, Smarter Planet Collaborations Pangoo

© 2009 IBM Corporation The Essential for Our Next Generation Leaders  Natural-born collaborators  Shaped like a T

© 2009 IBM Corporation Client Technical Advisors Deliver Value Beyond Core Technical Competence T-Shaped Model for client-facing IT professionals Value Selling CLIENT DEPTH IBM BREADTH Integrate IBM Share IBM Strategies Deliver Client Value Cultivate Client Relationships Apply Client Industry Insight Provide IBM Solutions Apply Technical Methods and Models

© 2009 IBM Corporation The Essential for Our Next Generation Leaders  Natural-born collaborators  Shaped like a T  Data-driven decision-makers

© 2009 IBM Corporation Business Intelligence Resource Planning Business Automation Client Investment in Business Analytics and Optimization Projects is growing more than twice as fast as in Business Automation Business Analytics and Optimization

© 2009 IBM Corporation The Essential for Our Next Generation Leaders  Natural-born collaborators  Shaped like a T  Data-driven decision-makers  Create culture of trust & accountability

© 2009 IBM Corporation  ValuesJam – an in-depth exploration of IBM’s values and beliefs by employees.  Results: -72 hours -220K downloads of Values manifesto million views to site -Set of new core values defined by IBM’s workforce Good discussion about the need for values/principles/beliefs, etc. people can be very cynical and sarcastic about this kind of topic, but I appreciate the thoughtful constructive comments I’m seeing. Personally, I believe “values” should embrace a company’s broader role in the world --with customers, society, culture, etc. - as well as how its people work together.. I hope this Jam elevates IBMs ambitions about its mission in the 21st century.. WE have a unique opportunity for IBM to set the pace for ALL companies, not just the techs. Global Collaboration to Define IBM Values

© 2009 IBM Corporation Questions and Comments

© 2009 IBM Corporation Thank you!