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

2. © 2008 IBM Corporation 2 Change is inevitable

3. © 2008 IBM Corporation 3 New Model for the 21st Century International Exporting

4. © 2008 IBM Corporation 4 New Model for the 21st Century Multinational Country Silos

5. © 2008 IBM Corporation 5 New Model for the 21st Century The Globally Integrated Enterprise

6. © 2008 IBM Corporation 6 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

7. © 2008 IBM Corporation 7 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

8. © 2008 IBM Corporation 8 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

9. © 2008 IBM Corporation 9  Open  Collaborative  Multi-disciplinary  Global The Changing Nature of Innovation

10. © 2008 IBM Corporation 10

11. © 2008 IBM Corporation 11 Global Integration and Innovation Challenges and Opportunities Globalization Innovation

12. © 2008 IBM Corporation 12 Strategic location Mexico is Well Placed to Drive Innovation that Matters Education Investments Global trade agreements Foreign investments Competitive Infrastructure New generation of skills

13. © 2008 IBM Corporation 13 Three Pillars of Innovation

14. © 2008 IBM Corporation 14 Conclusions  The world is diversified  In the global economy, innovation is key  Mexico is well placed to drive innovation that matters