1. © 2011 IBM Corporation Smarter Strategies for Economic Transformation … Watson Transforming Industries Gerard M. Mooney General Manager Global Government and Education June 23, 2011 DRAFT

2. © 2011 IBM Corporation29 October 2015 Contents  A new era of talent intensive growth  Smarter strategies to drive economic transformation and development Contents Four Partners for Economic Development Government Citizens Business Education

3. © 2011 IBM Corporation Skills and knowledge are becoming increasingly important drivers of economic growth and activity in cities and regions Skills and knowledge are driving growth in income ( Regional and urban data, 1999-2007, size of the bubble reflects income per capita, US$ PPP) 0 10 20 30 40 50 60 0102030405060 Tertiary education, % of labor force Knowledge intensive services, % of total 1999 2007 The era of talent and innovation-led growth Source: OECD Regional Statistics database, 2010 and IBM Global Center for Economics Development analysis MA N. Ireland

4. © 2011 IBM Corporation49 October 2015 As skills, knowledge grow in importance, demand - and competition - for higher quality workers is increasing Source: CDEFOP, 2009 and 2010, and IBM Global Center for Economics Development analysis Inflow of highly educated migrants Millions, 2010-2030 Change in demand for skills in EU27 Net increases in excess of demographic factors, millions of jobs A new era of talent intensive growth

5. © 2011 IBM Corporation59 October 2015 For all organizations, uncertainty, risk and complexity in the external environment are increasing Uncertainty Complexity Networked economy Price instability Pre-Crisis Business Environment Data overload Credit Constraints Industry Restructuring Sources: IBM Analysis, The Black Swan, Nassim Nicholas Taleb, Random House 2007 Sovereign Defaults A new era of talent intensive growth

6. © 2011 IBM Corporation69 October 2015 The data deluge is real and oorganizations are struggling to understand how to use it to achieve results  Organisations are overwhelmed by the amount of data they have, and struggle to understand how to use it to achieve business results N = 2512 Source: IBM Institute for Business Value and MIT Sloan Management Review survey Graphics and content: MIT Sloan Management Review, Fall 2010 10 Data Points: Information and Analytics at Work A new era of talent intensive growth

7. © 2011 IBM Corporation79 October 2015 Partnering and collaboration are now key and are becoming more important Increased Network Complexities 1 Executives expect collaborative relationships with third parties to increase 80% Source: IBM Global Chief Supply Chain Officer Study The era of talent and innovation-led growth

8. © 2011 IBM Corporation89 October 2015 Source: IBM Global Retail Industry, Worldinternetstats.com At the same time, consumers are becoming smarter as technology fundamentally changes the way they interact and obtain information, Internet users, millions,1995-2010 +12,188% A new era of talent intensive growth … citizens are increasing informed, enabled and demanding Source: IBM Global Retail Industry, Worldinternetstats.com 28.7% of the world’s population, are online 63% of adults research through social networks and blogs, and 47% of the time they are influenced by what they read As of Jan 22, 2011 there were over 400,000 iphone apps and over 10 billion downloads

9. © 2011 IBM Corporation99 October 2015 Contents  A new era of talent intensive growth  Smarter strategies to drive economic transformation and development Contents Four Partners for Economic Development Government Citizens Business Education

10. © 2011 IBM Corporation109 October 2015 A number of core systems play a crucial role in underpinning innovation, job creation and growth and are key for the economic development of cities Public Safety Government Services Education Healthcare Transportation Energy and Utilities, including water Telecommunications Smarter strategies to drive economic transformation and development

11. © 2011 IBM Corporation119 October 2015 Cities and businesses can generate growth in the face of these challenges by innovating and getting ‘smarter’ Intensifying competition for talent Complexity and uncertainty Smarter consumers Innovation Smarter strategies to drive economic transformation and development

12. © 2011 IBM Corporation IBM Global Entrepreneur SmartCamp finalists are world class Smarter strategies to drive economic transformation and development

13. © 2011 IBM Corporation IBM Global Entrepreneur of the Year announced in Dublin Smarter strategies to drive economic transformation and development

14. © 2011 IBM Corporation149 October 2015 Leverage modern information technology to make systems and services smarter Leaders must act NOW in this new environment Making such wise investments now to build a smarter region will help to drive economic transformation and development Smarter strategies to drive economic transformation and development

15. © 2011 IBM Corporation159 October 2015 "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” Charles Darwin (1809 -1882) Smarter strategies to drive economic transformation and development