1. © 2008 IBM Corporation Becoming a Globally Integrated Enterprise in a Small World Karen Newman Americas Automotive Leader IBM Global Business Services

2. IBM Automotive © 2008 IBM Corporation The world is integrating and business models are changing Two-thirds of the CEOs around the world expect imminent and radical change. - IBM CEO Study 2006 “The scale and pace [of global economic integration] is unprecedented … the greater part of the earth’s population is now engaged. ” – Ben Bernanke, Chairman US Federal Reserve “The new business models are based on integration, cooperation and an exchange of resources – and above all the new business model is focused on the requirements of the global client.” - Oswald Grubel, CEO, Credit Suisse Group Companies are transforming from multinational to globally integrated

3. IBM Automotive © 2008 IBM Corporation Global integration is becoming reality  Where and how business value is created is changing  This is shaped by three forces: –Economics –Expertise –Open business environments

4. IBM Automotive © 2008 IBM Corporation Key Practices of a Globally Integrated Enterprise Tap the Power of Globalization Deliver unique value in an open, collaborative ecosystem Forge a strategy for Specialization Leverage Global Assets Serve Distinct Global Markets Manage Value in an Ecosystem of Increasingly Specialized Entities Address Shared Risk and Control Build a Specialized Enterprise Enable Collaboration

5. IBM Automotive © 2008 IBM Corporation Karen Newman Americas Automotive Leader IBM Global Business Services newmank@us.ibm.com