SDA Bocconi master MiMeC - May 30 2014

transcript

IBM Strategy

Conversation with students from Master in Marketing and Communications

( MiMeC – Bocconi )

30th May 2014

Roberto Villa

@RobertoVjlla

Revenue: 99.8B

Income: 16.3B

Employees: 430.000

Countries: 170

(2013 figures)

IBM at a glanceWe create business value for enterprise clients through integrated solutions that leverage innovative IT and deep business insights

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Dedication to every client’s

success

Innovation that matters – for our company and

for the world

Trust and personal responsibility in all

relationships

IBM Values

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IBM Operating Model

Business UnitsGeographies Sectors

Systems & Technology Group

Global Business Services (GBS)

Software Group (SWG)

Global Technology Services (GTS)North America

Europe

JapanDistribution

Industrial

Financial Services

Communications

Public

Growth Markets

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New Era of Computing

Solutions

Software

Infrastructure

IBM’s strategy is shaped by our three strategic belief s

New Buyers, New Markets

Growth Markets

CxOs and City Leaders

Smarter Solutions and Cities

New Ways of Working

Client Experience

Smarter Enterprise

Employee Engagement

WHO WE SELL TOWHAT WE SELL HOW WE ENGAGE

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Mobile

This new era is reshaping the IT landscape and crea ting new market dynamics

Social

Internet of Things

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High Value

Low Cost

Consumer Enterprise

The High Value / Enterprise space is attracting new competitors and new business models

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IBM continues to remix our portfolio……to reflect our beliefs and our strategy

Percent of Operating segments profit* Hardware & Financing

Software

Services

27% 23%

* Sum of operating segment pre-tax income not equal to IBM operating pre-tax income ** Stock-based compensation expense was not recorded at the segment level and excludes Enterprise InvestmentsNote: May not add up to 100% due to rounding

2000** 2006 2012 2015e

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…to reflect our beliefs and our strategy

IBM continues to remix our portfolio…

Exit commoditized businesses that no longer fit our strategy

� DRAM 1999

� Network 1999

� Flat Panel Displays 2001

� Hard Disk Drives 2002

� Personal Computers 2005

� Printers 2007

� Retail Store Solutions 2012

� Customer Care BPO 2013

� X86 server Hw 2014

Invest in acquisitions and organic capabilities to

complement & scale our portfolio

� Nearly $39B on 145 acquisitions since the beginning of 2000

� Nearly $16B on 33 acquisitions for Business Analytics and Optimization since 2005

� More than $6B annual investment in IBM Research & Development

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IBM Research is the engine of the IBM Strategy

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roberto_villa@it.ibm.com

IBM Go-To-Market Strategy

IndustriesIndustries

Retail Banking E&U Telco .....

EnterprisesEnterprises

Mid MarketMid Market

Sales Channel Sales Channel Clients segmentClients segment

1 client, 1 team

1 territory, 1 team

Business Partners

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IBM Marketing Mission

Designed to answer:

- What does it mean to be an IBMer?- What does IBM stand for?- What does it look like, sound like, think like, and perform like?

Designed to answer:

- What should we market?- To whom should we market?- How do we condition the market?

Designed to answer:

- How do we forge shared belief?- How do we spur clients to act?- How do we sustain behavior?- How do we enable advocacy at scale?

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Our world is becoming

Instrumented

Virtually all things, processes and ways of working are becoming

Intelligent

Our world is becoming

Interconnected

The Vision: Let’s Build a Smarter Planet

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Smarter Planet….. will provoke the conversations wi th all our constituents

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Collaboration is key on a Smarter Planet….

GTO 2009

Studies

Clients

Business Partners

Goverment

Alumni

Academia

Analysts

Thought Leaders

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Smarter planet is an advertising campaign

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Smarter planet is a presidential agenda

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Smarter planet is a meeting of minds

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Smarter planet is a movement

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Co-creation provides the highest business value, di fferentiation and innovation to clients

Client BusinessValue

Differentiation & Innovation

ServicesServices

One of the kindOne of the kindServiceService

CoCo--creationcreationexperienceexperience

transformationtransformation

ProductsProducts

CommoditiesCommodities

customizatio

commoditizatio

customizatio

commoditizatio

ncommoditiz

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Smarter Planet…. makes new markets

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Smarter Planet reaches new buyers

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Smarter Planet reaches new buyers…Smarter Cities

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Smarter Planet wave 2 – Made With IBM

http://www.ibm.com/smarterplanet/us/en/madewithibm/@RobertoVjlla

http://www.youtube.com/watch?v=XOcOQS1jH2E

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http://youtu.be/EVt8MrvmfqY@RobertoVjlla

http://youtu.be/j287lOF8KCY@RobertoVjlla

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Thank You

the conversation continues on @RobertoVjlla