© 2011 IBM Corporation

© 2011 IBM Corporation

Smarter Industry Solutions:

Michael D. Rhodin

SVP, IBM Software Solutions Group

Using cloud to transform your business

© 2011 IBM Corporation

Rethink IT. Reinvent Business.

IBM SmartCloudwww.ibm.com/smartcloud

Deploy ConsumeDesign

Business Process as a Service

Platform as a Service

Infrastructure as a Service

© 2011 IBM Corporation

Cloud is both a transformational IT trend and a key growth priority for IBM

Integration

49% of companies cited difficulties in integration as a leading barrier

As clients move serious work onto the cloud, IBM has identified 3 gaps:

Client-defined Clouds

Businesses want parameters that can be adjusted to meet job requirements

New opportunities New areas to extend value

Growth for cloud is predicted to outstrip traditional IT by 5x

Cloud will be a $7 billion business for IBM by 2015

$3 billion of that will incremental, from new spaces

Businesses are adopting cloud to optimize IT & improve processes

© 2011 IBM Corporation

Management

Operations Support System

Cloud Service Models have foundational components

Optimization Security

Workload Services

Integration

Application Lifecycle

Application Services

Industry SolutionsBusiness Application Services

© 2011 IBM Corporation6

Smarter Commerce

Social Business

Business Analytics & Optimization

IBM is defining new segments and driving new value for our clientsCloud-enabled capabilities allow clients to optimize people, processes, decisions, and assets

Smarter Cities

© 2011 IBM Corporation

BuySourcing, controlling and procuring of goods and materials

MarketTargeted and personalized marketing across all customer interactions

SellSelling and fulfillment of products and services across all channels

ServiceServicing customer needs across all interaction channels

Customer

Integrated Supply Chain

Sell I Order I Fulfill

Source I Control I Procure

For Example: Smarter Commerce- transforming business processes

Smarter Commerce: A smarter way for companies to buy, sell, and market their products, by integrating operations and enhancing interactions with collaboration and analytics capabilities.

© 2011 IBM Corporation

Social Business Enable new interactions Facilitate collaboration Collaborative development

Real-time Analytics Web analytics Predictive analytics Social analytics

Science of marketing Define messages and automate

campaigns Optimize search results Customized Web experiences

Optimized Supply Chain Supply chain visibility Optimize inventory & order

management Apply insights to align supply

with demandSupply Chain Visibility

Sentiment analysis

Smarter Commerce in Action

© 2011 IBM Corporation

Enabling quantifiable business outcomes: Successful companies are staying competitive by transforming their approach to commerce

95%Amount CSX reduced partner integration time.

41%Amount Petco increased sales per unique web visitor. Also increased open and click-through rates to five times the industry average.

70%Amount Cengage grew direct-to-consumer commerce revenues year over year.

376%Amount XO Communications boosted ROI by reducing customer churn.

© 2011 IBM Corporation

Example: Smarter Cities Operation Center on the Cloud will provide a city-level dashboard of all city systems

Smarter Water

Smarter Traffic

Smarter Public Safety

Value: Integrates disparate city system

data from assets, resources, and events

Single, unified view of information in a customizable dashboard

Enables real-time collaboration and coordination across agencies

Deploying on the cloud improves time to value and consumability

© 2011 IBM Corporation

Business Need Facilitate communication between agencies to

coordinate emergency activities

Improve emergency response times

Make better use of city resources

Integrate data and processes across agencies

Business Outcomes Information is shared instantly and rapidly across agency lines to better coordinate

responses

Officials can communicate instantly and synchronize rescue efforts

Data captured from existing city resources provides a single, unified, & comprehensive view

Rio de Janiero City Hall can proactively address problems and predict new ones

© 2011 IBM Corporation

Rethink IT. Reinvent Business.IBM Business Services provide capabilities that address specific business challenges around processes, people, or content- in an industry context

35k marketers across 6 continents run their daily marketing operations on the IBM SmartCloud with Unica

6B consumer interactions managed in 2010 on IBM SmartCloud with IBM Coremetrics

9K North American shipping carriers use IBM Sterling Commerce on the IBM SmartCloud

4.5M client transactions managed per business day on the IBM SmartCloud with IBM Sterling Commerce

Millions of users use the LotusLive platform for Social Business

Deploy ConsumeDesign

Business Process as a Service

Platform as a Service

Infrastructure as a Service

IBM SmartCloudwww.ibm.com/smartcloud

© 2011 IBM Corporation

© 2011 IBM Corporation

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Economics of Computing are ChangingEconomics of Computing are Changing

Cloud computing allows companies to rethink IT and reinvent the way they do business

Rethink IT

Reinvent Business

Improve speed and dexterityImprove speed and dexterity

Deliver IT without boundaries Deliver IT without boundaries

Capture new business value Capture new business value

Ensure integrity and security Ensure integrity and security

Delivery higher value products and services fasterDelivery higher value products and services faster

© 2011 IBM Corporation