32. ibm philippines overview 103006_2

8/7/2019 32. IBM Philippines Overview 103006_2

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2006 IBM Corporation

IBM in the PHILIPPINES

James G. VelasquezCountry General Manager


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International Business Machines

IBM in the Philippines | October 2006 | Confidential 2006 IBM Corporation

Agenda

Corporate Overview IBM in the Philippines

IBMP Business Operations

InnovationA Summary on the Global CEO Survey


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Corporate Mission

We strive to lead in the invention,

development and manufacture of the

industrys most advanced information

technologies.

We translate these advanced

technologies into value for our customers

through our professional solutions,services and consulting businesses

worldwide.


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IBM History Incorporated in 1911 as the Computing-Tabulating-Recording Company (C-T-R)

In 1924, C-T-R became International Business Machines Corporation

1910s-60s:

From punch-card tabulating machines to room-sized calculators tomainframe computing systems for large enterprises

Changed the nature of accounting, calculation, and basic back-officebusiness processes

1970s-80s

IBM product line broadens from mainframes to minicomputers andpersonal computers

Applications move beyond back-office enterprise to departmental

operations and personal productivity

1990s

With the Internet and open standards, the network computingmodel is embraced and advanced

Coined e-business to describe how network computing cantransform core business functions and transactions


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IBM Today

The worlds largest information technology company

The 8th largest corporation in the world

Year end 2005, IBM reported:

$ 91.2 billion in revenue

$ 5.7 billion in R&D

Present in 174 Countries

More than 329,000 employees worldwide

More than 670,000 stockholders of record


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A Global Company

Corporate headquarters: Armonk, NY

Serving customers in 174 countries worldwide

Nearly 60 percent of revenue generated outside the United States


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Business Operations

Percent of IBMs Total Revenue in 2005

52%

27%

17%Services

Hardware

Software

Financing

EnterpriseInvestments/Other

1%4%


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Services

Financing

Hardware

Software

Technology

Research

Business Operations

Worlds largest business and technology services provider

$47 billion in revenue

More than 180,000 employees

Helps customers:

Capitalize on IT to improve business performance

Manage IT operations and resources

Principal lines of business:

Business Consulting Services with 60,000 consultants in 160countries is the worlds largest

Integrated Technology Services

Strategic Outsourcing Services

Business Transformation Outsourcing Services


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Services

Financing

Hardware

Software

Technology

Research

Worlds leading provider of financing and asset managementservices to companies selling or acquiring IT

$35 billion in assets

Operations in more than 40 countries

Offers flexible leasing and financing solutions to customers andbusiness partners

Customer Financing

Total Solution Financing

Commercial Financing

Global Asset Recovery Services

Business Operations


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Services

Financing

Hardware

Software

TechnologyResearch

Business OperationsServers

#1 server vendor in the world

Offers the broadest range of servers in the industry

Unix servers (P5 technology is 1st server on a chip)

Intel-processor-based servers

Integrated Application servers

zSeries Mainframes servers

Blade servers (the fastest sales growth in IBM history)

Strong supporter of open standards

More than 6300 customers running Linux


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Most comprehensive range of storage offerings

Disk, Tape, Middleware, Database, ISV applications,Services and Financing

#1 in worldwide disk storage systems factory revenue Largest disk revenue growth

#1 in UNIX external disk growth

Largest SAN revenue growth

Creating foundation for new autonomic storage model

Storage tank, Virtualization, Policy-based management tools

#1 Storage Services provider in the industry

Services

Financing

Hardware

Software

Technology

Research

Business OperationsEnterprise Storage


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Develops, markets and supports a diverse set of software

Provides foundation for the worlds critical businessapplications

Worlds second largest software provider

$15.7 billion in revenue More than 35,000 employees

Largest supplier of Internet infrastructure software middleware

Systems integration and transaction processing

Data management/ Content management

Collaboration and dynamic workplaces

Systems management and security

Development and Quality Assurance

Business OperationsServices

Financing

Hardware

Software

Technology

Research


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Develops, manufactures, sells, and provides services forleading chip technologies

Incorporated into:

IBM products

OEM customers products

Focuses on technologies for the pervasive, networkinfrastructure and enterprise computing spaces

Leading producer of custom-designed chips (ASICs)

Key technology supplier to customers like Cisco,Qualcomm, Sony and Nintendo

Business OperationsServices

Financing

Hardware

Software

Technology

Research


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Business Operations Produces more breakthroughs than any other company

Received a record 3,248 U.S. patents in 2004. More than 29,000over the past 12 yrs. surpassing the total earned by IBMs top 10competitors combined

Worlds largest IT research organization

More than 3,000 scientists and engineers

8 research laboratories and 24 development laboratoriesworldwide in 6 countries

The 12th consecutive year leading all companies in U.S. patents

Work ranges from physics to cognitive science to leading-edgeapplication research

Most number of PhDs employed

Nobel Prize winner scientists. Eg. Storage

A leader in Nanotechnology

Services

Financing

Hardware

Software

Technology

Research


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IBM has been a global company for decades

Our Management System


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IBM Philippines Then and Now1925 H. E. Heacock started selling IBMproducts in the Philippines1937 Incorporated as Watson BusinessMachines with 3 employees located inBinondo (old Manila)1954 Renamed to IBM Philippines, Inc.located in Escolta

1966 - First mainframe at Bureau of Lands;IBM moves to Paseo de Roxas, Makati1970 - Caltex is first S/370 customer1985 - IBM launches the PC1987 - IBM appoints first business partner,SSI and enters SME market1992 - Joint venture with SM, APC formed1996 - IBM champions e-business2000 - IBM moves to Eastwood Libis2001 - IBM forms 1st subsidiary, ISD2003 - IBM re-launches in Southern Phil2004 - IBM forms 2nd and 3rd subsidiary, IBSand Daksh


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Overview of IBM Philippines

Established in 1937

Over 5,000 customers

Over 500 business partners

3,570 Employees

(as of June 2006)

No. 1 in the Philippine market

(as of June 2006); Leading

Information technology

company that transforms

customers into successful on-

demand businesses

No. 1 in Client Satisfaction in

Asia Pacific (2005)


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IBM PhilippinesIBM Sales and Distribution

220 employees

IBM Solutions DeliveryIT Services300 employees

IBM DakshCustomer Care Services2400 employees

IBM Business ServicesHR, Employee, and Finance Administration Services650 employees

Asia Pacific CollegeJV with SM Foundation

The Growing IBM Philippines Family


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IBM Philippines

IBM Philippines

Complete portfolio of IBM products and offerings;hardware, software, services, and personal systems

IBM has an end to end solution to virtually any IT relatedrequirement across any industry.

Capability to deliver wide range of IT and IT enabledservices. For example: IT & Management ConsultingServices, IT Outsourcing Services, Networking Services,Business Transformation Outsourcing

Major market segment: Financial & Banking, Telecom,Retail & Distribution, Manufacturing, Government

Established in 1937

No. 1 in the industry

IBM Plaza


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Our Values

Dedication to every client's successInnovation that matters - for our company and forthe worldTrust and personal responsibility in all ourrelationships


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Innovation that Matters - for our company and for the world.

Innovation Defined :

Innovation occurs at the intersection of

invention and insight. It's about the applicationof invention the fusion of new developments

and new approaches to solve problems.

Sam PalmisanoPresident and CEO, IBM


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By 2010, supercomputers willbe capable of10 quadrillioncalculations per second.

By the year 2010, thecodified information

base of the world isexpected to double every

11 hours.

Last year, the world produced more

transistors (and at lower cost) than grains of

rice.

Today there are 4.2 billion

Internet addresses. Thenew Internet Protocol

Version 6 addressingsystem will support morethan 35 trillion separate

subnetworks, each ofwhich could connect millionsof devices. The new Airbus A380

contains overonebillion lines of code.

GM predicts theaverage car will have

100 million lines of

code by 2010. Incomparison, Windows

XP has about 40million lines of code.


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Everyone is Talking about Innovation


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CEOs are taking an active role in driving aninnovation agenda

Business model innovation is now nearly as

important as more traditional innovationaround products/services

CEOs believe that integrating businessinsight and technology capabilities enablesthe organization to stay ahead of the curve

CEOs agree that internal and externalcollaboration is key to innovation, but manyare slow to actually practice it

Interviewed 765 CEOs worldwide - representing 5 sectors, 21industries, large and SMB enterprises

The Global CEO Study 2006: Innovation

65%13%

22%

A lot

Moderate

Little or no

CEOs: Extent of fundamentalchange needed over next two years

CEOs do not seem intimidated or content simply to cope

[Instead they see change] as both reason and license to expand

their innovation horizon

CEOs are embracing change

Source: IBM Global CEO Study 2006


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What CEOs told us

A unique business model is essential for competitive survival Substantially changes how a company adds value to their own or other industry

Hard to commoditize

40 percent of business model innovators fear that changes in a competitors business model could upset the dynamics of the entire industry

Business model innovation is becoming increasingly prevalent Almost 30 percent of CEOs innovation efforts are now focused on the business model

What we found

Companies that emphasized business model innovation experienced better financialperformance than those that didnt

Innovation that fundamentally transforms the way a business

works or drives revenue

What is business model innovation?

1 Deep business model innovation is critical


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What CEOs told us

Over 75 percent ranked collaborationand partnering as very important toinnovation

Employees are the top source ofinnovative ideas, followed closely by

business partners and customers Ideas are increasingly coming from external sources

What we found

Extensive collaboratorsoutperformed their peers in bothrevenue growth and averageoperation margin

Companies that used externalsources more often reported higherrevenue growth than those that didnt

Academia

Associations, tradegroups, etc.

Competitors

Consultants

Customers

Business partners

4020 30100

Internal R&D

Internal sales orservice units

Employees

Most significant sourcesof innovative ideas*

* Respondents could select up to three choices

Percent of respondents

Internal sources

External sources

2 Collaboration, particularly external collaboration, is indispensable


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What CEOs told us

Achieving innovation potential requires integratingtechnology expertise with business and marketinsights

A gap exists between CEOs integration aspirationsand actual implementation

Nearly 80 percent rated the integration of business and technology of great importance or criticalimportance

Only about 45 percent believe theirorganization integrates business andtechnology to a sufficient extent

What we found

Companies that have extensively integrated businessand technology are growing revenue 5 percent faster

than their competitors

Importance vs. extent ofbusiness and technology integration

20%

40%

60%

80%

100%

Integrationof great

importance

Integratedto a large

extent

Integrationgap

Percent of respondents

0%

3 Innovation can be ignited by business and technology integration


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CIOs & IT figure prominently in the expanding innovation

horizon for CEOs..

Drive business model

innovation

Enable internal and

external collaboration

Ignite technology

and business integration

Remove technologicalbarriers

- Facilitate informationsharing

Fully leveragecollaborative technologies

- Make collaboration easierand expected

- Reward innovative thinking

Innovate the IT businessmodel first

- Become customer-centric

- Become a crediblebusiness partner

- Use componentizationtechniques to deepenbusiness understanding

Create a flexible,responsive infrastructure

- Open architectures,virtualization and more

Be a business executivefirst, technologist second

- Close the gap betweenbusiness and IT

- Build hybrid skill sets

among the IT community

- Promote a newgovernance model

- Melds business and ITleadership together


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Some final words from our study participants

If you think you have all the answers

internally, you are wrong.

Its not enough to make a difference on

product quality or delivery readiness

or production scale.

We must innovate in areas where our

competition does not act by developing

new competencies and alliances.

Some of the boldest plans under

consideration within our company work by

leveraging the collaborative potential of

service providers in other domains.


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Thank you very much !For those who are interested to get more details on the2006 Global CEO Study, please leave your businesscards with me or contact:

Donna Ponciano

Email: [email protected]

IBM Philippines Inc.

3F IBM Plaza Bldg., Eastwood City Cyberpark

E. Rodriguez Jr. Avenue, 1110Brgy. Bagumbayan, Quezon City, PhilippinesTrunk: 632-9952426 x2124Fax: 632-9958234

32. ibm philippines overview 103006_2

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