open innovation in a globalized world @ ibm
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Key note given at Danish Foreign Ministry's conference for the inauguration of 3 new Innovation Center Denmark, locations in Sao Paulo, New Delhi and Seoul,TRANSCRIPT
Open Innovation in a globalized world @ IBM Åbningskonference 17.06.2013 Anders Quitzau, Innovation Executive about.me/andersquitzau
© 2013 IBM Corporation 1
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“Innovate or die - Collaborate and strive” “Innovate or die - Collaborate and strive” Anders Quitzau
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1984 1992 2004 2005 2006
© 2013 IBM Corporation
§ Highlights since 2000 … – Added $10B in growth market revenue – Tripled SW profits
§ Exited commoditized businesses: – PCs – Hard disk drives – Printing Systems – Network
§ Created a partner world of more than 100K partners: ISVs, VARs, resellers, developers, CSIs
§ Strengthened position in: – Business Consulting – Service-Oriented Architecture – Analytics & cloud computing – Virtualization – Open, modular systems
§ Acquired 127 companies in last 12 years – to complement and scale our portfolio of products and
offerings
§ 8th consecutive year of double-digit EPS growth § Revenue of $99.9B – up 4% § Record net income of $14.8B – up 10% § Growth markets accounted for 21% of IBM’s total
geographic revenue § More than 6.300 US-patents
– EPS nearly tripled to almost 15$ in 2011 – $109B in Free Cash Flow – Returned $107B to shareholders
We sold our – a.o. - our, ERP PC, printing and network, businesses Remixed our portfolio toward services, software, and integrated solutions…
2011 another record year…
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© 2013 IBM Corporation
But we still sell ERP, PCs, printers, storage, network infrastructure etc.
Alliances Enterprise Applications Alliances
IT Infrastructure Alliances
Networking Alliances
IT Infrastructure Alliances
Smarter Cities Alliances
IT Infrastructure Alliances
Infrastructure Alliances
Market Development
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“Our path is innovation. We are an innovation company which relentlessly changes and keeps moving to high value. Innovation shapes what we do, who we are as a company, and our strategy.“ Ginni Rometty, IBM CEO
© 2013 IBM Corporation
Where does innovation come from?
IBM Institute for Business Value, CEO Study
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© 2013 IBM Corporation
We Embrace Collaborative & Open Innovation
§ Established an innovation agenda that spans multiple dimensions: – Product and technology – Services – Business process – Business model – Management and culture – Policy and society
§ Enabled global collaboration – Culture of collaboration – Innovation ecosystem
Why? What we’ve done § Become our clients’ “innovation partner”
– Address client priorities – Build deeper client relationships
§ Respond to changing nature of innovation – Opening up and collaboration
§ Organizations need each other to be successful – Pace of innovation outstrips an organization’s
ability to “go it alone” § Changing workforce dynamics
– Globalization – “Millennials”
Venture Capitalists ISVs Business
Partners
Universities § Technical § Business
Community Leaders
Competitors Employees
Regulatory Bodies
Investors IT Analysts
Alumni
Standards Bodies
Policy- makers
Clients Innovation Ecosystem
“We opened up our labs, said to the world, ‘Here are our crown jewels, have a look at them’. The Jam -- and programs like it – are greatly accelerating our ability to innovate in meaningful ways for business and society.” - Sam Palmisano, IBM CEO
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© 2013 IBM Corporation
IBM’s innovation portfolio reflects the tremendous creativity and contributions of many organizations – both within and outside IBM
IBM-led Innovation
External-led Innovation
Involvement of External Partners
l IBM Applied Research Projects
l Emerging Business Opportunities
l TAP / BizTech
l Seed-stage Startups l First Of A Kind
l IBM Industry Solutions
l IBM Business Partner Solutions
l IBM Research Services
l Ideas
l Product & Service Offerings
l Idealabs, Jams
“Bleeding Edge”
Generally Available
l University Programs
l Extreme Blue l Startups / Entrepreneurs
l VC Backed Firms (Late Stage)
Maturity of Tech- nology/Solution
l Academy of Technology
l IBM Institute for Business Value – studies and PoVs
l IBM Basic Research Projects
l IBM / Client Joint Innovation
l Acquisitions
l AlphaWorks
l CIO-fund
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“The World is our Laboratory…” IBM Research
© 2013 IBM Corporation
A successful Research Division…..
§ Clearly defines its success goals
§ Leads through partnerships § Leverages its global presence § Couples with outside world § Partners with its customers
§ Is constructively self-critical
§ Focuses on productivity
§ Grows and develops their researchers and staff
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IBM Research: Collaborative Innovation - examples
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China
Watson Almaden
Austin
Tokyo Haifa
Zurich
India
IBM Research Lab
Global, Smarter Planet Collaborations
Pangoo
Sao Paolo
Melbourne
Nairobi GOVERNMENT 2.0
NATIONAL RESOURCES
© 2013 IBM Corporation
We engage in public/private partnerships, like the EDISON and ECOGRID projects on Bornholm
§ Total budget: 24 million Euro (EU funding 13 million
Euro) § IBM: 171 man months, around 2.2M DKK of servers and
other equipments, IBM SWG products (ILOG, WAS, MQ, DBMS)
§ Demonstration > 50 % of budget (excl. replication/deployment)
§ A large scale demonstration of a real-time market place
for distributed energy resources § A demonstration of a real power system with more than
50 percent renewable energy
§ To implement ICT systems and innovative market solutions - offering TSOs additional and more efficient balancing services
§ To enhance small consumer and local producers to participate in the power market through real-time operation, energy storage and savings
§ To make a prototype solution for Europe - offering a “fast track” option towards market-based Smart Grids in Europe
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© 2013 IBM Corporation
The Smarter Energy Research Institute – a very cost-effective way of joint research and innovation
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“Think in terms of building incremental value and creating a bigger pie, not just getting the fattest slice” Steve Steinhilber
© 2013 IBM Corporation
Revenue Growth
GoTo Market activities
Strategic insights
IP Acquisitions
Expanded ecosystems
Credibility & visibility
Infrastructure
Portfolio Gaps
addressed
Expertise
IBM’s Global Entrepreneurship Program – a win-win partnership
“Gets” “Gives”
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Entrepreneurs and start-ups
“Gets” “Gives”
© 2013 IBM Corporation
Our experiences: Open and collaborative innovation
§ Open innovation - give to get
§ Open innovation requires organizational readiness
§ People and their relationships – make or break
§ A structured approach to open innovation and partnering helps!
§ Show quick results in partnerships
§ ‘Open’ versus IP protection and first-to-market. Deal with it
§ Measure results, follow up and adjust
“Every time my folks ask me for a strategic alliance, they ask me to start loosing money”
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