© 2005 ibm corporation the value of innovation in era of economic globalization linda sanford...
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© 2005 IBM Corporation
The Value of Innovation in Era of Economic Globalization
Linda SanfordSenior Vice President, Enterprise On Demand Transformation & Information Technology
© 2005 IBM Corporation2
Over 40 years, only 5 percent of Fortune 500 grew revenue above the inflation rate
From 1997 to 2002, revenue growth for Dow Jones index companies less than 5 percent
Of 1800 sample firms, only 13% grew consistently over a 10-year period
Large companies in Europe and North America on average exist for just 20 years
Growth Is Hard and Getting Harder
© 2005 IBM Corporation3
Leveraging world-class capability and growth, wherever it is locatedA New Model: The Globally-integrated Company
© 2005 IBM Corporation4
Str
ate
gy
Ta
ctic
sE
xecu
tio
n
BusinessAdministration
FinanceAdministration
Supply Chain & Distribution
Store/ChannelOperations
ManageCustomers Merchandising
Alliances
Market Mgt.
Channels
CRM
Insights Vendors
IPT
Customer Accts.
Store/Channel Strategy
Labor
Store Design
Promotions
Planning
LOB Planning
Procurement
Real Estate
IT
HR
Financial Planning
Finance
Treasury
Back Office
Accounting
SCM
Distribution
Logistics
Distribution Ops.
Transportation
Supply/DemandCustomer Sat.
Space Mgt.
InventoryProduct
Directory
Vendor Mgt.
Item Mgt.
CustomerDirectory
Order Mgt.Store Mgt.
Inventory
Store Services
Perf. Mgt.
MI
Process Design
Legal/Reg
Str
ateg
ic V
iew
Str
ate
gy
Ta
ctic
sE
xecu
tio
n
BusinessAdministration
FinanceAdministration
Supply Chain & Distribution
Store/ChannelOperations
ManageCustomers Merchandising
Labor
Planning
Financial PlanningSCM
Logistics
Transportation
Customer Sat.
Space Mgt.
CustomerDirectory
Order Mgt.Store Mgt.
Channels
CRM
Insights Vendors
Customer Accts.
Promotions
IPT
LOB Planning
ProcurementFinance
Treasury
Back Office
AccountingInventory
Store Services
Perf. Mgt.
MI
Process Design
Legal/Reg
Real Estate
IT
HR
Distribution
DistributionOps.
Supply/Demand
ProductDirectory
Vendor Mgt.
Item Mgt.
Inventory
Alliances
Market Mgt.
Store/Channel Strategy
Store Design
Fin
anci
al V
iew
Str
ate
gy
Ta
ctic
sE
xecu
tio
nBusiness
Administration Finance
Administration Supply Chain &
DistributionStore/Channel
OperationsManage
Customers Merchandising
Tra
nsf
orm
atio
n V
iew
Planning
LOB Planning
Procurement
Financial Planning
Finance
Treasury
Back Office
Accounting
SCM
Transportation
Inventory
Store Services
Perf. Mgt.
MI
Process Design
Legal/Reg
Alliances
Market Mgt.
Real Estate
IT
HR
Distribution
Logistics
DistributionOps.
Supply/Demand
Customer Sat.
Space Mgt.
ProductDirectory
Vendor Mgt.
Item Mgt.
CustomerDirectory
Order Mgt.Store Mgt.
Inventory
Channels
CRM
Insights Vendors
CustomerAccts.
Store/Channel Strategy
Labor
Store Design
Promotions
IPT
Str
ateg
ic V
iew
Fin
anci
al V
iew
Component Business Model Framework
© 2005 IBM Corporation5
Technology Enables New Business Models
WWW.
Globalization
Digital Economy
Open Standards
Interoperability
© 2005 IBM Corporation6
Teragrid Teragrid
National Digital Mammography
Archive
National Digital Mammography
Archive
UK Research Grid UK Research Grid
Butterfly.net Butterfly.net
eDiamond ProjectOxford University
eDiamond ProjectOxford University
Dutch National Grid
Dutch National Grid
Istituto Nazionale di Fisica Nucleare
Istituto Nazionale di Fisica Nucleare
Grid Computing
© 2005 IBM Corporation7
Implications
Embrace a new model of innovation
Focus on developing next generation of innovation leaders
Invest early and strategically in emerging nations
© 2005 IBM Corporation
The Value of Innovation in Era of Economic Globalization
Linda [email protected]