© 2009 ibm corporation 1 office of the chairman, emea brendan dineen director of marketing and...

© 2009 IBM Corporation1

Office of the Chairman, EMEA

Brendan Dineen Director of Marketing and Communications, EMEA

CIM Event – Portsmouth University – Wednesday 20 May, 2009


Agenda

1. IBM : Who we are

2. Strategy : Our transformation

3. Marketing : How we align

4. The Future : Where we are going

5. Summary : Some closing thoughts


IBM has a workforce of over 350,000+ employees …. of which almost 50% are mobile

IBM Locations

Mobile Employees

• 350K+ employees• 200K+ contractors• 170 countries• 2,000 locations• 50% < 5 years experience


Helping clients succeed in delivering business value by becoming more innovative, efficient and competitive through the use of business insight and information technology (IT) solutions, and providing long-term value to shareholders

Business Model

Business Segments

398,455Employees

$16.7BPre-Tax Profit

$103.6BRevenue

170 CountriesGlobal Presence

Services, Software, Hardware, Research and Financing

IBM at a Glance: Year End 2008“ …. in 2008 revenue exceeded $ 100b.”


IBM at a Glance: Y/E 2008


Our Transformation Journey started in 1993 …

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50

100

150

200

250

300

• In 1993 IBM was on the brink of break-up• Stock was at 20 year low• $8.1bn Loss posted• Too complex: 25,000 products• Not customer or marketplace focused

1992 = # 3

1993 = # 284 Interbrand

Ranking


Phase OneGerstner era (’93 thru 2002)

1993 1995 1997 1999 2001 2003 2005 2007

• Keeping company together & stabilizing business

• Bringing massive decentralization under control (e.g., 128 CIOs to 1; 70 ad agencies to 1)

• From country to global brand P&L statements

• Move to integrated solutions

• Dramatic growth in services

IBM’s Transformation: An Ongoing Journey

“I think the greatest challenge facing the company is … to adapt our strategy, structure and culture to a world of constant change. I can’t promise this journey will be easy or fast… the steps we will take will not be pussyfooting but bold strides.” -- Lou Gerstner, 1993

2009

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1993 1995 1997 1999 2001 2003 2005 2007

Phase TwoPalmisano era (‘03 thru present)

• Shift to high-value solutions• Move to Values-based culture• Lowering center of gravity for

decision-making• Becoming premier globally

integrated enterprise• Maintain focus and execute in a

radically shifting market• A Smarter Planet

IBM’s Transformation: An Ongoing Journey

“The crisis in our financial markets has jolted us awake to the realities and dangers of highly complex global systems. But in truth, the first decade of the 21st century has been a series of wake-up calls with a single subject: the reality of global integration.” - Sam Palmisano, Nov. 6, 2008

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Agenda

1. IBM : Who we are






Values-based Culture

Foundation from which to build

– Reputation

– Relationships

– Internal and External

Implications for Aligning Marketing What we’ve done Engaged employees globally in Values Jam to

refresh our Values

Conducted World Jam with employees to collaborate on solutions for growth, innovation and bringing the Values to life

– Implemented 32 top-rated ideas

Employee Values Survey conducted annually to measure progress in operating and behaving consistently with our Values


The Values of IBMers

Dedication to every client’s success

Innovation that matters – for our company and for

the world

Trust and personal responsibility in all relationships


Implications for Aligning Marketing

Integrating brands, values, people

Complex Channel Marketing

Mergers & Acquisitions

What we did

Over past 5 years, invested nearly $16B in acquiring more than 70 companies

Continued to divest low growth, low margin, commoditizing product lines

Acquired new technology AND complementary business models and channels to create new revenue


Client Value Focus

Deployed Client Value Method to improve end-to-end client experience

– Recognized distinct types of client buying behaviors

– Integrated process from solution design through delivery

Increased industry orientation to serve the client’s agenda

– Enhanced industry-focused skills and capabilities– Aligned market-facing teams around an industry

Integrate our messaging

Industry Specific

Focuses on the client e.g. not mass mail

Always demonstrate value to the client

Implications for Aligning MarketingWhat we’ve done


Transformational Leadership

Established and periodically refreshed a core set of leadership competencies for all IBMers

Pervasive use of competencies for development, succession planning and selection

Defined a new Leadership Framework emphasizing business results and employees’ experience

What we’ve done

Leadership Competencies

Client Partnering

Embracing Challenge

Earning Trust

Enabling Performance and Growth

Developing IBM People and Communities

Passion for IBM’s Future

Strategic Risk Taking

Informed Judgment

Thinking Horizontally

Collaborative Influence

Increased Client Focus

Increased accountability

Implications for Marketing Alignment


Agenda

1. IBM : Who we are






Channels

Influencers

CountriesTele-Web

Events,Partners

Face to Face

Client Success

Innovation

Trust, Integrity

Hardware

Software

Services

Industries

Sub-Industries

Clients

Large and Small

Positions - C

xx

Revenue

Reputation Relationships

It continues to be a complex environment


7.0 Measure Results and Process

Metrics and Feedback Loop

Market Intelligence Market Management Marketing Communications

Marketing Operations

1.0 Identify Marketplace

Insights

3.0 Develop and create products and Solutions offerings and select

RTM5.0 Execute Marketing Program

Strategy and planning Offering and Program Planning

Offering and Program Execution

4.0 Develop and Manage Marketing Programs

2.0 Assist GM to develop and

manage strategy and positioning 6.0 Enable Channels

We achieve marketing alignment using a Leadership Blueprint


Global Marketing Metrics Portal (GMMP): WW Point of access for all Marketing reports around Revenue, ROI and

Influence metrics Available to all Marketers using intranet ID Simple to use Supported by IBM Help and extensive online documentation:

Marketing Scorecard A pre-built report set providing a simplified view

of commonly viewed data.

Detailed reports Objectives for performance on KPIs Ability to drill up/down Flexible, trending, spreadsheet, presentations Diagnostic metrics

… then we track – and adjust – using web based tools


16© 2008 IDC

IDC CMO Advisory Practice2008 Tech Mktg. Barometer

Marketing Benchmarks Scorecard Marketing Benchmarks Scorecard

Marketing Performance Measurement

45%Regional Staff as a Percent of Total Staff

Greater shift to shared services

61%Centralization Ratio for Program SpendGlobal Alignment

Needs to Decrease9.7%Marketing Staff Turnover

Higher$15.3Revenue Per Marketing Staff ($M)

Maintain Strategic Role

4.1%Marketing Operations Ratio2

(MO staff per total mktg. staff)

84%:16%

$284,000

62%

48%

4.0%

3.0%

All IT Vendors

Continuous Improvement

Higher

Higher

Increased focus on demand generation

2008 intra-year pressure

Flat to declining

Trend

Marketing Dashboard Availability3

A-D Ratio (awareness spend as % of total awareness + demand)

Marketing Staff Efficiency

Marketing Investment

Attribute

Marketing Staff Throughput Ratio(program spend per staff)

Marketing Budget Ratio (marketing spend/revenue)

Marketing Investment Change (mean, most recently closed to current fiscal year)

Program-to-People Ratio(program spend as a % of total mktg. spend)

Key Performance Indicator (KPI, Current FY)1

1 2007 Tech Marketing Benchmarks Database (weighted average KPIs based upon current FY at survey completion); reported in “Marketing Investment Planner 2008: Benchmarks and KPIs”, Sept. 2007, #208489 and Oct. 2007, #TB20071004(PowerPoint)

… and compare our performance relative to the market …


Agenda

1. IBM : Who we are





Building a Smarter Planet

What is happening to our planet ?“ 2008… a snapshot of climate and natural disasters…”

6 Tropical Cyclones

Hit the US $ 10 b damage

Intense lowPressure “Emma”

$ 2 b damage

In the past 12 years…

10 have been the warmest

recorded

2008 was the 4th highest year

recorded for hurricanes &

storms

Earthquake in Pakistan300 dead

Cold weather In the “Stans”

1,000 dead

Earthquake in Sichuan Province

70,000 dead5 m homeless$ 85b damage

Cyclone Myanmar

135,000 dead1 m homeless

Floods in India635 dead Typhoon

Fengshen557 dead

“ …. our planet has climate issues…”

What is happening to our planet ?“ 2008… terrorist related incidents ….”

January147 dead

484 injured

February421 dead

817 injured

March66 dead

131 injured

April120 dead

564 injured

May 131 dead

509 injured

June177 dead

418 injured

July252 dead

1032 injured

August292 dead

616 injured

September321 dead

979 injured

October583 dead

1426 injured

November 404 dead

789 injured

December132 dead

391 injured

TOTAL 20083.046 dead

8,156 injured

“ …. our planet has security issues…”

What is happening to our planet ?“ 2008 … business – globally…”

“ …. our planet has business issues…”

http://images.google.co.uk/imgres?imgurl=http://farm4.static.flickr.com/3159/2547224925_e4503f9ff0.jpg?v=0&imgrefurl=http://flickr.com/photos/44124267107@N01/2547224925/&usg=__z5jH_jhSqE34f37BueNlyys6efE=&h=375&w=500&sz=69&hl=en&start=35&sig2=3EbC4p_3Qs_Iv8S_iHuvlQ&um=1&tbnid=SHTVO4gU7vL6uM:&tbnh=98&tbnw=130&ei=994rSZqOMpygQeC01MEE&prev=/images?q=headline+crisis&start=18&ndsp=18&um=1&hl=en&rlz=1T4GGLL_en-GBGB302&sa=N

“ When the rate of change outside …

…. exceeds the rate of change inside

………… the end is in sight.”

Jack Welch, Former CEO of General Electric

What is happening to our planet ?“ and as a planet we find ourselves ….. as businesses, countries and citizens in a situation….”

26

“Every human being, company, organization, city, nation, natural system and man-made system is becoming

interconnected, instrumented and intelligent. This is leading to new savings and efficiency—but

perhaps as important, new possibilities for progress.”

The world is smaller.

Because it can.

Because it must.

Because we want it to.The world is getting smarter.

The world isflatter.

What can we do about it ? “ …something meaningful is happening…”

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An estimated 2 billion people will be on the Web by 2011 ...

… and a trillion connected objects – cars, appliances, cameras, roadways, pipelines – comprising the "Internet of Things."

Mobile phones

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One billion camera phones were sold in 2007, up from 450 million in 2006 …

3G devices growing 30% p.a.

Instrumented

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In 2005 there were 1.3 billion RFID tags in circulation…

… by 2010 there will be 33 billion.

Intelligent

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Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 and should reach 4 billion by the end of 2008.

In the fourth quarter of 2007, in the USA, texts exceeded voice calls for the first time.

camera phones

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In 2001, there were 60 million transistors for every human on the planet ...

… by 2010 there will be 1 billion per human…

… each costing 1/10 millionth of a cent.

RFID

What can we do about it ? “…. with one trillion things connected to the internet ….. and one billion transistors for

each person on the planet… it means we can now build…. “

Smart traffic systems

Smart water management

Smart energy grids

Smart healthcare

Smart food systems

Smart oil

Smart regions

Smart weather

Smart countries

Smart supply chains

Smart cities

Smart retail

…. some examples ..

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Building or renewing a bridge today means making sure the bridge can tell us, over its lifetime, how it’s feeling…

Smarter Infrastructure

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Malta is creating one of the most advanced smart power grids, and building smarter water and waste management systems.

Smarter Grids

35

A food tracking solution (this one the first of its kind in the Nordics) uses RFID to track and trace meat and poultry from the farm, through the supply chain, to supermarket shelves.

Smarter Food Tracking

traffic

36

Brisbane, London, Singapore and Stockholm are deploying smarter traffic systems. At least 20 other cities have active bids to do the same.

Stockholm has seen approximately 20 percent less traffic, a 12 percent drop in emissions and a reported 40,000 additional daily users of public transportation.

Smarter Traffic

Law enf

37

Cities are digitizing their law enforcement practices and deploying smarter surveillance systems …

… for example, using audio sensors to direct cameras to locate gunshots, determine the caliber of gun fired and pinpoint its exact location, to aid in dispatch.

Smarter Law Enforcement

fire


Channels

Influencers

CountriesTele-Web

Events,Partners

Face to Face

Client Success

Innovation

Trust, Integrity

Hardware

Software

Services

Industries

Sub-Industries

Clients

Large and Small

Positions - C

xx

Revenue

Reputation Relationships

… and we are working on this right now..


Agenda

1. IBM : Who we are






3 x Closing Thoughts

1. Values

2. Strategy

3. Metrics

[email protected]

© 2009 ibm corporation 1 office of the chairman, emea brendan dineen director of marketing and...

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