© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Let’s Build a Smarter Planet: Electronics

George Mattathil -

4/26/2011

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

The reality of living in a globally integrated world is upon us.

Economic interdependency and uncertainty.

Information explosion and risk/opportunity growth.

Importance of emerging markets for new consumers and talent.

Increasingly complex supply chains.

More demanding and empowered consumers in established and growth markets.

Digital convergence blurring traditional industry boundaries.

The world is connected:

economically, socially and technically.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Theneedfor progress is clear.

Number of isolated

consumer

electronic devices

in the world.

Total worldwide

sales lost to

supply chain

inefficiencies.

Increase in global

water usage since

the 1900s, twice

the rate of human

population growth.

6x $40 billion

1.4 billion

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

The opportunityfor progress is clear.

The number of

connected

entertainment

devices in the living

room by year 2012.

Semiconductor

manufacturing

processes can be

modified to improve

capacity by 30%

while reducing the

use of water,

chemicals and

electricity.

A first-of-a-kind

supply chain

platform gives

performance

information in real-

time to cut lead

times from 2.5 days

to 4.5 hours and

reduce order errors

nine-fold.

27% less water used

450 million

93% faster delivery

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

DIGITAL CONVERGENCE

The convergence of the Internet, communication and entertainment industries is creating new business

models and revenue opportunities for electronics companies to become more service oriented.

GLOBAL COMPETITION

In a global economy, intense competitive pressure is driving more efficient markets. To stay ahead,

businesses will need to build more agile models and be the first to create and seize new opportunities.

THE DEMANDING CONSUMER

Customer expectations have never been higher. By figuring out exactly what people want, companies

are tapping into hidden opportunities and rolling out innovative products and services.

GREATER BUSINESS AND IT INTEGRATION

Breakthrough applications like the cloud and Web 2.0 are empowering the business user, driving the

convergence of business and IT, and blurring the lines between companies and their customers.

For electronics companies, this means even greater global challenges.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

The proliferation of electronics has

resulted in unprecedented

connectivity across the globe—

creating opportunities for new kinds

of products and services.

To capture these opportunities,

electronics companies must develop

increasingly flexible, visible and

collaborative value chains while

directly engaging users in the

innovation process.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

As people become more reliant upon electronic devices in their daily lives, and as organizations become increasingly interdependent, electronics companies are working to…

CREATE INNOVATIVE

PRODUCTS AND SERVICES

that are intuitive to the

end user.

BUILD DYNAMIC

VALUE CHAINS

using new information

and capabilities.

ELECTRONICS

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

An opportunity for electronics companies

to think and act in new ways.

Create innovative

products and services

that are intuitive to the

end user.

Build dynamic

value chains using

new information

and capabilities.

+ + =

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Manufacturers

Product

designers

Software

developers

Marketing

and sales

Engineers Distributors

Business

partners

Electronics

company

User

Information

A smart electronics value chain is highly visible and collaborative, capturing and openly sharing critical user information.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Smarter

office

Smarter

healthcare

Smarter

telco

Smarter

transportation

Smarter

home

Information

Products and services

This exchange drives the development and delivery of products and services that connect the user to a spectrum of smarter systems.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Built-in flexibility extends

product lifecycles

Lower cost of

production leads to

lower product prices

Greater knowledge of

the customer leads to

more intuitive products

New forms of connectivity

drive new kinds of

smart systems

Faster development

means new products

more often

The continuous flow of information and products results in a set ofever-evolving benefits passed on to the user.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Online collaboration and social networking tools

Product Innovation Management (PIM) services

Product Development Integration Framework (PDIF)

IBM Rational software platform for systems

development

Embedded software development and testing services

Service Delivery Platform (SDP), Media Hub and Cloud

technology to enable the smarter home

ELECTRONICS COMPANIES

ARE FOCUSED ON…

Creating innovative products

and services that are intuitive

to the end user

Building dynamic value chains

using new information

and capabilities

IBM IS DELIVERING…

Supply chain visibility tools

Manufacturing Integration Framework (MIF)

Business Process Outsourcing (BPO)

Business Analytics and Optimization (BAO)

Marketing and sales transformation services

IBM’s solution strategy is aligned with the needs of the electronics companies the world over.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

Let’s work together to drive real

progress in our world.

We’ve only just begun to

uncover what is possible on

a smarter planet.

The world will continue to become smaller,

flatter and smarter. We are moving into the

age of the globally integrated and intelligent

economy, society and planet.

To thrive on a smarter planet, we need smarter

electronics that support both economic growth and

sustainability. There’s no better time to

start building smarter electronics products and

companies. And there’s no better time to invest in

creating the kind of society we all desire.

© 2010 IBM Corporation

Let’s build a smarter planet: Electronics

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IBM Corporation 2011

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