IBM in the PHILIPPINES

Transcription

IBM in the PHILIPPINES
IBM in the PHILIPPINES
James G. Velasquez
Country General Manager
© 2006 IBM Corporation
International Business Machines
Agenda
 Corporate Overview
 IBM in the Philippines
–IBMP Business Operations
 Innovation
–A Summary on the Global CEO Survey
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Corporate Mission
We strive to lead in the invention,
development and manufacture of the
industry’s 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 in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
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 to
mainframe computing systems for large enterprises
–
Changed the nature of accounting, calculation, and basic back-office
business processes
 1970s-80s
–
IBM product line broadens from mainframes to minicomputers and
personal computers
–
Applications move beyond back-office enterprise to departmental
operations and personal productivity
 1990s
4
–
With the Internet and open standards, the network computing
model is embraced and advanced
–
Coined “e-business” to describe how network computing can
transform core business functions and transactions
IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
IBM Today
 The world’s 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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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
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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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
Percent of IBM’s Total Revenue in 2005
17%
Services
4%
1%
Hardware
Software
27%
Financing
52%
Enterprise
Investments/Other
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
 Services
 World’s largest business and technology services provider
 Financing
– $47 billion in revenue
 Hardware
– More than 180,000 employees
 Software
 Technology
 Research
 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 160
countries is the world’s largest
– Integrated Technology Services
– Strategic Outsourcing Services
– Business Transformation Outsourcing Services
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
 Services
 Financing
 Hardware
 Software
 Technology
 Research
 World’s leading provider of financing and asset management
services to companies selling or acquiring IT
– $35 billion in assets
– Operations in more than 40 countries
 Offers flexible leasing and financing solutions to customers and
business partners
– Customer Financing
– Total Solution Financing
– Commercial Financing
– Global Asset Recovery Services
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
Servers
 Services
 Financing
 #1 server vendor in the world
 Offers the broadest range of servers in the industry
 Hardware
– Unix servers (P5 technology is ‘1st server on a chip’)
 Software
– Intel-processor-based servers
 Technology
 Research
– 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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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
Enterprise Storage
 Services
 Financing
 Hardware
 Software
 Technology
 Research
 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
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
 Services
 Financing
 Hardware
 Software
 Technology
 Research
 Develops, markets and supports a diverse set of software
 Provides foundation for the world’s critical business
applications
 World’s 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
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
 Services
 Financing
 Develops, manufactures, sells, and provides services for
leading chip technologies
 Hardware
 Software
– Incorporated into:
 Technology
 Research
– IBM products
– OEM customers’ products
 Focuses on technologies for the pervasive, network
infrastructure and enterprise computing spaces
– Leading producer of custom-designed chips (ASICs)
– Key technology supplier to customers like Cisco,
Qualcomm, Sony and Nintendo
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Business Operations
 Services
 Financing
 Hardware
 Software
 Technology
 Research
 Produces more breakthroughs than any other company
– Received a record 3,248 U.S. patents in 2004. More than 29,000
over the past 12 yrs. surpassing the total earned by IBM’s top 10
competitors combined
 World’s largest IT research organization
– More than 3,000 scientists and engineers
– 8 research laboratories and 24 development laboratories
worldwide in 6 countries
– The 12th consecutive year leading all companies in U.S. patents
– Work ranges from physics to cognitive science to leading-edge
application research
– Most number of PhD’s employed
– Nobel Prize winner scientists. Eg. Storage
– A leader in Nanotechnology
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Our Management System
IBM has been a global company for decades
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
IBM Philippines Then and Now
1925 – H. E. Heacock started selling IBM
products in the Philippines
1937 – Incorporated as Watson Business
Machines with 3 employees located in
Binondo (old Manila)
1954 – Renamed to IBM Philippines, Inc.
located in Escolta
1966 - First mainframe at Bureau of Lands;
IBM moves to Paseo de Roxas, Makati
1970 - Caltex is first S/370 customer
1985 - IBM launches the PC
1987 - IBM appoints first business partner,
SSI and enters SME market
1992 - Joint venture with SM, APC formed
1996 - IBM champions e-business
2000 - IBM moves to Eastwood Libis
2001 - IBM forms 1st subsidiary, ISD
2003 - IBM re-launches in Southern Phil
2004 - IBM forms 2nd and 3rd subsidiary, IBS
and Daksh
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
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 ondemand businesses
 No. 1 in Client Satisfaction in
Asia Pacific (2005)
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
The Growing IBM Philippines Family
IBM Philippines
IBM Sales and Distribution
220 employees
IBM Solutions Delivery
IT Services
300 employees
IBM Business Services
HR, Employee, and Finance Administration Services
650 employees
Asia Pacific College
JV with SM Foundation
IBM Daksh
Customer Care Services
2400 employees
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
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 related
requirement across any industry.
 Capability to deliver wide range of IT and IT enabled
services. For example: IT & Management Consulting
Services, 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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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Our Values
Dedication to every client's success
Innovation that matters - for our company and for
the world
Trust and personal responsibility in all our
relationships
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
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 application
of invention — the fusion of new developments
and new approaches to solve problems.“
Sam Palmisano
President and CEO, IBM
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Today there are 4.2 billion
Internet addresses. The
new Internet Protocol
Version 6 addressing
system will support more
than 35 trillion separate
subnetworks, each of
which could connect millions
of devices.
By the year 2010, the
codified information
base of the world is
expected to double every
11 hours.
Last year, the world produced more
transistors (and at lower cost) than grains of
rice.
By 2010, supercomputers will
be capable of 10 quadrillion
calculations per second.
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IBM in the Philippines | October 2006 | Confidential
The new Airbus A380
contains over one
billion lines of code.
GM predicts the
average car will have
100 million lines of
code by 2010. In
comparison, Windows
XP has about 40
million lines of code.
© 2006 IBM Corporation
International Business Machines
Everyone is Talking about Innovation…
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
The Global CEO Study 2006: Innovation
Interviewed 765 CEOs worldwide - representing 5 sectors, 21
industries, large and SMB enterprises
 CEOs are taking an active role in driving an
innovation agenda
CEOs: Extent of fundamental
change needed over next two years
 Business model innovation is now nearly as
important as more traditional innovation
around products/services
Moderate
 CEOs believe that integrating business
insight and technology capabilities enables
the organization to “stay ahead of the curve”
 CEOs agree that internal and external
collaboration is key to innovation, but many
are slow to actually practice it
22%
A lot
65%
Little or no
13%
CEOs are embracing change —
“CEOs do not seem intimidated or content simply to cope…
[Instead they see change] as both reason and license to expand
their innovation horizon…”
Source: IBM Global CEO Study 2006
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
1
Deep business model innovation is critical
 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
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40 percent of business model innovators fear that changes in a competitor’s 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 financial
performance than those that didn’t
What is “business model innovation”?
Innovation that fundamentally transforms the way a business
works or drives revenue
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
2
Collaboration, particularly external collaboration, is indispensable
 What CEOs told us…
 Over 75 percent ranked collaboration
and partnering as very important to
innovation
 Employees are the top source of
innovative ideas, followed closely by
business partners and customers
–
Ideas are increasingly coming from external sources
 What we found…
 Extensive collaborators
outperformed their peers in both
revenue growth and average
operation margin
 Companies that used external
sources more often reported higher
revenue growth than those that didn’t
Most significant sources
of innovative ideas*
Employees
Business partners
Customers
Consultants
Competitors
Associations, trade
groups, etc.
Internal sales or
service units
Internal sources
External sources
Internal R&D
Academia
0
10
20
30
40
Percent of respondents
* Respondents could select up to three choices
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
3
Innovation can be ignited by business and technology integration
 What CEOs told us…
 Achieving innovation potential requires integrating
technology expertise with business and market
insights
 A gap exists between CEOs’ integration aspirations
and actual implementation
–
Nearly 80 percent rated the integration of business and technology of “great importance” or “critical
importance”
–
Only about 45 percent believe their
organization integrates business and
technology to a sufficient extent
 What we found…
 Companies that have extensively integrated business
and technology are growing revenue 5 percent faster
than their competitors
Importance vs. extent of
business and technology integration
Percent of respondents
100%
80%
40%
20%
0%
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IBM in the Philippines | October 2006 | Confidential
Integration
gap
60%
Integration
of great
importance
Integrated
to a large
extent
© 2006 IBM Corporation
International Business Machines
CIOs & IT figure prominently in the expanding innovation
horizon for CEOs..
Drive business model
innovation
 Innovate the IT business
model first
- Become customer-centric
- Become a credible
business partner
- Use componentization
techniques to deepen
business understanding
 Create a flexible,
responsive infrastructure
- Open architectures,
virtualization and more
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Enable internal and
external collaboration
Ignite technology
and business integration
 Remove technological
barriers
 Be a business executive
first, technologist second
- Facilitate information
sharing
- Close the gap between
business and IT
 Fully leverage
collaborative technologies
- Make collaboration easier
and expected
- Reward innovative thinking
IBM in the Philippines | October 2006 | Confidential
- Build hybrid skill sets
among the IT community
- Promote a new
governance model
- Melds business and IT
leadership together
© 2006 IBM Corporation
International Business Machines
Some final words from our study participants
“It’s 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.”
“If you think you have all the answers
internally, you are wrong.”
“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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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation
International Business Machines
Thank you very much !
For those who are interested to get more details on the
2006 Global CEO Study, please leave your business
cards with me or contact:
Donna Ponciano
Email: [email protected]
IBM Philippines Inc.
3F IBM Plaza Bldg., Eastwood City Cyberpark
E. Rodriguez Jr. Avenue, 1110
Brgy. Bagumbayan, Quezon City, Philippines
Trunk: 632-9952426 x2124
Fax: 632-9958234
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IBM in the Philippines | October 2006 | Confidential
© 2006 IBM Corporation