Global Collaborations

May 21, 1952

May 21, 2002

Feb 15, 2008

Mark Hill
IBM Functional Manager

© 2008 IBM Corporation

Agenda

ƒ IBM Global Strategy on Outsourcing

ƒ IBM Customer Support Structure
ƒ Development Collaboration with Japan
– Initial Dynamics of Teams
– “One Team” Integration
– “One Team” Integration Results
– Upper Management Role
ƒ Summary

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 IBM Global Services

IBM and Global Outsourcing

© 2007 IBM Corporation

 IBM and Global Outsourcing

Agenda

ƒ IBM’s Strategy
ƒ IBM’s History of Globalization
ƒ IBM’s Approach to Globalization
– Globally Integrated Enterprise

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 IBM and Global Outsourcing

IBM’s Strategy
Lead the Innovation Agenda
• Drive innovation thought leadership
• Create high impact technology and business model
innovation
• Leverage our innovation capabilities to solve client
problems aligned with their value creation approach
Lead the Shift to Business Value
• Deliver business & IT consulting and
implementation services globally
• Build, run and maintain cross-industry and
industry-specific business process services
• Leverage leadership technology and engineering
services
• Accelerate business value shift through SOA and
Information on Demand

Focus on Enterprises that Value

Business and Technology Innovation

Become the Premier Deliver the Value of Integration

Globally Integrated Enterprise
• Lower the center of gravity
• Improve cost and effectiveness by moving work to
where it can best be performed
• Focus IBM’s resources where we create the greatest
value and excel in business collaboration
Source: IBM Corporate Strategy – Version 2007-02-14
Through Open Infrastructure
• Focus on sustainable share leadership and grow
PTI and revenue above market
• Drive leadership in enterprise SOA and
infrastructure SW and services
• Increase share leadership for servers and drive to
leadership in storage
• Lead transition to standardized service products

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 IBM and Global Outsourcing

Committing to Innovation and Integrated Value

IBM’s Sources of Strength

Systems Software Services

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 IBM and Global Outsourcing

The Emerging Business Model

International Exporting

20th
Century

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 IBM and Global Outsourcing

The Emerging Business Model

Multinational Country Silos

20th
Century

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 IBM and Global Outsourcing

Forces of change

A new computing model for business

New client needs generated by these new possibilities

The rising tide of globalization

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 IBM and Global Outsourcing

IBM’s Strategic Foundation

Focus on open technologies and high-value solutions

Deliver integration and innovation to clients

Become the premier Globally Integrated Enterprise

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 IBM and Global Outsourcing

The Emerging Business Model

The Globally Integrated Enterprise

21st
Century

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 IBM and Global Outsourcing

Becoming the Premier Globally Integrated Enterprise

Global Optimization
Leverages Global Footprint to
access global markets and gain
Global Footprint operational advantage
Global Integration
Locates operations anywhere in the
Serve clients by integrating
world based on economics,
capabilities horizontally and globally
expertise and business environment

Progressive Focus
Cost Savings

+
Value Creation
- Global Delivery - Collaboration
- Shared Services - Synergy
- Process Excellence

12 © 2007 IBM Corporation

 IBM and Global Outsourcing

The Globally Integrated IBM

Making the Whole of IBM More Efficient

ƒ Extending reach into local markets

ƒ Reallocating talent

ƒ Optimizing and integrating key operations

ƒ Eliminating redundancies and excess overhead

ƒ Leveraging world-class capability, wherever it is located

13 © 2007 IBM Corporation

IBM Customer Support Structure

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IBM Customer Support Structure (3rd level)

ƒ “Follow the Sun” organization discussed many

times, but not currently implemented
ƒ World is partitioned by zone
– AP – Japan
– EMEA – Mainz, Germany
– Americas – Tucson, AZ
– ANZ (& India) – Melbourne, Australia

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Support Example

ƒ Problem discovered in Europe

ƒ Sent to US for initial FA
ƒ Sent to Japan for continued FA
ƒ Questions collected between US, Japan, sent to Europe for
more data
ƒ Europe gathers additional clarifying information
ƒ US does additional testing, clarification of problem
ƒ Japan reviews additional data, creates fix
ƒ US & Japan verify fix
ƒ Fix given to Europe

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Development Collaboration with Japan

ƒ Initial Dynamics of Teams

ƒ “One Team” Integration
ƒ “One Team” Integration Results
ƒ Upper Management Role

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Initial Dynamics of Teams

ƒ New project defined

ƒ Team Leads

ƒ Architecture discussions

ƒ Re-use of code, logic

ƒ First Product Results

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“One Team” Integration

ƒ Convergence of products
ƒ “Two in a box” formation at the management layer
ƒ Forming relationships
– Build on existing relationships
– Face to face meetings
– Video conference calls
– Periodic phone conference calls

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“One Team” Integration

ƒ Culture
– IBM is a US company
– English tests (verbal and written)
– Previous experience in US
– Approaches to fixing problems

ƒ Trips for face-to-face meetings

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“One Team” Integration

ƒ Roles & Responsibilities

ƒ Tools & Standards

ƒ Infrastructure & Processes

ƒ Keeping on track

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“One Team” Integration Results

ƒ Second generation of product

ƒ Converged product
ƒ Location leverage
– Customer support by location
– Worldwide standards
– GR

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“One Team” Integration Results

ƒ Distributed teams within the team

ƒ 24 hour collaboration
– By partition of function
– By passing knowledge

ƒ Collaboration spread to other teams

– Other programs started
– Switzerland, Tucson, Japan

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Upper Management Role

ƒ High-level Planning
ƒ Care & Feeding (Awards & Appraisals)
ƒ Relationship Building & Team Infrastructure
Dynamics
ƒ Budget & Policies
ƒ Goals & Directions

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Summary

ƒ Global team requires trust

ƒ Global team can share workload

ƒ Long term relationships are key to sustaining

performance of distributed team

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