Smarter Defense, an IBM Perspective IBM Corporation

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2 Smarter Defense, an IBM perspective, Tom Hawk, IBM General Manager, Nordics Integrated Market Team

3 Agenda Smarter Planet : What s New? Transformation: IBM lessons SPADE: One Year On 3

4 As the digital and physical infrastructures of the planet converge..we have an opportunity to build a Smarter planet Indeed, almost anything any person, any object, any process or any service, for any organization, large or small can become digitally aware and networked. Our world is becoming Instrumented By 2010, 30 billion RFID tags will be embedded into our world Our world is becoming Interconnected An estimated 2 billion people will be on the Web by and a trillion connected objects All things becoming Intelligent Every day, 15 petabytes of new information are being generated. 4

5 Industry Frameworks are shaped by client engagements 5

6 Smarter Planet 6

7 Agenda Smarter Planet : What s New? Transformation: IBM lessons SPADE: One Year On 7

8 Change is the new normal Changes in the World Over 140 of 170 countries in which we operate are growth markets 60%+ of our revenue comes from non-us operations Rise of the globally integrated enterprise Smarter Planet Changes in Technology World is becoming more instrumented, interconnected and intelligent Computing power, advanced analytics and new models exist to turn mountains of data into insight Changes in Client Demand Smarter Planet increases IBM s addressable market by 40% Client investment in Business Analytics and Optimization growing more than 1.5 times traditional IT Cloud Computing opportunity growing by 25%; by 2012, it will account for one-third of IT growth 8

9 Organizational Change Management IBM is in a constant state of transformation, engaged in a stream of concurrent initiatives Created an Organizational Change Management CoE team and infrastructure to strengthen capacity for continuous transformation Experts assigned to critical cross-enterprise transformational initiatives to improve adoption and impact Common Method and Toolkits leverage IBM s Better Change methodology which includes: Clear Vision & Goals Leadership Commitment Organizational Readiness Employee Engagement Organizational Alignment Value Realization Learning embedding change management training in curricula for project managers and leaders 9

10 Challenges to Change the soft stuff is hard Changing mindsets and attitudes 58% Corporate culture 49% Complexity is underestimated Shortage of resources Lack of commitment of higher management Lack of change know how Lack of transparency because of missing or wrong information Lack of motivation of involved employees Change of process Change of IT systems Technology barriers Soft Factors Hard Factors 20% 18% 16% 15% 12% 8% 35% 33% 32% "The needed change must be sold by the chief executive face-to-face... It's not something you do by writing memos. You've got to appeal to people's emotions. They've got to buy in with their hearts and their bellies, not just their minds." -- Lou Gerstner, Former CEO of IBM 10 Source: IBM Global Making Change Work Study, 2008, (n = 1,532)

11 Jams have helped change our culture and collaboration ValuesJam WorldJam InnovationJam Result: A set of new core values defined by IBM s workforce Participation: 22,000 employees, 1.25M views Result: 35 Innovative solutions in 4 areas Participation: 56,800 employees, 2.3M views Result: $100M investment to bring 10 ideas to reality Participation: 150,000 people, 67 companies, 104 countries Result: 3 insights for Enterprise of the future Transparency, Efficiency, Stewardship Participation: 1000 companies, 20 industries, 80 countries, 1.5M pages If you unleash all this energy, opinions, and hope, you better be prepared to do something in response. Sam Palmisano 11

12 Lessons learned from IBM s transformation Create a sense of urgency that everyone can rally around Need strong, visible support from the top unleash creativity & innovation While you re creating a transformation roadmap, define short-term projects with near-term results Make culture change tangible culture is the maker or breaker Transform constantly or else there is no other option If you embark on a transformation, you actually have to do it 12

13 Agenda Smarter Planet : What s New? Transformation: IBM lessons SPADE: One Year On 13

14 USAF Secure Cloud Objective to demonstrate a year leap ahead in infrastructure by using commercial technologies The cloud infrastructure will exhibit several characteristics virtualization of physical computing assets remote management and deployment of changes automated security policy enforcement mission prioritized capacity management The management automation of the cloud infrastructure allows its computing power to scale independent of the operations staff size Cyber security: applied to Cloud delivery model Provide ROI Business Case report which could lead to deploying a cloud environment across the Air Force 14

15 Security Jam What? Platform for discussing the security challenges in the 21st century Wide range of Ideas (EU/NATO/Government, NGOs, Universities... ) 3,800 participants spending 3 hours in Jam How? Organized with support of the EC and NATO Security & Defence Agenda (SDA) and IBM Large number of VIPs invited to contribute Conclusions 10 recommendations, with context and themes Security Jam report forwarded to NATO officials & EU Reflection group 15

16 NISC Acqisition National Interest Security Company acquired by IBM in March 1,000 Employees, HQ in Fairfax, Virginia Focus on Intelligence, Defense, Homeland Security, Energy and Federal Health Vision: to be a widely recognized prime provider and trusted partner for customized technology and management solutions in support of the national interest... Clients Include: Defense Intelligence Agency; Department of Energy; Department of Homeland Security; Department of the Navy; Joint Chiefs of Staff; National Geospatial- Intelligence Agency Demonstrates IBM s total commitment to the Defence & Intelligence Market 16

17 Summary IBM is doing interesting Client projects in the Nordics to make our Smarter Planet" vision real Transformation is the only way to maintain operations under intense budgetary pressures. IBM has been transforming continuously and can help our Clients meet this challenge IBM has made exciting progress in the Defense and Intelligence market since our last SPADE Conference Thanks and Enjoy the Conference 17