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IBM Overview prepared for NDTA, Tampa Bay Chapter

IBM Overview prepared for NDTA, Tampa Bay Chapter. Mark Nixon Senior Managing Consultant Supply Chain Management Global Business Services rmnixon@us.ibm.com 813-840-4988. Agenda. Differentiators IBM Global Business Services IBM’s Internal Supply Chain Research and Development .

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IBM Overview prepared for NDTA, Tampa Bay Chapter

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  1. IBM Overview prepared for NDTA, Tampa Bay Chapter Mark Nixon Senior Managing Consultant Supply Chain Management Global Business Services rmnixon@us.ibm.com 813-840-4988

  2. Agenda • Differentiators • IBM Global Business Services • IBM’s Internal Supply Chain • Research and Development

  3. On Demand Services Reach-back – Behind every IBMer there are thousands of resources available Open Architectures & Open Standards - “we are agnostic to solutions” Largest Integrator of ERP & COTS We transformed ourselves SCM & Distribution Workforce & Knowledge Management Lean Six Sigma & Component Business Model Our solutions are built on innovation & best commercial practices; supported by Services Oriented Architectures Why IBM…our key differentiators IBM – “We want to solve your most difficult problems”

  4. Over the past 15 years IBM has made a major transformation from a hardware company to a services led business

  5. IBM exports our logistics and supply chain successes for our clients…. In the last 3 years alone, transformation has produced impressive results!!

  6. Industry Sectors Service Lines Strategy & Change Supply Chain Management Human Capital Management Financial Services Communications Distribution Industrial Public Customer Relationship Management Financial Management Business Transformation Outsourcing Application Services IBM Global Business Services is a partner of unmatched breadth and depth • Consultants and professional staff in more than 160 countries globally • Deep experience and expertise in 17 industries • Partnerships with leading-edge Independent Software Vendors • Broad set of services spanning Strategy and Change, Customer Relationship Management, Supply Chain Management, Financial Management, Human Capital Management, Application Innovation • Over 8500 Supply Chain consultants worldwide, with 1000 working in the Public Sector

  7. Business Consulting Services has a suite of offerings, many of which have active IBM DoD projects today Customer Relationship Management Supply Chain Management Human CapitalSolutions FinancialManagement Strategy & Change ApplicationInnovation Transform and Operate Solutions • Employee Portals • Human Capital Transformation • ERP Implementation • Human Capital Data Warehousing and Decision Support • CRM Vision • Customer Analytics • Integrated Multichannel Solutions • CRM ACCEL • Finance Transformation Strategy • Data Warehousing / Decision Support / BIS • ERP / Finance Infrastructure • iAnalytics • Integrated ERP • Procurement • Adv Planning and Scheduling • Fulfillment and Logistics • Collaborative Product Commerce • Maintenance and MRO Mgmt • Retail & Financial Institution Ops • Collaborative Value Chain Solutions • Corporate Strategy • Operational Strategy • Organizational Strategy • Change Management • Information Technology • e-Business • e-Transformation • e-Globalization • Mergers & Acquisitions • Emerging Technologies • Enterprise Application Integration • Information Technology Infrastructure • Reseller • Web Services • New World Networks • Business Process Management Solutions • Application Management Solutions • Infrastructure Management Solutions • Operate Active IBMProjects • Army • Air Force • Defense Agencies • Army • Air Force • Navy • Defense Agencies • Army • Air Force • Navy • Defense Agencies • Army • Navy • Defense Agencies • Air Force • Defense Agencies • Army

  8. IBM’s Internal Supply Chain operates on a vast scale of tremendous complexity to achieve our distribution mission • 45,000 business partners worldwide • 33,000 suppliers are connected to IBM through the Web • Approximately 350,000 updates are made a day to the 6.5 million customer records from 1.7 million orders a year in North America alone • 18,000 employees at 100 locations in 61 countries • Approximately $40 billion, or roughly 50%, of IBM’s total cost and expense • Moves more than 2 billion pounds of production materiel, end items, and parts annually • Handles over 78,000 products, with more than 3 million configurations In November 2005, IBM supply chain ranked 3rd in AMR Research’s Top 25 supply chains

  9. Supply Chain Strategy Supply Chain Planning Logistics Sense & Respond Value Nets Value Driven Services & Delivery Enterprise of the Future Product LifecycleManagement Supply ChainManagement Enterprise Asset Management and Operations OperationsAnalytics Procurement Supply Chain Enterprise Applications Business Transformation Outsourcing Process Change Technology Enablement Transformation IBM GBS Supply Chain Practice Area consists of eight Solution Areas that deliver an array of offerings to address supply chain needs from transformational strategy to outsourcing. It also offers advanced frameworks and technologies to enable agile, flexible, and adaptive value net.

  10. Watson Zürich Delhi IBM Research – with eight labs worldwide, we have more than 3600 Researchers Beijing Almaden communication systems, computer science, selected science and technology projects, and industry solutions and services research language processing, speech & handwriting recognition, pervasive computing, mobile computing, multimedia, and e-business technologies & solutions semiconductors, physical & computer sciences, Life sciences and mathematics computer science, database, user interface, web software, storage systems software & technology, physical sciences, materials science, nanotechnology, life sciences, services research Haifa Tokyo Austin VLSI design, verification technology, storage subsystems, e-business and security, computer systems, programming languages and environments, advanced applications, applied mathematics, multimedia, and service technologies software technology, systems technology, pervasive computing, Internet technology and applications electronic commerce, media mining, fingerprint matching, speech recognition, weather forecasting and wireless networks high performance/low power VLSI design and tools, system-level power analysis, and new system architectures

  11. Yamato, Japan IBM RFID Centers of Excellence – 10 Worldwide CentersHelping our clients understand the business value and the physics of RFID Dallas, TX USA Washington, DC USA RTP, NC USA Charlotte, NC USA Raleigh, NC USA Dublin, Ireland Markham, Canada São Paulo, Brazil La Gaude, France

  12. Wireless Center of Excellence Building 311 - RTP Campus RFID-Enabled Pallet Wrapper RFID-Enabled Fork Lift (2) Connected to WLAN RFID-Enabled High Speed Conveyor Conference Room RFID-Enabled Dock Door Area RFID Technology Lab (Printer Area Shown) Wireless Center of Excellence – Research Triangle Park, NC

  13. The Changing Business Landscape -- A Recent Navy View of IBM IBM Supply Chain Transformation Nearly $26B* in Cost Savings Sea Enterprise Business Transformation Early 1990s 2005 Priorities of IBM Transformation Purchase Order One day One month (akin to Sea Enterprise) Process Time Procurement 300 3 Centers Cost Cost People Supplier Quality 99% 85% Reduction Reduction Client Satisfaction 80% 40% Internal Customer Customer Cash Cash Electronic <20% 95% Satisfaction Satisfaction Purchases Generation Generation Acceptable 55% 92% Business Controls Enabled <500 35,000 Suppliers Supply Chain Transformation "Maverick buying ” <0.2% >35% Integrated the supply chain 1. Rolled out strategic IT platforms 2. Electronic Catalogs 280 0 Optimized supply chain sourcing 3. Navy Supply Chain challenges: distributed/duplicative supplier mgmt, procurement, and logistics functions *normalized for Lenovo

  14. NFOTS 2005 The Changing Business Landscape -- A Recent Navy View of IBM IBM Profile vs. Navy Profile Sea Enterprise Business Transformation Is Navy today more like IBM under Akers or IBM under Gerstner? Are we making progress? How can we accelerate change? IBM Navy 2005 10th th Fortune 100 ranking : Fortune 100 ranking : 7 q q Total 2005 Revenue : $91.1B Total FY05 Revenue : $103.7B q q Total Staffing : 329,000 Total Staffing : ~900,000 q q HR Staff 4,000 HR Staff 29,500 q q % Executive Mgmt : 0.01% % Flag & SES : 0.09% q q # of Pay Bands : 15 # of Pay Bands : 24 q q Distinct Business Areas : 6 Distinct Echelon IIs : 27 q q Total Networks : 1 Total Networks : 850 q q Total IT Applications: 4,100 Total IT Applications: 23,755 q q Financial Mgt. Apps. 406 Financial Mgt. Apps. 1,083 q q HR Apps. 300 HR Apps. 708 q q Supply Chain Budget: $40B Supply Chain Budget: $57B q q Driven by market competition, IBM is further along in their journey…

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