IBM Research

1. IBM Research IBM Research Graduate Student Workshop: Statistics for a Smarter PlanetChid ApteDirector – Analytics Research, Business Analytics & Math. SciencesIBM Research – T.J. Watson Research Center

2. IBM Research 3000 Researches 5 Nobel Laureates 17 years of Patent Leadership Famous for its science and vital to IBM Innovation that Matters $6B R&D Budget 6 Turing Awards 9 Labs around the World Collaboration fora Smarter Planet Zurich China Almaden Watson 1956 IntegratedSolutions 1995 1961 1955 Haifa Tokyo Austin Services 1982 1972 India 1995 Research Agenda Software 1998 Hardware Brazil 2010 1970s 1980s 1990s 2000s 2010s Research Partnerships • Corporate • Collaborative • Work on • Create business • Collaborative Research Services funded Team client advantage for clients partnerships Research Briefings research • Shared agenda problems • Industry-focused • Emerging markets agenda • Effectiveness research Globalization EBOEmerging BusinessOpportunities • Technology Collaborative Innovation transfer Research in the Marketplace FOAKFirst of a Kind Joint Programs Centrally Funded Technology Transfer Inter disciplinary collaboration in the market and across the globe

3. A Culture of Innovation – External Recognition • IEEE • IOP • OSA • AAAS • ACM • ACS • APS • AVS • ECS 9 US National Medals of Technology 5 US National Medals of Science 6 Turing Awards 5 Nobel Laureates Copper Chip Technology Silicon-on- Insulator Nuclear Magnetic Resonance Techniques SiGe DRAM Basis for MRI today Electron Tunneling Effect High Temperature Superconductivity High Performance Computing First woman recipient in the history of this prestigious ACM award Scanning Tunneling Microscope 22 Members in National Academy of Sciences 64 Members in National Academy of Engineering 10 Inductees in National Inventors Hall of Fame > 400 Professional Society Fellows Laser-etched hair based on excimer laser surgery – foundation for LASIK surgery

4. 2008 – Pledge to 50% increase in published inventions IBM Patent Leadership (U.S) – 17 consecutive years Jan. 14th 2009"IBM's leadership in the strategic use of intellectual property is based on balancing proprietary and open innovation," said Dr. John E. Kelly III, IBM senior vice president and director of IBM Research. "Our goal is helping stimulate innovation as public investments in large infrastructure projects are being planned to boost global economies. We also anticipate that adding additional transparency to the patent system will help tackle the continuing patent quality crisis, which is impeding inventors, entrepreneurs and companies of all sizes." IBM Shatters U.S. Patent Record again, will license its patent portfolio management know-how for the first time 2009 – Offer patent portfolio management know-how # of IBM Patents per year • Jan 12th 2010: IBM announced that it received 4,914 U.S. patents in 2009, marking the 17th consecutive year it has topped the list of the world's most inventive companies. • IBM also announced that, for the first time, it will offer its invention know-how and patent portfolio management software to clients seeking to enhance their intellectual property (IP) management capabilities in support of innovation-based growth strategies. • Over 4000 innovations published, making them freely available Source: http://www-03.ibm.com/press/us/en/pressrelease/26471.wss 2007 – 15 patents pledged to Eco-Patents Commons Jan 14th 2008, Leading members of the corporate community have come together in a first-of-its-kind effort to help the environment, unleashing dozens of innovative, environmentally-responsible patents to the public domain. Source: http://www-03.ibm.com/press/us/en/pressrelease/29168.wss # of Patents for IBM and Competitors 2009 2006 – Moves to increase patent quality Source: http://www-03.ibm.com/press/us/en/pressrelease/29168.wss • Jan. 10th 2006 IBM announced that is working with the USPTO, Open Source Development Labs (OSDL), members of the open source software community and academia to improve patent quality. • That initiative has three elements: • Open Patent Review • Open Source Software as Prior Art • Patent Quality Index 2008 – Pledge to 50% increase in published inventions Source: http://www.ibm.com/press/us/en/pressrelease/23280.wss 2007 – 15 patents pledged to Eco-Patents Commons 2006 – Moves to increase patent quality 2005 – 500 Patents pledged to Open Source Source: http://www.ificlaims.com/IFI%20Patent%20Release%201-9-08.htm 2005 – 500 Patents pledged to Open Source Jan. 11th 2005 “True innovation leadership is about more than just the numbers of patents granted. It's about innovating to benefit customers, partners and society,” said Dr. John E. Kelly, IBM senior vice president, Technology and Intellectual Property. “Our pledge today is the beginning of a new era in how IBM will manage intellectual property. Source: http://www.ibm.com/news/us/en/2006/01/2006_01_10.html Source: http://www.ibm.com/news/us/en/2005/01/patents.html

5. IBM Research Business Analytics and Optimization Deployed operational planning and scheduling to run steel plants at several leading Asian steel manufacturers – improved productivity Improved profitability through analysis of customer networks for a major telecom customer by providing better customer targeting Design optimal maintenance plan for a set of interconnected offshore oil platforms - improve availability of oil platforms • Over 200 researchers with expertise in data analytics, operations research, mathematics, and industry applications of analytics • Hold 300 patents and have an additional 450 pending on analytics and business applications • Support IBM’s “fact-based” management and processes in sales, supply chain, and services. • Participate with IBM consultants in cutting-edge client projects • Add differentiation through data analytics to outsourced accounts • Provide new algorithms to IBM SW products • Lead in the global scientific community • Over 250 publications in leading conferences and journals in recent years • Fellows at several leading professional societies • Successive wins at KDD Cup and INFORMS Data Mining Competitions (premier competitions) • Leaders in Optimization Open Source • Major INFORMS prizes and awards • Adjunct faculty at leading universities Analytics-Driven Solutions for Increased IBM sales force productivity – increased revenue and profitability Improved wafer yield at the IBM 300mm semiconductor plant deploying data mining and machine learning Creation of state-of-the art error correction code technology that is used in main memory systems of IBM’s computers Provide analysis of operational risk loss data for 36 leading banks from 13 countries - cross enterprise secure and anonymous data sharing Centralized control and real-time visibility of the end-to-end supply chain for IBM supply chain – reducing inventory

6. IBM Research Agenda in Analytics & Optimization for Business Intelligence • Core Methods and Theory • Optimization • Mathematical Programming, Operations Research, Theoretical Computer Science • Analytics • Statistics, Machine Learning, Data Mining, Decision Analysis, Simulation & Modeling • Analytic Platforms • New algorithms • Scalability • Automation • Extending traditional Business Intelligence Platforms to enable analytics integration • Applications • Enterprise • Supply Chain • Inventory Management • Procurement Management • Operations • Risk Management & Audit Compliance • Workforce & Enterprise Management • Quality Control & Reliability • Revenue Management • Customer Relationship • Customer Insights and Market Intelligence • Lifetime Profitability / Loyalty Management • Social Media Insights • Industry • Financial Services • Healthcare • Telco • Energy & Utilities • Logistics & Transportation • Safety & Security • …

8. Information Overload • As the world is becoming increasingly interconnected, intelligent and instrumented, more sensors are placed throughout the world to capture the data. • While more information is available to enterprises, less of the data is being effectively captured, managed, analyzed and made available to the people who need it. Enterprises can’t keep pace. • Data matters because everything from traffic to utilities to healthcare information can be captured, monitored and analyzed for insight.

9. New market New level of client value New Opportunities: How We Can Help • With all of this data come new challenges as organizations are now struggling to not only extract the relevant information, but to make sure it’s more intelligent and actionable. • IBM Research is pursuing leading edge research and actively engaging in client projects to extend the ability for analytics to predict outcomes and improve the speed and quality of business decisions – using data analysis and modeling algorithms, to help achieve a Smarter Planet

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