IBM global outsourcing presentation 2008

© 2008 IBM Corporation

Global Collaborations

Feb 15, 2008

Mark Hill

IBM Functional Manager

May 21, 1952May 21, 2002

© 2008 IBM Corporation2

Agenda

IBM Global Strategy on OutsourcingIBM Customer Support StructureDevelopment Collaboration with Japan– Initial Dynamics of Teams– “One Team” Integration– “One Team” Integration Results– Upper Management Role

Summary

IBM Global Services

© 2007 IBM Corporation

IBM and Global Outsourcing



Agenda

IBM’s Strategy

IBM’s History of Globalization

IBM’s Approach to Globalization– Globally Integrated Enterprise



Become the Premier 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

Deliver the Value of Integration 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

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

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

IBM’s Strategy

Source: IBM Corporate Strategy – Version 2007-02-14

Focus on Enterprises that ValueBusiness and Technology Innovation



Systems Software Services

Committing to Innovation and Integrated ValueIBM’s Sources of Strength



20thCentury

The Emerging Business Model International Exporting



20thCentury

The Emerging Business Model Multinational Country Silos



A new computing model for business

New client needs generated by these new possibilities

The rising tide of globalization

Forces of change



Focus on open technologies and high-value solutions

Deliver integration and innovation to clients

Become the premier Globally Integrated Enterprise

IBM’s Strategic Foundation



The Emerging Business Model The Globally Integrated Enterprise

21stCentury



Becoming the Premier Globally Integrated Enterprise

Serve clients by integrating capabilities horizontally and globally

Global IntegrationGlobal Footprint

Locates operations anywhere in the world based on economics,

expertise and business environment

Global Optimization

Leverages Global Footprint to access global markets and gain

operational advantage

Cost Savings- Global Delivery- Shared Services- Process Excellence

Progressive Focus

+Value Creation

- Collaboration - Synergy



Extending reach into local markets

Reallocating talent

Optimizing and integrating key operations

Eliminating redundancies and excess overhead

Leveraging world-class capability, wherever it is located

The Globally Integrated IBMMaking the Whole of IBM More Efficient


IBM Customer Support Structure


IBM Customer Support Structure (3rd level)

“Follow the Sun” organization discussed many times, but not currently implemented

World is partitioned by zone– AP – Japan

– EMEA – Mainz, Germany

– Americas – Tucson, AZ

– ANZ (& India) – Melbourne, Australia


Support Example

Problem discovered in EuropeSent to US for initial FASent to Japan for continued FAQuestions collected between US, Japan, sent to Europe for more dataEurope gathers additional clarifying informationUS does additional testing, clarification of problemJapan reviews additional data, creates fixUS & Japan verify fixFix given to Europe


Development Collaboration with Japan

Initial Dynamics of Teams

“One Team” Integration

“One Team” Integration Results

Upper Management Role


Initial Dynamics of Teams

New project defined

Team Leads

Architecture discussions

Re-use of code, logic

First Product Results



Convergence of products

“Two in a box” formation at the management layer

Forming relationships– Build on existing relationships

– Face to face meetings

– Video conference calls

– Periodic phone conference calls



Culture– IBM is a US company

– English tests (verbal and written)

– Previous experience in US

– Approaches to fixing problems

Trips for face-to-face meetings



Roles & Responsibilities

Tools & Standards

Infrastructure & Processes

Keeping on track



Second generation of product

Converged product

Location leverage– Customer support by location

– Worldwide standards

– GR



Distributed teams within the team

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

Collaboration spread to other teams– Other programs started– Switzerland, Tucson, Japan


Upper Management Role

High-level Planning

Care & Feeding (Awards & Appraisals)

Relationship Building & Team Infrastructure Dynamics

Budget & Policies

Goals & Directions


Summary

Global team requires trust

Global team can share workload

Long term relationships are key to sustaining performance of distributed team

IBM global outsourcing presentation 2008

Documents

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