International Business Machines Corporation · NYSE:IBM
International Business Machines — Investor Day (March 2017)
80 slides from International Business Machines's investor day presentation, Mar 7, 2017
Slide 1: Agenda – Morning Session
Topic IBM Presenters 8:30 – 10:15 Strategic Overview Ginni Rometty Cognitive, Cloud and Industry Differentiation John E. Kelly III IBM Watson and the IBM Cloud Platform David Kenny Industry Differentiation John E. Kelly III, Mark Foster Deborah DiSanzo Bridget van Kralingen Marc van Zadelhoff Transf
Slide 2: Agenda – Afternoon Session
Agenda – Afternoon Session Topic IBM Presenters 1:45 – 4:45 Transforming Technology Services Martin Jeter Implementing Hybrid Cloud with Software and Systems Arvind Krishna Tom Rosamilia Building Ecosystems with the Cognitive Developer Bob Lord Research and Future Trends Arvind Krishna Financial Dis
Slide 3: Forward Looking Statements and Non-GAAP Information
Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. Those statements by their natu
Slide 4: Forward Looking Statements and Non-GAAP Information
Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current ‘assumptions regarding future business and
Slide 5: IBM's Platforms
IBM’s Platforms IBM 1 Global Ecosystem . . . Analytics Customer Engagement Security Healthcare Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization Integrated Solutions
Slide 6: Cognitive, Cloud and Industry Differentiation
Cognitive, Cloud and Industry Differentiation Dr. John E. Kelly III Senior Vice President, Cognitive Solutions and IBM Research
Slide 7: IBM's Platforms: Our Strategy
IBM's Platforms: Our Strategy IBM 2 Strategic Imperatives $33B 2016 Revenue 41% of IBM Revenue Global Ecosystem . . . Analytics Customer Engagement Security Healthcare Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization
Slide 8: The power of Cognitive
The power of Cognitive IBM 5 Machine Learning Statistical analysis for pattern recognition to make data-driven predictions Artificial Intelligence Range of techniques including natural language processing, knowledge, reasoning and planning, for advanced tasks Cognitive Computing Interactive decision
Slide 9: Market opportunity
Market opportunity IBM 6 ~$1.4T Traditional global IT spend 2020 Opportunity for decision-making support 2025 ~$2T Decision Support Rest of Industries Retail, Wholesale, Consumer Product Goods Healthcare and Life Sciences Financial Services Auto, Aerospace and Defense Industrial Products Telco, Medi
Slide 10: We are scaling across multiple industries
Healthcare 10K clients and partners 20M patients helped by population health offerings 25M helped in health and human services >35 health systems using Watson for Oncology in U.S., Japan, Thailand, India Deep domain expertise—MDs, RNs, epidemiologists, policy experts 200M+ lives, 100M+ patient recor
Slide 11: Our clients and partners are scaling
Our clients and partners are scaling Example set of cognitive and cloud clients and partners IBM 8
Slide 12: Our clients and partners are scaling
Deployed >12 projects throughout the enterprise >50% of employees have leveraged Watson 7 out of 12 projects deployed in 6 weeks or less. Remainder in 5-12 months Deployed to >10K branches Used by >70K tax professionals H&R Block’s web visits up >9% one day after announcement Deployed live pilot in
Slide 13: Watson to touch more than 1B people by the end of 2017
Watson to touch more than 1B people by the end of 2017 IBM 8
Slide 14: Strategic differentiation
. . . . . . Healthcare Financial Services IoT Analytics Security Customer Engagement Global Ecosystem Data (Public, Private, Partner) Strategic differentiation IBM 11 Built for Security Public, Private, Multimodal Enterprise-scale Cognitive Platform Industry Specialization
Slide 15: Strategic differentiation
Strategic differentiation Industry Specialization Built for Security Enterprise-scale IBM Cloud Cognitive Platform Public, Private, Multimodal
Slide 16: IBM Watson and the IBM Cloud Platform
IBM Watson and the IBM Cloud Platform David Kenny Senior Vice President, IBM Watson and Cloud Platform
Slide 17: IBM's Platforms: IBM Watson and the IBM Cloud Platform
IBM's Platforms: IBM Watson and the IBM Cloud Platform Building the world’s best enterprise cloud and AI platform, differentiated by our vertical capabilities IBM 2 IBM Cloud $13.7B 2016 Revenue $8.6B As-a-Service run rate IBM Analytics $19.5B 2016 Revenue . . . . . . Healthcare Financial Services I
Slide 18: ONE Architecture
ONE Architecture Highly scalable and flexible, enabled with security, to meet our client's most aggressive needs IBM 3 AI Building blocks for developers Visual Recognition API Conversation API Discovery API Speech API Compare/ Comply API IoT API DLaaS API NLU API Tone Analyzer API NLC API Personalit
Slide 19: Driving Innovation
Applications + Watson Health Watson for Cyber Security Watson for FSS Partner Apps AI + Watson Conversation Watson Discovery Watson Virtual Agent Data + Watson Data Watson IoT Cloud + Object Storage Tuning Compute for HPC High-volume/low-latency network design Driving Innovation Released advanced se
Slide 20: Aneel Bhusri, Chief Executive Officer
IBM 5 Aneel Bhusri Chief Executive Officer
Slide 21: Kathy Collins, H&R Block
IBM 6 Kathy Collins Chief Marketing and Strategy Officer, H&R Block
Slide 22: Peter Coleman, Managing Director and CEO
IBM 7 Peter Coleman Managing Director and Chief Executive Officer
Slide 23: Marc Benioff, Chief Executive Officer
IBM 8 Marc Benioff Chief Executive Officer
Slide 24: Why we win
We give clients choice and control We put clients in control of THEIR knowledge Clients can leverage open source and open standards Clients can use multiple deployment and data location models (Hybrid) We are built for data and AI We have the most advanced analytics and AI We focus on end-to-end dat
Slide 25: Why we win
Why we win Only IBM can combine cutting-edge technology with deep industry experience to truly partner with clients and help them put their knowledge to work We give clients choice and control oO We are built for data and Al We lead with industry expertise We put clients in control of THEIR knowledg
Slide 26: Industry Differentiation
Presentation Title 3/7/2017 IBM Page 1 Industry Differentiation Dr. John E. Kelly III Senior Vice President, Cognitive Solutions and IBM Research Mark Foster Senior Vice President, Global Business Services
Slide 27: GBS: Our clients and partners are scaling
GBS 2 Our clients and partners are scaling
Slide 28: Scaling Watson Health
IBM Watson Health Scaling Watson Health Deborah DiSanzo General Manager, IBM Watson Health
Slide 29: IBM's Platforms: Healthcare
IBM's Platforms: Healthcare IBM 4 Global Ecosystem . . . Security Analytics Healthcare Customer Engagement Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization Integrated Solutions
Slide 30: Watson Health: Leveraging the Platform
Watson Health: Leveraging the Platform Government Imaging Life Sciences Oncology & Genomics Value-Based Care Domain-specific Annotation/Curation Deep Learning Sequence Learning Patient Similarity Natural Language Processing HIPAA enabled Purpose-built for health data End-to-end security GxP enabled
Slide 31: Creating Innovative Cognitive Solutions with Global Partners
Watson Imaging Clinical Review* Sugar.IQ with Watson** Watson for Drug Discovery Watson Care Manager Watson for Clinical Trial Matching Creating Innovative Cognitive Solutions with Global Partners Partial list of offerings, clients and partners Watson for Patient Safety Watson Health Medical Imaging
Slide 32: A Disruption Is Underway in Life Sciences
Drug Discovery A Disruption Is Underway in Life Sciences Pharmacovigilance (Patient Safety) 7 average cost to develop one new drug1 $8 million estimated cost per day when a clinical trial is delayed2 $2.6 billion $6.1 billion will be spent on drug safety by 2020, with 1.5 million preventable adverse
Slide 33: Mark J. Alles, CEO, Celgene Corporation
Mark J. Alles CEO, Celgene Corporation Changing the Course of Human Health Through Bold Pursuits in Science Cloud-based, SaaS offering to collect, assess, monitor, and report adverse drug reactions. Watson for Patient Safety* *Planned offering Slide provided by Celgene
Slide 34: A Disruption Is Underway in Value-Based Care
A Disruption Is Underway in Value-Based Care IBM 9 of Medicare payments to alternative payment models by 20181 50% of the US population over 65 by 20302 20% $47 trillion cumulative estimated global economic impact of chronic disease between 2011 and 20303 $9,990/person In 2015, U.S. healthcare spend
Slide 35: Our Vision for Value-Based Care: Better Care, Better Outcomes
With analytics, cognitive insights, and lean transformation we can help change behavior, reduce variation and improve decision-making. Our Vision for Value-Based Care: Better Care, Better Outcomes IBM 10 Health & Human Services Next-Generation Program Integrity Next Generation Provider Analytics Nex
Slide 36: Virginia A. Opipare, Central New York Care Collaborative
Virginia A. Opipare Executive Director and CEO Central New York Care Collaborative IBM 11
Slide 37: Scaling Watson Health
IBM Watson Health Scaling Watson Health IBM 12
Slide 38: Financial Services Blockchain
Financial Services Blockchain Bridget van Kralingen Senior Vice President, Industry Platforms
Slide 39: IBM's Platforms: Financial Services
IBM's Platforms: Financial Services IBM 14 Global Ecosystem . . . Security Analytics Healthcare Customer Engagement Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization Integrated Solutions
Slide 40: Financial Services Industry Platform
Financial Services Industry Platform Expanding IBM from trusted systems to trusted industry-led cognitive processes, starting in Financial Services Incremental market opportunity of $900B in Financial Services Distinctive Industry Platform Capabilities Cognitive Process Flows Cognitive Analytics Mos
Slide 41: Initial Focus: Risk & Compliance
Opportunity Watson Financial Services leads with RegTech as most manual and operationally challenging client need IBM Differentiation 35,000 GBS analytics, business process & digital transformation consultants 300M pages regulation by 2020 $250B in sanctions & fines Regulatory Change Management Cond
Slide 42: Louis Rauchenberger, JPMC
IBM 17 Louis Rauchenberger Global Director of Regulatory Relations, JPMC
Slide 43: IBM's Platforms: Blockchain
IBM's Platforms: Blockchain IBM 18 Global Ecosystem . . . Security Analytics Healthcare Customer Engagement Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization Integrated Solutions Blockchain IBM High Security Business
Slide 44: Leading the industry in live business networks
Leading the industry in live business networks IBM Blockchain has 50+ Developer APIs Creating & managing networks, digital assets and participants Hyperledger v1.0 Open for Business 122 Members 36,800 Downloads 5,500 developers IBM High Security Business Network on Cloud (powered by LinuxONE Mainfra
Slide 45: Breadth of Blockchain Ecosystem
Breadth of Blockchain Ecosystem IBM 20 400 Blockchain Clients 122 Hyperledger Members
Slide 46: David Puth, CEO, CLS
David Puth Chief Executive Officer, CLS 21 IBM
Slide 47: The Evolution of CLS and IBM Relationship
2000 2005 2010 2015 2017 1995 The Evolution of CLS and IBM Relationship Herstatt Risk Mitigation Agreed by Key World Banks Conception of service begins CLS and IBM initiate system development CLS launched with 7 currencies 10 year IBM/CLS contract signed to run FX service Global financial crisis 8 c
Slide 48: Sune Stilling, Head of Growth, Maersk
Sune Stilling Head of Growth, Maersk 23 IBM
Slide 49: Security for a New World
Security for a New World IBM Security Marc van Zadelhoff General Manager, IBM Security IBM Page 24
Slide 50: IBM's Platforms: Security
IBM's Platforms: Security 25 IBM Global Ecosystem . . . Security Analytics Healthcare Customer Engagement Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Private, Partner) Industry and Domain Specialization Integrated Solutions
Slide 51: Blazing a new path in enterprise security
Blazing a new path in enterprise security 26 2019+ SERVICES ($M) SOFTWARE ($B) ~$100B, 8% CAGR 2020 Market Opportunity 2015 2014 2010 2012 2016 IBM Security: Security Analytics Integrated Platform Services Expertise $2B+ revenues 8K employees 12K customers 13% growth at 2x the market #1 enterprise s
Slide 52: IBM Security
IBM Security Cognitive Cloud Collaboration SECURITY TRANSFORMATION SERVICES SECURITY OPERATIONS AND RESPONSE INFORMATION RISK AND PROTECTION IBM 27
Slide 53: IBM Security
IBM Security QD by Cloud Collaboration Cognitive = 1D PROTECTION
Slide 54: Information Overload, Skills Gap, Wasted Time
IBM 29 Information Overload 200K+ security events per day, 20-40 events per analyst Skills Gap 1.5M unfilled security jobs by 2020 Wasted Time 21K+ hours and $1.3M wasted chasing false positives Time Is Money: Breaches contained in 30 days cost $1M less
Slide 55: Watson + IBM Security: Massive Corpus of Security Knowledge
X-Force Exchange Trusted partner feed Other threat feeds Open source Breach replies Attack write-ups Best practices Course of action Research Websites Blogs News Web Crawl Unstructured Data Structured Data 100K updates per week 5-10 updates per hour Watson + IBM Security IBM 33 Billions of Data Elem
Slide 56: IBM QRadar Advisor with Watson
IBM 30 IBM QRadar Advisor with Watson
Slide 57: Speed, Accuracy, Intelligence
IBM 31 Speed Investigates 60x faster than complex manual analysis Accuracy Adds 10x more actionable indicators to uncover new threats Intelligence Draws from 1M+ security documents
Slide 58: Vincent Laurens, Sogeti, Capgemini Group
= IBM 32 Vincent Laurens Vice President, Cybersecurity Executive Sogeti, Capgemini Group
Slide 59: Transforming with cognitive
Transforming with cognitive IBM 33
Slide 60: QRadar Advisor with Watson
QRadar Advisor with Watson Transforming with cognitive IBM 34
Slide 61: Cognitive Endpoint Detection
Cognitive Endpoint Detection QRadar Advisor with Watson Transforming with cognitive IBM 35
Slide 62: Cognitive Mobile Intelligence
Cognitive Mobile Intelligence QRadar Advisor with Watson Transforming with cognitive IBM 36
Slide 63: Cognitive Data and App Vulnerabilities Detection
Cognitive Data and App Vulnerabilities Detection QRadar Advisor with Watson Transforming with cognitive IBM 37
Slide 64: Cognitive Bank Fraud Prevention
Cognitive Bank Fraud Prevention QRadar Advisor with Watson Transforming with cognitive IBM 38
Slide 65: Transforming with cognitive
Transforming with cognitive
Slide 66: Transforming Global Business Services
Transforming Global Business Services Mark Foster Senior Vice President, Global Business Services
Slide 67: IBM's Platforms and Capabilities: Global Business Services
IBM's Platforms and Capabilities: Global Business Services IBM 2 Global Business Services $17B 2016 Revenue $9B Strategic Imperatives Revenue Global Ecosystem . . . Analytics Customer Engagement Security Healthcare Financial Services IoT Services Hybrid Software and Systems . . . Data (Public, Priva
Slide 68: New GBS growth platforms to accelerate scale and impact
New Global Business Services growth platforms to accelerate scale and impact 3 IBM Digital Strategy & iX Cognitive Process Transformation Cloud Application Innovation Industry Cognitive Cloud
Slide 69: IBM Digital Strategy & iX
New Global Business Services growth platforms to accelerate scale and impact 4 Industry Insight, Design Thinking, Business Strategy, Agile Differentiation: Integrated strategy and design IBM Digital Strategy & iX Industry Cognitive Cloud
Slide 70: Cognitive Process Transformation
New Global Business Services growth platforms to accelerate scale and impact 5 IBM Cognitive Solutions, Watson, Analytics, Industry Platforms, IBM Research Differentiation: Cognitive embedded process redesign Cognitive Process Transformation Industry Cognitive Cloud
Slide 71: Cloud Application Innovation
New Global Business Services growth platforms to accelerate scale and impact 6 Strategic Partnerships, Mobile Garages, Global Delivery Network, IBM Cloud, GTS, Security Differentiation: IBM Cloud and technologies IBM Cloud Application Innovation Industry Cognitive Cloud
Slide 72: New GBS growth platforms: summary
New Global Business Services growth platforms to accelerate scale and impact 7 IBM Digital Strategy & iX Cognitive Process Transformation Cloud Application Innovation Industry Cognitive Cloud Industry Insight, Design Thinking, Business Strategy, Agile Differentiation: Integrated strategy and design
Slide 73: Client-centric vision for GBS
Regulation Technology Globalization Social Forces Client-centric vision for GBS: Digital reinvention partner for leading industry clients 8 Creating industry-specific opportunities Market forces disrupting clients Auto/Aero/Defense Banking & Financial Chemicals & Petroleum Electronics Energy & Utili
Slide 74: Client proof points of our strategy in action
Client proof points of our strategy in action IBM 9 Northern Trust First commercial deployment of blockchain in the private equity market Security-rich blockchain solution providing efficiency to private equity market Transparent digital platform offers one version of truth to all market participant
Slide 75: The power of practices to accelerate scale and differentiation
The power of “practices” to accelerate scale and differentiation 10 IBM Customer Engagement & Design Salesforce Digital Commerce Digital Strategy iX Cognitive Process Re-engineering Finance Procure- ment Watson IoT Watson Health Cognitive Process Services Cognitive Business Decision Support Advanced
Slide 76: Major transformation programs to drive performance
Major transformation programs to drive performance 11 Creating lasting client relationships, dedicated clusters focused on industry-leading clients Talent Investing, developing and scaling talent to enhance partner productivity and create growth capacity and mindset Cognitive consulting and services
Slide 77: Our new model and cost base will drive economic turnaround
Our new model and improvements to our cost base will drive economic turnaround IBM 12 Mixing to higher value Practice-Focused Delivery Strategy Improving future pricing power through differentiated offerings Delivering More via the Cloud >65% Yr/Yr cloud revenue, segment as-a-Service run rate $1B+ i
Slide 78: Summary
Summary IBM 13 Client value-led, asset- powered strategy positions GBS for growth in cloud, cognitive and industry GBS is seizing the opportunity to leverage and magnify the full power of IBM New operating model and transformation programs to reinforce GBS financial performance
Slide 79: Summary
Summary Client value-led, asset- powered strategy positions GBS for growth in cloud, cognitive and industry New operating model and transformation programs to reinforce GBS financial performance @) GBS is seizing the opportunity to leverage and magnify the full power of IBM
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