Presentation is loading. Please wait.

Presentation is loading. Please wait.

© 2013 IBM Corporation IBMs Transformation to a Services Company and the Growth of Digital Trade Michael DiPaula-Coyle IBM Governmental Programs.

Similar presentations


Presentation on theme: "© 2013 IBM Corporation IBMs Transformation to a Services Company and the Growth of Digital Trade Michael DiPaula-Coyle IBM Governmental Programs."— Presentation transcript:

1 © 2013 IBM Corporation IBMs Transformation to a Services Company and the Growth of Digital Trade Michael DiPaula-Coyle IBM Governmental Programs

2 © 2013 IBM Corporation IBM: A Globally Integrated Technology and Consulting Company Founded in 1911 and now operating in 170 countries, IBM develops and sells software and systems hardware and a broad range of infrastructure, cloud and consulting services. IBM serves clients in sectors as diverse as manufacturing, banking and financial services, insurance, telecommunications, retail, utilities, and express delivery. While still a major manufacturer of ICT hardware, IBM has repositioned itself as the worlds largest, IT services company.

3 © 2013 IBM Corporation IBM Business, IT and Outsourcing Services and Solutions Application lifecycle management Asset management Application infrastructure Big data and analytics Business process management Business Analytics Cloud computing Commerce Complex and embedded systems Connectivity and integration Data management Data warehousing Energy and Environment Enterprise content management Enterprise marketing management Enterprise modernization Enterprise resource planning Expert integrated systems IT Infrastructure services Procurement Product lifecycle management Security Service oriented architecture (SOA) Smarter computing Social collaboration Unified communications Virtualization Web experience

4 © 2013 IBM Corporation IBMs Transformation – Services & Software Source: IBM Financial Reports Hardware Services Software Other 56% 16% 64% 17% 14% 24% 6% 3% Services & software now account for 80% of IBMs revenue Software revenue exceeded hardware revenue in 2008 Services revenue exceeded hardware revenue in 2001

5 © 2013 IBM Corporation IBMs Transformation – Services & Software Source: IBM Financial Reports Hardware Services & Software Other 80% 31% 64% 17% 6% 3% Services and software revenue exceeded hardware revenue in 1998

6 © 2013 IBM Corporation Wider Global Trends: Economic and Labor Changes: U.S. Employment (2010) Services Manufacturing and Construction Agriculture: 1.5% 78.8% 12.4%

7 © 2013 IBM Corporation IBM is a Microcosm of the Global IT industry IBMs transformation reflects wider trends in the global IT industry over the past two decades. IT companies are moving away for traditional hardware to focus on IT software and services. The most competitive IT companies are able to provide integrated, end-to-end solutions across all industry sectors. Hardware, software and services are more integrated now than ever before.

8 © 2013 IBM Corporation This Transformation is Driving the Growth of Digital Trade Services increasingly being delivered electronically via the internet and other networks: fueling the growth of Digital Trade. 16 million internet users in 1995; Today there are more than 2.4 billion. McKinsey Global Institute calculated that 75% of economic benefits of the Internet accrue to traditional industries. In majority of OECD countries, more than 95% of companies already use the Internet: As the Internet evolves to become basic infrastructure and adoption saturates, the Internet economy will become increasingly indistinguishable from the overall economy.

9 © 2013 IBM Corporation Evidence of Growing Role of the Internet in the Global Economy Electronically Delivered Services: Knowledge- or content- based services are increasingly digitized and delivered electronically via the Internet or other networks (e.g. ICT services, professional services, video services, online gaming, music streaming). Digital Products: Content can be digitized for online delivery (software, music, movies, books, video programming, financial analysis, architectural schematics). E-Commerce in Physical Goods: Trade in physical goods facilitated by the Internet or private networks. Operations of Global Companies: Global ICT Networks are now critical to operations of global companies across all sectors.

10 © 2013 IBM Corporation Potential Barriers to Digital Trade Cross-Border data restrictions Local Server requirements Market Access Restrictions for hardware, software and services Regulations (behind-the-border barriers) Technical Barriers to Trade in ICT Products and Services

11 © 2013 IBM Corporation 21 st Century Trade Agreements Must Reflect New Trade Realities The WTOs General Agreement on Trade in Services (GATS) was negotiated before the Internet was commercialized and does not adequately address digital trade. New Agreements are now focusing on this critical area: Non-Binding –U.S.-Korea Free Trade Agreement: Both parties will endeavor to refrain from imposing or maintaining unnecessary barriers to electronic information flows across borders. –U.S.-EU and U.S.-Japan Trade Principles for ICT Services –OECD Principles for Internet Policy-Making Seeking Binding Commitments –Trans-Pacific Partnership: Negotiators are seeking to include binding trade obligations related to digital trade and cross-border data flows. –TISA: TISA will be a critical benchmark for protecting and fostering the growth of digital trade. –TTIP: Will a U.S.-EU Agreement adequately protect and foster the growth of Transatlantic Digital Trade?


Download ppt "© 2013 IBM Corporation IBMs Transformation to a Services Company and the Growth of Digital Trade Michael DiPaula-Coyle IBM Governmental Programs."

Similar presentations


Ads by Google