1. Higher Education Needs for IBM Valerie Halverson Pace, Ph.D. IBM Community Relations

2. IBM Rochester History 1956 Manufactured mechanical card devices –100% production; High School Diploma 1960 Develoment Lab established First air-cooled mid-range computer –S/3, S/3X, AS/400, eServer – iSeries Systems Technology Group – 80% HW/SW Development & Services –Baccalaureate & Advanced Degrees

3. IBM Education Tradition IBM Rochester Education and Training (1990) –125 employees; rotational internal trainers –Production through HW/SW development –RCTC/WSU/UM Customized Delivery –Full tuition reimbursement program Target technology trends and assess skills base to drive education investment (1995) IBM Learning Organization (2000) –Consult with business units to deliver strategic needs –On Demand delivery (technology/flexibility)

4. Systems Technology Group Skills Emphasis (Internal Education) Hardware and Technology –Power Optimized Circuit Design, High Performance Computer Architecture, Mixed-Signal Circuit Design, Design for Signal Integrity System Software –Websphere, Database, Transaction Servicing, Connectivity, Storage Management, Operating Systems Professional Skills –Industry Knowledge-Enabling Technologies (Life Sciences, Banking, Retail, SMB, etc.) –Solutions integration, Complex Pricing, Customer business process –Negotiation, leadership and sales skills

5. IBM Classroom/Distance Learning 17,500 student days; $3.5M –$3.5M internal employee education in 2004 Delivery techniques –55% classroom –22% distance learning –23% combined programs 50% Distance learning through U of M –Other is Iowa State U, Columbia, RPI, Devry, U Phoenix

6. Customized Curriculum Former programs with UCR partners –Computer science languages (C+, C++, Java) (WSU) –Workplace Literacy for ESL job candidates (RCTC) –Electronics Technician (RCTC) Integrated Supply Chain Management –Arizona State/Michigan State and Penn State Innovation Class (UM) Reskilling production employees –RCTC curriculum for test analyzers Upskilling lab tech from 2 to 4-year engineering

7. Higher Education Synergy Employee Education and Development –Degree and non-degree –Input to curriculum requirements Recruitment and Retention –Brand and Visibility for 4-year and graduate Joint Research Collegial Opportunities –Adjunct faculty –Joint programs

8. IBM Support for UM IBM Tier One University $28,855,506 Total Investment by IBM (1972-) –$9,922K Institute of Technology –$9,457K Special Projects –$5,860K Minnesota Supercomputer Institute –$2,122K Carlson School of Management –$ 724K Matching Grants Recent IBM Support –$1,392KCompetitive Awards PhD Fellowships, Research and Faculty Grants 36 Individuals (1995-2004) –$5,860KShared U Research Minnesota Supercomputer Institute (1993-2004) –$ 432KMatching Grants Technology match + employee gifts (2001-04)

9. UM Grads at IBM Recent UM Hiring –264 NRO Hires (1995 -) –45 PhD Hires (1995 -) –154 Coop Student Hires (1998 -) Current Workforce –413 Bachelor –290 Master – 51 Ph.D. 17 UM Alums Are IBM Executives »IBM employee records reflect last degree only

10. IBM Tuition Reimbursement 2004 $ 3.5M Rochester Employee Tuition Reimbursement UCR Partners: – UM$1,760K – Winona $ 35K – RCTC$ 75K Non-MN Schools - $760K (Distance) Cardinal Stritch $275K (BA/MA) UMR does only on-site recruitment

11. IBM Tuition Reimbursement Current tuition reimbursement enrollments: –Associate 9 –BA/BS21 –MA/MS69 –MBA30 –Exec MBA/MSMOT 4 –PhD 4 Hiring practice shifted to individuals with four-year and graduate degrees

12. Strategic Partnership Interests Shared Research –Create synergy across Mayo/IBM, Mayo/UM and IBM/UM Partnerships –Center for Advanced Studies: Life Sciences/Supercomputing Technology Innovation –Interlock on curriculum –Increased Ph.D. achievement by IBMers UM Rochester Presence –Expand existing base –Distinctive leadership and visibility Partnership Synergy and Growth –UMR/IBM Computer Workshop for High School –Community leadership

13. UMR Visibility Brand University of Minnesota Rochester –Provost and Program Development Team Life Sciences; Bioinformatics MSMOT Signature Series; MBA Education Ph.D., etc. –Regional Extension Service –Research UM/Mayo; IBM/Mayo; UM/IBM Hormel Institute Dr. Hugh Oulette patents

14. Expand UMR Presence Unique Curriculum Leadership –Attract students; Export knowledge UM Graduates with UMR Support –Education, IT, MBA UMR Identity and Visibility –Building; focal point Alumni Support (4000 in SE Minnesota) UM Foundation Support –President’s Club; UMR Funds