Peter Andrews (Open) Innovation in a Knowledge Economy

2 First-of-a-Kind (FOAK) Program  Experimental technology- based solutions engagements  Testing IBM Research innovations on client business problems  One year, clear commitments From Mary Jo Frederich IBM Corp

3 Data Center Thermal Mapping Determines optimal space & energy usage 10% overall data center power saved Global Technology Services and Systems & Technology Group offerings Employed in IBM data centers Project Examples High Performance Stream Processing Platform New paradigm for financial services processing Ingests financial market data at 21 today's rates Software Group System S offering (InfoSphere) Broad applicability government, healthcare, etc. Model Driven Business Transformation for Retail Automated forecast planning process Estimated 20% productivity increase Business Entity Lifecycle Analysis tool for Global Business Services Leveraged in IBM IT Delivery offerings From Mary Jo Frederich IBM Corp... and 100s of others

4 How FOAK Works Solution Owner Solution Owner Portfolio Mgr Solution Owner Solution Owner FOAK Board Solution Boards Proposal Sponsorship & Submission Monitoring & Tracking Research (3) Sales &Distribution (3) GBS (1) GTS (1) SWG (1) STG (1) Corporate Strategy (1) Research Relationship Manager Research Labs Ideas Industry Sales Teams Ideas From Mary Jo Frederich IBM Corp

5 Deliverables  The know-how to improve a business process or solve a problem  Software components, methodologies and tools  Positive press From Mary Jo Frederich IBM Corp

6 The FOAK Experience

7 Key Lessons from FOAK  Ensure all have “skin in the game”  Set expectations early and clearly  Engage commercialization owners early and keep them engaged  Balance process with creativity  Manage exceptions to maintain program integrity From Mary Jo Frederich IBM Corp

8 Innovation Discovery Approaches  Choose “full partner” clients  Create the right experience  Do the pre-work  Get the right participants  Spice with subject matter experts  Don’t be perfect

9 The Future: Toward More Open Innovation  Talent attacks opportunity (Hollywood model), if...  Richness of Interactions  Credentialing and Authenticity  Fairness

10 Want to Find Out More?  Innovation Passport: The IBM First-of-a- Kind Journey From Research to Reality  FOAK Web Site  Peter Andrews  Innovation Passport Blogation Passport Blog Save 35% and Free US Shipping Coupon Code: IBM0767 From Mary Jo Frederich IBM Corp