Open Innovation in a Globally Integrated Enterprise

© 2009 IBM Corporation

Open Innovation in a Globally Integrated EnterpriseDr. Matthias KaiserswerthDirector, IBM Zurich Research Lab

Zurich Research Lab


Building a smarter planet

Agenda

Introduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps



Introduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”

Collaborative Innovation at IBMInnovating small and medium businessesNext steps

4 © 2009 IBM Corporation


IBM Zurich Research Lab

Lab population: ~ 320 persons

• Regular employees 240• Pre-docs 50• Post-docs &visiting scientists 30

Collaboration with externalpartners

• University projects 30• Industrial partners 30• Govt. programs 30

>30 different nationalities

Zurich Research Focus Areas

Computer Science: Security and Privacy, Business Integration Technologies,

Systems Management

Systems: Server Technology, Accelerator Technology, I/O Link Technologies, System

Software, Energy Management

Storage: Tape Technologies, Heads and Actuators, Storage Systems, Memory and

Probe Technologies

Math & Computational Science: Business Optimization, Computational Sciences, Data

Analytics

Science & Technology: Semiconductors, Systems, Beyond the Transistor, Nanotechnology, Biotechnology

5 © 2009 IBM Corporation


IBM Labs are Globally Integrated

Beijing1995

Watson1945

Zurich1956

Haifa1972

Almaden1955

Austin1995

Delhi1998

Tokyo1982

More than 3,000 scientists and engineers at 8 labs in 6 countriesIBM spent $6B in 2008 on R&D



Agenda


Collaborative Innovation at IBMInnovative small and medium businessesNext steps



The reality of living in a globally integrated world is upon us.

Frozen credit markets and limited access to capital.Economic downturn and future uncertainty.Energy shortfalls and erratic commodity prices.Information explosion and risk/opportunity growth.Slowing superpowers and emerging economies.Increasingly complex supply chains and empowered consumers.

The world is connected:economically, socially and technically.

7

Zurich Research Lab



The world is smaller and flatter.

8

Zurich Research Lab



The Midmarket Enterprise of the future is focused on …

Business model innovation

New breed of informed and collaborative consumer

Greater need for corporate social responsibility programmes

Global growth strategies

1 2 3 4

IBM Global CEO Midmarket StudyZurich Research Lab



Rethinking what is done in-house and through collaboration

The increasingly informed and collaborative consumer

Increasing investments in corporate social responsibility

Optimism about becoming more global and about tapping into the rising purchasing power of emerging economies

What you told us...



Agenda





“Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value”

National Innovation Initiative

What is innovation?Zurich Research Lab



The changing nature of innovationKey factors driving change

–Dynamics of a flattening world

–Emergence of new capabilities

–Evolution of information technology–March of commoditization–Massive shift in demographics

–Unpredictability and impact of change

Innovation in the 21st century–Open

–Collaborative –Multi-disciplinary

–Global

Zurich Research Lab



Why does innovation matter? Generates high-value,

higher-paying jobs

Fuels wealth creation and profitability

Creates new industries and markets

Spurs productivity and economic growth

Raises standard of living

Goes beyond invention

Zurich Research Lab



Open, collaborative innovation What would happen if we could…

– Bring our top technologists and consultants together to envision the future of innovation?

– Invite our innovation ecosystem to join in the conversation?

– Partner with those ecosystem participants to address the challenges and opportunitiesthat emerge?

Venture Capitalists

ISVsBusinessPartners

Universities

Competitors

Employees

Regulatory Bodies

Investors

IT Analysts

Alumni

StandardsBodies

Policy-makers

Clients

Innovation Ecosystem

CommunityLeaders

Zurich Research Lab



InnovationJamsZurich Research Lab



The result of IBM InnovationJamZurich Research Lab



Can you Jam? AbsolutelyZurich Research Lab



Evolution of a PartnershipIBM Research’s Public-Private Partnership with ETH

Zurich Research LabA

ug

us

t 20

01

Sep

tem

ber

200

3 IBM and ETH

open Center for Advanced Silicon Electronics

Zurich Information Security Center created with ETH and Credit Suisse

Jun

e 20

08

IBM and ETH Zurich form $90 million partnership in nanoscience



A Model for CollaborationFor the first time in Switzerland will Industry and Academia not only

share research infrastructure, but actually create it in a joint effort.

● Investment of 90 Mio USD● IBM constructs the building● ETH rents space for

a minimum of 10 years● Both joint and individual

research projects● Available to more

organizations



Agenda



What’s innovative?• Intexys Photonics and

Varioprint AG Partnered with the IBM Zurich Research to develop a cost competitive, optical data transmission solution to increase the bandwidth between processor chips.

Innovative CollaborationVarioprint AG and IntexyS Photonics

22



Disruptive and Radical InnovationBandwidth Density of Objects

IBM Federation Switch copper and optical interconnect versions

All Electrical All Optical

Today, optical interconnects are used for long-distance intra-cluster connections due to high bandwidth (BW) capabilities

As BW requirements increase, optics will be able to provide a cost-performance advantage for even shorter distances, for backplane and card level interconnects



Optical Interconnect: A Supplier Ecosystem

Card-to-card optical interconnect prototype

Multinational Partner

Multinational Partner+European Startup

Optical printer circuit board

Optical connectors

Opto-electronic transceivers



Building and Maintaining a Health Ecosystem

Broadly speaking, there are two foundational components of an effective keystone strategy. The first is to create value within the ecosystem […] the second is to then share the value within the ecosystem (Iansiti, 2004)

“Successful innovation requires tracking your partners and potential adopters as closely as you track your own development process” (R. Adner, 2006)

Supply Chain Ecosystem Strategy

Actively create and “manage” supplier base, create value for suppliers ( support adoption of the technology in an entry market).

Track ecosystem risk.

What’s innovative?• IBM Dynamic Inventory

Optimization Solution performs eighty to ninety percent of Max Bahr's inventory replenishment.

• There is no ERP system involved

Smarter Business Outcomes• Increased average shelf

availability to 99.1% (93.5% is the average shelf availability in retail)

• Over 90% of the items planned are automatically replenished

Innovative CollaborationMax Bahr, do it yourself store automates inventory

26

What’s innovative?• 3D avatar links to medical

records at Danish Hospital• Collaborating with IBM with

its go to market strategy and in product licensing

Smarter Business Outcomes• Supports hospital's strategy

for a paperless environment• Improves doctor patient

experience• It will allow doctors to see

more patients and diagnose them more accurately.

Innovative CollaborationNumhi Technologies, reinventing medical records

27



Agenda





To realize the potential organizations need to do three things – the underlying enabler is open collaboration and innovation

FOCUS ON VALUE

Do more with less Cash/capital focus Flexibility

Focus on the core Businesses Initiatives

Re-align relationships Financial solidity of

suppliers, partners and customers

Revisit/renegotiate

1EXPLOIT OPPORTUNITIES

Capture share Disrupt weak competitors Acquisitions

Build future capabilities Protect and acquire talent Initiatives

Change your industry Bold moves Position globally

2ACT WITH SPEED

Manage change Clearly communicate simple goals Seek and leverage experience

Leadership Get the information to act Set the agenda

Risk and transparency Business performance

management and analytics Risk management

3

Zurich Research Lab



30

Zurich Research Lab

Open Innovation in a Globally Integrated Enterprise

Technology

Transcript of Open Innovation in a Globally Integrated Enterprise