Innovation Tools, Systems and Structures Research: The Core of Innovation

1. 1 Innovation Tools, Systems and StructuresResearch: The Core of Innovation C. Mohan, Ph.D. IBM Fellow & IBM India Chief Scientist mohan@almaden.ibm.com http://www.almaden.ibm.com/u/mohan/

2. 2 IBM India � Extensive Operations Across India

3. 3 IBM India

4. 4 IBM: The Innovators� Innovator! 2006 India IT Innovation Award (with Bharti) ~ $6B R&D investment annually, > $90B revenue > 225,000 techies (~60 Fellows, ~500 DEs) Major transformation of company �Near death� experience in early 90s Business model change: services area, � Move from captive markets for IBM technology units to outside customers Collaborative innovation: Sony, Motorola, � Globally Integrated Enterprise (GIE) Getting out of low margin businesses Joint innovation with clients (e.g., ABN Amro) Innovation culture via diversity

5. 5 Encouraging Innovation at IBM: The Ecosystem Well-defined and highly appreciated technical career path Technical Execs: Fellows, Distinguished Engineers (DEs) Senior Technical Staff Member (STSM), Architects, � Invention disclosures, patent plateaus, Master Inventors: money and peer recognition, factors in technical promotions; Extra incentives for �new� areas Rewards: Corporate Innovation / Patent Portfolio awards, Outstanding Innovation / Technical Achievement Awards (OIAs, OTAAs) Internal and external conferences IBM Academy of technology, Architecture Boards Measurement criteria, even in Research division Patents CEO milestones Internal and external awards Product impact Publications

6. 6 Encouraging Innovation at IBM: The Ecosystem Extreme Blue Fast Forward Speed Teams Sharenets IBM Academy Affiliates Innovation Days Thinkplace Briefing Centers Industry Solution Labs Patent Cafes IBM Institute for Business Value

7. 7 IBM Research Worldwide

8. 8 IBM Research Ecosystem

9. 9 Evolution of Research�s Role

10. 10 History of Innovations

11. 11 Research�s Strategic Thrusts

12. 12 Diversity of Disciplines at IBM Research

13. 13 Culture of Innovation External Recognition

14. 14 14 Years of IBM Patent Leadership - 2006

15. 15 IBM Patent Leadership � 2006

16. 16 Global Technology & Global Innovation Outlook

17. 17 The Global Technology Outlook (GTO) Early identification of significant trends: Forward Looking (2 � 10 years out) Disruptive to existing businesses Potential to create new businesses Exponential changes to a business / Threshold crossings How technology can impact both: Customers Businesses Understand Customer Challenges Diversity of Industries The GTO has a direct influence on IBM�s business and technical strategies

18. 18 Global Innovation Outlook (GIO) Overview In 2004, IBM opened its business and technology forecasting processes for the first time Series of dynamic, free-form brainstorm sessions around key issues and opportunities related to innovation Examines opportunities for business and societal innovation from policy, thought leadership and market development perspectives Brings together broad ecosystem of experts from business, academia, government, citizens� groups, partners, etc. Shares insights openly and pursues new opportunities collaboratively GIO 1.0 focus areas: Healthcare, Government, Work/Life Resulting initiatives: integrated healthcare records; IP reform; global skills forecasting; BCS innovation offerings Greatly expanded in 2005-06 Increased participation by 50% to almost 180 external partners Brazil and India added as Deep Dive locations Increased focus on developing new markets and capitalizing on business opportunities GIO 2.0 focus areas: Future of the Enterprise, Environment, Transportation

19. 19 GIO 3.0 Strategy Build on strong foundation of existing GIO structure Mix of thought leadership and commercial investigation Involvement of entire range of IBM ecosystem Multifaceted global outreach (deep dives, salons, report, etc.) Working initiatives that address surfaced opportunities Increase focus on opportunity identification and development Provide mechanisms for earlier surfacing and aggressive advancement of ideas Couple more closely the surfacing of key insights with direct involvement of outcome owners

20. 20 GIO Deep Dive Cycle (10-12 weeks each) Preparation prior to each cycle Market research Hypotheses development and refinement Participants identified and secured Weeks 1-6: Local deep dives Six deep dives across all geos Weeks 6-10: Data refinement with IBMers and Key Partners Project charter development begins Week 10: Global wrap-up dive Top participants gather to prioritize, refine input from local deep dives Project charters reviewed and refined Weeks 11-12: Follow-up and next steps

21. 21 GIO 3.0 Focus Areas Media & Content: Rethinking content creation, distribution and ownership in the digital realm Fighting piracy Alternate distribution strategies Capitalizing on the �Experience Economy� Africa: Enabling economic growth to accelerate positive change Alternative energy Microcommerce Disease prevention & management Education Security & Society: Minimizing risk in a global economy Personal identity and security National borders Property and goods

22. 22 India Innovation Ecosystem Problems/Issues More focus needed on innovation rather than maintenance, infrastructure, support kind of work in bulk of Indian IT industry Very poor CS PhD production rate by Indian Universities (2004: 36 in India, 3300 in China!) Most good undergraduates from IITs go abroad for studies or go for domestic jobs/MBAs Not enough Indian researchers or product technologists from US returning to India, unlike in the case of China, Taiwan, Korea, � Difficulty of recruiting good faculty with deep research focus Many 2nd tier universities have large # of non-PhDs as faculty Whole innovation ecosystem needs to be upgraded � industry should collaborate more with academics IBMers in India being encouraged to go for PhDs/Masters