1. IBM
12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

2. IBM
64% believe that global integration is the way forward…
1. Extensive Globalizers
– Highly networked businesses,
Localizers Extensive adopting a global approach to all
19% Globalizers elements of integration
31%
2. Globalizers
– Businesses that optimize globally, but
already have part of the capabilities,
knowledge and assets they need, and
focus on a single culture, not multiple
3. Blended Thinkers
– Businesses that optimize through a
Blended mix of global and local approaches,
Thinkers with multiple cultures
Globalizers
17% 33%
4. Localizers
– Insulated businesses with a blended
growth approach
Source: IBM Global CEO Study 2008;
2 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

3. IBM
Outperforming CEOs implement globally integrated
business designs
• Invest heavily in new markets
– Opportunity in rising customer
purchasing power
– Interest in new business
relationships and new markets
• Plan deep changes in capability,
knowledge and asset mix
3 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

4. IBM
Enterprise of the Future will be . . .
Globally Integrated
- - - maturity model - - 
Building global
GLOBALLY Exploring global Driving specific Global centers of Global enterprise
capabilities
INTEGRATED opportunities global initiatives excellence innovation
systematically
…preparing PEOPLE
 Are we embedding ‘collaboration’ into
performance management system?
 Are we identifying new business opportunities
based on global talent sourcing?
 Are we developing leaders that think and act
globally?
4 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

5. IBM
Two-thirds of CEOs plan to be engaged in some form of business model
innovation over the next 3 years
Business Model Innovation Focus
69% Established Economy 69% 69%
Emerging Economy*
29% 29% 30%
2%
2% 1%
Limited/No Moderate BMI Strong BMI Limited/No Moderate BMI Strong BMI
BMI Focus Focus Focus BMI Focus Focus Focus
“When the business model is innovative, operations and the “All types of business model innovation are equally
product will follow automatically.” important; it's a matter of priorities.”
Ronald de Jong, CEO Philips CL, Germany Stephane Bancel, CEO of Biomerieux
Source: IBM Global CEO Study 2008; n = 1106
5 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

6. IBM
Customers are becoming more demanding but rather than a threat,
CEOs see an opportunity for differentiation
• Outperformers are investing
more in customer trends
– Both past and future investment
is higher amongst outperforming
companies
• CEOs regard informed and
collaborative customers as a
chance to differentiate
• Outperformers take on the
industry model challenge
– Focus on innovating enterprise &
industry models
– Initiatives to evolve business
models include disrupting
enterprise model or industry
model
6 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

7. IBM
Enterprise of the Future will be . . .
Disruptive by Nature
- - - maturity model - - 
Exploring
DISRUPTIVE Business Model Experimenting Implementing Multiple BMI Radical and
BY NATURE Innovation with BMI BMI initiatives strategies pervasive BMI
opportunities
…preparing PEOPLE
 Are we able to create space for entrepreneurs
and innovative business models while continuing
to drive performance today?
 Do we allow for freedom in processes where
needed?
 Are we enabling open innovation?
 Are we integrating disparate data and systems to
gain new insights about your customers, and
about your people?
7 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

8. IBM
Gap between capability and challenge ahead is growing
2006 2008
8 22
% %
CHANGE CHANGE
GAP* GAP*
13% 12% 6% 19%
11% “We have seen more change in the last ten
22% 31% years than in the previous 90.”
83% Ad J. Scheepbouwer, CEO, KPN Telecom
20%
65%
61%
57%
Change Needed Past Change Success
No/limited Change No/limited Success
Moderate Change Moderate Success
Substantial Change Successful
Change Needed Past Change Change Needed Past Change
Success Success
Source: IBM Global CEO Study 2008; n (2006) = 709, n (2008) = 1104
* Difference or ‘gap’ between expected level of change needed and past success in managing change
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9. IBM
“Change gap”, triples
• CEOs are bombarded by faster,
broader and uncertain change
– More focused on broad change
– Pace of change is increasing
– Market factors, people skills and
technological factors will be the
cause
• Outperformers are better at
managing change
– Companies delivering higher
revenue growth manage change
more successfully
9 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

10. IBM
Enterprise of the Future will be . . .
Hungry for change
- - - maturity model - - 
Anticipating
HUNGRY FOR Ad hoc and Project-driven Change portfolio Change becomes
and proactive
CHANGE reactive change change and program the strategy
change
…preparing PEOPLE
 Do we have an adaptable workforce that can
sense, anticipate and respond to changes
in the outside market?
 Are we hiring, recognizing and retaining
visionary challengers, and giving them freedom
to infuse change?
 Are we managing change as a structured program
and measuring change management
effectiveness?
10 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008

11. IBM
In summary...
Core Traits of the Enterprise of the Future*
1 2 3
Globally Disruptive Hungry for
integrated by Nature change
Are we building
the Enterprise of the Future?
11 12th National Conference | Nov 2008 © Copyright IBM Corporation 2008