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Jan Simonsen, Business Unit ExecutiveSWG Channel Nordic

IBM Business Partner Kickoff 2013

Creating the IBM strategy map

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All men can see the tactics I use to conquer, but what none of them can see is “the strategy out of which victory is evolved.”Sun Tzu

However beautiful the strategy, you should occasionally look at the results.

Winston Churchill

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Learning

How can the following benefit you as Business Partner?

1. Understanding a strategy map

2. Knowing the IBM Strategy

3. Understanding your own strategy and the market

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Why strategy (for us)?

�To understand why you do what you do

(and what you need to change to stay on course)

�To understand (and show that you understand)

your own and the customer plans and needs

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What do your partners and customers really want ?

“SELLING WONT HELP – BUT HELPING WILL SELL"

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How much do you KNOW about your own, IBMs and customers strategies!

No guessing !

77

2 bn pipe

800m valid

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The Strategy Map - Keeps it simple

A way to visualize the goals strategies and tactics which a company has in place to perform as promised to its shareholders, employees and community.

---------------------------------------------------------------------------------------------------Plan for Growth

GOAL STRATEGY TACTIC

Take the lead by opening new

markets and create business based on

the need for sustainable solutions

Plan for future growth;

*Global perspective, *Production outside EU,

* Structural adaption

Establish strong position in China

Emerging Markets

Existing Markets

Maintain by Customer Loyalty

Grow services to be 30% of total revenue by

2015

• Expand the business

• Pumps that add value

•Instrumention of pumps and a need to collect the data from pumps

•Act and provide services on the collected data

Grow Services business

New Products & Services

Innovation intent – by 2025 a third of the

turnover generated by products & services

which extends beyond the core business

New products will generate 1/3 of the

revenue

Increase market share in water utility

segment

Change to more service oriented

business

Turnkey projects –pump stations

E-learning

Pro-active services -> professional end-users

Improve cross selling

•Solutions incl services

•Projects

•Products

Grow through solutions not yet developed

Longevity – Grundfos a company Built to Last

Customer Insight; get closer to the end-user

•Acquisitions

•Growth through new business areas

•Staff growth 18 000 – 75 000

Competence center close to Copenhagen with

clusters in Russia and France to capture market

share

Partner Relationshipas part of value chain

Support for Growth initiatives

Technical R&D Innovation & Invention

First of a kind products

More intelligence in products

Constant improvement of product development

increase with 10%

Focus on innovation

Re-inforcement of research and technology

development ensuring production capacity close to the market

Security , Intellectual Property (IP)

Grundfos Strategy Map

Financial Health

Debt free = invest readyPeople Strategy

Leveraging Human Capital

Sustainability

---------------------------------------------------------------------------------------------------Financial Health

Debt free = invest ready

GOAL STRATEGY TACTIC

Invest in latest IT technology

= transformation Enabler

Supremely optimized

Invest in latest technology to support

Innovation

Control Costs

People Strategy

Leveraging Human Capital

Global Working culture

Become a unified company by

• Become truly Global

• Consultning Approach,

• Attracting people

Develop the organization tobecome moreenvironmental

responsible

Keep mindset with 75 000 employees

2025

By on-boarding / off boarding of employees

Employeer of choice (EOC)

Attract right people

Grundfos Brand as EOC

Inter cultural with many nationalities involved

Secure satisfied and motivated employees

Employee Satisfaction & motivation

•Need to increase satisfaction -> decline from 2007-2010

•Talent Development

Longevity – Grundfos a company Built to Last

Invest financial surplus in new sustainable

technologies, products and solutions

Invest in New technologies & product

solutions

Investments in R&D 2011 – 1 BDKR

Capital investments to double in 2011-< 1,5

BDKR

Operational Excellence & Internal progress efficiency

Constantly improve performance of the

organisation

Work Smarter =

Smarter Worker

Logistic RFID / Tracking / Smarter

Best in Class IT

Supporting Platforms

Variable vs fixed cost

Benchmarking internally & externally

Communication

•Across people/regiion companies

• Ease of comm tools

SCM optimization

Business Process Manufacturing /

Optimization

Stronger Procurement Involvment

Focus on core skills

24x7 Education -> ”E”cademy; internal

& external

Develop organizational

culture to foster and promote

sustainability and environmental responsibility

Sustain market leader position

Focus on customer needs &

Satisfaction –loyalty score 82

out of 100

CSR

Sustainability

Green Focus

CO2 emission must never

exceed 124 000 tons per yearAct on climate

changes

Government regulations

Support awareness in the

world – about climate changes and the need for

sustainable energy

consumption and production

Publish the Grundfos view to

influence politically & in

community

Grundfos Strategy Map

Plan for Growth Technical R&D Innovation &

Invention

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IBM 2015

�What do you know about the IBM 2015 strategy?

�What are the 6 levers that will drive $10 EPS to $20 EPS

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6 Levers driving USD 10EPS Growth

---------------------------------------------------------------------------------------------------

IBM Strategy Map

• PC Business

• HDD

•Printers

GOAL STRATEGY TACTIC

Lead the Industry through Innovation/ Ability to adapt to a

changing Environment

Shared services

End-to-end process transformation

Accelerate integration for IBM’s global

operations

Becom

e premier G

lobal Integrated E

nterprise

Focus on Open Technology and

high value Solutions

World leader in BusinessAnalytics

(16Bn by 2015)

Growth Markets (30% of GEO Rev

by 2015)

Growth Initiatives

Growth Initiatives(20Bn by

2015)

Strengthen Business Partner Eco System

(27000 BPs certified)

•Integrate BAOinto otherOfferings

•Introduce BAOOfferings perIndustry

Build a talent pool of 9000 expert Consultants

Grow smarter planet offering

Doubling Branch Locations

(100 beyond Large Cities & BRIC)

Broaden base Skills and R&D

Capabilities

Leverage Anchor Clients

Partnerships (Bharti Airtel)

2015 Roadmap => $20EPS

Organic

Acquisitions(20Bn)

BroadenPortfolio

(Buy vs Build)

Cross IndustryKnowledgeDistribution

SmarterPlanet

(10Bn by 2015)

Cloud(7Bn by 2015)

Employer of Choice

(Leverage HumanCapital)

Shift to higher margin Business( change margin

mix)

DivestCommodityBusinesses

ImproveEnterprise

Productivity(8Bn by 2015)

Expand, Operating, Pre-

Tax & NetMargins

Operating Leverage

Revenue growth (focuson SW) providingBusiness Value to

Customers

BaseGrowth

Share Repurchase(50Bn in stock

purchases) & 20Bn in Dividend

Big Data

Focus Resources on Client oriented Work

130 Acquisitions since 2000 (Software); 28 in Business Analytics.

ExpertiseHubs

(China, Brasil, Africa)

•Software 50%

•Services 36%

•HW 13%• Bus Process as a

Service• Platform as a

Service• Infrastructure as a

Service• Software as a

Service

Making Customers:• More Innovative• More Competitive• More Effective:

Sales Excecution

Initiative

15GrowthPlays

Provide long termValue to

Shareholders(70Bn)

Smarter Cities BAO

Smarter Commerce

Industry Solutions

Security

Information Mgmt

Predictive Analytics

2011: TRIRIGA, i2, Algorithmics, Q1 Labs, Curam2010: Netezza, Sterling Commerce, Lombardi, Intelliden, Initiate Systems, Cast Iron SystemsBigFix, Coremetrics, Datacap, Unica, PSS Systems, OpenPages, Clarity Systems

---------------------------------------------------------------------------------------------------

CorporateSocial

Responsibility Agenda

Integrate aquired employees faster (stay

or leave)

Predict attrition in key roles

Recruitment + Retentionin Growth Markets

Shift from point solutions to

integrated solutions

Expand IBM’s capabilities to help customers manage

risk

Launch IBM Docs Focus on high

growth Industries:

•Health care

•Retail

• FSS

•Telecomms

Expand Smarter Cities Initiative

GOAL STRATEGY TACTIC

IBM Strategy Map

Provide long term value to Shareholders

(70Bn)

Revenue growth (focus on SW) providing Business Value to

Customers

Lead the Industry through Innovation/

Ability to adapt to a changing Environment

Employer of Choice(Leverage Human

Capital)

Deliver Integration and Innovation to

Clients

SmarterPlanet

(10Bn by 2015)

EnterPublic

Social Area

Anticipate & Plan Resource & Skills Requirementsto support 4 Growth Initiatives

Expand Smarter Commerce Capabilities

R&DStrategy(6.3Bn)

Talent & Leadership Development(Ranked #1 by Fortune)

Breakthrough Technologies to

capture Transformational

Opportunties(Watson)

Maintain USPatent Leadership

Cloud: Security & Privacy Focus

2015 Roadmap => $20EPS

ww

w.ib

m.c

om/ib

m/r

espo

nsib

ility

Help Clients to turn Information into

Insight(BAO Agenda) IP Protection

(Revenue Source)

Global Services Integration Hubs

Making Customers:• More Innovative• More Competitive• More Effective:

How much do you KNOW about your own, IBMs and customers strategies!

No guessing !

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How can knowing the strategy map help you ?

1. To be able to explain it where needed

(It is your biggest part of a value proposition)

2. It helps you understand your own true goals & needs

(It shows how much they mean to you)

3. It reminds you of the bigger part you play in building a

smarter business/company (which is much more than

closing any deal)

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Call to Action….

1. Analyze

2. Understand

3. Build

4. Use

5. GrowArea on the Map(Goal, Strategy, Tactic)

Skills ?Scale 1 – 51 = Room for improvement5 = Excellent

Jan Simonsen, Business Unit ExecutiveSWG Channel Nordic

IBM Business Partner Kickoff 2013

Creating the IBM strategy map