IBM, 108 years of never-ending transformation

Roberto Villa
IBM
108 years of
never-ending
transformation
Roberto Villa
IBMStudiosMilano
Keynote to Management and organizationin the digital economy
CatholicUniversityof the SacredHeartNovember8th, 2019

We are a global technology and
innovation company headquartered
in Armonk, NY.
We are the largest technology employer in the
world and employ 380,000 IBMers serving
clients in 170 countries.
In 2018, we generated $ 79.6 billion revenue.
We invest more than $6 billion a year in
R&D, and just completed our 25th year of
patent leadership.
We live at the intersection of business and
technology and today, we are a cognitive
solutions and cloud platform company,
transforming entire industries.© 2019 IBM Corporation

© 2019 IBM Corporation
IBM is founded
The Computing-Tabulating-Recording
Company, the precursor to IBM, was
founded on June 16, 1911. At its
beginning, it was a merger of three
manufacturing businesses, a product of
the times orchestrated by the financier,
Charles Flint. From these humble
beginnings sprang the company that
Thomas Watson Sr. would mold into a
global force in technology,
management and culture

© 2019 IBM Corporation© 2019 IBM Corporation
time clocks
the kind factory workers would punch on the way in and out of work. The
clocks helped employers keep track of hours worked and hourly wages
International Time Recording company

Meat slicer
Dayton safety
electric meat
Chopper
The Computing
Scale company

Computing scale
which weighed items and
added up the cost of whatever
was placed on the scale

Computing cheese
cutter
which cut cheese as customers
ask for

Electric coffee mill

First tabulating machine
Herman Hollerith

Through the early 1900s, ITR grew modestly and Computing
Scale struggled. The founder realized that both were, at their
core, about collecting, quantifying and analyzing information

Charles Ranlett Flint amalgamated the
three companies into the new CTR holding
company in 1911
Thomas John Watson Sr. oversaw the
company's growth ( CTR ) into an
international force ( IBM ) from 1914
to 1956

At its beginning, it was a merger of three manufacturing businesses. From these
humble beginnings sprang the company that Thomas Watson Sr. would mold
into a global force in technology, management and culture: IBM

Evolution of IBM
Always moving to higher value
Tabulating to
Programmable
Systems Era
Services Economy
Internet
Globalization
Globally Integrated
Enterprise
International
Ambition
0%
1960 20001980 2016
100%
50%
Hardware and
systems management
Services
Cloud Platform
Cognitive
Solutions
Cognitive
Business &
Cloud

IBM 700 Series
The 1950s brought
challenges for IBM, the
undisputed leader in data
processing. To stay ahead
of the Soviet Union, the US
government began helping
14 organizations to develop
electronic computers. IBM’s
future - and its pride - was
at stake. In response, IBM
created the 701 in 1951, its
first commercial computer

Fortran
From its creation in 1954,
and its commercial
release in 1957 as the
progenitor of software,
Fortran (FORMula
TRANslator) became the
first computer language
standard, “helped open
the door to modern
computing,” and may well
be the most influential
software product in
history

The Mainframe
In 1959, IBM introduced the 1401,
the first high-volume, stored-
program, core-memory
transistorized mainframe
computer. Its versatility in running
enterprise applications of all kinds
helped it become the most popular
computer model in the world in the
early 1960s. The 1401 was the
first computer system in the world
to reach 10,000 unit sales

The Apollo Missions
.
IBM has taken part in every US
manned space effort in history,
working on systems for Mercury,
Gemini-Titan and Apollo-Saturn
missions, and for the historic 1969
Apollo 11 mission to the Moon.
Landing the first two astronauts on
the Moon in July of 1969 ranks as
one of the great engineering
achievements in human history

Relational Database.
In 1970, Edgar F. Codd, an
Oxford-educated mathematician
working at the IBM San Jose
Research Lab, published a paper
showing how information stored in
large databases could be
accessed without knowing how the
information was structured or
where it resided in the database.
Codd’s idea spawned a new family
of products for IBM: DB2

UPC - bar code.
This 1973 invention turned into one
of the most profound contributions to
industrial technology. A truly
universal standard, the UPC is
among the most recognized designs
in history. For retailers, the UPC
meant savings, better customer
service, precise inventory control,
and rich stores of marketing data.
UPC changed the point-of-sale
experience forever

The PC
On August 12, 1981, at a press
conference at the Waldorf Astoria
ballroom in New York City, Phillip
“Don” Estridge announced the IBM
Personal Computer (IBM 5150) with
a price tag of $1,565. The IBM PC
helped revolutionize the way the
world does business. One year
later, it earned Time magazine’s
“Person of the Year” award

Internet
In the 1987, IBM helped create a
network of supercomputer centers
dubbed NSFNET (the National
Science Foundation Network), one
of the first networks to use TCP/IP.
The project essentially gave birth to
the Internet—and business and life
around the world changed forever

e-business
As booming dot-com start-ups brought
electronic commerce to consumers, big
companies looked on wondering what to do. In
the late 1990s, IBM offered a helping hand by
recognizing the trend and using its strengths in
mainframes, transactions and networking to
create a strategy called “e-business.” This was
a turning point for corporate America in the
Internet Age, showing that big companies—not
just Silicon Valley upstarts—had an important
future in Web-based collaboration and
business

Deep Blue
On May 11, 1997, an IBM
computer called IBM ® Deep
Blue ® beat the world chess
champion after a six-game
match: two wins for IBM, one for
the champion and three draws.
The match lasted several days
and received massive media
coverage around the world. It
was the classic plot line of man
vs. machine

Linux.
Open Innovation Era
In 2000, IBM announced it would
invest $1 billion in Linux, with a
concerted focus on improving the
operating system from within the Linux
community, transitioning all IBM
systems to run Linux and optimizing
existing IBM hardware and software to
become Linux-ready

Smarter Planet.
In the fall of 2008, in the midst of a
global economic crisis, IBM began a
conversation with the world about the
promise of a smarter planet and a new
strategic agenda for progress and
growth

IBM Watson.
In February of 2011, Watson
made history by not only
being the first computer to
compete against humans on
television’s venerable quiz
show, Jeopardy!, but by
achieving a landslide win
over prior champions Ken
Jennings and Brad Rutter

IBM Garage Methodology
.
IBM published its prescriptive Garage
Method in October 2015 by combining best
practices from Enterprise Design Thinking,
Lean Startup, agile, eXtreme Programming,
and devOps with our experience in leading
new technology adoption for enterprise
clients. The IBM Garage is an experience,
approach, and methodology for going from
an idea to a production pilot in 4 to 8 weeks

The Weather
Company.
In January of 2016, IBM
acquires The Weather
Company. Its cloud data
platform to be foundation for
IBM IoT, supporting tens of
millions of users and billions
of interactions per day

Truven.
In April of 2016, IBM acquires
Truven Health Analytics, a
leading provider of cloud-
based healthcare data,
analytics and insights. Thanks
to merger, IBM becomes one
of the largest storages of
medical information in the
world in which data about 300
million patients will be stored

MIT-IBM Watson AI Lab.
Founded in 2017, the MIT-IBM
Watson AI Lab is a unique
academic / corporate partnership
to spur the evolution and universal
adoption of AI. It focuses research
on healthcare, security, and
finance using technologies such
as the IBM Cloud, AI platform,
blockchain and quantum to deliver
the research to industries

Summit.
In 2018 IBM, in
collaboration with strategic
partners, the OpenPOWER
Foundation, Oak Ridge
National, NVIDIA, the US
Department of Energy, has
built the most powerful
computers on the planet
to solve the world’s toughest
scientific challenges

IBM Quantum.
In 2018 IBM announce
Qiskit, an open-source
quantum computing
software development
framework for leveraging
today's quantum processors
in research, education, and
business
https://qiskit.org/

IBM iX.
In 2019 IBM iX ranked 2 among
the top digital agencies. IBM iX
works at the intersection of
strategy, creativity and technology
to help clients digitally reinvent
their businesses. Clients partner
with IBM iX to define their strategy,
create exceptional experiences
and build business, by design

IBM and Red Hat.
July 2019 IBM closes $34
Billion Red Hat Acquisition.
The deal marks the second
biggest technology acquisition
transaction ever.
Together, IBM and Red Hat
will deliver next-generation
hybrid multicloud platform

Think 2018 / DOCID / MonthXX, 2018 / © 2018 IBM Corporation 37
The new IBM: Cognitive solutions and cloud platform company

IBM Watson APIs services on cloud

Financial Services Manufacturing Education AgricultureLogistics
AI Impacts all Industries
Health & Life Sciences

Climatechange,
population growth
and food safety
drivingtheindustry toseek more
innovativeapproaches toprotecting
and improvingcrop yield
AI rapidly emerging
as a key part of the technological
evolution in agriculture
$2.4 trillion
agricultureindustry
is a foundation of economies worldwide
Watson Decision Platform
for Agriculture
40

Source: HBR (2014) - How Smart, Connected Products Are Transforming Competition by Michael E. Porter and James E. Heppelmann
Smart connected products are transforming agriculture

Working to transform
Parkinson’s Disease care
42
1 in 1,000
expected to develop Parkinson’s
10%
areunder 50 years of age
$25 billion
in annual direct and indirect costsof
care, social paymentsand lost income

AI and the
future of oil
43
3D seismicdata sets
quickly scanned forgeologic features
that could bear oil and gas
AI automatesanalysis
of technical documents, interprets
subsurfaceimages, and aids in risk
assessments
Enhanceshuman skills
whilemakinginformation
comparablefrom project to project,
location to location, and decadeto
decade

IBM Digital Transformation journey
Hardware and Software
proprietary Platform
Services
Harnessing Network,
Services by Open Platform
Cognitive Solutions
and Cloud Platform
Data and AI
Platforrm
Blockchain and
Quantum Platform

Foundational breakthroughshavemadeus recognized
6
Nobel
Laureates
10
National
Medals of
Technology
6
Turing
Awards
5
National
Medals of
Science
46

© 2019 IBM Corporation 47
0
9500 9100
IBM
2353
Microsoft Amazon
2070
Google
2035
GE
954
HP
703
Oracle
640
Facebook
200
Accenture
1597
148
Symantec
NumberofPatents
2018 patent data sourced from IFI Claims PatentServices
2018 patents: Driving 25 consecutive years of IBM patent leadership

49
The future of work at the intersection of mathematics,
computer science and business domain

IBM, 108 years of never-ending transformation

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