International Business Machines Corporation · NYSE:IBM

International Business Machines — IBM — Investor Day (2016)

50 slides from International Business Machines's investor day presentation, 2016

  1. Slide 1: IBM Investor Briefing 2016

    IBM Investor Briefing 2016

  2. Slide 2: Cognitive Solutions Investor Briefing

    IBM Cognitive Solutions Investor Briefing Dr. John E. Kelly III 2016 Senior Vice President, Cognitive Solutions and Research © 2016 IBM Corporation 2

  3. Slide 3: Cognitive Solutions Transformation Progress

    Cognitive Solutions Transformation Progress Created integrated units with industry orientation • Analytics, Security, Commerce $17.8B 2015 Revenue Expanded Watson Platform (2-3x) • API’s, languages, clients, partners, global footprint $7.2B Built Watson Health Platform 2015 Pre-tax Income • 4 acquis

  4. Slide 4: The way to find information, the way to make better decisions

    The way to The way to find information make better decisions © 2016 IBM Corporation 4

  5. Slide 5: ~$12B >$1T ~$2T

    ~$12B >$1T ~$2T For a deep water project Inaccurate retail Wasteful in the Gulf of Mexico sales forecasting healthcare spend © 2016 IBM Corporation 5

  6. Slide 6: Cognitive opens new opportunities on top of traditional IT

    Cognitive opens new opportunities on top of traditional IT Opportunity for decision-making ~$2T support 2025 Decision Support Traditional global IT spend ~$1.2T Productivity 2016 Note 1 © 2016 IBM Corporation 6

  7. Slide 7: Cognitive is having an impact across industries

    Cognitive is having an impact across industries © 2016 IBM Corporation 7

  8. Slide 8: Innovation platform for Cognitive Business

    Innovation platform for Cognitive Business Ecosystem and Industry Client partnerships solutions solutions Johnson & Johnson IBM Private Medtronic Provided Client Thomson Reuters Data Data Under Armour Publically Partner Sourced Provided Data Data Public Filings Apple Medical Journals Twitter U.S. Ge

  9. Slide 9: Cognitive solutions bring about new revenue streams

    Cognitive solutions bring about new revenue streams Data access / Pay-per-Insight Subscription (number of users) Shared value with partners Revenue share (ecosystem) Global partners (licensing) … © 2016 IBM Corporation 9

  10. Slide 10: IBM's advantage in the Cognitive era

    IBM’s advantage in the Cognitive era Ecosystem and Industry Client partnerships solutions solutions Largest cognitive ecosystem Deep domain expertise Most powerful and scalable cognitive platform IBM Private Provided Client Data Data Most essential industry datasets Publically Partner Sourced Provid

  11. Slide 11: David Kenny, Deborah DiSanzo, Harriet Green

    David Kenny Deborah DiSanzo Harriet Green General Manager, General Manager, General Manager, IBM Watson Platform IBM Watson Health IBM Watson IoT, Commerce and Education © 2016 IBM Corporation 11

  12. Slide 12: IBM Watson Investor Briefing

    IBM IBM Watson Investor Briefing David Kenny 2016 General Manager, IBM Watson © 2016 IBM Corporation 12

  13. Slide 13: 100TB 2.2B 15 – 26B

    100TB 2.2B 15 – 26B ingested per day locations API requests per day © 2016 IBM Corporation 13 © 2016 IBM Corporation 13

  14. Slide 14: IBM Watson differentiation

    IBM Watson differentiation Trust and Security Expertise Learning Domain Expertise Cognitive Business Services © 2016 IBM Corporation 14

  15. Slide 15: Watson-as-a-Service

    Watson-as-a-Service IBM owned applications Ecosystem applications IBM Private Provided Client Data Data Publically Partner Sourced Provided Data Data © 2016 IBM Corporation 15

  16. Slide 16: Scaling IBM Watson

    Scaling IBM Watson Ecosystem Partners Clients 300%+ growth Yr/Yr 72% growth Yr/Yr © 2016 IBM Corporation 16

  17. Slide 17: Mike Turillo, Inno360

    Mike Turillo Co-Founder and Chairman of the Board Inno360 © 2016 IBM Corporation 17 © 2016 IBM Corporation 17

  18. Slide 18: Before Watson / After Watson

    Before Watson After Watson Client sales cycle Client sales cycle 6 - 9 months 3 weeks - 2 months PoC pricing per seat PoC pricing per seat Standard 2x higher with Cognitive Time to “upsell” to full license Time to “upsell” to full license Average 6 months 1 month Pricing on standard license Pricing

  19. Slide 19: © 2016 IBM Corporation © 2016 IBM Corporation

    © 2016 IBM Corporation 19 © 2016 IBM Corporation 19

  20. Slide 20: Before Watson / After Watson

    Before Watson After Watson Decision making Decision making Days of manual keyword In seconds, evidence- searches through weighted insights from thousands of documents over 20K documents Expertise Availability Expertise Availability Expertise and historical Over 30 years of expertise references isola

  21. Slide 21: Science Simplify Scale

    Science Simplify Scale © 2016 IBM Corporation 21

  22. Slide 22: Building out Watson Health

    IBM Building out Watson Health Investor Briefing Deborah DiSanzo 2016 General Manager, Watson Health © 2016 IBM Corporation 22

  23. Slide 23: Healthcare disruption is underway

    Healthcare disruption is underway 150+ exabytes $47 trillion Amount of U.S. healthcare data3 Global economic impact of five leading chronic diseases by 20304 50% 75%+ Expected alternative payments from the Percentage of patients expected to use Centers of Medicare and Medicaid by 20185 digital healt

  24. Slide 24: The data and cognitive opportunity is significant

    The data and cognitive opportunity is significant Global healthcare ~$8T spending IBM addressable market ~$200B Health solutions Life Sciences solutions Waste in healthcare ~$2T spending Note 7 © 2016 IBM Corporation 24

  25. Slide 25: Watson Health Cloud: A platform for innovation

    Watson Health Cloud: A platform for innovation Life Sciences Oncology / Imaging Care Management and Payments Genomics Population Health and Value IBM Watson Health Cloud Analytics / Insights Cognitive Knowledge Image Analytics Platform Platform 1.2M+ 200M+ 100M+ 30B+ medical patient records images a

  26. Slide 26: Watson Health is well-positioned to lead in the health market

    Watson Health is well-positioned to lead in the health market Capabilities / Assets / Positions Competitors Watson Health Data Analytics Cloud Providers Cognitive Insights Clinical Data Keys to ecosystem Claims Data success Cloud and Security © 2016 IBM Corporation 26

  27. Slide 27: Watson oncology solutions

    Watson oncology solutions use cognitive computing to help doctors make evidence-based treatment decisions © 2016 IBM Corporation 27 © 2016 IBM Corporation 27

  28. Slide 28: Dr. Craig B. Thompson, Memorial Sloan Kettering

    Dr. Craig B. Thompson President & Chief Executive Officer Memorial Sloan Kettering Cancer Center Oncology is evolving, providing opportunity for cognitive technology MSKCC trained Watson in the field of Oncology Watson is a “learned colleague” to support physicians 28 © 2016 IBM Corporation 28

  29. Slide 29: Dr. James S. Miser, Bumrungrad International Hospital

    Dr. James S. Miser Chief Medical Information Officer Bumrungrad International Hospital © 2016 IBM Corporation 29 © 2016 IBM Corporation 29

  30. Slide 30: Chronic disease is increasing worldwide

    Around the world, the number of people suffering from a chronic disease is increasing. Watson Health is working with leading organizations to build global offerings that address unmet health needs. © 2016 IBM Corporation 30 © 2016 IBM Corporation 30

  31. Slide 31: Jeff Ruiz, Medtronic

    Jeff Ruiz Vice President, Diabetes Service & Solutions Medtronic © 2016 IBM Corporation 31 © 2016 IBM Corporation 31

  32. Slide 32: © 2016 IBM Corporation © 2016 IBM Corporation

    © 2016 IBM Corporation 32 © 2016 IBM Corporation 32

  33. Slide 33: Watson Health capturing the market

    Watson Health capturing the market Data Insights Ecosystem © 2016 IBM Corporation 33

  34. Slide 34: IBM Watson Internet of Things (IoT)

    IBM IBM Watson Internet of Things (IoT) Investor Briefing Harriet Green 2016 General Manager, IBM Watson IoT, Commerce and Education © 2016 IBM Corporation 34

  35. Slide 35: The Opportunity

    The Opportunity 90% $1.7 Trillion Data never acted upon In value added by the IoT to the global economy in 20194 29 Billion $400+ Billion Connected devices by 2020 IBM addressable market by 20195 Notes 8–9 © 2016 IBM Corporation 35

  36. Slide 36: Watson IoT leading the market

    Watson IoT leading the market 4,000+ 750+ 10,000+ IoT clients IoT patents Security clients 1,700+ 30+ Partners Industry solutions © 2016 IBM Corporation Note 10 36 © 2016 IBM Corporation 36

  37. Slide 37: Boosting efficiency, transforming customer experience, disrupting industries

    Boosting operational Transforming the Disrupting efficiency customer experience industries © 2016 IBM Corporation 37

  38. Slide 38: Digitization of the physical world

    Digitization of the physical world © 2016 IBM Corporation 38 © 2016 IBM Corporation 38

  39. Slide 39: IBM addressable IoT industry market opportunity by 2019

    IBM addressable IoT industry market opportunity by 2019 Manufacturing Transportation Consumer $142B $37B $43B Opportunity Opportunity Opportunity © 2016 IBM Corporation 39 © 2016 IBM Corporation 39

  40. Slide 40: Watson IoT transforming air transportation

    Watson IoT transforming air transportation Aircraft manufacturers, suppliers, airlines, and airport operators © 2016 IBM Corporation 40 © 2016 IBM Corporation 40

  41. Slide 41: Connecting the air transportation ecosystem

    Connecting the air transportation ecosystem Maintain Operate Manufacture © 2016 IBM Corporation Design 41

  42. Slide 42: Clients pioneering transformation

    Clients pioneering transformation Maintain Operate Manufacture © 2016 IBM Corporation Design 42

  43. Slide 43: Scaling IoT solutions across industries

    Scaling IoT solutions across industries • Invent new business models • Develop differentiated solutions • Improve operational efficiency • Drive better customer engagement • Utilize IBM innovation © 2016 IBM Corporation 43

  44. Slide 44: Watson IoT growing momentum

    Watson IoT growing momentum • Munich Centre global headquarters • 67,000 square meters of pure potential Watson IoT • 8 global experience centers Global Headquarters Munich, Germany • 1,000 researchers, developers, designers • New Watson APIs • Acquisition of The Weather Company • Client focused lea

  45. Slide 45: © 2016 IBM Corporation

    © 2016 IBM Corporation 45

  46. Slide 46: Cognitive solutions: An engine for growth

    Cognitive solutions: An engine for growth Big, incremental opportunity Highly differentiated platform Cognitive solutions are here now © 2016 IBM Corporation 46

  47. Slide 47: IBM Investor Briefing 2016

    IBM Investor Briefing 2016

  48. Slide 48: These charts and the associated remarks and comments are integrally related, and they are

    These charts and the associated remarks and comments are integrally related, and they are intended to be presented and understood together. In an effort to provide additional and useful information regarding the company’s financial results and other financial information as determined by generally a

  49. Slide 49: Footnotes

    Footnotes 1. Source: GMV 1H16, McKinsey Global Institute, May 2013 2. Representative sample of data 3. Institute of Health Technology Transformation 4. Source: World Economic Forum 5. Source: U.S. Health & Human Services 6. Source: McKinsey & Company 7. Source: Health Affairs, Team analysis 8. Busin

  50. Slide 50: IBM Investor Briefing 2016

    IBM Investor Briefing 2016

IBM — Investor Day (2016) on 6ix