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© 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

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Page 1: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM Corporation

Cloud Consumer ElectronicsPoint of ViewIBM Institute for Business Value

Partner’s Name, Partner’s TitleDD Month YYYY

Page 2: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value2

Executive summary

Cloud computing provides opportunities to transform traditional Consumer Electronics companies across value-chains and emerging ecosystems

Organizations are managing organization-wide change to reduce impact from disruptive forces – economic instability, fast-changing technology, ever increasing consumer awareness, regulation and security

Cloud offers good potential for organizations to drive business model transformation, revenue growth and operational efficiencies

A clear business-linked cloud strategy will help Consumer Electronics organizations to leverage cloud to drive enhanced business results while reducing associated risks

IBM, with significant experience in Consumer Electronics industry and cloud solutions, is uniquely positioned to partner with you in implementing and managing innovative cloud solutions

Page 3: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value3

3 IBM can help

2 Cloud is forcing changes in consumer electronics operating model

1Cloud will transform the consumer electronics industry

Page 4: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value4

New and emerging technologies are disrupting industries

Source: See speaker notes

Mobile revolutionConnectivity, access and participation are growing rapidly

Social media explosionQuickly becoming the primary communication & collaboration format

Hyper digitizationDigital content is produced and accessed more quickly than ever before

The power of analyticsReal time analysis, predictive analytics and micro-segmentation emerging

Transformational cloud – Cloud’s attributes make it a powerful delivery model delivering new business models, cost benefits, flexibility and large on-demand capacity

Gmail, Facebook, LinkedIn are pioneer examples of cloud computing with advertisement based revenue and cloud’s low cost delivery model sustaining free services

Ecosystem of connected health and wellness apps that delivers a consolidated view of users’ health. Strong & growing ecosystem with 12 APIs and 7 Apps that cover all aspects of health care1

The Xerox Mobile Print platform uses cloud to convert and process print requests. This removes complexity from end-users, reduces costs & management of diverse devices and print configurations2

Page 5: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value5

The electronics industry is being hit by multiple disruptive forces – technology, economic instability and regulation

Source: See speaker notes

Top Consumer Electronics Companies, Revenue

Top Consumer Electronics Companies, Gross Margin

Complex global supply chain

Service and warranty management

Short product lifecycles

Declining/Flat Revenues$SustainabilityRegulatory requirements

Uncertain demand

Page 6: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value6

“Internet of Things” Everything can transmit data to different places without the need for physical contact

using wireless technologies and the internet

The Connected Home Consumers want their electronic devices to control all aspects of their home and allow

them access to information anywhere, anytime1

Open Source Electronics Powerful general-purpose computing platforms are becoming available Open Source

and will be adopted in billions of devices

3D Printing 3D Printing and other automated 3D tools for solid object manufacturing will enable low

volume, customized manufacturing

Intelligent Robotics Low-cost, flexible robots that can safely work alongside human workers, increasing

productivity without the need for offshoring

Analytics in Electronics Electronics companies will begin using data and analytics to improve customer

experiences with their products as well as develop products that are directly in-line with customer wants/needs2

The future of electronics will likely be quite different from traditional electronics models

Source: See speaker notes

Future of Electronics

Page 7: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value7

Many organizations have a long way to go in their transformational journey – with operational inefficiencies and security fears endemic

Source: See speaker notes

of executives who report a security breach, are not fully confident they can prevent breaches in the future³

of IT operating budgets are spent on maintaining current IT infrastructures versus adding new capabilities²

of computing capacity sits idle in distributed computing environments¹

69%74%85%

Page 8: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value8

As they advance along their transformational journey, electronics leaders focus on three key imperatives

Develop innovative products and services to drive revenue

Develop innovative products and services using a systems-based approach and technologies

Provide differentiated experiences to attract and retain customers

Use analytics to deliver more effective marketing

Proactively address service requirements

Align sales and operations planning

Optimize your operations and supply chain to lower costs

Increase supply chain visibility to reduce costs

Improve your bottom line by optimizing your operations and supply chain with technology solutions

Cloud technology provides the means to meet business and economic challenges to drive towards new growth

Page 9: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value9

In order to address industry challenges and manage changes, business leaders can leverage cloud to transform their businesses

Source: See speaker notes

Shifts CapEx to OpEx Shifts cost from fixed to variable, pay as you go

Cost flexibility

Business Scalability

Market adaptability

Masked complexity

Context-driven variability

Ecosystem connectivity

Allocate and release resources based on demand

Gain from scale economics

Speeds time to market Supports rapid prototyping and innovation

Expands product sophistication Simpler for customers/users

Drives context-driven, user-centric experiences (preferences, movements, behaviors)

Facilitates new value nets of partners, customers and other external players

Enables industry platforms

Cloud empowers six potentially “game changing” business enablers

Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources (for example, networks, servers, storage, applications, services).

Resource Pooling

Broad Network Access

Rapid Elasticity

On-demand self service

Measured service

Cloud’s essential characteristics

Page 10: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value10

Cloud motivates rapid transformations across traditional electronics value-chains and emerging ecosystems

Source: See speaker notes

Note: Consumer Electronics Manufacturers include computer hardware/electronics and telecom equipment manufacturers

Cloud promotes standardization, supporting flexibility and agility

Cloud supports refocus on customer experiences, integrating disparate set of processes designed and engineered to provide customer value

Cloud supports next generation marketing and omni-channel interactions that are of interest to customers where, when and how they want to be engaged

Cloud is transferring various functions such as IT, from fixed cost centers to variable cost structures

Consumer Electronic Industry ‘Leaders’ involved in cloud Transformation - Shifting on premises applications to the cloud

29%

Consumer Electronic Industry ‘Leaders’ involved in technology enabled innovations – launching new applications on the cloud

46%

Page 11: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value11

Cloud can drive significant value creation and competitive advantage

Simple and faster processes drive internal efficiency

Reduced complexity enables more data to manage risk

IT capacity can be readily aligned to business volumes

Customer relationships be more readily monetized

Time to market can be enhanced

Value-added services can be introduced

Third-party services can be extended into ecosystem

Open collaboration and sharing can be expanded

Innovation can be introduced across systemically

Cloud enables individual organizations integrated, compelling customer experiences…….in so doing, first mover organizations are more likely to lock-in

customers impeding foothold for new entrants

OPERATING EFFICIENCY

REVENUE GROWTH

ECOSYSTEM / PLATFORM DOMINATION

Page 12: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value12

IBM is helping early cloud adopters to realize significant value from cloud

OPERATING EFFICIENCY

A large computer manufacturing and retail company in China realizes better service delivery and cost management with private cloud and a new opportunity to provide IT services to outside customers

REVENUE GROWTH

A gaming company in Japan translates cloud-based marketing analytics insight into personalized offerings and stronger customer engagement

ECOSYSTEM / PLATFORM DOMINATION

Pursuing an IBM SmartCloud for Smarter Commerce approach, a computer manufacturer in the US implemented an IBM Sterling B2B Integration Services Plus solution as the basis for a unified foundation connecting a broad ecosystem of customers and partners

increase in the social media user base240% decrease in

time to onboard new partners3

%85Improvement in provisioning time197%

Page 13: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value13

3 IBM can help

2 Cloud is forcing changes in consumer electronics operating model

1Cloud will transform the consumer electronics industry

Page 14: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value14

Five key steps to advance cloud adoption

Determine the organization goals, platform requirements & complexity associated

Develop enterprise cloud strategy, options available and roadmap

Envision the cloud architecture that will support cloud initiatives

Update IT Strategy and IT plans to align them with cloud strategy

Define business drivers to prioritize use cases for cloud

Implement a CloudFirst strategy to evaluate right blend of cloud options for new projects

Assess and evaluate from the current applications, the best candidates for cloud

Determine the applications to be moved to cloud

Define multi-sourcing models and cloud vendor selection criteria

Assess and determine how to best leverage the options of private, public and hybrid delivery models

Develop Cloud Service Catalog, SLAs and KPIs

Develop cloud cost models including transition

Finalize a cloud business case and examine its ROI including time required for initial payback

Prepare infrastructure for cloud

Develop Cloud Risk

Management plan and policies

Security and Compliance plan and processes

Transition plan including workforce transition

Assess impact on operating model; identify and plan changes required

Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides

Prepare for implementation

Develop Cloud business case

Determine cloud deployment options

Identify and prioritize workloads

Create Cloud strategy, architecture and plans1 2 3 4 5

Cloud planning should result in accelerated migration, quick wins and mitigated risks

Page 15: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value15

Cloud strategy comprises four elements

BUSINESS MODELS ENABLED BY CLOUD

Promoting highly competitive initiatives at the enterprise and Industry level

APPLICATION AND DELIVERY PLATFORMS

Driving agility and productivity for the enterprise; tested strategies to improve life cycle performance

DATA PLATFORMS

Instantiating well-integrated business intelligence to manage the enterprise

INFRASTRUCTURE PLATFORMS

Delivering consumable, secure and readily available resources to enable agile execution

Enterprise Cloud

Strategy

1 2 3 4 5

Strategy

Page 16: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value16

Enterprise innovation is realized by integrating new technologies with existing core systems

Cloud enables leaders to take a systematic approach to integrate these capabilities to drive

enterprise innovation

Systems of insightAdvanced analytics and cognitive computing systems that harness big data enabling competitive advantage for organizations

Systems of engagementLeverage mobile and social to transform relationships with customers, employees & citizens

Systems of recordThe traditional core systems such as accounting applications and product systems that record key internal data

Pervasive Security Intelligence A dynamic approach to threat reduction through a life cycle of prevention, detection and response

Enterprise Innovation

Systems of Engagement

Systems of Record

Systems of Insight

Enabled by Cloud

Security

Pervasive Intelligence

1 2 3 4 5

Strategy

Page 17: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value17

Ent

erpr

ise

Clo

ud A

dopt

ion

Migrate existing workloads

Cloud First

MigrateQuantifyPrioritizeSelect

Workload analysis Wave 1 Wave 2 Wave 3

Migration Plan

Business case

New project

Replace existing app / infra

New project

Evaluate a blend of cloud options that best suit the project

requirements

BPaaS SaaS

PaaS IaaS

1 2 3 4 5

Prioritization

Organizations should evaluate born-on-the-cloud solutions while assessing existing applications for migration to cloud

Page 18: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value18

1 2 3 4 5

Prioritization

Note: The above is an indicative prioritization shown for typical workloads

MORE READY FOR CLOUD

MAY BE READY FOR CLOUD

NOT READY FOR CLOUD

Workload migration categories

Migration plan

WAVE 1

WAVE 2

WAVE 3

Low High

Lo

wH

igh

Desktop/devices

Analytics

Collaboration

Managedbackup

Industryapplications

Dev/Test

Security

BusinessServices

Infrastructurecompute

DEPLOYMENT EASE

BU

SIN

ES

S V

ALU

E

Infrastructurestorage

A decision framework with identified criteria helps in prioritizing migration to cloud

Page 19: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value19

A phased migration to cloud helps manage risks

1 2 3 4 5

Potential migration risks Incorrect analysis and identification of

workloads

Inability to meet non-functional requirements

Incorrect ROI analysis

Inadequate preparation of infrastructure / apps for cloud

Complex applications’ interoperability & integration

Failure to comply with security, privacy & regulatory requirements

Management complexity as resources get distributed in a virtualized environment

Discover

current assets and usage

topologies & dependencies

platforms and licenses

SLA’s, security & compliance

Analyze

cloud feature / fit

cloud providers

contract models

resource sizing

workloads

Establish the Migration Toolkit

Cloud-enable infrastructure & applications

Migrate

Infrastructure

Applications, Platforms and Data

Operations Services

Validate Migration

Phased migration approach

Migration & Validation PhaseAnalysis PhaseDiscovery Phase

Prioritization

Page 20: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value20

Cloud deployment options enable organizations to adopt the type of cloud that best meets their requirements

1 2 3 4 5

Public cloudPrivate cloud Hybrid cloud

Deployment

Value drivers …

.… Customization, efficiency, availability, resiliency, security and privacy

Value drivers …

.…Standardization, capital preservation, flexibility and time to deploy

Real world example Real world example

Value drivers …

Leverage flexibility and benefits of private and public cloud while addressing data security, governance, compliance and budgetary challenges

Real world example

Source: See Speaker Notes

Page 21: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value21

A large electronics manufacturer enables information sharing, improves collaboration and reduces conversion costs using Cloud

1 2 3 4 5

Business Case

Source: See speaker notes

The Japan-based global electronics manufacturer had two key focus areas:

Deteriorating brand image against its Korean competitors

Declining market share in the emerging markets

$ 14.7 millionReduction in the annual business travel cost

Cloud based communication and collaborative platform

Time to product launch from planning to shipping phases

100%

50%

Before and After implementing Cloud based collaborative platform

Other Business Results

Forecasted to improve sales targets in India by 100% as compared to previous year

Reduced conversion costs by 80%

Expected to improve international sales percentage of business from 50% to 70%

Reduces lag time between competition’s price changes and the manufacturer's response by 60%

Page 22: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value22

Total cost of ownership (TCO) analysis at D+M group demonstrates the business value of cloud delivery

1 2 3 4 5

Business Case

Source: See speaker notes

Business Challenge: The corporate office of D+M Group ,a global company and owner of several audio and video brands decided to become more involved in each brand’s day-to-day operations.

The company wanted to gain economies of scale, increase operational efficiency, promote innovation by fostering collaboration and lower communications total cost of ownership.

CLOUD COLLABORATION PLATFORM

Bridged organizational silos and made it easier to collaborate from any global location

Accelerated decision-making by helping enable more people to engage, without travel

Flexibility to add agents in any location and avoidance of payment for extra PRI (private rate interface)

Travel avoidance creates more savings for the company

LOWERS THE TOTAL COST OF OWNERSHIP RESULTS

Before

Clo

ud Imple

men

tatio

n

After C

loud Im

plem

enta

tion

0%

40%

80%

120%100%

28%

3-Y

ears

TC

O

for

Co

mm

un

ica-

tio

ns

Before

Clo

ud Imple

men

tatio

n

After C

loud Im

plem

enta

tion

0%

40%

80%

120%100%

55%

TC

O i

n O

ther

sit

es

72% reduction

45% reduction

Page 23: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value23

Samsung Electronics reduces costs, increases reliability for Smart TV services with Cloud solution

1 2 3 4 5

Business Case

Source: See speaker notes

Business Challenge: Samsung Electronics is a leader in the high tech and electronics industry. The company sought an advanced cloud solution for its IT infrastructure so that it could provide better quality for its Smart TV services.

ADVANCED CLOUD IT INFRASTRUCTURE

Increased reliability and better quality of the Smart TV services

Less IT Management time – Staff productivity increased as software management is done in the cloud

Greater competitive edge in the Smart TV market

REDUCTION OF IT COSTS RESULTS

0%

20%

40%

60%

80%

100%

120%100%

20%

Series1 Exponential (Series1)Har

dw

are

and

Mai

nte

nan

ce

cost

s

Samsung Electronics has reduced hardware and maintenance costs by up to 80 percent, compared with using a traditional on-premises infrastructure

Page 24: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value24

Security, privacy and compliance issues can be readily addressed with cloud

1 2 3 4 5

As organizations start planning to adopt cloud, key questions come up about their data & apps:

Where is our data stored? What about data sovereignty?

How do we protect our customers’ privacy?

How does cloud affect our regulatory compliance?

Is a business continuity plan available for cloud?

Risk Management

Plan

Cloud SLA

Cloud requirements

Monitoring & Auditing

Risk & Security Management

processes

Physical & Logical controls implementation

Audits & reports

Critical elements to address security, privacy and compliance concerns

EL

EC

TR

ON

ICS

C

OM

PA

NY

CL

OU

D S

ER

VIC

E

PR

OV

IDE

R

Implementation

IT Strategy

Page 25: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value25

An operating model is a framework for formulating an operations strategy that best deploys and determine the explicit choices needed to achieve business goals

Market shifts in the digital economy necessitate organizations to adopt new technologies like cloud, mobile, social media and analytics

To succeed with cloud, organizations have to assess the impact of cloud on the operating model and all its dimensions and determine what actions are required to make cloud adoption smoother and more successful

ROADMAP FOR CHANGE

Target Operating Model

BUSINESS GOALS AND STRATEGY

TOM

CustomerExperience

PerformanceMetrics

Technology

Skills & Capabilities

Sourcing & Alliances

Assets &Locations

Organization &Governance

Processes

1 2 3 4 5

Implementation

CULTURE

Cloud is helping organizations evolve a new operating model tightly aligned to business strategy

Page 26: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value26

John wakes up in the morning to his alarm clock giving him the latest news and scores from the baseball game

the night before. John clicks one button on his alarm clock and all lights and the TV in his room turn on.

John walks downstairs to get his morning breakfast and is notified by his refrigerator that he is getting low on

milk. He has the option to order milk at the local grocery store straight from the refrigerator. John orders the milk.

John is in a hurry to get to the grocery store to make it back in-time for a meeting. He starts his car from his phone so

he can leave quickly. John’s car knows he likes it 68 degrees so it begins the air conditioning before he gets in. John drives to the store and gets the milk.

John pays for the milk using his phone and drives home. On the way home, John gets a notification on his phone

that his daughter is supposed to wake for school. Using his phone, John turns on the lights in his daughters room to wake her up.

John arrives home and uses his phone to unlock the door. He notices a notification on his phone and realizes

the laundry he put in is done washing and ready for drying. He loads the dryer and gets a timer on his phone telling him how much longer the clothes have to dry.

John goes to his office for his meeting. When he walks into his office all lights come on and his laptop powers on

and notifies him about the meeting he has coming up. John tells his laptop to join the meeting and he is brought into the conference call.

1 2 3 4 5

Implementation

1 2 3

5 64

Cloud will radically transform and improve customer experience in the electronics industry

Page 27: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value27

Efficient sourcing and management of partnerships and alliances will be major enablers of cloud adoption success

IMPACT

Organizations will have an increase in partners and alliances as new 3rd party services are consumed

Complexity will increase in service contracts due to consumption-based billing

Service quality and availability need more focus as they are managed through relationships and agreements with diverse third party ecosystem

IMPLICATIONS

Procurement and sourcing functions will need to be automated and have shortened cycles

Vendor and service management will be an integral part of the Procurement function

Service level agreements need to be defined clearly and governed to secure and protect customer data in a shared environment

Service adoption to meet benefits realization needs to be included in the negotiation and partnering process

SOURCING & ALLIANCES

Page 28: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value28

Pro-actively redesigning business architecture and processes to leverage benefits of cloud will help organizations succeed

IMPACT

The cloud strategy and technologies will require a shift from systems-based processes to services-based processes

Cloud’s speed of service delivery impacts current processes as they need to match and deliver at the same speed

Process framework will migrate from functional silos to an integrated set of processes spanning organizational boundaries

Lead time for getting new infrastructure and services will be greatly reduced

IMPLICATIONS

Traditional legacy processes to be decommissioned or integrated into the new cloud-enabled processes

Consumer Electronics companies will need control over the continued availability, reliability and utility of the cloud based processes and the platforms underpinning them

Dynamic processes for billing and allocation of resources will need to be implemented to not be an impediment in achieving value

PROCESSES

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© 2014 IBM CorporationIBM Institute for Business Value29

Changes in organizational design and governance will lead to successful cloud adoption

IMPACT

Major shift in how the new environment is managed and operated will have significant impact on the optimum organizational structure required in the future

Organizations and functions will no longer be constrained by the physical location of data centers, hosting providers and hardware platforms

As products and services become more ‘composable’, Governance across the ecosystem will become critical

IMPLICATIONS

Organizations will become more flexible, managing a fluid set of internal / external resources and service providers

Governance will become more centrally defined with decentralized execution

Strong risk management systems will become more critical to manage increasing risks arising out of broader cloud deployment

Current organization will need to evolve over time as cloud adoption occurs

ORGANIZATION & GOVERNANCE

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© 2014 IBM CorporationIBM Institute for Business Value30

Organizations need to overhaul performance management to optimize and enhance value from cloud

IMPLICATIONS

Performance management strategy will introduce new levels of complexity in management reporting

Service level performance will be built into third party and service management contracts for all vendors delivering the cloud based service so organizations can focus on core strategies

Dynamic metrics tied back to SLAs will be critical for measuring success for cloud based services

PERFORMANCE METRICS

IMPACT

A dynamic financial model that measures consumption will be required

New metrics will be required that measure:

• Service availability

• Service quality

• Responsiveness

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© 2014 IBM CorporationIBM Institute for Business Value31

Cloud computing will leverage new skills and capabilities within the organization to manage the new services and technologies

IMPLICATIONS

Deeper data analytics and customer insight capabilities will be the norm

Existing IT and other functional staff will be retrained to manage the network and virtualization technologies implemented by third party vendors

Legal / operational support skills will be key to manage partnership agreements

SKILLS & CAPABILITIES

IMPACT

Cloud brings customer centricity to focus which makes customer and service orientation skills critical within the organization

Vendor management, contracting and relationship management skills will be critical to manage all the vendors and alliances

IT will need to be trained in virtualization and network side technologies to manage the “cloud pipe”

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© 2014 IBM CorporationIBM Institute for Business Value32

Organizations will benefit from cloud most when they accelerate adoption of other emerging technologies

IMPLICATIONS

IT Strategy, Architecture and IT Plans needs to be reviewed and updated to reflect changes in business strategy and cloud-enabled future organization

The overall costs need to be adjusted to budget for maintenance of legacy systems, as well as new bandwidth investment

An IT services catalog needs to be globally applicable and locally optimized for each market

A DevOps approach needs to be implemented to achieve value faster

TECHNOLOGY

IMPACT

The technology function will be leaner with a more strategic focus rather than operational

Cloud’s big impact on Technology will be to move on-premise technology deployment to cloud

As more services migrate to cloud, Service Management, IT Vendor management and IT Quality management will become key differentiators

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© 2014 IBM CorporationIBM Institute for Business Value33

Organizations will have to reassess location strategies to ensure optimized and compliant adoption of cloud

IMPLICATIONS

Decommissioned technology assets will impact the existing operating budget if there is existing book value present

One-time financial write-offs will be factored into the overall business case

Excess data centers and remote locations will be repurposed or sold / leased to recoup cost

Role of branches will be further enhanced to provide an even better customer experience

ASSETS & LOCATIONS

IMPACT

Migration to the cloud will require decommissioning and consolidation of technology assets

Removal of technology assets will reduce the quantity of needed data centers and store-specific hardware

Decommissioned assets and locations will be a factor in the future state financial model

Page 34: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value34

Cloud-enabled organizations will rethink and recalibrate organization culture

IMPLICATIONS

Organizational leaders will need to address perceived loss of control / potential resistance by existing IT and other functions whose processes will move to cloud

Employee education of new shift will need to be conducted

Regular communications to make sure all employees are aware of why and how the organization is changing will need to be set up by organizational leaders

CULTURE

IMPACT

The shift to a cloud-based environment will also require changes in long-held organizational beliefs and cultural norms

Organizations as a whole will be even more service-oriented, valuing the customer experience and their changing wants and needs

Open and collaborative reporting and management across organizational functions and units will facilitate a faster response to the customer

Page 35: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value35

TP Vision reduces costs by 40 percent with an IBM SmartCloud solution

Scalability – With the IBM SmartCloud Enterprise+ solution, TP Vision can scale to meet demand in near-real time while cutting costs by eliminating the need to acquire and maintain a hardware infrastructure.

CHALLENGEAs TP Vision grew, it was challenged to scale its traditional hardware infrastructure to meet customer demand efficiently and cost-effectively.

SOLUTIONTP Vision moved its Smart TV solution’s development, testing and hosting operations from a traditional hardware architecture to an IBM® SmartCloud® Enterprise+ environment.

As a brand licensee of Philips TV, TP Vision develops, manufactures and markets Philips-branded TVs from its headquarters in Amsterdam

Source: See speaker notes

Page 36: © 2014 IBM Corporation Cloud Consumer Electronics Point of View IBM Institute for Business Value Partner’s Name, Partner’s Title DD Month YYYY

© 2014 IBM CorporationIBM Institute for Business Value36

SoftLayer and IBM SmartCloud Orchestrator offerings help launch a Smart Community solution

Collaboration – Providing the tools Toshiba needs to accommodate diverse user demands and project requirements, IBM cloud offerings fully support the company’s objectives in advancing its Smart Community initiative.

CHALLENGETo advance its innovative Smart Community initiative, Toshiba Corp. required flexible, scalable cloud infrastructure capable of supporting a wide range of complex projects.

SOLUTIONIn addition to implementing IBM® SmartCloud® Orchestrator software to provide an extensible cloud management framework, Toshiba will provision SoftLayer® infrastructure, including bare metal servers.

Global electronics leader Toshiba Corp. is a USD60 billion company employing nearly 200,000 people in 30 countries worldwide

Source: See speaker notes

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© 2014 IBM CorporationIBM Institute for Business Value37

Freescale climbs into the cloud and cuts IT costs by around 20 percent with IBM and SAP

Flexibility – Freescale can now react faster to changing conditions and demand, maximizing opportunities for growth.

Cost Reduction – Reduced the total cost of ownership for SAP ERP applications by approximately 20 percent per year.

Scalability – Improved scalability gives the global business more headroom for expansion, enabling Freescale to grow more efficiently.

CHALLENGEIn the fast-paced semiconductor industry, Freescale must cope with dynamic business cycles and strong cost pressures. Without the ability to react quickly to changing conditions and optimize production output to meet demand, the company risks failing to meet operating margin targets.

SOLUTIONFreescale migrated its global SAP ERP instance from a dedicated hardware environment to the IBM SmartCloud for SAP Applications platform, working with IBM to complete the move in just eight hours.

Freescale designs and produces embedded processing and semiconductor solutions (commonly known as computer chips) for the automotive, consumer, industrial and networking markets

Source: See speaker notes

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3 IBM can help

2 Cloud is forcing changes in consumer electronics operating model

1Cloud will transform the consumer electronics industry

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© 2014 IBM CorporationIBM Institute for Business Value39

IBM is best positioned to serve the cloud computing needs for electronics

Infrastructureas a Service

Strategize how to use cloud to drive savings and revenue growth

Build and run your private or hybrid cloud

Utilize cloud services delivered from IBM Cloud

Business Processas a Service

Softwareas a Service

Platformas a Service

Hybrid Cloud Technologies

Expert Integrated Systems

Cloud Platform Technologies

Cloud Infrastructure Technologies

Cloud Security Services

Cloud Strategy and Design

Cloud Implementation

Cloud Migration Services

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IBM is helping our clients achieve compelling business outcomes, no matter where the entry point is

BUSINESS PROCESSas a Service

SOFTWAREas a Service

PLATFORMas a Service

INFRASTRUCTURE as a Service

Automating Business Innovation

Marketplace of High Value Consumable Business Applications

Rapid App Development through Composable and Integrated Platform built using open standards

Enterprise Class, Optimized Infrastructure built using open standards

Business Process

Procurement

Payment Processing

Help Desk

Accounting

Recruiting Commerce

Supply Chain

Analytics

Talent Management

Collaboration

IT Management

Marketing

Development & DevOps

Big Data & Analytics

Security

Integration

Mobile

Traditional Workloads

Integration/ API Mgmt.

Compute

Storage

Networking

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IBM cloud marketplace provides easy access to our as-a-service portfolio

Over 200 IBM and Third-Party Software and Services

Leverage world-class IBM partner ecosystem

Curated solution pages with IBM expertise

Easy access to build, consume, deploy and purchase services

IBM CLOUD MARKETPLACEYour gateway to cloud innovation

Explore hundreds of IBM and Business Partner services from across the cloud spectrum.Sign up to offer your cloud services in the marketplace today.

Enterprise — grade business apps to accelerate innovation (SaaS)

Powerful services and APIs via an integrated cloud platform (PaaS)

Self-service IT infrastructure configurable to your needs (IaaS)

Biz Dev Ops

ibm.com/cloud/marketplace

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Bruce Anderson – General Manager, Global Electronics [email protected]

Scott Burnett – Director, Global Consumer [email protected]

Jim Denzak– Industry Solution Sales - Global Electronics [email protected]

Christophe Begue - Director Electronics [email protected]

IBM can support you locally and globally …

IBM ELECTRONICS INDUSTRY CONTACTSIBM ELECTRONICS INDUSTRY CONTACTS

Matt Porta – VP & Partner, Electronics Industry [email protected]

Thorsten Schroeer – Director Electronics Industry [email protected] 20 39 057

John Constantopoulos – Electronics Industry Leader [email protected]

Stephen Pierce - Electronics Industry [email protected]

[FACE PIC]

[FACE PIC]

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Nathan Herber – Associate Partner Cloud [email protected]

Tedi Wells – Executive Consultant Cloud [email protected]

Nancy Agosta – Cloud Industry LeaderCloud [email protected] 919.481.3233

IBM can support you locally and globally …

IBM CLOUD CoC ADVISORY LEADERSIBM CLOUD CoC ADVISORY LEADERS

Cindy Warner – Managing Partner Global Cloud [email protected]

Mike Owens – Associate Partner Cloud [email protected]

Becky Carroll – Associate Partner Cloud [email protected]

[FACE PIC]

[FACE PIC]

[FACE PIC]

[FACE PIC]

IBM CLOUD CATEGORY LEADERS

[FACE PIC]

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IBM can support you locally and globally …

IBM Institute for Business Value Contacts

Veena S PureswaranIBV Global Electronics Industry [email protected]

Anthony E MarshallGlobal CEO Study Program Director, Strategy and Analytics Leader, IBM Institute for Business [email protected]

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© 2014 IBM Corporation

Thank You

© 2014 IBM Corporation

IBM Institute For Business Value Consumer Electronics Industry Cloud Point of View