Innovating for growth Frank Kern Senior Vice President

Innovating for growth Frank Kern Senior Vice President Global Sales and Distribution

Change is inevitable 2 © 2008 IBM Corporation

New Model for the 21 st Century International Exporting 3 © 2008 IBM Corporation

New Model for the 21 st Century Multinational Country Silos 4 © 2008 IBM Corporation

New Model for the 21 st Century The Globally Integrated Enterprise 5 © 2008 IBM Corporation

Globalization Removes Barriers to Innovation § Traditional barriers to innovation are no longer game stoppers § Innovation can spring up anywhere in the world § New players can enter industries overnight § New and disruptive business models can be created anywhere 6 © 2008 IBM Corporation

Innovation is Key for Social and Economic Growth Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value 7 © 2008 IBM Corporation

Why Innovation Matters § Spurs productivity, economic growth § Meets societal needs § Creates national and global markets § Generates jobs, wealth creation § Results in higher standard of living 8 © 2008 IBM Corporation

The Changing Nature of Innovation § Open § Collaborative § Multi-disciplinary § Global 9 © 2008 IBM Corporation

10 © 2008 IBM Corporation

Global Integration and Innovation Challenges and Opportunities Globalization 11 Innovation © 2008 IBM Corporation

Mexico is Well Placed to Drive Innovation that Matters Strategic location Global trade agreements Foreign investments 12 Education Investments New generation of skills Competitive Infrastructure © 2008 IBM Corporation

Three Pillars of Innovation 13 © 2008 IBM Corporation

Conclusions § The world is diversified § In the global economy, innovation is key § Mexico is well placed to drive innovation that matters 14 © 2008 IBM Corporation