Opportunities In Challenging Times - Steve Robinson
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The document summarizes a presentation given at an IBM Rational Software conference in 2009 during challenging economic times. It discusses how customers are focusing on efficiency, stability, and innovation. It also outlines opportunities for IBM Rational in helping customers lower costs through maturity, reuse, and automation while enabling innovation through services, smarter products, and software-enabled business outcomes. Cross-sell opportunities within IBM Rational's large customer base are highlighted to pursue new revenue.
Opportunities In Challenging Times - Steve Robinson
- 1. Opportunities in Challenging Times Steve Robinson Vice President IBM Rational Software © 2009 IBM Corporation
- 2. IBM Rational Software Conference 2009 What customers are saying… Corporate Strategy CFO Programmers Lines of Business Project Managers Auditors 2
- 3. IBM Rational Software Conference 2009 Tough times ahead Sequoia Capital: “RIP: Good Times” Survival of Quickest: Cut Deep and Fast Engineering: Decrease Headcount for Next Version Product: What Features are Absolutely Necessary? Spend Every Dollar As If It Were Your Last Get Cash Flow Positive (Cash is King) Focus on Quality Lower Risk The Recovery Will Be Long 3
- 4. IBM Rational Software Conference 2009 Survival of the quickest This is what customers are expecting from IBM “No one ever saved their way out of a downturn….it takes innovation...” Craig Barrett, CEO Intel Corporation 4
- 5. IBM Rational Software Conference 2009 Current Rational opportunity *All numbers use Plan Rates 5
- 6. IBM Rational Software Conference 2009 The focus for solutions delivery has shifted Efficiency………Operational Stability………Innovation 1. Reducing Labour Rates 2. Process Maturity and Consistency Competitive Necessity 3. Rigorous Governance and Management 4. Asset and Service Reuse 5. Increasing Levels of Automation Competitive Advantage 6. Flexible Sourcing – component level 7. Delivering Capabilities not resources 8. Software as a Service 6
- 7. IBM Rational Software Conference 2009 SwissRe 7
- 8. IBM Rational Software Conference 2009 SwissRe 8
- 9. IBM Rational Software Conference 2009 Services development model Custom bridge BOM, IDM as UML MODEL IFW in M1 class diagrams MANAGER MODEL REPOSITORY APM WSDL, PROCESS MODELLING XSD AND USE CASE SERVICE ANALYSIS DPM UML DESIGN (SOMA, BOM & BUSINESS IDM ANALYST Websphere Customizations) Rational PROCESS Business Modeler WSDL, Software Architect SIMULATION BPEL, SOLUTION XSD SCA ARCHITECT DPM INTEGRATION DEVELOPER PROCESS Websphere Rational JAVA DEVELOPMENT Integration Developer Application Developer DEVELOPER DEPLOYMENT ENGINEER DEPLOYMENT Websphere Websphere Websphere Business Monitor Process Server Application Server 9
- 10. IBM Rational Software Conference 2009 The shift from IDE to ALM Short Term Development Efficiency Realize savings in <120 days • Build and release management • Test automation • Agile project methodologies Medium Term Operational Control Realize savings < 9 months • Cost avoidance • Globally distributed development Longer Term Business Value Realize savings < 18 months • Legacy application modernization • Effective asset management and reuse • Requirements management 10
- 11. IBM Rational Software Conference 2009 Significant growth potential exists within our client base 70% of our customers own less than 30% of our lifecycle portfolio Owns only Legacy products All Rational 6384 customers: 7887 Also owns one or 14,271 more Strategic Core products Upper-bound Cross-sell opportunity: Lower-bound Cross-sell opportunity: Revenue Cross-sell one new Strategic Revenue # Customers # Customers Opportunity* Core offering to… Opportunity* Cross-sell one …Each customer with at least new deal per one** Strategic Core product 6,384 $165M customer for all 14,271 $369M customers …20% of customers with at least one Strategic Core product 1,277 $33M *Using average deal size - 4qt rolling average: $25.9k *Using average deal size - 4qt rolling average: $25.9k **Our largest/corporate account customers Strategic Core: BuildForge, CC, CQ, EGL Cobol, RAD, RQM,RFT, RPT,RAM, RRC, own 12+ Strategic Core products RSAR, RTC, RTLM, RSA, RSM, RSD, Tara, Test Mgr, Vega, Watchfire 11
- 12. IBM Rational Software Conference 2009 Business and product innovation today require a significant investment in software For businesses and institutions everywhere, there have never been so many new possibilities Imagine the amount of software necessary to: Deliver a green world Take advantage of information base explosion Communicate with a trillion devices Drive on-going product differentiation Seize new global market opportunities Leaders everywhere are deploying increasingly intelligent software, systems and products Accelerating innovation and enabling effective change is highly dependent on the ability to manage effective software delivery 12
- 13. IBM Rational Software Conference 2009 Rational expands into smarter products *All numbers use Plan Rates 13
- 14. IBM Rational Software Conference 2009 Hydraulic hybrid delivery vehicles Eaton Corporation and UPS What’s Smart? Innovative technology for urban delivery trucks in stop-and-go traffic Smart software to optimize energy usage and reduce greenhouse gases Smarter Business Outcomes 60-70% increase in fuel economy, according to EPA 40% reduction in CO2 emissions “The suite of Rational tools, How Rational Software Enables including Rhapsody, DOORS, Smarter Products ClearCase and ClearQuest, provides Eaton an integrated Software modeling to optimize system software framework that allows us performance to deliver innovative products more Automatic generation of in-vehicle quickly and efficiently.” software code 14
- 15. IBM Rational Software Conference 2009 Mobile access to medical images Merge Healthcare What’s Smart? Provides medical professionals access to complex medical images on mobile devices Helps facilitate prompt access to medical imaging data– anytime or anywhere* Smarter Business Outcomes Reduced hospital operations costs Reliable, secure, scalable delivery of medical images and reports “We rely on Synergy and Change to How Rational Software Enables manage the complexity of the Smarter Products software and to ensure that our Collaboration across globally distributed global development teams operate development teams as one, for the best result to our Change management across the end- customers. This software from IBM is to-end software lifecycle part of our livelihood; it's our DNA.” **Product not yet released 15
- 16. IBM Rational Software Conference 2009 The innovation wave is going mainstream 16
- 17. IBM Rational Software Conference 2009 Selling in this new environment Lessons Learned: 1. Current client relationships – our most valued asset 2. New buying behaviors emerging 3. Provocative value propositions essential 4. One-year cost savings mandatory 5. Approval and sign-off processes have changed “Barn’s burnt down…now I can see the moon” Mizuta Masahide 17
- 18. IBM Rational Software Conference 2009 © Copyright IBM Corporation 2009. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. 18