Barry Pipella

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CSR in a globally integrated enterprise
Barry Pipella Vice President Strategic
Outsourcing IBM Global Technology Services
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Business contributing to Millennium Development
Goals
New business markets and growth lie in the
developing world. This is not a call to more
philanthropy. It is a call to recognise the
business case for helping poor countries develop
Kevin Rudd, PM, Australia
End Poverty and Hunger Universal Education Gender
Equality Child Health Maternal Health Combat
HIV/AIDS Environmental Sustainability Global
Partnership
                           Not only does
business have the technology, the skills, the
expertise for wealth and job creation that if
fully mobilised for global purpose will help meet
our goals, it is also in your best business
interest to help the poor countries
develop." Gordon Brown, PM, UK
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Globalisation creates a new business model
19th Century ? 1914 (World War I)
1914 (World War I) ? 2000
2000 ? beyond
Globally Integrated Enterprise
Multinational Corporation
International Corporation

• Independent enterprises explored overseas markets
• Imported raw material and exported manufactured
  products through international trade routes
• Vertically integrated operation

• Trade protection
• Replicated HQ org. functions at regional
  centers
• Manufactured and sold within local/regional
  boundaries
• Local/regionally centered operation

• Free trade, overseas investment, IT revolution,
  open standards
• Focused on optimising operations beyond country
  boundaries
• Shift from what to make to how to make
• Horizontally, globally integrated operation

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IBMs globally integrated enterprise serves
clients in 174 countries and territories
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The challenges of managing a globally integrated
enterprise

• Teams form and disperse rapidly
• People must act autonomously
• Decision making moves to the edges
• Leadership must be collaborative

Decisions
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The World Development Initiative (WDI) is an IBM
leadership initiative
"Leverage IBM's leadership to develop innovative
and commercially viable technology solutions that
can improve the lives of the world's poor"

• The Base of the Pyramid (BOP) presents a large,
  attractive commercial market which aligns closely
  with IBMs capabilities and values.
• 300 volunteers who are self-organised around
  common values.
• a large of 25-35 year old, high potential
  employees with less than 5 yrs with IBM
• high-performing team members who work above the
  demands of their day job and around the process
  and organisational boundaries
• They are the current and future leaders of IBM
• We have built an extensive knowledge network
  and formed partnerships inside and outside of IBM

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Simple model illustration of aggregation platform
Improve Access
Reduce Economic Penalty
(internet)
(mobile phones)
(mobile phones)
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Corporate Service Corps
5 host countries 5,500 applicants 600 volunteers
chosen
On Demand Community
IBM volunteers in A/NZ 78 years of community
service since 2004
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CSR embedded in the fabric of our company
At IBM corporate citizenship is in our DNA.
Its the embodiment of the very beliefs and
values of the company. -- S. J. Palmisano,
Chairman and CEO, IBM Corporation
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Australian Centre for Corporate Social
Responsibility Conference 5th February
2009 Sydney, Australia