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MONDAY, MARCH 21<br />

PANEL – Tales from <strong>the</strong> <strong>World</strong>wide Trenches: How <strong>IT</strong><br />

Companies Operate Globally<br />

What does it mean for an <strong>IT</strong> <strong>com</strong>pany to be global? IBM generates about 60 percent of<br />

its revenue outside <strong>the</strong> US; for both Xerox (depending on how you count) and Sun, it’s<br />

about half. For Dell, <strong>the</strong> number is about 40 percent (and for worldwide-famous brand<br />

Coca-Cola it’s around 70 percent). For all of <strong>the</strong> <strong>IT</strong> <strong>com</strong>panies mentioned, <strong>the</strong> non-US<br />

share is increasing.<br />

But being global means more than just where you sell your products or services. It means<br />

where you source <strong>the</strong>m, where you design <strong>the</strong>m, and who your people are. A strong corporate<br />

culture is good, but can it also be geography-neutral? Or can a culture be interpreted<br />

(ra<strong>the</strong>r than translated) in local ways around <strong>the</strong> world?<br />

Certainly, being global is tough for a US <strong>com</strong>pany in a world riven with political and<br />

economic rivalries, where <strong>the</strong> US is no longer revered as a political or a business leader.<br />

Yet that creates <strong>the</strong> impetus to go global: Growth is much faster outside <strong>the</strong> developed<br />

markets of <strong>the</strong> US and Western Europe; increasingly, innovation is <strong>com</strong>ing from outside<br />

<strong>the</strong> US as well.<br />

Going global is a clear trend for growing <strong>com</strong>panies, but it interacts with o<strong>the</strong>r longterm<br />

changes. Those include <strong>the</strong> locus of <strong>the</strong> value created, which is shifting towards <strong>the</strong><br />

customer – whe<strong>the</strong>r that customer is an empowered consumer, a value-added reseller or<br />

a do-it-yourself enterprise. More and more, <strong>the</strong> value (added) is at <strong>the</strong> customer,<br />

whe<strong>the</strong>r it’s custom programming to build a differentiating application or after-sale<br />

support delivered by phone or through <strong>the</strong> <strong>Web</strong>. When <strong>IT</strong> was sold to experts, it was<br />

safe to assume that <strong>IT</strong> customers anywhere could read (if not speak) English; that’s not<br />

<strong>the</strong> case anymore.<br />

Ano<strong>the</strong>r trend is increased corporate visibility: Shareholders, customers and <strong>the</strong> public at<br />

large all want a say in corporations’ behavior – but <strong>the</strong>y don’t all agree. Everything from<br />

labor practices and pay scales (especially equity packages for executives) to environmental<br />

concerns and <strong>the</strong> definition of ethical behavior varies from country to country. How<br />

can a <strong>com</strong>pany satisfy all its constituencies in an age of increasing transparency?<br />

Our panelists bring different perspectives. All three see developing markets in general<br />

and China in particular as a key source of growth. Steve Ward, IBM senior VP and<br />

8 RELEASE 1.0 WWW.RELEASE1-0.COM

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