Skills for Economic Growth in South East Europe (SEE)

Dr Diem Ho Member of the IBM Academy of Technology Improving Skills for the ICT sector in the Western Balkans Human Capital Working Group meeting Zagreb, Croatia September 17, 2009 diem_ho@fr..com

IBM EMEA University Relations © 2002 IBM Corporation Economic Background: examples

%GDP Bulgaria Croatia FYR Romania Turkey %Labor Macedonia (2005) Agriculture 9 6 11 8 12 10 16 17 32 34 Industry 31 27 26 31 27 33 30 33 31 23 Services 60 67 63 61 61 57 54 50 37 43

Population 7.72 4.44 2.04 21.61 72.52 (million) Unemployme 9.0 11.1 35.9 7.3 8.4 nt rate %

Sources: Manfred Wannöffel, Josef Le and Julia Kramer, Economic structures in south-eastern Europe and Turkey: a view from the metalworking industry, South-East Europe Review, pp.7 – 32, Feb 2007 (2006 data) 2 University Relations September 2009 © 2009 IBM Corporation Higher Education Background

-Economy is service and manufacturing dominant •Foreign Direct Investment -Higher Education -Modest or insufficient funding -Significantly state ownership • Curriculum modernization • Governance reform -Understaffing • University-industry- -Lack of EU quality harmonization government partnership -Mismatch: graduate profiles with respect to the economy needs

3 University Relations September 2009 © 2009 IBM Corporation Higher Education vs Economy

Economic Growth means Value Creation!

4 University Relations September 2009 © 2009 IBM Corporation Value Creation HowHow toto dodo it?it? -- throughthroughthrough IInnovationnnovation toto dodo thingsthings better:better: -- moremoremore efficientefficient inin processesprocesses -- moremoremore relevantrelevant inin contentscontents -- moremoremore effectiveeffective inin outcomesoutcomes SmarterSmarter Planet.Planet.Planet. Need MarketMarket ValuedValued SkillsSkills

5 University Relations September 2009 © 2009 IBM Corporation Market Valued Skills Opportunities in 2009 Potential - Longer Term Outlook Areas (2009 through 2014)

Operating Systems Networking and Application Internetworking

SOA Network Systems Systems Software Security Security Antivirus Protection Software Engineer Wireless/Mobile

Identity Management RFID

Services

Web/eCommerce Change Management

Service Management (ITIL)

Web Services Risk Management

Vendor Management

Enterprise Application Suites Database

Systems Analyst Database Administrator Security Business Intelligence Disaster Recovery Project Management

Project Management Data Management

6 University Relations September 2009 © 2009 IBM Corporation ValueValue CreationCreation SHAREHOLDER´S VALUE Ultimate Objective I V T T TI E NUE R

A Fundamental Indicators TY SH PROFI MARKE REVE (KPIs) PRODUC

MARKET SINGULARITY

PRODUCTS & Business CUSTOMER OPERATIONS SERVICES INTIMACY EXCELLENCE Expectation LEADERSHIP

REGULATION COMPLIANCE Government SOCIAL RESPONSIBILITIES /Society Expectation

Cost Quality Utility Perception

7 University Relations September 2009 © 2009 IBM Corporation Innovation: Value Creation Matrix

Value Market Revenue Profit Productivity Challenges Share /Utility Customers Mass Customization Products & Services Facilitation, Simplification, Integration, Standardization, Differentiation Market & Competitors Globalization, Market Singularization Operations/ Optimization, Automation, Integration, Processes/ Resources Securitization

Governance & Regulation Compliance Optimization Business Integrity

8 University Relations September 2009 © 2009 IBM Corporation Examples of Skills Required •Leadership •Entrepreneurship for Service Science •Strategy MARKET & •Critical Thinking/Analysis COMPETITORS •Macroeconomics

PRODUCTS & SERVICES OPERATIONS/PROCESSES/RESOURCES CUSTOMERS

•Infrastructure •Processes •BI/Data warehousing •BI//Data warehousing -IT Architecture - e-Commerce •Product/Service Management •Behaviour Science -IT for Services - SOA/BPM/ERP/ISC •Product/Service Marketing •Business Analytics -IT Management - Quality Management •R&D Management •Optimization •Project Mgt/Consultancy•Human Capacity Mgt •Microeconomics •CRM, Marketing •Financial Management •Knowledge Mgt •Pricing •Sales •Innovation •Innovation GOVERNANCE BUSINESS INTEGRITY

•Social Responsibilities •Business Law/Reg. Compliances ERP: Enterprise Resource Plannng BI: Business Intelligence ISC: Integrated Supply Chain SOA: Service Oriented Architecture •Ethics and Values •IT based Risk Management 9 University Relations September 2009 © 2009 IBM Corporation How to make the planet smarter Academic Initiative helps develop skills for a

Skills to develop flexible and dynamic processes modeled for the new way people buy, live & work.

Skills to take Smart Work Skills to reduce energy costs, advantage of the drive greater efficiencies, wealth of information respond more quickly by taking available in real time New Green & New Green & action now on energy, the from a multitude of Intelligence Beyond Intelligence Beyond environment, and sustainability, sources to make more and develop new portfolio of intelligent choices. Dynamic green services and products. Infrastructure Skills to create intelligent infrastructure that drives down cost, is secure, and is just as dynamic as today’s business climate

10 University Relations September 2009 © 2009 IBM Corporation Skill Development

What does IBM do to contribute and to help

in developing the skills for the 21st century?

11 University Relations September 2009 © 2009 IBM Corporation Research Projects Global University Programs - Today Recruiting Skills

Four Pillars Programs & Initiatives

Talent - Research ‰ Shared University Research Awards (SUR) Collaboration in areas of mutual ‰ Faculty Awards interest & value ‰ Open Collaborative Research Awards (OCR) ‰ Centers for Advanced Study (CAS) ‰ (with CC&CA) Talent - Skills ‰ Academic Initiative Program (led by SWG) Building the pipeline ‰ SSME/Smarter Planet Skills for 21st Century ‰ LA Grid Initiative (Hispanic Focus) ‰ Student Contests / Competitions (e.g., ACM) ‰ Innovation Centers and Developer Relations ‰ Volunteerism/Corp Citizenship (with CC&CA) Talent - Recruiting ‰ PhD Fellowship Program Acquiring top talent ‰ Global Recruitment Campaign ‰ Global University Sourcing ‰ Extreme Blue Internship Program Infrastructure Projects ‰ Partnership Executive Program (PEP) Value creation, sales, and revenue ‰ Client Executives S&D generation ‰ Public Private Partnerships in Research ‰ Industry-Academic IP Collaboration

12 University Relations September 2009 © 2009 IBM Corporation The IBM Academic Initiative Our goal: Skills for the 21st Century Our mission ƒ Partnering with schools, colleges and universities to drive open standards, open sources and IBM technology ƒ Better educate millions of students for a more competitive IT workforce Our offerings ƒ No Charge access to IBM technology & tools ƒ Course materials and curriculum ƒ Education: faculty, IT staff and students ƒ Certifications and Qualifications Over the past year we have worked with thousands of faculty members and institutions, teaching over 8,000 courses to over 800,000 students worldwide, supported by thousands of IBM volunteers http://www.ibm.com/developerworks/university/academicinitiative

13 University Relations September 2009 © 2009 IBM Corporation Collaboration with IBM Shared University Research ƒUniversität Karlsruhe PhD Fellowships ƒUniversität Stuttgart ƒMeraka Institute, SA ƒUniversity of Cambridge ƒNew University of Lisbon ƒUniversity of Oxford ƒUniversidad Carlos III de Madrid ƒLiverpool John Moores University ƒUniversity of Toulouse 3 ƒUniversity of Bristol ƒUniversity Polytechnic of Turino ƒTechnical University of Munich ƒKoc University, Turkey ƒUniversity Politehnica of Bucharest ƒUniversity Polytechnic of Timisoara ƒHebrew University ƒOzyegin University, Turkey ƒNational and Kapodistrian University of Faculty Awards Athens •Technical University of Cluj Napoca ƒCambridge ƒMoscow State Institute of Electronics and Mathematics ƒMakerere University ƒErasmus University of Rotterdam ƒUniversity Polytechnic of Bucharest ƒUniversity of Stuttgart ƒRoyal lnstitute of Technology, Stockholm ƒBocconi. Italy ƒIstanbul Bilgi, Bilkent, Koc, METU, Ozyegin http://www-304.ibm.com/jct09002c/university/scholars/ur/awards/index.html

14 University Relations September 2009 © 2009 IBM Corporation IBM-University Collaborations in the SEE Internship current situations ƒCroatia, Slovenia and Bulgaria have internships within the respective brands and are handled 'ad-hoc ' with HR support, fulfilling the business demand 'on demand' ƒSerbia, started last year. ƒBosnia, Herzegovina, Macedonia, Albania and Kosova: none for now ƒTurkey and Romania: regular programs Certifications/Qualifications •Recently for Bulgaria: Sofia University, Varna Free University, University of Ruse, Technical University of Sofia. Serbia: Belgrade University, Singidunum University. Croatia: Faculty of Humanities and Social Sciences, Faculty of Computing and Engineering, Faculty of Organization and Informatics, Academy for applied computing, Faculty for traffic sciences, Turkey: Bahcesehir University, Baskent University, and Dokuz Eylul University Recent University-IBM Partnerships Serbia: Institute of Physics Belgrade, Faculty of Mathematics – University of Belgrade, Faculty of Informatics and Management – Singidunum University Romania: Transylvania University of Brasov, Academy of Economic Studies (ASE), TU in Cluj-Napoca, Politehnica University of Timisoara, Croatia: Computer College, Slovenia: Maribor,… 15 University Relations September 2009 © 2009 IBM Corporation Bulgaria – A Government-University-IBM Collaboration

Our University Goals Market Opportunity Leveraged Partnerships Collaborative (Sales) Government Innovation Research

Corporate Academia Skills Recruiting

IBM and Bulgarian Government in Partnership in Nanoscience IBM Helps Create First Nanotechnology Center in Central and Eastern Europe SOFIA, Bulgaria - 22 May 2009: IBM (NYSE: IBM) and the Bulgarian government today officially announced their cooperation in the area of nanoscience and a deal for IBM to support the creation of what will be the first Bulgarian nanotechnology center. •The General Framework Agreement signed today defines the scope of cooperation between IBM and the Bulgarian government and ways to encourage industry, universities and the Bulgarian Academy of Science to work together in the emerging field of nanoscience. The government’s three-year program is aimed at creating different nanoproducts, micromachines and microsystems. http://www-03.ibm.com/press/us/en/pressrelease/27571.wss

16 University Relations September 2009 © 2009 IBM Corporation So how do we develop skills and competences in SEE? - a comprehensive strategy for effectiveness

Market singularity •Specialization

Delivery and Pedagogical Excellence •Infrastructure: Cloud computing

•computing on demand, Learner Centricity Quality Leadership applications on demand •Relevance •Product: Contents •Bandwidth, jitter, reliability, •Service: Faculty availability •Impact •Tools •Ubiquitous, participatory, collaboratory

Governance Challenges •Accreditation •Certifications

17 University Relations September 2009 © 2009 IBM Corporation Value Creation in Higher Education

Knowledge Cycle Student Perspectives: Faculty perspectives: • Hitting the ground running • Standing out among the New Technologies •Employability out -standings / Knowledge •Knowledge •Patents •Experiences •Insight •Publications Acquire Create • Pushing the frontier of Discover •Project based innovation and relevancy Assimila approach te •Government/industry • Preparing for innovation Partnership •Versatility: wider spectrum Understand - practicality business Develop values •Major - alignment with challenges Innovations •Minor government/industry • Expecting the unexpected strategic objectives Society/Businesses •Adaptability • Committing to change •Methodology •Continual learning Multi-disciplined and Collaborative •Framework

•Better student pre-university orientation; common trans-disciplined 1st year courses •Quarter system •Two year program (like foundation degree, UK; or DUT, France) 18 University Relations September 2009 © 2009 IBM Corporation Value Creation: Entrepreneurship spirit The skills needed for services innovation are in short supply; science and engineering education does not seek to develop skills required for innovation and entrepreneurship

ƒ Depth Professional Perspectives: ƒ Breadth ƒ Practical Experience C Indus M Or Bus Sc Ec Bus ƒ Communications •Challenging the o a mput gani ienc onom

t ƒ Teaming Conventional Wisdom h i i ne ness and t

r ƒ Management

i •That’s it? z e andEngineer ss al andSys e

a ƒ People Management ic r t An S

andManage i

Ope •Creativity s and ona ƒ Strategic Planning c t ience &

h ƒ Problem solving via •Can I do better? l r r Change&Lear a o Soc informatics t

p •Passion ions Resear t o

e ƒ Problem solving via lo m

i •Am I excited? al S gy In social networks s ing E f ment

o ƒ Flexible, adaptive and •Perseverance c . n S iences gineering entrepreneurial •Yes, I can! y

s ƒ On demand ch t e ning m s

19 University Relations September 2009 © 2009 IBM Corporation Conclusion: to meet the SE Europe challenges,

Higher Education Reform for

ƒ Market Valued Skills for the 21st Century

ƒ Innovation for the Economy

through

ƒ Service Science/Smarter Planet in our University Curricula

ƒ Value Creation by focussing on society’s needs (client centricity)

20 University Relations September 2009 © 2009 IBM Corporation 21 University Relations September 2009 © 2009 IBM Corporation Top Solutions for New Intelligence for Smarter Planet ƒ Information on Demand Information ƒ Information Agenda Academic Initiative Management ƒ Information Infrastructure Related New Intelligence Courseware

ƒ Business Intelligence •Designing SOA Solutions with the IBM SOA Foundation ƒ Business Event Processing •Information Management Basics Predictive ƒ Analytics Solutions •Architecting the Data Warehouse Capability ƒ Telelogic and Cognos •Relational Database Design •Changing Business with Data Insight •IBM Informix Dynamic Server Administration ƒ Industry Specific Assets (IA, MRO, •SQL & Database basics Telelogic) •Teaching Business Process Management with Innov8 Engaging the ƒ CRM, SCM and HR Transformation •Teaching Business Process Modeling Value Chain ƒ Sensor and Actuator •Introduction to IBM DB2 ƒ Information Integration •Advanced Data Warehouse Workshop: Multi-Dimensional Modeling •DB2 for z/OS Fundamentals ƒ Business Optimization Solutions •DB2 Family Fundamentals ƒ Business Process Management •DB2 SQL Workshop ƒ Smart SOA •Designing SOA Solutions with the IBM SOA Foundation Business ƒ Information On Demand, Information Agenda •Getting Started with SOA Optimization ƒ Information Infrastructure SW and Services •Implementation Technologies for Service Oriented Designs •The Value of Service Oriented Architecture •IBM WebSphere Business Modeler- Process Simulation and Analysis 22 University Relations September 2009 © 2009 IBM Corporation •Using IBM WebSphere Business Modeler for BPM Top Solutions for Smart Work for Smarter Planet

ƒ Industry business solutions and Industry frameworks Academic Initiative Agile Business ƒ Business Model Innovation services (CBMSOMA) Related Smart Work Courseware Model ƒ SOA strategy services ƒ Smart SOA INsight series

ƒ Collaboration software and services •Designing SOA Solutions with the IBM SOA Foundation ƒ RFID, sensors, actuators, consulting services •Assessment Assets for Service Oriented Architecture (SW707) ƒ Web 2.0 products and service •Developing Applications with a Service-Oriented Architecture ƒ Consulting services for CRM and SCM •Getting Started with SOA Connected ƒ Collaborative Software Development •Implementation Technologies for Service Oriented Designs Customers ƒ WebSphere Commerce ƒ Mobility & Contact Center Solutions •Service Oriented Architecture Design Patterns •The Value of Service Oriented Architecture •Fundamentals of IBM Lotus Domino 8 Application Development •Using IBM Lotus Notes 8 Mail, Calendar, and Contacts ƒ Key Agility Indicators •IBM WebSphere Portal v6.0: Administration 1&2 ƒ BPM Suite and consulting services •IBM WebSphere Business Modeler- Process Simulation and Dynamic Business ƒ WebSphere Business Events ƒ Component Business Modeling services – (KAIs) Analysis Processes ƒ Enterprise Architecture products and services •IBM WebSphere Enterprise Service Bus Implementing an ESB •Using IBM WebSphere Business Modeler, Monitor and Process Server for BPM •IBM WebSphere Commerce V6.0 Hands-on Training for ƒ Smart SOA and SOA solution services Developers ƒ Application Infrastructure •Programming XML with Java 1.4 Smart SOA ƒ Connectivity and Integration ƒ SOA Sandbox •Teaching Business Process Management with Innov8 •Developing Supply Chains to support Service Operations •Introduction to XML and Related Technologies 23 University Relations September 2009 •Teaching Business Process Modeling © 2009 IBM Corporation Top Solutions for for Smarter Planet

Academic Initiative: Related Dynamic Infrastructure Courseware Reduce ƒCloud Computing Cost ƒVirtualization •Foundations in IT Services I and II •IBM Tivoli Netcool/Proviso 4.4.3 System Administration and Maintenance ƒEnergy Efficiency •IBM Tivoli Asset Management for IT 7.1 Implementation •IBM Tivoli Access Manager for Enterprise Single Sign-On Workshop ƒInformation Infrastructure •IBM Tivoli Business Services Manager 4.1 for Implementers •IBM Tivoli Composite Appl. Mgr for RTT 6.1 - Install Monitor Deploy •IBM Tivoli Composite Application Manager for Response Time 6.2 Improve ƒService Management Implement and Admin Workshop •IBM Tivoli Federated Identity Manager 6.1 - Deployment and Service ƒAsset Management Administration •IBM Tivoli Monitoring 6.2 for Implementers •IBM Tivoli Netcool/Impact 4.0 - Administration and Implementation ƒSecurity Management •IBM Tivoli Netcool/OMNIbus 7.1 - User •IBM Tivoli Netcool/Realtime Active Dashboards 3.0 Fundamentals •IBM Tivoli Network Performance Reporting 3.X User ƒBusiness Resiliency •IBM Tivoli Provisioning Manager 5.1 - Operations Management Workshop ƒExpress Mid-Market •Service Desk Management Using IBM Maximo 6 for IT •Work Management in IBM Maximo 6 for Enterprise Asset Manage Management Offerings •An Introduction to the Mainframe - Large Scale Commercial Risk Computing •An Introduction to the Mainframe - z/OS Basics ƒStrategic Outsourcing •Linux on System z •Teaching Enterprise Systems

24 University Relations September 2009 © 2009 IBM Corporation Top Solutions for Green and Beyond for Smarter Planet

ƒ Data Center Assessment and Design Academic Initiative: Finding the Services Related Green and Beyond Courseware & ƒ Green IT Assets Value in Green ƒ Software for a Greener World

ƒ Intelligent Utility Network and Metering ƒ Intelligent Transportation ƒ Consumer Driven Supply Chain •An Introduction to Large Scale Commercial Computing Smart Systems ƒ Intelligent Oilfields, Manufacturing •An Introduction to the Mainframe - Networking Productivity •An Introduction to the Mainframe - z/OS Basics

•IBM’s Software for Greener World •Lotus Quickr 8.1 •IBM Content Collector, Filenet •Information Agenda for Energy & Utilities ƒ CSR and Sustainability •IBM Tivoli Usage and Accounting Manager, IBM Tivoli ƒ Carbon Management Monitoring for Energy Management Accounting Societal Shifts •Rational Test Lab Manager Managing ƒ Reputation Management Services •Lotus Notes, Domino 8.5 and Corporate ƒ Ethical Supply Chain Monitoring •SmartSOA Sandbox Accelerating Social •IBM FileNet Business Process Manager, •IBM FileNet Content Manager Responsibility •Lotus Forms & Lotus Forms Turbo •Telelogic System Architect

http://www.ibm.com/academicinitiative 25 University Relations September 2009 © 2009 IBM Corporation About the speaker: Dr Diem Ho is Manager of University Relations for IBM Europe, Middle East and Africa (EMEA). His mission is to build and manage relationships of mutual value for IBM and the academic community. Diem’s past research interests covered many disciplines in Science, Technology and Finance/Economics. He has published widely in physics, mathematics, image processing, remote sensing, engineering, optimization and finance. He recently co-edited/authored a special issue of the Computational Economics on Stochastic Process and Data Analysis published by Springer. In recent years, he has lectured intensively on Higher Education Reform and is a member of the peer review teams for the EFMD-EQUIS and EPAS accreditation programs and a member of the EPAS committee. He is an associate editor of the journal of Computational Economics and is a member of the IBM Academy of Technology. Before assuming his current position, he was an EMEA practice leader with the IBM Management Technologies Consulting Group, specializing in using Technologies to address Business Challenges in Banking and Finance sector. Before joining IBM, Diem was a university professor and he continues to supervise PhD thesis to-date. Diem obtained two Master degrees and a PhD in Magnetospheric Physics at Stanford University, California.

26 University Relations September 2009 © 2009 IBM Corporation