IBM Research Bolsters Services - Page 4

Eileen Newman, a BostonCoach spokesperson, said that last year the company expected to see a 15 to 20 percent increase in the productivity of the fleet due to the implementation of the Fleet Optimization System developed with IBM Research. "In other words, with roughly the same level of labor expense, BostonCoach could realize an additional $10 million in revenue," Newman said.

Meanwhile, IBM is using its expertise in modeling and research to deliver its Component Business Model, using Business Informatics. Business Informatics is an IBM Research discipline that uses IT as applied to businesses, especially IT used to integrate people, processes and information, said David Cohn, director of Business Informatics at IBM Research.

Cohn said that reusable, industry-specific models will speed business transformation.

"By applying IT to biology, weve completely changed that space, so I came up with Business Informatics because I think we can do the same thing in business," Cohn said. "We are working on techniques to connect business objectives to IT implementations via multilevel modeling."

IBMs research and development budget is about $5 billion, and it is producing profits for the company, Horn said. "We licensed our intellectual property for over a billion dollars in bottom-line profits. And thats the cash dollars bottom line for licensing our intellectual property," he said. "We estimate it that if we had to license all those patents, we could be paying $5 billion a year in order to get access to all that intellectual property. And these are rough numbers, but the fact is that our technology base and our IP portfolio is a strong asset and one that is very much a part of how we think about ourselves."


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