IBM turns research into business

IBM has launched a new research services organisation to give customers access to specialists in high-end business transformation and technology.

On Demand Innovation Services, part of IBM's Research Division, is made up of 200 research consultants around the world and will work in partnership with Big Blue's Business Consulting Services division.

It is the first time IBM has created a business group out of its research arm, and the company has announced that it will invest $1bn in the unit over the next three years.

Paul Horn, senior vice president and director, IBM Research said: "The role of IT research and the kinds of problems researchers should be solving must change as the industry enters a services-led on demand era."

As a first project, IBM has begun piloting an advanced infrastructure to assist companies in gathering, analysing and synthesising huge amounts of unstructured data to extract trends, patterns and relationships.

The system will handle over a billion web pages, documents and newsgroup postings. Early applications could be in the areas of business intelligence, demographic analysis and product marketing.

On Demand Innovation Services will focus on four specific areas of research:

• Advanced analytics that apply advanced maths and computer science to model and solve real-life business problems.
• Business process transformation to align business strategy with IT investments.
• Information integration to improve operational efficiency through the use of different forms of data across and beyond the enterprise.
• Experimental economics to expand standard research to include complementary sciences and arts that demonstrate the value of different business models.

The new team will assist business services consultants in tapping into IBM's wider base of over 3,000 scientists and engineers located at eight laboratories in six countries.