November 14, 2016

Mr. Donald J. Trump

Of?ce of the Presidential Transition
1800 Street, NW

Washington. DC 20006

Dear Mr. President?elect:
Congratulations on your election as the 45m president of the United States.

Last Tuesday night you Spoke about bringing the country together to build a better future, and
the opportunity to harness the creative talent of people for the bene?t of all. I know that you are
committed to help America?s economy grow in ways that are good for all its people.

I am writing to offer ideas that I believe will help achieve the aSpiration you articulated and that
can advance a national agenda in a time of profound change. I do so as the leader of the nation?s
largest technology employer, its leading patent creator, and the company that for more than 105
years has believed that prosperity and progress can be achieved by unleashing the potential of all
people. Permit me to offer a few Speci?c suggestions:

Creating ?New Collar? Jobs

Getting a job at today?s IBM does not always require a college degree; at some of our centers in
the United States, as many as one third of employees have less than a four?year degree. What
matters most is relevant skills, sometimes obtained through vocational training. In addition. we
are creating and hiring to ?ll ?new collar? jobs entirely new roles in areas such as
cybersecurity, data science, arti?cial intelligence and cognitive business.

You?ve spoken about the importance of vocational education, and we agree. IBM has
championed a new educational model for the United States six?year public high schools that
combine traditional education with the best ofcommunity colleges. mentoring, and real?world
job experience. The ?rst of these schools opened with support ?ve years ago in New
York; we have hired some of the ?rst graduates. There will soon be 100 such schools across the
country. With your support, we could do much more. Let work together to scale up this
approach of vocational training, creating a national corps of skilled workers trained to fake the
?new collar lTjobs that are in demand here in America.

Mr. President-elect
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November 14, 2016

Building Intelligent, Secure Infrastructure

You?ve said we need to invest in America?s infrastructure, and we agree. As we build big, let?s
also build smart. The country should focus on infrastructure investments that incorporate
Internet of Things technology and arti?cial intelligence to improve performance. And as
infrastructure gets smarter, it also increases the need for cybersecurity, so that vital networks
cannot be compromised. We recommend that your infrastructure package include incentives for
states and localities to build intelligent and secure roads. bridges, buildings, and other
publicfacilities.

Healthcare: Applying Lessons from Private Sector Experience

IBM operates one of the largest employer?sponsored health plans in the United States. In 2009,
IBM offered 15 specific ideas for how America could save more than $900 billion over ten years
through common?sense reforms to the healthcare system, leveraging lessons learned in the
private sector. These included using data analytics to reduce fraudulent Medicare claims,
improving the exchange of healthcare information among providers, and leveraging the
government?s purchasing power to lower the cost of drugs and care. IBM will update its
recommendationsfor the healthcare system and hopes to work with Congress and your HHS
Secretary to drive better healthcare at lower cost.

Using Data to Fight Government Waste and Inef?ciency

Eight years ago, IBM helped lead an effort to identify $1 trillion in savings the federal
government could achieve through using advanced data analytics, data center consolidation, and
the use ofcloud technologies to improve the cybersecurity of key government systems. As part
ofthe Technology E0 Council of'which I am a member. we will prepare an updated set
ofrecommendationsfor how you could use technology andfraud analytics to save the
government more than $1 trillion.

Bringing Money Home to In vest in America

IBM supports your proposal to make American?s tax system more competitive. Many billions of
dollars of American companies? earnings do not come home because of an outdated and punitive
tax system. Your tax reform proposal will free up capital that companies of all sizes can reinvest
in their US. operations, training and education programs for their employees, and research and
development programs. We will support the efforts ofyour administration and Congress to pass
tax re ornt early in 20] 7.

Mr. President?elect
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November 14, 2016

Taking Care of Our Veterans With the World?s Best Technology

All of us at IBM share your gratitude and devotion to the men, women and families who serve
our country. More must be done to give our vets the best medical care possible. So, we recently
announced a pilot program with the Department of Veterans Affairs to help its oncologists treat
10,000 veterans through the power of precision medicine and genomic analysis powered by
cognitive computing system, Watson. We hope to work with your VA Secretary to expand
this collaboration.

Mr. President?elect, roots are in the United States. We are investing, hiring, and
continuing to reinvent our company for long-term competitiveness. At more than 50 major
locations across the country, we hired more US. employees last year than in the previous five
years. We are opening new innovation centers and business units across the country. We are
proud of the work we do here in the United States, just as we are proud of the work we do in
more than 175 countries around the world.

In the years ahead there will be issues on which we agree, and issues on which we do not. But as
you prepare to take office as our new president, I hope the ideas I have offered in this letter
represent ways that we can work together to achieve prosperity that is broadly shared in our

society.

Sincerely,

Ginni Rometty