...9-805-130 REV: JULY 8, 2009 LYNDA M. APPLEGATE ROBERT AUSTIN ELIZABETH COLLINS IBM's Decade of Transformation: Turnaround to Growth This is my last annual letter to you. By the time you read this, Sam Palmisano will be our new chief executive officer, the eighth in IBM’s history. He will be responsible for shaping our strategic direction as well as leading our operations. . . . I want to use this occasion to offer my perspective on what lies ahead for our industry. To many observers today, its future is unclear, following perhaps the worst year in its history. A lot of people chalk that up to the recession and the “dot-com bubble.” They seem to believe that when the economies of the world recover, life in the information technology industry will get back to normal. In my view, nothing could be further from the truth. Lou Gerstner, IBM Annual Report, 2001 In 1990, IBM was the second-most-profitable company in the world, with net income of $6 billion on revenues of $69 billion, and it was completing a transformation designed to position it for success in the next decade. For the world leader in an industry that expected to keep growing spectacularly, the future looked promising. But all was not well within IBM, and its senior executives realized it. “In 1990, we were feeling pretty good because things seemed to be getting better,” one executive remarked. “But we weren’t feeling great because we knew there were deep structural problems.” Those structural problems revealed...
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...9-805-130 REV: JULY 8, 2009 LYNDA M. APPLEGATE ROBERT AUSTIN ELIZABETH COLLINS IBM's Decade of Transformation: Turnaround to Growth This is my last annual letter to you. By the time you read this, Sam Palmisano will be our new chief executive officer, the eighth in IBM’s history. He will be responsible for shaping our strategic direction as well as leading our operations. . . . I want to use this occasion to offer my perspective on what lies ahead for our industry. To many observers today, its future is unclear, following perhaps the worst year in its history. A lot of people chalk that up to the recession and the “dot-com bubble.” They seem to believe that when the economies of the world recover, life in the information technology industry will get back to normal. In my view, nothing could be further from the truth. Lou Gerstner, IBM Annual Report, 2001 In 1990, IBM was the second-most-profitable company in the world, with net income of $6 billion on revenues of $69 billion, and it was completing a transformation designed to position it for success in the next decade. For the world leader in an industry that expected to keep growing spectacularly, the future looked promising. But all was not well within IBM, and its senior executives realized it. “In 1990, we were feeling pretty good because things seemed to be getting better,” one executive remarked. “But we weren’t feeling great because we knew there were deep structural problems.” Those structural problems revealed...
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...IBM Global Business Services Human Capital Management Achieving success in a globally integrated world: Enabling an adaptable workforce 2 You’ve remodeled your supply chain. Optimized your IT infrastructure. Overhauled your financials. But you’re still not getting the results you expect. So what’s missing? Like many companies, you may be overlooking your most valuable asset: your people. While human capital is an organization’s single largest resource, many companies don’t utilize their workforce to its fullest — even when they’ve been successful in maximizing other strategic business areas — leaving a huge opportunity untapped. By looking to the workforce to improve enterprise adaptability, innovation and productivity, corporate leaders can differentiate their businesses and stay ahead of the competition. Yet, to achieve true differentiation, companies must develop a more responsive, flexible and resilient workforce by finding better ways to source talent, allocate resources across competing initiatives, measure performance and build vital capabilities and skills. This requires developing programs that focus on workforce performance, identifying and employing talent globally, working collaboratively to accelerate change, generating innovation and producing measurable business results — now and into the future. 3 Providing solutions based on solid research IBM’s Global Human Capital Study 2008, which reflects the insights of over 400 senior executives...
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...Corporate Express Australia Limited solves the challenges of growth Switching to integrated software creates new opportunities Published on 06 Aug 2012 "With the new SAP software we can scale the business at a much more rapid rate, with fewer resources, which will allow us to be more aggressive in going to market. The IBM Global Business Services team provided us with the robust infrastructure that we can rely on to support the business as it continues to grow." - Garry Whatley, Chief Information Officer, Corporate Express Australia Limited Customer: Corporate Express Australia Limited Industry: Retail Deployment country: Australia Solution: Business Intelligence, Enterprise Resource Planning, Information Integration, Transforming Business IBM Business Partner: SAP Overview A wholly-owned subsidiary of US parent company Staples, Corporate Express Australia Limited is one of Australia and New Zealand’s leading single-source suppliers of business essentials. The company employs more than 2,500 people at some 38 locations throughout the region. Corporate Express offers products and services ranging from IT solutions to office products, and provides a reliable one-stop-shop for all business supply needs. Business need: Corporate Express Australia is a steadily-growing company, having acquired some 71 different businesses to date. Acquisition had led to a lack of consistent processes across the company. Corporate Express wanted to move from this environment and introduce...
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...Generic Benchmarking Worksheet Global Communications Team D |Task A: Problem/Opportunity Statement | |Instructions for Task A: In the Response row, write out the problem/opportunity statements for the scenario for each of the team | |members. | |Response to Task A: | |Name | |Problem Statement | | | | | |In order to meet the requirements of consumer demand and ensure business continuity, Global Communications need to offer better | |telecommunications services for consumers. By implementing their plan to outsource, they will cut labor cost and focus more | |attention on innovation. Before any of this can be accomplished, they have...
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...meet and create demands International Business Machines (IBM) has proven to be able to withstand the ever changing technical world. Challenges come and go, in this case study we discuss a three-prong road that IBM faced. Should they continue to be a tech services company? Or should they explore the collaborative business model, running a risk to become exploited? Is it an option to keep the acquisition spree going for growth rather than organically grow by in-house or collaborative research and development? Facts of the case Structure, management and strategic directions IBM is a multinational corporation that started its activities in 1911. Its origins however, can be traced to 1890, during the height of the Industrial Revolution. It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ IBM main activity is to find solutions to its wide range of clients using advanced information technology. Its clients are individual users, specialized businesses, and institutions such as government, science, defense, and spatial and educational organizations. To meet and respond to its customers needs, IBM creates, develops and manufactures many of the world’s most...
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...* Initially IBM was a paragon of power, prestige and far-sightedness * 1994, IBM used its size as an integrator assembling systems from the mass of components provided by its own product divisions and by its competitors * Industry thinking at the same was that the future belonged to specialist technology companies that could bring new products to market quickly and change strategy in an instant * IBM was vertically integrated, they made everything from microprocessors, operating systems and finished computers and software – were thought to have no place in this new fragmented world of technology * Gerstner’s services-led strategy aimed to turn IBM into the integrator of choice for large corporations * The only growth at this time came from IBM global services, consulting and outsourcing units * Concern that Gerstner’s focus on making IBM a services business blinded him to important competitive shifts in which IBM lost out on * In 2002, Palmisano took over, asked to take his bonus and put it on a pool for top executives, eliminated the 92 year old IBM executive management committee * Favoured the idea of working with three new teams of people: covering operations, strategy and technology form throughout the company, bringing the best ideas to the table * His idea was to build a flatter organization with fewer bureaucratic levels, allocation 100 million to teach 30,000 managers to lead * His goal: to put IBM back at the forefront of technology ...
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...The Journey of (IBM) International Business Machines Executive summary: The current Proposal intended to describe what IBM has faced in its journey and how it overcame those problems, which it was unprepared in the first place. To discuss the Success Story of IBM (International Business Machines) and journey through some easy and some tough winters. The focus will be on the problems. Introduction: IBM is one of the world’s largest rapid growths IT Company in terms of revenue, which listed in fortune 100 IT companies.IBM has produced different products, which related to software and hardware and produced custom designed microchips. By producing low cost products, IBM has rapid growth with long-term success, which attracted the investors and competitors. The head quarters were located in New York. In 2012, it has ranked 2 largest US firm for having highest numbers of employees nearly 433,362 by fortune. They have developed a wide range of software development tools, which helps to manage business process etc. IBM has first started its invention in 1914 called Hollerith, which was a part of computing -tabulating- recording company later the company known as IBM. (Rouse, 2006) Background: ...
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...IBM Sales and Distribution Thought Leadership White Paper Banking Cloud computing for banking Driving business model transformation 2 Cloud computing for banking Executive summary The banking industry is facing unprecedented changes. Control is now in the hands of the customer, rather than the bank. Customers are driving new business models. Their use of technology—in addition to changes in social and household dynamics—is driving business transformation. Banks need to react to this new customer-driven environment with innovation in business models, operations and IT. For banks, the value proposition for cloud computing affects the entire business. Cloud technology offers a new model for delivering innovative client experiences, effective collaboration, improved speed to market and increased IT efficiency. Cloud deployments are spreading and the technology is proving to be secure. More businesses are adopting cloud computing. In fact, according to the 2010 IBM CIO study, “Sixty percent of CIOs plan to use Cloud—up from thirty-three percent two years ago.”2 Today, cloud technology is not just a tool being used in IT, but a paradigm shift to an entirely new business model. ●● ●● ●● Changing business models have shifted from productcentric to customer-centric Enhanced regulation increases government oversight and intervention Increasing social and government pressure for financial inclusion To drive growth and innovation in banking, it is increasingly...
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...Research Paper MBA620 Dr. Martelli Shiyi Lu 18 Oct 2013 The company I chose is IBM. IBM's organizational structure is typical of multi-product or multi-business companies. In this article I will through three ways to analyze that company. There is company’s background, employment, issued facing the company. * Background “Since its inception, IBM has been a company that defined itself not by particular products, technologies or leaders, but by persistent values.” (IBM, 2012) [1]. Throughout IBM’s 101 years development history: ‘think’ is not just a word to lead the company today. It becomes the culture of IBM, even the company’s mission is changed, and even their values are more clearly and more successfully today. Because of this kind of corporate culture, “In July 2003, the 320,000 employees of IBM reexamined their relationship with our company and with each other. In a 72-hour online discussion that took place on IBM’s global intranet, they shaped and committed to three values that will guide everything we do.” During IBM 101 year’s development, their business covers many fields. Today, IBM begin to transformed into a globally and service integrated enterprise. IBM’s operations in five business segments: Global Technology Services (GTS): IT infrastructure services and business process services. Global Business Services (GBS): Professional services and application management services. Software: Middleware and operating systems software. Systems and Technology:...
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...efficiency in IT service delivery. Table of Contents 3 IBM and customers both reap the benefits of cloud computing 5 Data centers in an ever-changing world 8 Cloud computing tangibly enhances business value 10 Resilient Cloud Validation: The next step in achieving resiliency 11 Cloud computing abroad: The success of the Yun platform 12 Cloud computing in Europe 13 Feeling secure with IBM’s track record IBM and customers both reap the benefits of cloud computing IT executives today can be forgiven if accused of having their heads in the clouds. That’s because the clouds that interest IT executives today aren’t of the meteorological variety; they are computing clouds. Widespread interest and even unabashed excitement about cloud computing emanates from businesses, government agencies and other organizations seeking more dynamic, resilient and cost-effective IT systems than previous generations of technology allowed. While the term “cloud” may connote an ephemeral quality to the type of computing it describes, the benefits of cloud computing to customers are very tangible. IBM itself— as well as clients around the world—is adopting cloud computing in recognition of its potential to usher in a new era of responsiveness, effectiveness and efficiency in IT service delivery. “Cloud computing represents a key technology in delivering new economics, rapid deployment of services, and tight alignment with business goals” — IBM Research Doubles its Productivity with Cloud Computing1 ...
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...Reaction Report of IBM case 1. Description of the Case: New facts and illustrations - Nobody believed that IBM would face a crisis because it had achieved huge success before 1990. However, the company finally faced difficulties. In order to save the IBM, Gerstner was new in office as a CEO in 1993. He started innovative measures such as decreasing cost, communicating clearly, restructuring organization, and connecting with key customers to solve the problems. In addition, he reorganized as one IBM and created the foundation for growth, and then shift to high growth and the search for “the next big thing”. As a result, shifting its strategy from marketing and selling specific products and services to marketing and selling solutions to problems that have yet fully defined, IBM becomes the company which Warren Buffett prefers most from the collapsing company by competition with cheaper PC made by Chinese and American company such as Compaq and dell. From this case of IBM in early, we can learn that large established companies such as IBM can be difficult to build successful and sustainable new business. First of all, being elated by existing success, employees couldn’t notice the change of market. In addition, well-aligned business model is necessary for success, but tight alignment can also make it difficult to change. If business models fail to successfully evolve overtime, misalignment with the environment can occur. 2. Key questions and issues of case & Analysis 1)...
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...infrastructures. The “Smarter Planet” Business strategy aligns perfectly with IBM’s core value and mission statement. While the core values state that IBM is dedicated to every client’s success and focused on innovation, the mission for IBM is to strive and lead invention and development of industry’s most advanced information technologies including computer systems, software, storage, etc. The smarter planet business strategy plans are aligned on IBM’s mission and core value. 2. Conduct a SWOT analysis for IBM’s Smarter Planet initiative. What are the relevant trends to consider for next three to five years? Answer: Location of Factor | Type of Factor | | Favorable | Unfavorable | Internal | Strength 1. The Business strategy aligns perfectly with the core value and mission of the organization. 2. IBM's near close to $100 Billion Dollar sales provides a strong financial backbone for entering into new initiatives. 3. Skilled resource pool of 426,000 employees which results in 5000 patents annually is a strength in itself. IBM could tap into the best resources for the new initiative which is anticipated to be next major revolution in global market. 4. Experience in advanced computation and Artificial Intelligence. This can be leveraged for complex data analysis, research analytics and interpretation. | Weakness 1. IBM has been known as a commodity based business focused on computer system...
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...| | |IBM’s Decade of Transformation: Turnaround to Growth | |Team 5 Case Analysis | | | | | | | |“More importantly, the passion that had come from surviving its ‘near-death experience’ and then riding the wave of what many in the company | |were beginning to call the ‘next big thing’ captured the imagination and focused the energy of a demoralized workforce looking for a reason to| |reengage in building for the future.”—Lou Gerstner | | | | ...
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...IBM Case Analysis “What happened to IBM, the symbol of American supremacy?” -Challenge to America video, 1993 Problem Statement IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace. Problem Analysis In 1993 IBM reported a $5.6bn loss for the fourth quarter of 1992 ending a yearly deficit of $4.97bn; which at the time was the biggest annual loss in American corporate history. The fiscal loss could be explained in part to the ongoing aftermath of the severe 1990-91 recession that adversely affected the entire computer industry, but clearly IBM was no longer the colossal success it had been throughout most of its history. Primary to its listless growth was a fundamental change in the environment of the computer industry, which was the persistently accelerating rate of technological breakthrough in the world of data processing and IBM’s slow response to this change. IBM’s personal computing business technological environment was changing rapidly as the underlying shift in the computer field was from mainframe computing dominance toward personal computing...
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