3. Then & Now
1994 – Services and
1994 – Services and
1984 – Burroughsforms unitmerge to form
1989 – Unisys introduces MicroSeries, first
1989 Sperry and Burroughs merge the first
1992Burroughsforms unit to Series,
1992Unisys introduces Micro A, to form
– – Unisys Burroughs to A, the
– Unisys introduces A
1986 – – solutions become theA
1986 – Sperry and introduces
1984 solutions become the
1980 – Burroughsthe IT desktop
forerunner of golf IT services.
delivercurrent ClearPath HMP NX
delivercurrent ClearPath HMP NX
desktop
services.
forerunnercompany'sCorporation. first introduced
of Unisys Corporation. first introduced
1950 – Remington 1980manufacture the sell single largest
golf scoring service
1910 – Sperry Gyroscope Co. founded to– – Burroughsand sell single largest
and system. service
scoring
1910 – Sperry GyroscopeRemington RandmanufactureUnisysfirst cache memory disk
1950 – Co. founded to–acquires company's navigational
Rand Sperry introduces first cache memory disk
acquires navigational
1976 Sperry introduces the B5000 Series, the
1976 109th introduces the B5000 Series, Scotland.
1961 at BurroughsOpen Championship Muirfield,the
– Burroughs introduces system.
1961 at the 109th Open Championship Muirfield, Scotland.
– the Corp.
Eckert-Mauchly Computer Corp.
equipment.
Eckert-Mauchly Computer business.
business.
equipment. subsystem.
subsystem.
first dual-processor
first dual-processor
1953 – Burroughs introduces first 10-key adding
1953 – Burroughs introduces first 10-key adding
machine. Remington Rand introduces UNIVAC 1103
machine. Remington Rand introduces UNIVAC 1103
1949Unisys2007 – Rand produces 409, center in
1933 – – – Windowsformed. introducedcenter inStealth
1949 – Remington Unisysinto helps industry
2004Remington Rand produces data contracts
– – Sperry 2008 enterservers Unisys unveils
NT is 409,
19972001 – – 3D Blueprinting2011long-term unveilsnew,
1997 – Unisys3D Blueprintingopens leadannounces new,
2001 Sperry Corp.enterservers–leadannounces Stealth
2008 NT – long-term servers
2004–CustomersUnisys computer. industry
Windows– Unisysintroduced
1951 –1933 world’s Rand deliversintohelps Beijing Airportwith
1951 – Remington firstbegins shipping aitsBeijing Airportwith
– Customers –2009opens Unisys contracts
2007 – formed. Unisys
Corp. 2009 is Unisys
Remington Rand delivers2011 – aits breakthrough
Unisys
– data
the world’s price/performance. ES7000 servers
2000 –2006 – Unisys shipping ES7000
Unisys Unisys computer.breakthrough
2000 2006 – begins develops Olympic
Unisys businessthe “green” design
the Typewriter and develops machine, Games
first portable thestrategy design Games
business adding machine, on the
1925 – Burroughs introduces first U.S.focused- “green”for Secure on the
1927 – Remington Typewriter and Unisys
1927 – Remington to price/performance. Olympic secure
1925 – Burroughs introduces withU.S.focused-strategydebuted secure
UNIVAC computer the innovative to provide a snapshot of
with innovative 2008 debuted Virtual
prepareCensus Unisys building Virtual
the forUnisys
UNIVAC computer to first portable adding fora snapshot of
prepareCensus 2008 building
for Solution
Unisys Security Index to provide Secure
2010Solution
Unisys Security Index Unisys solution residing on
2010
weighing 20 pounds.Bureau. Remington
Rand Kardex merge to form
Rand Kardex merge Remington Typewriter introducesin theUnisys- on
weighing 20 pounds.Bureau. Remington
to form
Remington Typewriter strengths in theresiding
company’s introduces a Unisys-
partitioning (s-Par®), growing
Terminal, a
company’s strengths
consumers’ sense of security solutionareas
Terminal, a
partitioning (s-Par®), areasgrowing
consumers’ sense of security in four a center
in four
1886 - American ArithmometerAmerica's first electric typewriter.of security, data center
America's first
Rand.
1886 - American Arithmometer Co. founded electric typewriter.of security, data
Rand.
Co. founded markets
a federal government-certified
markets
developedgovernment-certified
a federal virtualization
developed virtualization
1955 – Sperry and Remington Rand merge to formto protect mobile
1955 – Sperry and Remington transformationfor Intel
Rand merge to formto protect mobile
transformation and outsourcing, end
USB device
technology and outsourcing, end
USB device
1905 – American Arithmometer renamed Rand. technologyMachine processor-
1905 – American Arithmometer renamed Burroughs Adding Machine processor-
Burroughs Adding for Intel
Sperry Rand. outsourcing and support services,
Sperry user outsourcing and support services,
user users’ data and make it is readily
users’ data and make it is readily
Co.
Co. based ClearPath servers.
based ClearPath servers.
and application modernization.
available only to those
and application modernization.
available only to those
1923 – Burroughs introduces direct multiplication billing
1923 – Burroughs introduces direct multiplication billing
authorized to view it.
authorized to view it.
machine.
machine.
4. UNISYS
American global IT - United Information Systems
Merger of Burroughs & Sperry
Portfolio of IT services, software and technology
More than 100 countries across the globe
Drivers
Creativity
Technical excel lance
Tenacity
Can do spirit
5. Burroughs
A $5 billion company (1986) – selling mainframe
computers to non-defense markets
Highly Centralized
Products of very high quality and high margin
Emphasis on top fiscal oversight
Instituted program management overseeing every
product through R&D, manufacturing & distribution
Management style was top down and apolitical
Marketing & Sales activities were organized
geographically (in functional structure) – Only the
banking group had LOB structure
6. Burroughs
Service reps and sales –people dedicated to particular
product lines
Burroughs was a highly progressive company, welcomed
new ideas and new people
Company stressed on putting qualified people to
appropriate jobs
Employees more business and fact oriented and loyal to
their allocated budgets
7. Sperry
Delivered Univac, in 1951 – the first commercially
available computer.
World leader in the large mainframe market
Principal customer was the federal government.
Committed to becoming a supplier in complete systems.
Customizations as per customer requirements.
Organization structure was decentralized- All the
business functions like R&D, operations and product
development were given significant autonomy
8. Sperry
Hardware, software and Service personnel were assigned
to LOBs – 7 LOBs before merger
Sales personnel were assigned business accounts and
they had dedicated service personnel
Customized products – multiple projects – lot of delays
Engineers had high autonomy – their projects were
expensive and intensive
Organization environment was more familial and
political.
9. Intentions behind the Merger
Sperry’s mainframe customer base was worth $17 billion.
Overlap in customer base (with Burroughs’) was just 5%.
Sperry was also strong in the defense systems
Join the forces of Burroughs’ business mind and Sperry’s
creativity
Remain in the information system business for a long
term
Sell total solutions to the customers
Economies of scale
10. Initiatives take for smooth integration
Involving consultants to tackle the human element of the
merger – sounding boards, morale auditors
Re-Branding the new entity
Open to all members of the merged firm (Highly successful – came
up with the name UNYSIS – united information systems)
Continuous and effective confidence building
communication
Temporary governing Body
Merger coordination council – gave leadership, managed each task
force
Blumenthal’s trips to different facilities of Sperry and
Burroughs to address customer’s apprehensions
11. Merger Principles
Partnership No Winners, No Losers in this Merger.
Maintained distinct computer lines
Meritocracy Only the best qualified survived
Unity A new identity, a new name
Dispatch “ Delay lends fuel to uncertainty”
12. Merger Coordination Council (MCC)
5 executives from Burroughs & 3 from Sperry formed
the MCC
Lead by the Chairman
MCC Objectives
Develop new organization
Integrate marketing worldwide
Review noncore businesses
Consolidate operations
Integrate products and technology
Improve financial performance
Top 4 executives formed the EO
EO acted as a unified management office
13. Task Force
12 task forces in total
Tasks
Initial fact finding
Recommendations
Implementations
Logic
People dedicated to the problem of building a new company
with new management
“task oriented way”
Staffed by a variety of people
14. Line of Business (LOB)
Moved from Geographical based business orientation to LOB
based
Established 5 LOBs
Airlines & Communications
Public Sector
Defense
Industry
Commercial
Fast-track the LOB process, increasing the overall cost
Make employees focus on a narrow business and be more
proficient
LOBs gave Unisys a competitive edge over their competitors
15. Cost savings
Eliminated duplicated services – raised $1.8 billion, retired
much of their debts
Sold Sperry’s aerospace unit to Honeywell for $1.2 billion
Sold a part of Burroughs’s Memorex subsidiary to an investor
group for $550 million
Closed many plants, negotiated lower-cost purchasing
agreements
Consolidated R&D
Reduced staff by 12000
Cut off of Sperry’s new product developments due to
perceived lack of demand
Shared technologies and investments in many areas of
specialization
16. Problems faced
Inefficient Distribution Systems
Couldn’t choose existing systems due to cultural
differences
Unrealistic deadline of a year didn’t allow for proper
implementation
They launched a new distribution system in 1987, which
was too early to come up with new system as per one of
their executives.
They decided to run both distribution systems parallel
until the new system could come into existence. They
didn’t view the situation as sensitive to act immediately.
Integrating MIS system for the entire country
18. SCARF : Status
Burroughs' employees felt they were not being
treated at par and their CEO was favoring Sperry
19. S CARF : Certainty
After the merger, even top employees from both
companies were worried about job security
Sperry’s employees were skeptical about
Blumenthal’s intentions
Even the MCC meetings were guarded, cautious and
tense
Each side was apprehensive as they were in direct competition
for jobs in the new firm
20. SC ARF : Autonomy
In the new system, there was no autonomy
System was centralized and highly regulated
21. SCA RF : Relatedness
Observable difference in work culture
Sperry people were unable to relate to Burroughs’
management
Burroughs’ Management was too concerned with money and
short-term savings
Burroughs people found Sperry’s approach to be
alien
Sperry’s approach was high value and quantity, but less
efficient and profitable
A “We” and “They” mentality present
22. SCAR F : Fairness
Blumenthal tried to be fair to the workforce
People who were non-performers were laid off irrespective of
their designation or association
On the contrary, Blumenthal pushed people into
blending with the merger
24. UNISYS – A Case of Horizontal Merger
Mergers and acquisitions typically do not double revenue
or cut operating costs in half. However, proper planning
can introduce new ideas, talents, and customers into a
very a very profitable mix. It is a business evolution, not a
quick fix.
25. Seven Fundamental Tenets of successful Integration
Accelerate the transition
Define the integration strategy
Focus on priority initiatives
Plan the integration and prepare for Day One early
Communicate with all stakeholders
Establish leadership at all levels
Manage the integration as a business process
Source : http://www.pwc.com.au/consulting/assets/publications/Seven-Tenets-Mar11.pdf
31. Leadership
Setting very high (sometimes) unachievable targets. Pushing the entire
organization with you without developing a general consent.
7 month deadline to streamline the process
7 month deadline to achieve the $7-$9 return on shares
Deliberate fast-tracking of all integration processes so that people don’t have
time to think over it
Implementing all LOB’s together
Obsessed with neutrality- the decision for a new distribution system
Retired from UNISYS in 1990. Collected $14.7 billion in compensation
for the merger. Earns a pension of $500000.
Currently works for an investment banking house (in Paris) that is
dismembering Unisys in an effort to save it
Source : http://articles.philly.com/1991-09-21/news/25803860_1_james-unruh-michael-blumenthal-unisys
Notas do Editor
Rally to the cause Giving common purpose in the organization Name of the new company contest Open to all members of the merged firm (Highly successful – came up with the name UNYSIS – united information systems) Blumenthal’s trips to different facilities of Sperry and Burroughs to address customer’s apprehensions Decided to use task forces that divided the organization in business areas (MIS, Sales, etc.) Temporary governing Body: Merger coordination council – gave leadership, managed each task force 4 Merger principles Merger Coordination Council – Six integration objectives
They chose the structural orientation thinking it was different and highly specialized. Due to huge geographical mass of the new company, they though that LOBs would be more efficiently managed at lower level. “ Due to the high pressure of Blumenthal’s targets, all the challenges became even more challenging” They decided to have 5 LOBs instead of 3 going against the suggestion of task force to space it out in 2 years. LOB orientation increased the cost and complications but they hoped that it would enhance the knowledge of sales persons They hoped it will help aligning the executive goals to organizational goals
By the year end 1986, Unisys eliminated many duplicated services, raising 1.8 billion to retire much of the debt of the company. Sale of Sperry’s aerospace unit to Honeywell for 1.2$ billion Sold a part of Burroughs’s Memorex subsidiary to an investor group for $550 million Closed many plants, negotiated lower-cost purchasing agreements Consolidated R&D Reduced staff by 12000 They had cut some of Sperry’s new product developments due to perceived lack of demand Shared technologies and investments in many areas of specialization
Distribution system were not functioning properly- Customers were complaining regarding the efficiency and accuracy in delivery They launched a new distribution system in 1987, which was too early to come up with new system as per one of their executives. They decided to run both distribution systems parallel until the new system could come into existence. They didn’t view the situation as sensitive to act immediately. Integrating MIS system for the entire country