IBM has a long history dating back to 1911 and has transformed over the decades from a producer of tabulating machines and services into a global technology services and software company led by executives like Thomas Watson Sr., Lou Gerstner, and Sam Palmisano who implemented strategies shifting IBM away from hardware and towards higher value services and solutions. Under Gerstner and Palmisano, IBM divested low-value assets and acquired numerous software companies to build a portfolio focused on infrastructure, integration, and innovation to become a globally integrated enterprise.

1. Presented by Ryan Olsen ~ Ali Aldossary ~ Adair Gregory ~ Ahmad Alrashidi Management 3800 – Business Policy & Strategy

3. Computing Scale Company of America

4. Produced meat/cheese slicers, commercial scales, industrial time recorders, tabulators & punch cards

5. 1,300 employees. 6 Plants. 1914 ~ Thomas J. Watson Sr. becomes General Manager

6. Thomas J. Watson Sr. Became President within 11 months of joining C-T-R Corporate Culture “THINK” mantra Dark suits, ties, clean cut Company sports teams, family outings, and band (company songs) 3 Principles Respect for the individual Service to the customer Excellence must be a way of life Focus on large scale tabulating solutions for customers Revenues doubled to over $9 million in first four years Expanded operations to Europe, South America, Asia, & Australia CTR becomes IBM in 1924 ♪ Our voices swell in admiration, ♪ Of T. J. Watson proudly sing, He'll ever be our inspiration, To him our voices loudly ring, The I B M will sing the praises, Of him who brought us world acclaim, As the volume of our chorus raises, ♪ Hail to his honored name. ♪

9. First machine that could execute long computations automatically

10. Took less than a second for an addition problem, 6 for a multiplication problem, and 12 for a division problem

11. $141 million revenue

12. 21,126 employees

13. 1981 ~ IBM Mainframe/5150

14. 70% market share

15. $26.2 billion in revenue

18. IBM’s strategic vision focuses on infrastructure and integration

19. IBM’s focus on open technologies and high value-added solutions

20. Sold off commodity low-value elements of portfolio and used the capital to purchase high-value extensions to software and services business

21. IBM’s done over 40 acquisitions of software companies under software group since 2000

22. Acquisition of PricewaterhouseCoopers

23. Become the premier globally integrated enterprise

24. Contemporary challenge for IBM is to help build a smarter planet

26. Disassociated divisions ~ Software, Hardware, Services

27. Very decentralized and independent culture

28. Proprietary technology

29. Appointed in April, 93’

30. 1st outside higher level executive hire

31. Brought customers perspective ~

32. CEO of American Express & RJR Nabisco

33. New Strategy ~

34. Integration & Infrastructure

35. By 1999 ~

36. Stock at all-time high

41. Invests $1 billion in Linux

44. New Leader, New Strategy Samuel J. Palmisano becomes CEO in October, 2002 Strategy focuses on Integration & Innovation Sold off low-value commodities and invested in high-value added solutions Hitachi buys hard-drive division in 2002 for $2.05 billion Lenovo buys PC division in 2005 for $1.25 billion JV gives IBM Chinese market access Ricoh buys Printer division for $725 million

45. Expanding Software & Services Purchased 40 software firms since 2000 Investment in Service Oriented Architecture to better manage business processes Streamline BPM through SmartSOA 2nd Largest Software firm (Microsoft) Acquired PricewaterhouseCoopers Consulting in October, 2002 for $3.5 billion Access to C-Level executives at Fortune 500 companies

46. Service Oriented Architecture

48. IBM: Let’s Build a Smarter Planet

50. Traffic

51. Food

52. Infrastructure

53. Retail

54. Intelligence

55. Government

56. Banking

57. Telecom

58. Oil

59. Healthcare

60. Cities

61. Water

62. Public Safety

63. Buildings

64. Work

65. Rail (Trains/Subways)

66. Products

67. By the year 2010 there will be over 1 Trillion devices connected to the Internet.

68. Each person will carry over one billion transistors

69. Shows we have become globally integrated

71. Headquartered in Dubai

74. IBM has a singly supply chain used worldwide, which helps in their being the premier globally integrated enterprise

75. IBM has an employee base of well over 350,000 employees operating in over 170 countries, this gives IBM the expertise and talent base to find solutions and grow as a globally integrated enterprise.

76. Most patents held by any company (R&D)

77. IBM’s “smarter planet” initiative

78. Smart Service-Oriented Architecture approach to managing business processes at all levels makes companies much more efficient

80. Porter’s Five-Forces Model

82. Most sales are large contracts

83. Able to secure image to consumers, used in banks, libraries, ect.

84. Well-known brand name

85. Respected brand name

87. Global distribution capabilities

88. Strong e-commerce capabilities, user friendly website

89. Overall low costs

91. Proven ability to change organization when technology changes.

92. Has the capital and man power to survive the bad economy

93. IBM’s product is needed within organizations regardless of the economy

95. Application Management Services

96. Global Markets

97. System z

98. Power Systems

99. System x

100. Storage

101. Retail Store Solutions

102. Global Business Partners

103. Integrated Supply Chain

105. Tivoli Systems

106. Workplace Portal & Collaboration Software

107. Rational

108. Enterprise On Demand Transformation

109. CIO

110. Quality & Process Transformation

111. Technology Development Programs

112. Strategic Outsourcing

113. Integrated Technology Services

114. e-Business Hosting

115. Small & Medium Business Services

116. IBM Global Financing

117. Managed Business Process Services

118. Research

119. IP & Standards

120. IP Business Development

121. University Relations & IBM Academy Development & Manufacturing Senior Vice President R. (Rod) Adkins Services Delivery Senior Vice PresidentT. (Tim) Shaughnessy Finance Human Resources Legal Marketing and Communications Strategy and Enterprise Initiatives Senior Vice President Legal & Regulatory Affairs & General Counsel R.C. (Bob) Weber Senior Vice President J.R.(Randy) MacDonald Senior Vice President & Chief Financial Officer M. (Mark) Loughridge Vice President and General Manager E. (Erich) Clementi Senior Vice President J.C. (Jon) Iwata

122. Global Technology Services

123. What’s IBM Doing Right Now?

124. Current Figures 386,000 Employees worldwide Suspected to lay off 16,000 in 2009 Fiscal Year 2008 IBM posted record revenues of $103.6 billion and profits of $16.7 billion Despite 4th quarter revenues dropping 6%

125. Recommendations General Hire Sam Palmisano’s successor from outside the company to ensure a similar culture doesn’t arise to the one Gerstner found himself in Pay close attention to the level of decentralization allowed in the pursuit of becoming the premier Globally Integrated Enterprise Use former CEO’s as consultants Continue investing in R&D so the company can continue to lead the way in introducing innovative IT solutions to the global business world Strategic Continue to expand operations into other countries Continue purchasing/acquiring software firms that will help integrate global businesses through innovative products Pursue initiative to make the world a “smarter planet”, this could be a major source for future revenues