1. Presented By:
Barkat Ullah
Asad Aziz
Hashmat Ullah
M. Hassan Yousaf
M. Rafeh Umair
IBM “On Demand Business” Strategy
Asia Case Research Center
The University of Hong Kong

2. Introduction To
IBM

3. 33
IBM in Growth Markets: over 140 countries
Latin America
Australia /
New Zealand
ASEAN
Greater China Group
South Korea
Central & Eastern Europe
India /
South Asia
Middle East
& Africa

4. Q. 1) Strategic Objectives of IBM
• IBM Global Services
• IBM Research
• E-Business Strategy
• IT Innovation and Creative Solutions
• Consulting and Technology Integration
• Business Performance Transformation Services
• Business Process Outsourcing
• Market Growth
• Leader in Computer Machines

5. Q.2) Strategic Problems of IBM
• Declining in Core Business
• Un-Productive Employees
• Legal Anti-trust Problems
• Strategic Decision Making

6. SWOT Matrix
STRENGTHS WEAKNESSES
• Brand Reputation
• Leading provider of IT services
• Strong Strategic Consultancy
• Strong research and
development capabilities
• Weak enterprise mobility product
portfolio
• Expensive IT software solutions
and services
• Focus mainly on large
enterprises
OPPORTUNITIES THREATS
• Expansion in emerging markets
• Growing information on
demand tools market
• Strategic acquisitions
• Increase in BPO (Business
Processing Outsourcing)
• Intense competition
• Economic Slowdown in US and
Europe
• High substitutes available in the
market

7. Proposed Strategies
1. S1O1 = Brand Reputation, Expansion in emerging markets.
2. S3O4 =Strong Strategic Consultancy, Increase in BPO.
3. S1T3 =Brand Reputation, High substitutes available in the
market.
• S4T3 =Strong research and development capabilities,High
• substitutes available in the market.
S2W2=Leading provider of IT services, Expensive IT
software solutions and services.
• W1T1=Weak enterprise mobility product portfolio,
Intense competition.

8. SPACE Matrix

9. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
Analytics2
More than 90% of business leaders
contend information is a strategic
asset, yet fewer than 10% will
quantify its economic value
Big Data1
More than 85 % of Fortune 500 will
fail to effectively exploit big data
for competitive advantage
Mobile Enterprise5
66% of CIOs ranked mobility as a
top investment priority in 2012
Social Business3
20% of business users will replace
email as the primary interpersonal
communications with social
networking
8 major trends will affect IBM’s markets thru 2015
9
Security7
Through 2016, the financial impact
of cybercrime will grow 10 percent
per year, due to the continuing
discovery of new vulnerabilities
Cloud6
63% of companies already are using
(Cloud) or expect to use it in 2012,
up from 49% last year
Growth Markets8
IDC expects emerging
markets to generate over
33% of all IT spending
Smarter Planet4
Over $100 billion: Global investment
in technology to support smart city
development by 2020
Software
TechnologyServices
Hardware
Business Services

11. BCG Matrix

12. IBM Strategies
Hardware
And Services
Hardware
And Services SoftwareSoftware
IBM sold the personal computing department
To Lenovo

13. 13
0%
1%
2%
3%
4%
Worldwide IT Spend as % of N-GDP
4th
era may increase IT’s share of worldwide GDP to 4% by 2030
1st
era of IT
Mainframe
2nd
era of IT
Personal
Computing
3rd
era of IT
Internet
Computing
4th
era of IT
Smarter
Planet
IBM 7000 mainframes
with transistors
New IT/business
architectures
Vertical solutions
Cross-industry
solutions
Source: IBM Market Analysis extrapolated from IDC Black Book for IT and IBM Corp Finance for N-GDP,
Forrester Research “Next Wave of IT Investment is Smart Computing” Jan 2010, IBM Research GTO 2011 “Frontiers of IT”
Worldwide IT Spend as % of GDP
DEC PDP-8
minicomputer
UNIX OS
Apple-1
IBM PC
eBusiness Apps
Cloud
Computing
Mobility
Netscape IPO
MS
Windows
3.0; WW
Web
Learning systems
Advanced robotics
Smart-net

14. Short Listed Strategies
• Value Added Services in IT Industry
• Expansion of Integrated Operations in Developing Nations
• Remixing of IBM Business for Better Integration
• Increase products and Services in Business To Customer
• IBM’s Mobo (A new step in Enterprises growth and Innovation)

15. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
IBM Mobo
Strategy for B2B

16. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012

17. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
IBM MOBO

18. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012

19. 19
2015 Roadmap
 2010-2015 ~ $15B
incremental revenue
 Grow faster than the
market, gain share
 Outpace major markets
growth > 8 pts
 Approach 30% of IBM
geographic revenue
 Drive margin expansion
 Double Greater China
 Capture Africa’s growth
Country / Market Selection
Industry
Leadership
Market
Expansion
• Expand beyond
major cities
• Expand into new
countries
• Integrated
offering &
capabilities
• Integrated routes-
to-market
IT Infrastructure
Development
• High-end
Systems
• Software
solutions
• Large Services
Projects
• Investing in
skills
• Leading in key
industries
• Creating new
IT markets
Strategic Priorities
Value Creation
Smarter Planet, Business Analytics, Cloud Computing
Resource Allocation
Sales Eminence
Integrity & Compliance
Enterprise Risk Management
MarginExpansion
Growth Markets Strategies

20. © 2012 IBM Corporation42 Conference, Moscow, 28 May 201220
Russia
The opportunity for Growth is significant
5.9 billion
$6.5 trillion
87% of the world's population
Real GDP growth 2010 to 2015
Over 57% of World GDP growth
100 million The number of people moving to urban cities
every year, equivalent to 10 NYC's
Source: Demographic Data, United Nations; GDP Data, IBM Finance, Chief Economist, March 31 2011
IT Market Data, IBM Market Insights Market View (Jan 2011) at Constant Currency
Real GDP Growth ‘10-'15 Served IT Growth ‘10-'15
Served IT
as % of Real GDP ‘10
Growth
Markets
Major
Markets
Growth
Markets
Major
Markets
Growth
Markets
Major
Markets
2.7%
6.0%
3.6%
8.7%
2.3%
0.7%

21. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
IBM Robotics
• Implentation issues
– Right sizing
– Downsizing
– New technology investment
– Employees training
– Research and Development
• It will boost revenues
• Huge growth in present era and era coming next
• IT industry will boost in terms of profitability

22. © 2012 IBM Corporation42 Conference, Moscow, 28 May 2012