IBM

ABOUT:

International Business Machines Corporation, or IBM, is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.

ORIGIN:

The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Corporation.[4][5] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.

HISTORY:

In 1886 Herman Hollerith, a statistician for the US Bureau of Census formed the TabulatingMachine Company and Thomas J. Watson became its leader in 1915 and made the companyslogan “Think”. It changed its name to International Business Machines (IBM) in 1924. It wastaken by the US government at the beginning of World War II in the war effort and given a one percent profit, which it used to fund war victims and orphans.During the period between 1910 and 1960, it developed products from punch-card tabulatingmachines to room-sized calculators to mainframe computing systems for large enterprises andchanged the nature of accounting, calculation and basic back-office business processes.In the 1970s and 80s, IBM product lines expanded from its traditional mainframes tominicomputer and personal computers and applications moved from backend operations todepartmental operation. In 1981, the company introduced the IBM Personal Computer or PC,allowing the use of computers in schools, homes and businesses. Components for the computer were sourced from outside the company. The processor chip came from Intel and the operatingsystem, called DOS (Disk Operating System), came from Microsoft.IBM introduced the ThinkPad in 1992, the first in a series of notebook computers to bemanufactured by the company. In 1995, IBM acquired Lotus Development Corporation andTivoli Systems. In 1997, IBM demonstrated computing’s potential with Deep Blue, a 32-nodeIBM RS/6000 SP computer programmed to play chess on a world class level.During the nineties, with the Internet and open standards, IBM embraced the network computing model and coined “ebusiness” to describe how network computing can transformcore businesses and transactions.In October 2002, IBM acquired PwC Consulting, the global management consultingand technology services unit of PriceWaterhouseCoopers. IBM sold most of its harddisk drive operations to Hitachi in December 2002. The sale involved the creation of a joint venture called Hitachi Global Storage Technologies, which was 70%-owned byHitachi.In2003, IBM Research launched On Demand Innovation services, which teamed customerswith a team of researchers who specialize in business transformation and technology consulting. Over one billion will be spent over the next three years and will be staffed with200 IBM research consultants.Today, IBM is by far the largest information technology in the world and the eighth largestcompany in the world. In 2003, it had revenues of US $89.1 billion, a net income of 4.32,more than 366,000 employees in 170 countries with approximately sixty percent of revenuesgenerated outside the United States.

VISION:

Solutions for a small planet

MISSION:

International Business Machines (IBM) Mission Statement:

"At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics.

We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide."

IBM PRODUCTS:

Product Type	Product
Software	Business Analytics Enterprise Content Management Information Management Lotus(Collaboration) Rational (Software and System delivery) Tivoli (Service Management) WebSphere (Integration and Optimization) MainFrame Software for IBM System Z
System	Pure System Power System System Z and Pure Systems System X Blade Center Unix Systems System Software
Storage	Disk Storage Systems Tape Storage Systems Storage Area Network Network Attached Storage
Additional Products	Certified Used Server and Storage Certified Used Personal Computers Networking Point of Sale Security Semiconductors Upgrades, Accessories and Parts Hardware Financing Software Financing Financing for Medium Business

IBM SERVICES:

Service Type	Service
Business Service	Application Innovation Business Analytics Business Strategy Commerce Consulting Mix Market Expertise Business Consulting
IT Services	Application Management Business Continuity and Resiliency Cloud Data Center Integrated Communications Mobility Services Security Software Strategy and Design Systems Lab Technical Support
Outsourcing Services	Application Outsourcing Business Process Outsourcing IT Outsourcing and Hosting
Training	Offerings Certifications Conferences and Events
Additional Services	Consulting Alliances IT Service Financing Project Financing Working Capital All Services

IBM Milestones:

The following is a timeline of milestone events in one of the quintessential U.S. corporate success stories.

--1889: Time-recording equipment maker Bundy Manufacturing Co. is incorporated.

--1896: Punched-card, electric tabulating equipment maker The Tabulating Machine Co. is incorporated.

--1911: Incorporation on June 16 of the Computing-Tabulating-Recording Company (C-T-R), which merges Bundy, the Tabulating Machine Co., the Computing Scale Company and the International Time Recording Co. Headed by trust organizer Charles Flint, the company has 1,300 employees.

--1914: Thomas J. Watson, Sr., joins C-T-R at age 40, after learning aggressive sales tactics at the National Cash Register Co. that led to his conviction on antitrust charges. The verdict was set aside after an appeal. Within 11 months of joining C-T-R, Watson became its president. His focus on marketing and sales and large-scale tabulating solutions for businesses helped company revenue more than double in his first four years at C-T-R, to $9 million. Over the next four decades as IBM CEO Watson became an American business icon, pioneering worker benefits such as paid vacations and group insurance while instilling discipline and loyalty in generations of IBM workers.

--1923: The first electric key punch is introduced, representing an advance on mechanical systems.

--1924: Taking the name from a Canadian affiliate, C-T-R formally becomes International Business Machines.

--1928: The 80-column IBM punched card, doubling prior capacity, is unveiled and remains a standard for 50 years.

IBM's Harvard Mark I was 51 feet long and weighed nearly 5 tons.--1931: A watershed year in advances: IBM 400 accounting machines offer alphabetic data, the 600 series calculating machines perform multiplication and division, and the first automatic multiplying punch and reproducing punch machines are introduced.

--1933: IBM acquires Electromatic Typewriters, acquiring entry in the typewriter business, which ultimately leads to innovations in word processing.

--1936: Tom Watson, Sr.'s, insistence on making machines during the Depression, even when demand dried up, pays off when IBM is in a position to participate in what was then billed as the biggest accounting operation of all time, supplying punched-card equipment to the U.S. government in the wake of the 1935 Social Security Act.

--1937: Tom Watson, Sr., is elected president of the International Chamber of Congress, and at a Berlin meeting promotes "World Peace Through Trade," taken on as a slogan by the ICC and IBM. Germany awards him with an Order of the German Eagle medal. He returns the medal in 1940, enraging the Fascist government, but IBM's business in Germany in the 30s stirs criticism over the years.

--1944: IBM's first large-scale computer, the Automatic Sequence Controlled Calculator or the Mark I, is the first machine to accomplish long operations automatically, using electromechanical relays.

--1946: IBM's 603 Electronic Multiplier is the first commercially available machine to offer electronic arithmetic circuits. It is more than 50 feet long, eight feet high, and weighs almost five tons.

--1948: IBM releases the Selective Sequence Electronic Calculator, a large-scale digital calculating machine that uses electromechanical relays and offers for the first time the ability to modify a stored program.

--1952: The IBM 701 is IBM's first production electronic computer, featuring tape-drive technology that ultimately led to the ascendance of magnetic tape.

--1952: Thomas J. Watson, Jr., becomes IBM president. He was a force behind the 701, essentially a bet-the-company stance on electronic computers before they became more cost-effective than electromechanical machines, leading the way for IBM to dominate computing for the next few decades during the mainframe era.

--1956: Consent decree ends a 1952 U.S. antitrust suit, as IBM adapts a more liberal policy toward licensing equipment.

--1956: Tom Watson, Jr., takes over as CEO in May, before the death of his father in June. Tom Jr. moves to reorganize IBM along divisional lines, based on a "line and staff" concept that is adopted by American business at large.

--1957: IBM introduces FORTRAN, which becomes the main language for technical work and is used to this day.

IBM Selectric--1961: The Selectric typewriter is released; later models offer memory and give rise to modern word processing.

--1964: The IBM System/360 uses Solid Logic Technology microelectronics and introduces the concept of a family of computers that share compatible technology, in what was essentially a $5 billion bet on future trends.

---1966: IBM's Robert Dennard invents the Dynamic Random Access Memory cell, which remains an industry standard.

--1969: IBM technology including an onboard computer used in first manned flight to the moon.

--1971: Tom Watson Jr. steps down, is succeeded by Frank Cary, and the floppy disk is introduced; it later becomes the PC data storage standard.

--1975: The IBM 5100 Portable Computer enters the market, weighing 50 pounds and priced at $9,000 to $20,000.

--1981: The IBM Personal Computer becomes the smallest, and at $1,565, the lowest priced PC to date. IBM's deal for Microsoft to supply the operating system and allow competitors to buy it for "IBM-compatible" clones fuels a growing industry and paves the way for competitors such as Dell and Compaq.

--1982: A U.S. antitrust suit filed in 1969 is dismissed, but arguably pushes IBM to further separate hardware from software, allowing customers to increasingly mix and match products from different companies, a trend that takes off during the PC era.

--1984: The Personal Computer/AT, IBM's second-generation PC, runs on a 6MHz Intel 80286 processor.

The ancestor of Watson, the Jeopardy-winning machine.--1987: The IBM Personal System/2 (PS/2) is launched along with the OS/2 operating system, jointly developed by Microsoft and IBM. OS/2 offers multitasking capabilities and in six months one million PS/2s are shipped. But while IBM PC chief James Cannavino wants OS/2 to maintain compatibility with the AT going forward, Bill Gates wants to move on to machines built around the Intel 80386 chip. Windows 3.0, released in 1990, offers crude multitasking features but makes use of '386 memory management and becomes a hit, leaving OS/2 in the dust.

--1990: IBM releases the System/390 family, comprising midrange machines and supercomputers, calling it the company's biggest product development in 25 years. New technology includes high-speed fiber optic channels, ultra-dense circuits and extended supercomputer capabilities.

--1991: As Microsoft and PC clone makers rake in profits, client/server architecture takes off and IBM shocks long-time industry insiders by announcing an annual loss of $2.82 billion, the first of three annual losses in a row. Under CEO John Akers, IBM considers breaking up into smaller, nimbler companies.

--1993: Louis Gerstner, former chief executive of RJR Nabisco, takes the reins as chairman and CEO. At his inaugural press conference, Gerstner plainly states his intention to keep IBM together as an integrated company, and his belief that there is a need for a broad-based IT company that can serve as both supplier and systems integrator to customers.

--1995: IBM acquires Lotus Development Corp. and its Notes collaboration software, making IBM the world's largest software company.

--1995: IBM introduces the ThinkPad 701cm, which runs on the Intel 133MHz Pentium processor. The sleek black design is a departure for IBM and wins accolades.

A Lenovo ThinkPad--1996: IBM's launch of the DB2 Universal Database, capable of querying alphanumeric data as well as images, audio and video, marks IBM's firm embrace of the Internet.

--1997: Deep Blue, an IBM RS/6000 SP supercomputer able to calculate 200 million chess positions per second, defeats grandmaster Garry Kasparov.

--2001: The publication of Edwin Black's "IBM and the Holocaust" coincides with an Alien Tort Claims Act claim, later dismissed, against IBM for allegedly suppling punched card technology that enabled the Holocaust. IBM's response points out that along with hundreds of foreign-owned companies in Germany at that time, its affiliate came under the control of Nazi authorities prior to World War II.

--2002: Sam Palmisano becomes CEO in March, and in July IBM signals it is further strengthening its services business with a $3.5 billion acquisition of the PricewaterhouseCoopers global business and consulting technology unit.

--2005: Though IBM has sold more than 20 million ThinkPads, it announces the sale of its PC business to Lenovo in an effort to further focus on software and services.

--2011: Watson, comprising 90 IBM Power 750 servers, shows off IBM's artificial intelligence and systems architecture expertise by defeating two Jeopardy game show champions in a two-game match.

   

AWARDS AND RECOGNITION:

Some Highlights:

•             India Lab Helps IBM win Graph 500 Supercomputer Competition

•             UllasNambiar and L VenkataSubramaniam Selected as ACM Senior Members

•             Best Demo Award at ACM MobiSys 2011

•             Best Paper Awards at IWQoS 2011

•             Best Paper Award at SRII Global Conference 2011

•             Best Paper Award at SDM 2011

•             Best Paper award at High Performance Computing Conference (HiPC) 2010

•             India lab researcher nominated as ACM Distinguished Scientist

•             National Award for technology developed at IBM Research – India

•             Best Paper Award at ACM ISEC 2010

•             Best paper Award at CHI 2010

•             Best Paper Awards at IEEE SRDS 2009

•             Best Paper award at IEEE SCC 2009

•             Best Paper Award at IPDPS 2009

2010

•             1. Frost & Sullivan Contact Center Outsourcing Service Provider of the Year 2010

•             2. Winner of NASSCOM 2010 Corporate Award for Excellence in Gender Inclusivity

2009

•             IBM ranked #1 by IDC study for BPO vendor perception 2009

•             Contact Center Outsourcing Award for the consecutive 4th year

•             IBM VOCA wins NASSCOM Innovation Awards 2009

•             Winner of NASSCOM awards for Excellence in Gender Inclusivity

•             IBM selected as a finalist in the BPO Employer of the Year Award 2009

•             Business Today names IBM Global Process Services (formerly IBM Daksh) top ranked BPO company 2009

•             IBM Global Process Services (formerly IBM Daksh) employee MadhuBala Sharma receives the National Award 2009

2008

•             NASSCOM Corporate Award for Excellence in Gender Inclusivity

•             Dataquest – IDC India BPO E-SAT Survey 2008

•             Microsoft Security Strategist Award 2008 for Information Security

•             Frost & Sullivan Asia Pacific ICT Awards 2008

•             Business Today – Monitor Group’s ‘India’s Most Innovative Companies Study

CORPORATE RECOGNITION AND BRAND:

In 2012, Fortune ranked IBM the #2 largest U.S. firm in terms of number of employees, the #4 largest in terms of market capitalization, the #9 most profitable,[7] and the #19 largest firm in terms of revenue. Globally, the company was ranked the #31 largest firm in terms of revenue by Forbes for 2011. Other rankings for 2011/2012 include the following:

•             #1 company for leaders (Fortune)

•             #1 green company worldwide (Newsweek)

•             #2 best global brand (Interbrand)

•             #2 most respected company (Barron's)

•             #5 most admired company (Fortune)

•             #18 most innovative company (Fast Company)

For 2010, IBM's brand was valued at $64.7 billion.

For 2012, Vault ranked IBM Global Technology Services #1 in tech consulting for cyber security, operations and implementation, and public sector; and #2 in outsourcing.

ORGANIZATIONAL STRUCTURE:

IBM Global Business Services is organized into six service lines:

•             Strategy & Transformation

•             SAP Applications

•             Oracle Applications

•             Business Analytics and Optimization

•             Application Innovation Services

•             Application Management Services

•             Introduction to IBM Strategy and Transformation

                

•             To succeed in today's environment, businesses need to lead through increased complexity and volatility, drive operational excellence and enable collaboration across enterprise functions, develop higher quality leadership and talent, and manage amidst constant change.

•             IBM Strategy and Transformation (S&T) integrates IBM's management consulting capabilities to enable client success through executable strategies, and deliver value through technology-enabled transformation. Achieve end-to-end transformation, from strategy to implementation, and gain efficiency in cross-functional collaboration.

SWOT Analysis OF IBM:

Strengths

The Advanced business action management and innovative culture of IBM is one of its strengths.The successful strategic outsourcing, mergers and acquisitions of IBM are its strengths.High economical consummation centre and flexible marketing management of the company is the reason for its success.The creative service that International Business Machines provides is its strength. It is handling almost 95% of business tasks of top 1000 companies all over the world.The company have some of the world’s fastest important frame and many subverted technologies like: speech recognition software, chromatic gene, supercomputers etc. Through such extraordinary and innovative technologies IBM is able to wage some of the prizewinning back hand facilities.The most recent merge of IBM is with the Lenovo; Lenovo is providing the outer element profession and IBM providing all of its latest chip technology can result in greater success of the company.

Weaknesses

At International Business Machines there are high costs involved in the value chain and also the company is dealing with some acquisition issues.Since, IBM spends quite a lot on its research and development where as the implementation of new processes is a little difficult. This is also because there are very few suppliers in the value chain o IBM and it can act as a loophole.IBM has a good position in the market but needs to change its strategies with the change in market. This also causes the cost to the company to be greater as compared to other software and hardware dealers.

Opportunities

The rising demand for wireless and internet services provides the company new opportunities to explore.There are many possible acquisitions and merger opportunities that the company can seize and increase its market share greatly.By making its distribution channels stronger and increasing its retail outlets and suppliers can result in more profits for the company.

Threats

There are many competitors like HP, Dell, Accenture and Microsoft etc that have captured large segments of the market.The market has perfect competition state and switching cost is low for the customers.At IBM, there is a constant high threat of new substitutes as well as service switching.The technology market is very flexible, entry is easy and even small companies like Compaq can reduce the market share of IBM greatly.

IBM's FUTURE STRATEGY: Grid Computing Everywhere:

IBM recently installed a grid system at Charles Schwab. The system reduced the processing time on a wealth-management application from more than 4 minutes to 15 seconds.

A sense of deja vu is sweeping through IBM's executive offices. Hardware, a category of computer technology that has been commoditized over the past several years because of falling prices, once again has become sexy -- so sexy, in fact, that it has become the linchpin in IBM's quest to maintain its position as one of the industry's most important vendors.

The hardware model at the center of IBM's technology strategy is called grid computing, a high-end architectural strategy of making multiple computers work on the same computational problem simultaneously.IBM plans to make all of its key software products as well as its hardware compatible with grid computing.
Problem Fragment:
To date, however, grid-computing technology has appealed only to select clients -- those supporting complex academic, engineering, government or scientific applications. IBM plans to push grid computing into the corporate mainstream by having it serve as the company's computing foundation to make computers simpler to manage, easier to operate and less costly.
IBM is aggressively moving toward the grid-computing model because the multiprocessing architecture typically used in high-end servers often runs into bottlenecks when doing massively complex processing tasks. Grid computing solves that problem by enabling a large number of disparate computing resources to work on different portions of a large, complex problem.
IBM's grid-computing initiative is so comprehensive that its success or failure might determine whether or not the company will remain a major player in the industry.
Long-Term Strategy
The company's long-term vision entails massive rollouts of grid-computing products. Customers purchasing grid-enabled products, in the company's view, would be better able to manage their data repositories.
In fact, if IBM's strategy proceeds as planned, IBM might be able to use grid computing to gain competitive advantage
However, for IBM to succeed, the company must clear several hurdles. The initiative is a hardware play, and hardware revenue has been flat recently. Despite a dwindling number of suppliers, servers remain an intensely competitive market, with manufacturers consistently dropping prices so customers continually receive more processing power at a lower cost.
Also, with the Internet boom a distant memory, there are even questions about the need for more computing power. It is unclear which applications will drive the move to grid computing.
Future Alliances
IBM has targeted five industries: aerospace, automotive, financial services, government and life sciences. For example, IBM recently installed a grid-computing system at Charles Schwab that reduced the processing time on a wealth-management application from more than 4 minutes to 15 seconds.
Final Analysis
The success or failure of IBM's initiative will not necessarily depend on the company itself, but rather on its ability to entice software suppliers to make the necessary investments to make their products compatible with grid capabilities.
Currently, there is a scarcity of programming tools, applications and management systems to help developers make their products compatible with a grid-computing architecture. Retooling existing products to run on new computer hardware is a complex task -- one that vendors undertake only when they see a customer base willing and able to buy such products.
Oracle has talked about adding grid features to its database applications, but few other vendors have grid computing on their product enhancement lists. Because so many components must fall perfectly into place for the grid-computing movement to take off completely, analysts expect the transition to grid computing to take time -- at least two to three years and quite possibly longer.

References:

žwww.company-statements-slogans.info

žhttp://www.ecommercetimes.com

žhttp://www-935.ibm.com

žwww.scribd.com

žwww.theofficialboard.com/org-chart/ibm

žwww.wikipedia.org

žwww.research.ibm.com