How Ibm Become A Profitable Company

A significant step towards Air Canada’s success was implementing a multiple-vendor sourcing strategy for IT. Utilizing their long time trusted partner, IBM, who was familiar with their industry needs and company IT standards became the key liaison for expanding additional technologies needed by other outside vendors. This newly expanded relationship between IBM and Air Canada allowed for the airliner to concentrate on what they do best which is fly airplanes and IBM to become an invested partner in the company’s success towards innovation because they were like an employee of Air Canada acting as their main IT sourcing vendor and consultant

IBM Global Services, the technology services and consulting division of International Business Machines (IBM), is the world’s largest provider of systems integration and technology consulting. It offers services in areas such as application development, data storage, infrastructure management, networking, and technical support (Datamonitor Plc., 2007, p.4). IBM Global Services is also among the world leaders in providing business consulting and outsourcing services. IBM Global Services’ headquarter locates in Armonk, New York. The company has more than 190,000 employees around the world.

In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per

To answer the many external environmental factors affecting IBM’s personal computer business they must raise structural complexity and decentralize decision making through increasing the number of departments and personnel which individually address such boundary spanning environmental points as pricing, customer representation, and new technologies. Human resources must be effectively utilized as key personnel must be recruited both quickly in the transformation and in the future.

Today, the global business sphere is growing swiftly in terms of organizations and management in general. New market trends and strategies are being implemented from old fashion to modern ways, in order to best manage and take control of the organization, along with boosting the employees ' confidence. Ever since the dawn of trade and services, the customer has been the main priority in the promise of a fruitful business. In order to efficiently serve the valuable customer, organizations have opted to allocate more and more cash towards Research & Development in millions of dollars, along with efficiently knowing when to change management in correspondence with the organization 's progress. This has all helped with an advancement in corporate technology and asset growth in the desire of pursuing a healthy growth of profits in the long term.

Personal computer business naturally can be classified as a sub component of business solutions provider that IBM’s positioned for. The tagline indeed shows that for every transactions made, IBM has something to deal with it to make things easier, meaningful and on advantages. The decision to relinquish interest in the above mentioned sector doesn’t put IBM in any advantage if it decided to discontinue advertise in mass media. On the contrary, by resuming the current practices it helps maintains and restore the brand name that could probably enhance the brand loyalty.

The team shall lead a class discussion for Intel Corporation 2010, with an analysis of Intel’s profitability. In addition to the presentation, a written report will be submitted onto Blackboard by May 2, 2011. The report shall contain the answers to the questions in the project handout.

Mr. Gates’ also explains how Microsoft tackled the challenge of integrating the Internet to be compatible with various Microsoft products. The biggest dilemmas were determining what should be incorporated into the existing Microsoft products, what should be packaged as new products, and how should the Windows Operating System support the Internet. He gives frequent examples of how the other competing computer industry giants were able to succeed in the computer industry. A lot of success he points out was made through trial and error as well as learning from one’s mistakes. He talks about how Microsoft has learned from projects that have failed such as the Multiplan spreadsheet that went on to be developed into Microsoft Excel, and the Omega database that would become Microsoft Access. One suggestion that Mr. Gates makes in achieving company success is by

Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?

As CEO of IBM, Samuel J. Palmisano used the momentum of the success gained under the leadership of Louis Gestner to steer the business in a new direction. Sam intends to restore the organization to the former status it held as a technological leader with an admirable company culture. Palmisano's plan calls for the reorganization of the executive management board, restructuring of incentive programs, and an emphasis on collaboration across all divisions. Establishing closer relationships between researchers and clients is also a key factor in creating new opportunities for growth for IBM. E-business on demand is the new initiative at the heart of Palmisano's strategy for the growth of IBM's Global Services. E-business will transform

Prior to their cultural change that took place in the early 1990’s, many would have said that IBM was on a fatal downhill slide. At this point they were beginning to become obsolete. IBM at one point was among the leaders within the world for hardware/software development and information technology services, but all divisions within the organization were run independently from one another. They were not a unified enterprise. To solidify this even further, “rather than working together as a team, divisions competed against each other both internally and in the field” (DiCarlo, L., 2002).

IBM has weaknesses in the transformation of its business model. It is lack of flexibility in the transition because of its large company

IBM has not only succeeded in maintaining its competition in providing software, computer technology and systems integrators, but IBM also successfully managing its resource such as energy, water, and material, including waste product, thus offering environmentally friendly products and services which have been recognized by various parties and has received many awards (IBM Environment Report, 2012). IBM success is always related to the leadership style of it appointed CEO and management group. There are several appointed CEO with different leadership style since IBM established, such as Sam Palmisano, Larry Ellison, Randy MacDonald, and Thomas Watson. Different leadership style among CEO help IBM

Over the past five years, IBM has quietly transformed itself into a "software, solution and services" company. With the transformation from a hardware vendor to a solution provider, it has entered the area of consulting services.

In 1995, IBM reengineer and redesign its logistics and procurement and outsourced its activities if it could be done faster and cheaper. Within one year of reengineering, costs were down 20% and time needed to complete and confirm supply orders had decreased from average of 48 hours to 2.5 hours. By 2000, $370 Million were saved annually by procuring goods & services online (94%). Also, year-to-year growth in procurement volume increased by 60% between