Ibm on Demand Business

3280 Words Nov 25th, 2010 14 Pages
| SUPPLY CHAIN MANAGEMENT | IBM’S „ON DEMAND BUSINESS” STRATEGY | |

Group 12:Bochyńska Monika 69136
Szymański Konrad 69135Zarzycki Michał 69134 |

Table of contents

1. Introduction 3
2. Business history 3
3. IBM 4
4. Problem identification 6
5. Analysis 8
6. Personal conclusions and lessons learned 10
7. Recommendations 11
8. IBM nowadays 12
9. Bibliography 13
10. Group elements evaluation 13

1. Introduction

IBM, the biggest IT company in the world, from more than 80 years is the lider in supporting the innovation in business. The company offers complex solutions, adjusted to customers requirements. In 2002 this outsourcing giant was facing a new business opportunity. Its CEO, Sam Palamisano, led the
…show more content…
In the 1960s and 1970s, the company captured almost 80% of the market. Later, during Cary 's tenure, the computer industry expanded and wove its way into everyday life.
However, IBM underestimated the potential of PC’s and its competitors capitalised on IBM’s technology. During 1980s and in early 1990s, because of increasing competition, bureaucracy and big bonuses for the salespople, IBM lost many high-performance employees and its CEO John Chambers. By 1993, the company 's annual net losses reached a record $8 billion. Cost management and rationalization became a core concern. And IBM considered splitting its divisions into separate independent businesses.
IBM CEO, Akers, was replaced by Louis V. Gerstner. Gerstner brought with him a customer-oriented vulnerability and the strategic-thinking expertise. He recognized, that one of IBM 's permanent strengths, was its ability to provide integrated solutions for customers. Division of the company would have destroyed a unique IBM advantage. Customers were focused on integrated business solutions - a key IBM strength that combined the company 's expertise in solutions, services, products and technologies. However, he created the services division, known as IBM Global Services. It was the main entry point that offered customers holistic solutions.
Gerstner also led IBM to take another risk. He expressed IBM 's new vision - that network computing would drive the next phase of industry growth and
Open Document