Introduction
International Business Machines (IBM) Corporation needs no introduction everyone is aware of it. Basically it deals with the inventing, developing and manufacturing of computer hardware and software. It also offers integrated suite of services and professional solutions.
Organizational Background
IBM is American international company founded in June 16, 1911 by Charles Ranlett Flint as a Computer Tabulating Recording company (CTR). This company was emerged by merging three companies namely :
Tabulating Machine Company,
The international Recording Company
And the Computing Scale Company.
CTR was renamed to International Business Machines in 1924. (CoinWire, 2018).
Due to its distinction in work culture and product branding its was also got a nickname called Big Blue.
As of today, IBM is one of the largest manpower organization with nearly 380,000 employees. It has more than 27,000 IBM business partners.
It developed FORTRAN language which is widely used today.
Currently IBM is having more than hundred patents in analytics.
Problems faced and Purpose
IBM is the biggest PC administrations supplier. For a considerable length of time, proficient counseling and administrations were a reliable source money for IBM. That’s no longer true in this mature world. As indicated by the Global Technology Services revenue of IBM tumbled to 10 percent to $7.9 billion. Worldwide Organizations administrations fell 13% to $4.2 billion. Signings in the quarter were $9.3 billion, their most reduced level since 2003.
One more issue IBM began confronting, the huge problem of differentiating its hardware products from its rivals. This caused IBM to lose money hardware also.
If the hardware products are getting less sold at that point, it likewise impacts on the software products.
Cloud computing is the most recent innovation in the market and IBM is the huge player of this innovation winning $9.6 billion income in the course of the most recent a year. Be that as it may, as indicated by CBS news, Big Blue was late to the market and faces hardened rivalry from its opponents like Google, Amazon..
Innovation and its framework
In late 2003, IBMers around the globe were requested to recognize the center qualities that would characterize the enterprise. Of the three picked by representatives, one emerged as far as its aspiration and extension: "Innovation that matters for our company—and the world”.
IBM developed pre-defined model to practice innovation. The company approaches innovation across three interconnected dimensions: product/offerings, process, and business model innovation. (Cbsnews.com. 2018).
Defining a strategy for innovation.
Much of IBM’s information technology innovation strategy is driven by its Global Technology Outlook (GTO). Now in its 25th year, the GTO is a collaborative effort, updated annually, designed to project key trends and developments for information technology. It influences technical strategy by ensuring the company is focused on major opportunities for new growth.
On Demand Business
IBM believes that adopting an “On Demand” business model is a critical step to enable innovation. IBM defines On Demand Business as a transformation across processes and enterprises, bringing new levels of integration among processes and applications inside the business.
DEVELOPING THE INFRASTRUCTURE AND PROCESSES FOR INNOVATION
To drive its enterprise-wide transformation, IBM implemented a management system to create the levers to drive change in three categories:
reinvestment cycle,
governance model, and
measurement system.
To fund some of its e-business transformation investments and drive innovation, IBM developed a model that it has been using for a number of years. The company generates yearly efficiency and productivity gains and reinvests those savings in its transformation initiatives.
Role of Research in Innovation
IBM Research manages its resources by line and strategy, and it is managed as a portfolio across all eight labs.
Each laboratory (line) has a budget that is funded centrally.
There is another cross-cutting dimension IBM refers to as the strategy dimension. There are six super-strategies (e.g., technology, systems, etc.) with sub-strategies below each for a total of about 15 areas. Each of the 15 strategic areas is staffed by about 100 to 200 people. Area strategists are responsible for directing each strategy at a high level and sub level. These strategists determine what the employees in that area should be working.
IBM Innovations
IBM Intranet –
Since 2003, IBM has been transforming its intranet (On Demand Workplace or as it is popularly known, “w3”), which gets about 2.8 million page views per business day, from multiple, independent sites to an integrated workspace to improve productivity, facilitate collaboration, and drive innovation. About 80 percent of IBM’s employees access the w3 on a daily basis to get information, applications, use various tools, and more.
ThinkPlace
In June 2005, IBM launched ThinkPlace, an online, collaborative tool for idea generation and refinement that is a permanent part of the company’s intranet. It allows employees to submit ideas anytime they want. It also provides employees a forum for sharing best ideas and collaborating with others to make their ideas even better. The solution was created and customized by IBM for its own use. It is not a commercial solution at this time but may one day be deployed to IBM’s clients.
Conclusion
IBM changed from an innovation based organization to information based organization.
IBM responded to the outside condition and effectively changed their way of life.
IBM experienced roundabout change amid their progress.
IBM profited from incredible authority and an inventive culture.
IBM manufactured a brand of trust and perfection that upheld their progress.
IBM use IT devices for expanded correspondence, coordinated effort, and learning sharing to by and by turn into the pioneer in their field.
Recommendations
Hire smart people.
Ensure diversity of thought. (Seek employees from around the world in various disciplines and move them in and out of the divisions.)
Create time and space to reflect and brainstorm.
Nurture external relationships.
Set milestones.
References
CoinWire. (2018). IBM, Proxeus Develop Decentralized Company Registration - CoinWire. [online] Available at: https://www.coinwire.com/ibm-proxeus-develop-decentralized-company-registration
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research. Journal of management, 37(4), pp.1019-1042.
Cbsnews.com. (2018). 6 toughest challenges for IBM's Ginni Rometty. [online] Available at: https://www.cbsnews.com/news/6-toughest-challenges-for-ibms-ginni-rometty/
