Ibm on Demand Business

Topics: Strategic management, Management, IBM Pages: 10 (3268 words) Published: November 13, 2010

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

Table of contents

2.Business history3
4.Problem identification6
6.Personal conclusions and lessons learned10
8.IBM nowadays12
10.Group elements evaluation13

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 company to new corporate strategy, which was based on the concept of “on demand business”. IMB wanted to show, how the business should evolve and structure after the e-business era.

This case study will discuss and analyze opportunieties, risks and goals connectes with new IBMs strategy. First we are going to give a brief presentation of the business of outsourcing and the history of IBM. Than there will be a problem presentation with its’ analyzis and recommendation for the future. 2. Business history

Outsourcing is an abbreviation for outside-resource-using, what means in practice “using external resources”. This term is used to describe business concept which implies the transfer of part of their business to another company when it’s profitable. Initially, outsourcing was associated with a strategy for manufacturing companies that relocated their factories to countries where production costs were lower. Nowadays, outsourcing is associated not only with production, but with every areas of activity like HR, IT, financial services etc. The main difference between outsourcing of goods and services is that in case of services there are no transportation costs. The rapid growth of interest in outsourcing, is observed in 2004 when it began to indicate a major role in the global economy of foreign outsourcing (offshoring) and publicy analyze the impact of this strategy in developed countries, increased unemployment and economic stagnation. This also concerns outsourcing in IT, but companies on this field existed much earlier. IBM, CSC and EDS, from early 1980’s dominated on IT outsourcing worlds market which was much smaller than it’s now. After rapid growth in 2004 companies recorded a big increase in revenues and on the market began to appear  many new companies that have become competition for the main players for them.

3. IBM

IBM, as one of the few computer companies, is derived from the nineteenth century. It is true, that as the official beginning of the precursor of IBM, we recognize the 15 June 1911, but on the CTR company, made up a much older companies, the oldest of which had its beginnings in 1885., that is a very long time before the rise of computers. On 14 February of 1924, CTR turned to IBM. International Business Machines - sounding like this, the full company name, reflects well the profile of its business. However, the beginnings were difficult, which may even raise a smile on the faces of some people. As Lamborghini started the production of agricultural tractors as IBM began from selling various "weird" things - timers, scales, slicers (!), punch cards... Focusing on the production of the latter, began to build calculating machines and then computers. And it is mainly for business and industry. The list of most important products contains an ingenious calculating machines of outstanding engineer H. Holerith, which were incredibly improving the maintain statistics and censuses, later analog computers and on punched cards and the most famous IBM PC, a personal computer. During the Great Depression in 1930s, IBM managed to grow whilst the rest of the U.S. economy collapsed. While many of businesses had shut down, Watson, who joined IBM in 1914, kept his...
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