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Brief Overview of IBM.......................................................................................................3 Worldwide Business Operations.........................................................................................3 Strategy V/s the Industry....................................................................................................4 STOCK Watch.....................................................................................................................5 Business areas.....................................................................................................................6 Generating higher value at IBM (From IBM Annual Report 2006):..............................8
Brief Overview of IBM International Business Machines Corporation (known as IBM or "Big Blue"; NYSE: IBM) is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. It has been known through most of its recent history as the world's largest computer company. With over 350,000 employees worldwide, IBM is the largest information technology employer in the world. IBM holds more patents than any other U.S. based Technology Company. It has engineers and consultants in over 170 countries and IBM Research has eight laboratories worldwide. IBM employees have earned three Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM is among the Worldwide Top 20 Semiconductor Sales Leaders. Type: Public (NYSE: IBM) Founded: 1889, incorporated 1911 Headquarters: Armonk, New York, USA Key people: Samuel J. Palmisano, Chairman and CEO Mark Loughridge, SVP and CFO Dan Fortin, President (Canada) Frank Kern, President (Asia-Pacific) Nick Donofrio, EVP (Innovation and Technology) Bruno Di Leo, President IOT Northeast Europe Dominique Cerutti, President IOT Southwest Europe Industry: Computer Hardware Computer Software Consulting IT Services Revenue: US $ 91.4 Billion (FY 05-06) Employees: 355,766 (2006) Website: http://www.ibm.com Subsidiaries: ADSTAR FileNet Informix Iris Associates Lotus Software Rational Software Sequent Computer Systems Tivoli Systems, Inc. Apollo Computers
Worldwide Business Operations IBM has operations in over 170 Countries.
Strategy V/s the Industry Two years ago, IBM was stumbling. Its financial performance in the first quarter of 2005 was well below expectations, and the culprit was its big technology services unit, a business under increasing pressure from lower-cost Indian outsourcing companies. “It wasn’t just the miss, it was that revenues were slowing in services,” Samuel J. Palmisano, IBM’s chief executive, recalled in an interview. Since then, IBM has made impressive progress. It has increasingly moved up the ladder to offer higher value corporate packages of research, software and services. This is also higher-margin business, where specialized skills matter more than price. IBM has also hired aggressively in India to narrow the cost advantage of its offshore rivals in traditional technology services like operating data centers for customers and upgrading and maintaining their software. IBM has been reorganized from a classic multinational company with country-by-country operations, working in isolation, to a more seamless global enterprise with centers of expertise in industries, scattered around the world, each a hub in a global network for delivering services. The changes, according to Palmisano, amount to “a huge reinvention” of the company. Its experience offers a textbook case of a company successfully navigating the twin challenges of globalization and technological change. So far, it seems to be working. Profit margins at IBM have risen steadily, and it reported record earnings and cash flow in 2006. Wall Street expects the trend to continue when IBM reports its quarterly figures Wednesday. The consensus estimate of analysts has earnings increasing 13 percent from the year-earlier quarter, to about $2.15 billion, or $1.47 a share, on a 5 percent rise in revenue, to $23.1 billion. Despite the recent improvement, IBM still faces daunting long-term challenges -particularly in its services business, which last year contributed 52 percent of the company’s revenue and 37 percent of pretax income. The Indian insurgents in the technology services business continue to enjoy a sizable cost advantage. The leading Indian outsourcing companies, like Infosys, Tata Consulting Services and Wipro, have average operating profit margins of more than 20 percent, according to a recent analysis by Sanford C. Bernstein & Co. The margins at IBM, according to Bernstein, are less than half that -- though a bit higher than the average for the next six largest American technology services companies including EDS, Accenture, BearingPoint and Computer Sciences. The leading Indian companies are gaining ground at an impressive pace. Infosys reported that its quarterly revenues rose more than 40 percent. IBM, the world’s largest technology services company, dwarfs any of the Indian outsourcers and offers a much wider range of services. But the Indian companies see themselves as the wave of the future in services, and they say their Western rivals, who are hiring by the thousands in India, are struggling to cope. “We are leading, and the old-line players like IBM are forced to copy our model,” said Nandan M. Nilekani, co-chairman of Infosys. In software, IBM started to build up that high-margin business mainly with acquisitions of small companies in fields like security, data management and Web commerce. Since 2003, IBM has spent $11.8 billion on 54 acquisitions: 36 software and 18 services companies. The transition into services has been the most ambitious and difficult, involving a wholesale reorganization and a change in the culture of a business that now has 200,000 employees worldwide.
The traditional multinational company, Palmisano explained during an interview at IBM’s headquarters in Armonk, N.Y., was a collection of local fiefs, while networked teams will be the hallmark of the global corporation of the future. IBM has set up global centers for tasks like software development and maintenance, which is a reason IBM employs 53,000 workers India today. It has also created global teams of skilled experts in particular industries, from airlines to utilities, who travel as needed on projects.
Artificial Intelligence is IBM’s new mantra: Software major IBM has announced launch of innovations such as artificial intelligence in vehicles and traffic management systems, voice recognition technology and traffic-related information transfer through cell phones. By introducing these revolutionary transport innovations, IBM believes these could revolutionize the transport system. The innovations would make travelling by planes, trains or automobiles a more convenient and hassle free experience within the next few years, a company release said. It would also curtail fuel wastage and incidence of accidents. "Researchers and strategists at IBM think that the cure for transportation problems is not building more roads or adding flight," IBM India Research Laboratory director Daniel Dias said. The emerging technologies especially in communication will make travel safer, more streamlined and able to accommodate ever-increasing growth demands, he said. Under the driver-assist technologies, automobiles would behave as if they have reflexes. They could sense other cars and avoid hazards. They would also be able to exchange information with each other, take corrective action where it was appropriate and provide essential feedback to drivers. The voice recognition systems in vehicles would al. low drivers to get real-time flight updates, respond to e. mails and get directions through simple voice commands, the company said.
STOCK Watch
Industries:
Automotive Aerospace and Defense Banking Chemicals and Petroleum Consumer Products Electronics Energy and Utilities Financial Markets Government Healthcare and Life Sciences Insurance Retail Telecommunications
Business areas Services Application Development and Integration Application Management Business Process Services Business Continuity and resiliency Integrated communications IT Strategy and Architecture Maintenance and Technical Support Middleware services Outsourcing/Hosting Security and Privacy Server Services Site and facilities Storage and Data Asset Recovery Engineering Solutions Software Services Services for small businesses Services for medium businesses
Products Websphere Application Server Graphical Data Display Manager PLM – Catia Lotus Rational Tivoli CMS – Filenet, DB2 Content Manager DW – OmniFind AML – IBM Anonymous resolution
The list of IBM products is huge. Please have a look at the following link and choose products according to your preference: http://www-306.ibm.com/software/sw-bycategory/
Competitors: Company Accenture HP Microsoft EDS Sun Microsystems
Company TCS Infosys Wipro
Generating higher value at IBM (From IBM Annual Report 2006):
Brief Overview of IBM International Business Machines Corporation (known as IBM or "Big Blue"; NYSE: IBM) is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. It has been known through most of its recent history as the world's largest computer company. With over 350,000 employees worldwide, IBM is the largest information technology employer in the world. IBM holds more patents than any other U.S. based Technology Company. It has engineers and consultants in over 170 countries and IBM Research has eight laboratories worldwide. IBM employees have earned three Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM is among the Worldwide Top 20 Semiconductor Sales Leaders. Type: Public (NYSE: IBM) Founded: 1889, incorporated 1911 Headquarters: Armonk, New York, USA Key people: Samuel J. Palmisano, Chairman and CEO Mark Loughridge, SVP and CFO Dan Fortin, President (Canada) Frank Kern, President (Asia-Pacific) Nick Donofrio, EVP (Innovation and Technology) Bruno Di Leo, President IOT Northeast Europe Dominique Cerutti, President IOT Southwest Europe Industry: Computer Hardware Computer Software Consulting IT Services Revenue: US $ 91.4 Billion (FY 05-06) Employees: 355,766 (2006) Website: http://www.ibm.com Subsidiaries: ADSTAR FileNet Informix Iris Associates Lotus Software Rational Software Sequent Computer Systems Tivoli Systems, Inc. Apollo Computers
Worldwide Business Operations IBM has operations in over 170 Countries.
Strategy V/s the Industry Two years ago, IBM was stumbling. Its financial performance in the first quarter of 2005 was well below expectations, and the culprit was its big technology services unit, a business under increasing pressure from lower-cost Indian outsourcing companies. “It wasn’t just the miss, it was that revenues were slowing in services,” Samuel J. Palmisano, IBM’s chief executive, recalled in an interview. Since then, IBM has made impressive progress. It has increasingly moved up the ladder to offer higher value corporate packages of research, software and services. This is also higher-margin business, where specialized skills matter more than price. IBM has also hired aggressively in India to narrow the cost advantage of its offshore rivals in traditional technology services like operating data centers for customers and upgrading and maintaining their software. IBM has been reorganized from a classic multinational company with country-by-country operations, working in isolation, to a more seamless global enterprise with centers of expertise in industries, scattered around the world, each a hub in a global network for delivering services. The changes, according to Palmisano, amount to “a huge reinvention” of the company. Its experience offers a textbook case of a company successfully navigating the twin challenges of globalization and technological change. So far, it seems to be working. Profit margins at IBM have risen steadily, and it reported record earnings and cash flow in 2006. Wall Street expects the trend to continue when IBM reports its quarterly figures Wednesday. The consensus estimate of analysts has earnings increasing 13 percent from the year-earlier quarter, to about $2.15 billion, or $1.47 a share, on a 5 percent rise in revenue, to $23.1 billion. Despite the recent improvement, IBM still faces daunting long-term challenges -particularly in its services business, which last year contributed 52 percent of the company’s revenue and 37 percent of pretax income. The Indian insurgents in the technology services business continue to enjoy a sizable cost advantage. The leading Indian outsourcing companies, like Infosys, Tata Consulting Services and Wipro, have average operating profit margins of more than 20 percent, according to a recent analysis by Sanford C. Bernstein & Co. The margins at IBM, according to Bernstein, are less than half that -- though a bit higher than the average for the next six largest American technology services companies including EDS, Accenture, BearingPoint and Computer Sciences. The leading Indian companies are gaining ground at an impressive pace. Infosys reported that its quarterly revenues rose more than 40 percent. IBM, the world’s largest technology services company, dwarfs any of the Indian outsourcers and offers a much wider range of services. But the Indian companies see themselves as the wave of the future in services, and they say their Western rivals, who are hiring by the thousands in India, are struggling to cope. “We are leading, and the old-line players like IBM are forced to copy our model,” said Nandan M. Nilekani, co-chairman of Infosys. In software, IBM started to build up that high-margin business mainly with acquisitions of small companies in fields like security, data management and Web commerce. Since 2003, IBM has spent $11.8 billion on 54 acquisitions: 36 software and 18 services companies. The transition into services has been the most ambitious and difficult, involving a wholesale reorganization and a change in the culture of a business that now has 200,000 employees worldwide.
The traditional multinational company, Palmisano explained during an interview at IBM’s headquarters in Armonk, N.Y., was a collection of local fiefs, while networked teams will be the hallmark of the global corporation of the future. IBM has set up global centers for tasks like software development and maintenance, which is a reason IBM employs 53,000 workers India today. It has also created global teams of skilled experts in particular industries, from airlines to utilities, who travel as needed on projects.
Artificial Intelligence is IBM’s new mantra: Software major IBM has announced launch of innovations such as artificial intelligence in vehicles and traffic management systems, voice recognition technology and traffic-related information transfer through cell phones. By introducing these revolutionary transport innovations, IBM believes these could revolutionize the transport system. The innovations would make travelling by planes, trains or automobiles a more convenient and hassle free experience within the next few years, a company release said. It would also curtail fuel wastage and incidence of accidents. "Researchers and strategists at IBM think that the cure for transportation problems is not building more roads or adding flight," IBM India Research Laboratory director Daniel Dias said. The emerging technologies especially in communication will make travel safer, more streamlined and able to accommodate ever-increasing growth demands, he said. Under the driver-assist technologies, automobiles would behave as if they have reflexes. They could sense other cars and avoid hazards. They would also be able to exchange information with each other, take corrective action where it was appropriate and provide essential feedback to drivers. The voice recognition systems in vehicles would al. low drivers to get real-time flight updates, respond to e. mails and get directions through simple voice commands, the company said.
STOCK Watch
Industries:
Automotive Aerospace and Defense Banking Chemicals and Petroleum Consumer Products Electronics Energy and Utilities Financial Markets Government Healthcare and Life Sciences Insurance Retail Telecommunications
Business areas Services Application Development and Integration Application Management Business Process Services Business Continuity and resiliency Integrated communications IT Strategy and Architecture Maintenance and Technical Support Middleware services Outsourcing/Hosting Security and Privacy Server Services Site and facilities Storage and Data Asset Recovery Engineering Solutions Software Services Services for small businesses Services for medium businesses
Products Websphere Application Server Graphical Data Display Manager PLM – Catia Lotus Rational Tivoli CMS – Filenet, DB2 Content Manager DW – OmniFind AML – IBM Anonymous resolution
The list of IBM products is huge. Please have a look at the following link and choose products according to your preference: http://www-306.ibm.com/software/sw-bycategory/
Competitors: Company Accenture HP Microsoft EDS Sun Microsystems
Company TCS Infosys Wipro
Generating higher value at IBM (From IBM Annual Report 2006):
