IBM: Strategizing for a More Intelligent Business

IBM first appeared as Computing Tabulating Recording Company in 1911. Through the merger of three separate business entities in 1924, International Business Machines was formed. In 2012 IBM was ranked the 9th largest U.S. firm in terms of profitability. IBM was ranked in the top 20 of multiple categories which include the number of employees, revenue, green company and most admired company by Forbes, Fortune and Baron’s. Worldwide IBM operates 12 research laboratories. Some of IBM’s inventions include the ATM, UPC, the Hard Disk Drive and the SABRE airline reservation system. The SABRE reservation system allows for travel agencies and airline companies to search, price, book, and order tickets. To meet the growing demand for hybrid cloud solutions that support these activities, IBM announced the opening of a new Soft-layer data center. The plant in Toronto Canada is part of a $1.2 billion investment to extend cloud services. On a late Friday afternoon in August 2014, IBM approved the sale of its x86 server business to Chinese computer giant Lenovo. The challenge they now face is convincing customers that data security will not be an issue. IBM has history successful business transactions that first appear questionable. In 2009 IBM sold their PLM business to Dassault Systems and many believed that IBM’s PLM saga was over.

However IBM’s Software Group is once again approaching $1 billion in revenue. IBM’s silicon solution is target for government and aerospace and defense applications. Delivering semiconductor technology that keeps pace with next generation hardware demands, IBM distinguishes itself through function, integration, and reliability. IBMs portfolio of semiconductors contains some of the world’s most sophisticated semiconductor solutions. These include Mask builds and 200mm and 300mm wafer manufacturing. In 2002 IBM acquired the consulting business of Pricewaterhousecooper. The consulting giant IBM plays a crucial role in assisting companies with product lifecycle management. Businesses are starting to look to consultants like IBM for in depth system integration.

Companies that can provide concrete integrated PLM solution will be positioned for growth. IBM has identified a change in the Aerospace and Defense industries. With shrinking defense budgets the focus will shift to commercial aviation. Within the changes are new threats but also new opportunities. Smarter instrumentation technologies will drive the growing commercial aviation industry, predicts IBM. IBM can provide solutions to common business problems. Through smarter products and smarter analytics IBM understands the cost of doing business vs. the value of the system. Their solutions for systems and software engineering helps reduce program risk, improve scheduling and decreasing costs.

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