DEPARTMENT OF BIOSCIENCES

SUBJECT:

ENTERPRENEURSHIP

ASSIGNMENT:

STRATEGIC BUSSINESS MODEL OF IBM

Strategy Formulation

Strategy Implementation

Strategy Evaluation

Internal Vision: Budget: Environment Solutions for a small Revenue: $99.9 planet billion Operating income: US$ 20.28 billion Net income: $15.85 billion Total assets: $116.43 billion

Mission: "At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide."

Procedures: WebSphere Process Server Enterprise IT management system Recycling RPG as Stored Procedures IBM Rational Unified Process Supplier diversity process

Actual: It is one of the leader brands of I.T industry IBM is the world's largest information technology company with 2005 revenues of $91 billion. IBM is the biggest provider of IT services, hardware, rental and financing.

Objectives:

Operations: Target operating model Supply chain strategy Process excellence (Lean, Lean Sigma) Logistics strategy & operations (WMS, TMS) Procurement transformation Strategic Profit Improvement Global location strategies Supply Chain sustainability management Sustainability strategy Product development and PLM/innovation strategy Service lifecycle management

A smarter planet Business analytics Cloud computing

Security resilience

and

Smarter commerce

Sustainability Application innovation

Application management

Business continuity and resiliency

Data center

Integrated communications

Business analytics and optimization

Functional expertise

Midmarket expertise

External Policies: IBM has Environment corporate policies that cover the following issues: Business conduct and ethics Reciprocity Workforce diversity Politics Well-being and safety Data privacy Diverse business relationships Environmental affairs Quality Global employment standards Design Strategy: 1970: Relational databases and Office copiers 1971: Speech recognition and Floppy disk 1973: Winchester storage technology 1974: SNA mid 1970s: IBM VNET 1975: IBM 5100 Portable computer 1976: Space Shuttle and Laser printer 1977: Data Encryption Standard 1979: Retail checkout(UPC) and Thin film recording heads 1980: Thermal conduction modules and Reduced instruction set

Programs:

Desired: To maintain the leading status in IT industry and to meet the smarter cities challenges and looking foreword to Cloud service delivery and management

IBM product stewardship program IBMs Corporate Service Corps-is a leadership development program IBM Program Work Center Mindspan elearning: IBM Basic Blue SaaS (Software as a service) IBM student opportunity system

Projects: IBM KidSmart Early Learning Programme ''Quantum mirage'' may enable atomscale circuits 4th Proactive Problem Prediction, Avoidance and Diagnosis 9p Resource Protocol Universal Sharing

Advanced Computing Technology Center Anti-Spam Research

computing (RISC) architecture 1981: LASIK surgery 1982: Antitrust suit and Trellis-coded modulation 1983: IBM PCjr 1984: IBM 3480 magnetic tape system and ROLM partnership/acquisition 1985: Token Ring Network 1986: IBM Almaden Research Center 1987: Antivirus tools and special needs access 1988: IBM AS/400 and National Science Foundation Network (NSFNET) 1989: Silicon germanium transistors 1990: System/390, RISC System/6000 And Environmental programs 1991: Services business 1992: thinkpad 1993: IBM Scalable POWERparallel system 1994: IBM RAMAC Array Storage Family and IPDS 1995: Lotus Development Corporation acquisition 1995: Glueball calculation 1997: eBusiness 1998: CMOS Gigaprocessor 1999: Blue Gene 2000: Quantum mirage nanotechnology, IBM ASCI White Fastest supercomputer 2001: Carbon nanotube

Atomic microscopy

force

Bioinformatics and Pattern Discovery Group Bipolar transistor Blue Gene Blue Gene/L ASTRON and

Blue Gene/L, Science Program Business Intelligence from Voice of Customer Cancelable Biometric Technology Cancer Modeling Carbon Nanotube Light Emissions Carbon Nanotube Transistors Cell Processor Collaborative Organization Analysis CoMMA Computational Genomics Connection Network Intelligence Continuous Program

transistors, molecular computer circuits 2003: Blue Gene/L 2006: Translation software 2007: River watch using IBM Stream Computing 2008: IBM Roadrunner No.1 Supercomputer and green power 2011: Watson June 16, 2011: IBM founded 100 years ago

Optimization Copper technology CoScripter Cryptography Research Data Channels Data Hiding Disaster Recovery Planner Project Dogear Double-Gate Transistor Dynamic Optimization Group echeck project Elliptic Curve Cryptography Embedded DRAM at IBM Research chip

PESTEL ANALYSIS OF IBM: Political analysis: Taxation, the heavy taxes in the UK make the IBM server products increase the flaw on the price factor, especially on the premium price IBM products.

 Economic analysis: a) Economic recessions can impact clients who may cut back on spending on IT and business operations. IBM may nd that it needs to rely less on US operations for prot as emerging countries come on line, for example, Chinese companies looking for premium IT service. b) Healthy economic environment have stable GDP (Gross domestic product) which provides a good market for the product and service business of IBM. Social analysis: Employee needs and desires change as staff becomes more diverse. Technology allows employees to collaborate and work far away from each other; downsides of isolation and separation need to be addressed. Technological analysis: IBM is the trendsetter and market maker for new technology for IT automation and business. It is likely that old standards can be disrupted overnight with introduction of a new technology. IBM needs to continuously innovate as anything can be copied or adopted by rivals. Internet, A survey from CIA, (2007) shows that there were 6,064,860 Internet hosts in 2006 and more than 400 Internet Service Providers in 2000. In this sophisticated market, the opportunity and competition will exist together. Environmental analysis: Natural disasters can disrupt IBM operations, as facilities are located world-wide. Focus on green technology an important issue as clients and governments try to address global warming. IBM made several major technologies to trace the weather through-out the world, IBM made computers for NASA for astrology that made them to set the satellite which monitor the environmental changes over the globe. IBM also added some of the revolutionary environmental friendly strategies which not just provides environmental saving factors, but also cost saving factors like energy cost. Legal analysis: The main legal constraints for IBM are Cyber protection and the chemical they use in making hardware (like: carbon, germanium and silicon), the across country business, currency exchange and many legal registrations for their business outsourcing facilities are the legal constraints of IBM.

SWOT ANALYSIS OF IBM: STRENGTHS: Quick response from customers- reliable brand Industry Leadership Advanced business performance management. Good organization culture. Highly efficient fulfillment centre. Flexible marketing management. Creative services provision including end user services, Integrated communications services, IT strategy and architecture services, Maintenance and technical support services, Security and privacy services, Server services and Site and facilities services, mainframes, communications, mainframe storage, minicomputers and personal computers.

WEAKNESSES: Undirected learning Reliance on high margins(scope) Employee values High costs in the value chain. Possible purchase issues.

Since, IBM spends much on its R & D then its earning and has very limited suppliers in market. Since company owning very sensitive place in market, because of its massive organization size the abrupt change is probably not possible. OPPORTUNITIES: Strong and stable economic market background. Sophisticated service market. High individual consumption power. Matured internet market. Wireless Applications Immediate client needs

Well, company possess a good place in market, just with little sufficient strategies to market changes, IBM can hold a large share in market. Since, IBM has very less count of competitors in its segment so IBM can dominate in its market. IBM has almost created monopoly on server market, thats why its not easy for other companies to enter in this field and compete over IBM, except some huge market giants like Microsoft. Wireless solutions enable customers to extend their reach to clients, suppliers and employees using wireless and emerging technologies.

 THREATS: Cost competition: a) Customers have low switching costs. b) IBM has high switching costs on the core hardware. Skills shortage Customers have high experience on the service. High threat of substitutes.

As being one of the oldest players of its field, Customer may look for change. Today as market is so flexible, IBM may face threat from small companies like Compaq because of their small size they can change rapidly with customer environment. IBM high spending than its earning on R & D can be a loophole for IBM. Because of very limited suppliers, IBM can barely afford to substitute.