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International business machines company

International business machines company . Kyle Beach. International Business Machines Corporation (IBM). American run multinational technology and consulting corporation One of the world’s largest technology company’s ranging from mainframe computers to nanotechnology

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International business machines company

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  1. International business machines company Kyle Beach

  2. International Business Machines Corporation (IBM) • American run multinational technology and consulting corporation • One of the world’s largest technology company’s ranging from mainframe computers to nanotechnology • Headquarters located in Armonk, New York. • IBM computers manned by IBM personnel helped NASA with the first human-landing on the moon

  3. Types of products: From the past

  4. Types of products: new

  5. History • Founded by Thomas J. Watson in 1911 • Also known as “Big Blue” • Merged three companies: • Tabulation Machine Company • International Time Recording Company • Computing Scale Company • Making the Computing Tabulating Recording Company • In 1924, Watson changed he name to International Business Machines Company or (IBM)

  6. Expansion Of (ibm) Early stages • Provided large-scale, custom-built tabulating solutions for businesses • At this time, there was no outsourcing available due to the lack of technology • Kept products domestic, primarily focusing on different types of mathematical products

  7. Factors affecting (IBM) • Great Depression of 1930 • IBM grew when the depression hit • Watson took care of employees and kept his workers busy producing new machines • Social Security Act of 1935 • Brought the company a landmark government contract to maintain employment records for 26 million people • “The biggest accounting operation of all time”

  8. Expansion: Remaking (ibm) into a globally integrated enterprise • From 2006 to 2008, IBM expanded its presence in Asia, Latin America and Eastern Europe, and today nearly half of its employees are in emerging markets • IBM set up a network of global delivery centers in India, China, Brazil and other countries • They expanded quick and dramatically

  9. Expansion to india • First commitment was a $2 billion dollar investment, soon innovation and creativity turn into things such as medicine or education software. They ended up tripling their investment of $6 billion dollars in 3 short years.

  10. Expansion to india cont. • India has the most amount of workforce, this was the best opportunity for IBM at the time • Gave companies in India a chance to receive the technological needs they needed

  11. Reasons to expand • IBM positioned itself in India, not as low cost providers, but instead a company that could draw on its capacity to create breakthrough technology and deeper client solutions • High standard of skills in India • Superior customer service

  12. Reason’s to expand cont. • Due to the location of India, IBM can create massive technological infrastructures in a good timely fashion, with not as much cost. • Want to expand IBM throughout as many countries as possible. (WOM)

  13. Expansion (Ibm) india • IBM has 22 establishment’s located in India • Targeting fast developing cities • Has created over 100,000 employees • India is one of the most popular back-end IT destinations • Making it a logical place for IBM, as a service provider to expand operations

  14. Difficulties going into india • Complex tax system • Merger regulations • Language barrier • No support from the government

  15. Advantage of (ibm) Outsourcing • Reduced costs • More efficient workplace • Outsource certain activities and work with smaller groups of employees with more advanced knowledge • Reduced Overhead • Removes the need to hire and train new IT workers • Adaptability and Scalability • Can handle increase in resource demand

  16. (IBM) It outsourcing • More than half of all CEO’s are external or “foreign” partners • They partner with them to speed up market time, attract new customers, and foster a culture of innovation • They deploy IT resources to clients that have strategic business outcomes

  17. Disadvantage of (ibm) outsourcing • Reduction of jobs in home country • Communication difficulties throughout the process • Lose your “home” country value • In some cases, not as good of a product • High cost of face-to-face meetings

  18. Benefits of (ibm) • Soon Chun Hyang University Hospital (South Korea) 1972 • Need: Availability of X-Rays and MRI scans to physicians, in a shorter amount of time • Solution: IBM implemented an integrated medical records project, to break down the swarm of data at four sites • Benefit: • Enabled hospitals to prepare scanned data for physicians 95% faster • Today, all medical records, MRI scans, and payment systems are hosted at a single datacenter

  19. Benefits of IBM cont. • Customer: Ranhill Powerton • Sought to reduce unplanned plant outages • Wanted to capture, store and analyze massive amounts of operational data from equipment sensors • Installed Chronos Software, the company can monitor the health of plant equipment in near-real time so staff can respond to problems before failures occur • Ranhill Powerton has exceeded availability targets, reduced maintenance costs, and improved data resolution from 15 minutes to 1 second

  20. Current issue • IBM is cutting close to 13,000 employees around the world • Restructuring Plan worth $1 billion • Aiming for a $20 share in 2015, compared to $11.67 in 2010 • IBM continues to rebalance its workforce to meet changing requirements of its clients • “At any given time, IBM has more than 3,000 job openings in its growth units worldwide”.

  21. Responsibility of (ibm) • Corporate Citizenship • Focus on societal issues, health, language, and culture • Environment • Committed to environmental leadership and protecting the environment, across all of its operations worldwide • Supply Chain • Committed to holding themselves and their suppliers to high standards in all business deals

  22. Evaluation of (ibm) • Good understanding of taxation and regulations • Quick international expansion benefited them • Effective marketing strategy • Good understanding of supply and demand • As far as jobs, IBM has hurt the United States dramatically

  23. References • http://www.cnet.com/news/foreign-companies-increasing-jobs-in-u-s-europe/ • http://www-935.ibm.com/services/us/en/it-services/it-outsourcing/ • http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/globalbiz/transform/ • http://www.ibm.com/ibm/in/en/ • http://www.bloomberg.com/news/2014-02-27/ibm-begins-cutting-u-s-jobs-in-1-billion-restructuring-plan.html

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