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IBM: Building An Innovation Company for the 21st Century

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  • IBM has demonstrated a compelling story in business transformation over the past 15 years. IBM’s reengineering efforts began out of necessity. From the late 1980s to the early 1990s, IBM suffered through a remarkably rapid fall from grace. In 1993, our stock price had collapsed, hitting a 20-year low, and the company posted an $8.1 billion loss. In the early 90s, our way of computing and our way of working with customers were viewed as antiquated. What’s more, we struggled under the weight of a management structure that created independent business units with redundant processes and disconnected information systems . With a plan to break up the company on the table, IBM hired Lou Gerstner as CEO in April 1993. Gerstner realized that the value IBM offered to customers was its ability to provide end-to-end solutions to business problems. So Gerstner reversed course, and set a strategy to create a unified, integrated company . Successful execution of this “One IBM” strategy would require an intense focus on remaking IBM . Without integrating internally, we could never realize the promise of an end-to-end solution provider strategy. IBM’s comeback in the ‘90s is considered one of the great turnarounds in American business history. Under Sam Palmisano’s leadership, IBM embarked on the next leg in its transformation journey, beginning in 2002. The destination now is to become the showcase example of an on demand business and innovation company. Our transformation today is no longer necessitated by a burning platform and a struggle for survival, but rather driven by a collective aspiration to make a very good company once again a great company -- and to be true to our values, delivering innovation that matters for IBM and the world .
  • Purpose of the Chart: Demonstrate to the client that IBM Global Business Services has the resources capabilities to help them. Key Points to Highlight: IBM is about business value and that’s where IBM Global Services comes in—business value lies both at the heart of Supply Chain Management. 2) Through SCM, we bridge the gap between clients’ business objectives and IT operations to deliver lasting, measurable business value. We take the time to understand both our clients’ business and objectives, so that working together both IBM and our clients achieve success. 3) IBM’s Global Services Promise IBM Global Services is focused on what matters most—working with you to provide the right business and technology services that deliver real business outcomes. We harness our insight into your industry, technology leadership and hands-on experience to deliver services that help increase the growth, efficiency and ongoing flexibility of your business, making it easier to anticipate and respond to your market and improve your ability to serve your customers. Transition Point “ The matrix of IBM Global Business Services organization supports a single structure, to leverage the top Supply Chain skills from each service area.”
  • In fact, we like to say It’s a great time to be an innovator.
  • Transcript

    • 1. IBM GLOBAL BUSINESS SERVICES Charleston Defense Contractors Association October 22, 2009
    • 2. IBM’s Transformation: An Ongoing Journey From regaining customer and shareholder confidence during the “ burning platform” days of the early ’90s to building a new model for growth in the 21 st century, IBM has more than a decade of deep experience in business transformation 1984 1992 2004 2005 2006
    • 3. IBM 101 – Orientation We do more than make computers…. IBM Corporation has Six Major Components: Our Vision: To be the world’s leading business partner, trusted to unlock economic advantages by delivering innovative business and technology solutions 1. Global Business Services 2. Global Technology Services 3. Software 4. Hardware 5. Global Financing 6. Research IBM Global Services provides over 50% of IBM’s annual revenue ($58.9B in 2008)
    • 4. IBM Global Business Services (GBS) is a partner of unmatched breadth and depth
      • The world’s largest consulting organization
      • 60,000 consultants and professional staff world wide – including a dedicated staff for Federal and DoD work.
      • 23.3% of Public Sector Revenue ($1,105M) in 2008 went to small business concerns (includes SDB, WOSB & HBCUMI)
      • Partnerships with leading-edge Independent Software Vendors
      • Organized into 7 functional areas spanning a broad set of services
      Industry Sectors Service Lines Strategy & Change Supply Chain Management Human Capital Management Customer Relationship Management Financial Management Application Services Business Analytics & Optimization Financial Services Communications Distribution Industrial Public
    • 5. Strategy & Change Solutions Organization Change Strategy Building the change architecture and organizing the people enablers Technology Strategy Determining strategic possibilities and realities of technology Business Strategy Determining where and how to invest resources and leadership attention Operations Strategy Designing and implementing successful operating models
    • 6. Supply Chain Management Solutions Modeling/ Simulation Supply Chain Strategy Enterprise Applications Supply Chain Planning Product Lifecycle Management Procurement World-Class Analytics to gain clear insight into problems/ solutions Implementation Strategies to deliver results Fact-Finding and Analysis Design and Implementation
    • 7. Human Capital Management Solutions People Strategy HR Service Delivery & Process HR Management Systems HR Business Transformation Outsourcing Corporate Learning Strategy and Organization Business Applications and Process Training Performance Leadership Portal Strategy Business Case Development Knowledge management Learning & Development Better HR More From People On Demand Workplace
    • 8. Customer Relationship Management Solutions CRM Vision & Strategy Constituent Centric Business Transformation Analysis and Roadmap Business Intelligence Unique Organizational Insights Through Data Collection, Management and Analysis Case Management Breakthrough thinking to exponentially improve largest, most complex folio workflows Contact Center Integrated Contact Center Solutions Field Services Comprehensive closed-loop solutions for event driven and dispatched activities eService Sailor/Soldier centric solutions for transacting over the web:
    • 9. Financial Management Solutions Performance Management & Analytics Finance Enterprise Applications Finance Operations Improvement FM combines the full suite of strategy, process, and technology offerings in one service Business Risk Management Vision and Blueprint Finance Diagnostics Finance Strategy
    • 10. Application Innovation Solutions (AIS)
      • Application Development Solutions
      • Custom software development
      • Legacy system migration & App Maintenance Services (via AMS partnership)
      • Enterprise Architecture & Technology
      • Enterprise Architecture development
      • SOA/WS Initiative
      • Technology Services & Operational Support
      • Enterprise IT Management
      • Infrastructure consolidation and Support
      • High Performance Computing
      • Security & Privacy – Wireless Solutions
      • Security architecture and infrastructure
      • IBM Secure Wireless Infrastructure System (SWIS)
      • Wireless end-to-end Broadband Solutions
      • Integration Services
      • Application integration services using middleware technologies such as WebSphere, MQ, and Web Services
      • Enterprise data architecture data quality and enterprise reporting services
    • 11. BA&O services and product capabilities
      • Identify and prioritize opportunities for improvement
      • Change business processes and operations to exploit analytics
      • Implement management systems to maintain control and achieve goals
      • Report outcomes of business processes and programs
      • Automate management dashboards and scorecards
      • Create planning, Budgeting, & Forecasting tools
      • Apply advanced statistical and regression analysis upon historical data for predictive decision-making
      • Integrate optimization algorithms and technology into operations
      • Ensure robust and trusted data is available when needed and is easy to consume
      • Provide a consolidated and efficient information platform to support optimization initiatives
      • Manage document & records, including archives
      • Manage structured and unstructured content
      • Manage digital assets & rights
      • Provide efficiency and transparency to complicated workflows
      BAO Strategy Service Areas Role Business Intelligence & Performance Management Advanced Analytics and Optimization Enterprise Information Management Enterprise Content Management
    • 12. We want to team with you and are looking for local teammates with….
      • Experienced and available staff
      • Knowledge of clients
      • Good financial standing
      • Past performance relevant to the pursuit
      • Appropriate certifications
      • Well defined capabilities
    • 13. What we have learned from teaming with smaller businesses….
      • We increase a team’s reachback dramatically
        • Access to solutions and clients from public sector engagements globally
        • Access to IBM R&D,
        • Access to intellectual capital and resources from commercial practices
      • We often add excellent past performance examples to the bid
      • We offer excellent skills, methodologies and certifications
        • It’s not uncommon for IBM to fill the PM slot on bids with small businesses
      • We may make it hard to hit an average cost target (let’s admit it…)
        • Strategies
          • Participate in a limited set of labor categories
          • Declare IBM a commercial item
          • We are working on regional pricing models
    • 14. Questions?
      • Chris Lyons
      • Navy Account Manager
      • Global Business Services
      • [email_address]
      • (703) 653-7469
      Robert G. Thompson Charleston Area Rep Global Business Services [email_address] (843) 200-6700
    • 15. Additional Detail
    • 16. Strategy & Change Solutions Business Strategy Determining where and how to invest resources and leadership attention Operations Strategy Designing and implementing successful operating models Organization Change Strategy Building the change architecture and organizing the people enablers Technology Strategy Determining strategic possibilities and realities of technology
      • Change Management
      • Stakeholder Mgmt.
      • Communications Strategy
      • Value (Benefits) Realization
      • IT Organization Design
      • Transition Mgmt.
      • Workforce Transformation
      • Lean Six Sigma
      • Rapid Process Change (BPR)
      • Shared Services design
      • BTO and Sourcing Strategy
      • Transformation Program Governance
      • WBI Modeler
      • Business Enterprise Architecture
      • Component Based Bus. Modeling (CBM)
      • IT Portfolio Mgmt.
      • IT Sourcing Strategy
      • IT Transformation
      • IT Capability Assess.
      • Strategic and Program Planning
      • Performance Mgmt. & Balanced Scorecard
      • Capital Planning and Investment Strategy
      • Strategic Leadership Program (SLP)
    • 17. Supply Chain Management Solutions Modeling/ Simulation Supply Chain Strategy Enterprise Applications Supply Chain Planning Product Lifecycle Management Procurement IBM’s world renowned modeling approach to optimize performance Business Objectives, Performance Goals, Process Analysis and Transformation, Metrics Forecasting, advanced planning, scheduling and distribution ERP selection, implementation and integration Inventory, maintenance management, Telematics, autonomics and EAM Solution applications World-Class Analytics to gain clear insight into problems/ solutions Implementation Strategies to deliver results Fact-Finding and Analysis Design and Implementation Procurement Assessment, Strategic Sourcing, Procurement Application Implementation, Supplier enablement
    • 18. Human Capital Management Solutions
      • People Strategy
      • Intellectual Capital Mgmt.
      • Talent Management
      • Workforce Analysis & Design
      • HR Service Delivery & Process
      • HR Delivery model assessment
      • HR Delivery model design and implementation
      • HR Process improvement
      • HR Management Systems
      • HR System Strategy & Architecture
      • HR System Improvement
      • HR System Optimization
      • HR Business Transformation Outsourcing
      • Learning & Development
      • Corporate Learning Strategy and Organization
      • Business Applications and Process Training
      • Business Skills Training
      • eLearning Technologies
      • eContent
      • Learning Managed Services
      • Portal Strategy
      • Business Case Development
      • Roles, Processes and Governance
      • Planning, Design & Implementation
      • Architectural Selection
      • Knowledge Management
      • Performance Leadership
      • Performance Measurement & Management
      • Workforce Planning
      • Culture Transformation
      On Demand Workplace Learning & Development Better HR More From People On Demand Workplace
    • 19. Customer Relationship Management Solutions CRM Vision & Strategy
      • Constituent Centric Business Transformation Analysis and Roadmap:
        • CRM Strategy
        • Business Case / ROI
        • Strategic Program Development
        • CRM Process Reengineering
        • Diagnostics & Assessments
        • Change Management
      Business Intelligence
      • Unique Organizational Insights Through Data Collection, Management and Analysis:
        • Analytics
        • Survey Research
        • Data Warehousing
        • Program Evaluation
        • WebFountain
      Case Management
      • Breakthrough thinking to exponentially improve largest, most complex folio workflows:
        • Single View of Constituent Information
        • Common Front-end
        • Replacement of Core Processing Applications
        • Cross Agency Data Sharing (enterprise)
        • Integrated / Collaborative Service Delivery
        • End to End Case Processing
      Contact Center
      • Integrated Contact Center Solutions:
        • Call Center/Help Desk
        • Multi-Channel Integration
        • CTI & IVR
        • eMail Response
      Field Services
      • Comprehensive closed-loop solutions for event driven and dispatched activities:
        • Distance Support
        • Field Dispatch
        • Maintenance Depot, Parts Management
        • Field Service Effectiveness & Measurement
      eService
      • Sailor/Soldier centric solutions for transacting over the web:
        • Self Service
        • Enterprise Information/Content Management
        • Portals
    • 20. Financial Management Solutions Performance Management & Analytics Finance Enterprise Applications Finance Operations Improvement
      • Enterprise Performance Management & Reporting
      • Data Warehouse and Datamart design and implementation
      • Activity Based Costing and Management
      • Planning / Forecasting/ Budgeting
      • Analytic Apps / ERP (includes Hyperion, AGS and SAS)
      • SAP / Oracle / AMS / PeopleSoft financials architecture, design, selection, implementation and integration
      FM combines the full suite of strategy, process, and technology offerings in one service Business Risk Management
      • Finance Process Optimization
      • Shared Services
      • F&A Outsourcing
      • Benchmarking
      • Business Risk Assessment & Mitigation
      • Internal Controls (SOX)
      Vision and Blueprint Finance Diagnostics Finance Strategy
    • 21. Application Innovation Solutions (AIS)
      • Custom software development
      • J2EE / open source development
      • COTS product integration
      • Configuration management
      • Rational life-cycle support
      • Test strategy, planning, execution
      • CMM/CMMI
      • Legacy system migration & App Maintenance Services (via AMS partnership)
      • Enterprise Architecture development
      • SOA/WS Initiative
      • Technical Solution Architecture
      • Performance Engineering
      • Web content management, enterprise content management and portal solutions services
      • Data Management / Business Analytics
      • Data warehousing, data mining, data integration, data conversion, data modeling, data and database administration
      • Enterprise data architecture data quality and enterprise reporting services
      • Enterprise IT Management
      • Infrastructure consolidation and Support
      • Operating System Support, including Linux .
      • High Performance Computing
      • Systems Engineering
      • Web Hosting / SDC Interface
      • Business Operations Mgt
      • Project Mgt Office Consulting
      • EVM Support
      • Federal ITS Solution Competencies
        • On Demand Infrastructure
        • Business Resilience
        • Operational
        • Technology
      • Security & Privacy
      • Security architecture and infrastructure
      • Application Control Assessment
      • Technology implementation
      • Information Assurance
      • Security Operations Center
      • In-Line Baggage
      • Wireless
      • IBM Secure Wireless Infrastructure System (SWIS)
      • Wireless end-to-end Broadband Solutions
      • Enhanced Hospital Communication Solution
      • Enhanced Campus Communication Solution
      • Secured Trade Lanes
      • RFID
      • Emerging Technology
      • Collection Instrument for Cost & Performance Management (CPM)
      • Machine Language Translation
      • Ent Info & Data Stewardship Arch(EIDSA)
      • Application integration services using middleware technologies such as WebSphere, MQ, and Web Services
      • Portals / Content Management
      Application Development Solutions Integration Services Technology Services & Operational Support Security Privacy & Wireless Solutions Enterprise Architecture & Technology