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.
IBM GLOBAL BUSINESS SERVICES Charleston Defense Contractors Association October 22, 2009
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
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)
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
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
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
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
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:
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
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
Value (Benefits) Realization
IT Organization Design
Lean Six Sigma
Rapid Process Change (BPR)
Shared Services design
BTO and Sourcing Strategy
Transformation Program Governance
Business Enterprise Architecture
Component Based Bus. Modeling (CBM)
IT Portfolio Mgmt.
IT Sourcing Strategy
IT Capability Assess.
Strategic and Program Planning
Performance Mgmt. & Balanced Scorecard
Capital Planning and Investment Strategy
Strategic Leadership Program (SLP)
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