IBM has a long history dating back to 1911 and has transformed over the decades from a producer of tabulating machines and services into a global technology services and software company led by executives like Thomas Watson Sr., Lou Gerstner, and Sam Palmisano who implemented strategies shifting IBM away from hardware and towards higher value services and solutions. Under Gerstner and Palmisano, IBM divested low-value assets and acquired numerous software companies to build a portfolio focused on infrastructure, integration, and innovation to become a globally integrated enterprise.

1. Presented by Ryan Olsen ~ Ali Aldossary ~ Adair Gregory ~ Ahmad AlrashidiManagement 3800 – Business Policy & Strategy

2. The Roots1911 ~ Computer Tabulating Recording Co. (C-T-R)International Time Recording Company

3. Computing Scale Company of America

4. Produced meat/cheese slicers, commercial scales, industrial time recorders, tabulators & punch cards

5. 1,300 employees. 6 Plants. 1914 ~ Thomas J. Watson Sr. becomes General Manager

6. Thomas J. Watson Sr.Became President within 11 months of joining C-T-RCorporate Culture“THINK” mantraDark suits, ties, clean cut Company sports teams, family outings, and band (company songs)3 PrinciplesRespect for the individualService to the customerExcellence must be a way of lifeFocus on large scale tabulating solutions for customersRevenues doubled to over $9 million in first four yearsExpanded operations to Europe, South America, Asia, & AustraliaCTR becomes IBM in 1924♪ Our voices swell in admiration, ♪Of T. J. Watson proudly sing,He'll ever be our inspiration,To him our voices loudly ring,The I B M will sing the praises,Of him who brought us world acclaim,As the volume of our chorus raises,♪ Hail to his honored name. ♪

7. Early Years at IBMGrew business through acquisitions and investments in R&DGrew during the Great Depression as a result of government contracts1930s ~ One of the first companies to offer its employees group life insurance, survivor benefits, paid vacations The New Deal ~ Social Security Act of 1935IBM maintains employment records for 26 million people “…the biggest accounting operation of all time”WWII ~ IBM facilities used at governments disposal Produced bombsights, rifles, and engine parts

8. Only took 1% profit from government and established a fund for widows and orphans of IBM war casualtiesLeading the Way in Business Computing1944 ~ The Mark I

9. First machine that could execute long computations automatically

10. Took less than a second for an addition problem, 6 for a multiplication problem, and 12 for a division problem

11. $141 million revenue

12. 21,126 employees

13. 1981 ~ IBM Mainframe/5150

14. 70% market share

15. $26.2 billion in revenue

16. 341, 279 employeesA History of Progress

17. Key Issues @ IBMIBM hires 1st outside CEO, Lou Gerstner, on April 1, 1993

18. IBM’s strategic vision focuses on infrastructure and integration

19. IBM’s focus on open technologies and high value-added solutions

20. Sold off commodity low-value elements of portfolio and used the capital to purchase high-value extensions to software and services business

21. IBM’s done over 40 acquisitions of software companies under software group since 2000

22. Acquisition of PricewaterhouseCoopers

23. Become the premier globally integrated enterprise

24. Contemporary challenge for IBM is to help build a smarter planet

25. IBM in Middle EastHelp From an Outsider~ Louis V. Gerstner ~1991-1993 ~ $16 billion loss (100 days until bankruptcy)

26. Disassociated divisions ~ Software, Hardware, Services

27. Very decentralized and independent culture

28. Proprietary technology

29. Appointed in April, 93’

30. 1st outside higher level executive hire

31. Brought customers perspective ~