Downloaded 16 times
IBM\'s Transformational Journey
- 1. United States Brazil Canada Puerto Rico Great Britain France Romania Cardinal Points Group Japan China Singapore Navigating Business Success Australia New Zealand Spain IBM’s Transformational Journey Austria Belgium Germany Russia Italy Belgium "Experience is a hard teacher because she Slovenia Slovakia gives the test first, the lesson afterwards." Sweden – Unknown Denmark Finland Poland Nigeria Kenya © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved South Africa
- 2. Happy Birthday 100 years old and counting… “No one ever got fired for buying IBM” Brand Statement © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 3. Vision Its view of a “network- THEN centric” future driven by the Cover of IBM’s desire of people and 1995 enterprises to connect to Annual Report other people and enterprises around the world…. NOW + + = Instrumented, Interconnected, Intelligent… A Smarter Planet © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 4. Recent History International Business Machines Corp (IBM) Jan 25, 2011: 161.61 +0.17 +0.11% Open: 161.67 High: 161.76 Low: 160.42 Gerstner Palmisano © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 5. Revenue Mix (Millions) Change 1993 2002 2010 since 1993 Hardware 30,591 49% 27,456 34% 16,983 17% 13,608 -44% Software 10,953 17% 13,074 16% 21,978 22% 11,025 101% Services 17,006 27% 36,360 45% 56,943 57% 39,937 235% Finance & Misc 4,166 7% 4,296 5% 1,998 2% 2,168 -52% 62,716 100% 81,186 100% 99,900 100% 37,184 59% Full-Year 2010 highlights: • Diluted earnings per share of $11.52, up 15%, 8th consecutive year of double-digit EPS growth • Record net income of $14.8 billion, up 10% • Record free cash flow of $16.3 billion, up $1.2 billion • Gross profit margin of 46.1 percent, 7th consecutive year of increase © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 6. Subtle Changes Divestitures Acquisitions PC Company PWC Consulting Division Networking Division ISS HDD Business Cognos Printer Division Maximo Filenet 116 Acquisitions since 2002 © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 7. Other Key DataPoints 1993 2010 Employees 300,000 400,000 Business Partners 10,000 1,500 Value Distributors 33 2 Many Untold Stories © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 8. Copycats Dell to AcquirePerot Systems for $3.9 Billion, Creating Comprehensive, Customer-Focused IT- Solutions Company HP to Acquire EDS for $13.9 Billion, Transaction expected to more than double HP's revenue from services, furthering its standing as world's largest technology company Xerox to Acquire Affiliated Computer Services, for $6.4 Billion, Creating a new class of Solution Provider “Imitation is the most sincere form of flattery” © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 9. Food for thought… “Culture is everything” “You can’t improve what your not measuring” “Expect only what you inspect” © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 10. Sample Partner Epitaphs “We didn’t want to see it coming” “Died from a thousand paper cuts” “Was too afraid to change” “Not only did we miss the boat rather, we missed the ocean” “Didn’t move fast enough” “Too little, too late” © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 11. Tough Questions forPartners What’s our opportunity? How do we fit in? Are we ready for this journey? Where do we go from here? How do we transform? What’s our Investment? How much is the ROI? © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved
- 12. Contact Information Warren R. Turner wturner@cardinalpointsgroup.com http://www.linkedin.com/in/warrenturner (O) 770-913-0048 (M) 404-664-6000 © 2011 Copyright Cardinal Points Group, LLC All Rights Reserved