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International Business Machines

International Business Machines. By Robert Muth Real-World Case Pg. 597. AGENDA. Case Summary IBM Outlets Conversion to E-Business Strategy to Conversion Success Factors Future Trends Conclusion. Case Summary.

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International Business Machines

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  1. International Business Machines By Robert Muth Real-World Case Pg. 597

  2. AGENDA • Case Summary • IBM Outlets • Conversion to E-Business • Strategy to Conversion • Success Factors • Future Trends • Conclusion

  3. Case Summary • IBM has been a strong force in the Computer Hardware Industry since the 1940’s despite increased competition • IBM changed to an E-Business strategy in 1999 • IBM website

  4. Case Summary (cont. 1) • To carry out the transformation, IBM created the Enterprise Web Management branch • EWM goals • To lead IBM’s strategic transformation • Help IBM’s business units become more internet suave • Establish the strategy of IBM’s internet site • Record information created by the website

  5. Case Summary (cont. 2) • The Transition • Simplification of internal business processes • Streamlining of processes • Increased efficiency • Results returned a profit for IBM • Now collaborates with suppliers, online purchasing, and knowledge/management based applications • Reduced cost and improved purchasing

  6. IBM Outlets • Hardware: servers, storage, printing systems, retail store solutions • Software: connect OS’s, business procedures, and applications seamlessly • Services: comprehensive IT services to reduce costs, increase productivity, and assert competitive advantages • Financing: provider of financing and management services

  7. IBM Outlets (cont. 1) • Research: creating innovative technologies with leading-edge solutions • Technology: develop, market, and deliver leading chip technologies/services

  8. Pre-Transition • Procedural Conversions • Smoothing out business processes • A simpler procedure is quicker and more efficient, both qualities are needed for successful E-Business

  9. Transformation-Initiation • IBM started moving toward being a comprehensive E-Business • Carried out online business transactions through: • Internet • Intranet • Extranet • With suppliers, Business Partner Network, and employees

  10. Transformation-Formulation • Strategy to fund only E-Commerce projects that promised high Return on Investment • Investing in many projects increases chances of success in comparison to only investing in one low-risk project

  11. Transformation-Implementation • Carried out by the Enterprise Web Management branch • EWM aided in converting the different business units to Internet using domains

  12. Success Factors • Investing in multiple projects/areas • By doing so, increased chances of success • Previous and still existing brick-and-mortar business to base the extension of E-Commerce off of

  13. IBM’s Future • Continue to become more heavily involved in E-Commerce • The process of the conversion has improved speed and efficiency of the company • Process has also increased profits

  14. Industry Trend • Computer Hardware continues to increase in importance • IBM holds a large customer base and has high customer loyalty within the industry • IBM’s flexibility continues to gain value within the industry • Main competition is Dell • Second strongest competitor is Apple, with less than ¼ the market cap as IBM

  15. Conclusion • IBM will remain a major competitor in the Computer Hardware Industry • IBM will continue to adapt to the changing global environment • IBM could try to embrace change a little more readily, rather than waiting for others to do it first

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