Download - Ibm
From Year 2007-2009
IBM Three Year Strategic Plan
Corporate Profile
New Orchard Road, Armonk, New York, U.S.A.
Industry: Information Technology
Sector: Diversified Computer Systems
Rankings:
Fortune500 Apr 17 2006: 10th overall
FT Global 500: 13th overall
Dow Jones: Global Titans (Industrial)
2
IBM Three Year Strategic Plan
Business Operations
IBM delivers on demand solutions through the following business segments:
– Software
– System and Financing
– Services
3
IBM Three Year Strategic Plan
4
IBM Three Year Strategic Plan
TASK DISTRIBUITION
5
INTRODUCTION
MISSION & VISION STATEMENT
IMPROVED AND EVALUATE STATEMENTS
INTERNAL ASSESSMENT
IBM Three Year Strategic Plan
CONT…
EXTENAL ASSESSMENT
STRATEGY FORMULATION
6
IBM Three Year Strategic Plan
CONT…
Recommendations
STRATEGY IMPLEMENTATION
STRATEGY EVALUATION
CONCLUSION
7
IBM Three Year Strategic Plan
IBM’s Vision
“The last thing IBM needs right now is a vision. . . . I want to stay away from abstractions and deal with the marketplace. Our mission is to be the most successful information technology company in the world. O.K., you want a vision statement? Fine, you got it, now let’s go back to work.”
CEO Louis Gerstner, Jr.
8
IBM Three Year Strategic Plan
IBM’s Proposed Vision
IBM aims to be a globally integrated open source information technology enterprise, a worldwide leader in on-demand innovative solutions and services and a socially-responsible company
9
IBM Three Year Strategic Plan
MISSION STATEMENT
At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics.
We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.
10
IBM Three Year Strategic Plan
Components of Mission Statement
Components IBM Remarks
Customer No Mentioned but unspecified.
Products/Services Yes “Creation, development and manufacture”
Markets Yes “Worldwide” or global
Technology Yes Specified as “Information Technology”
Survival, Growth,Profitability
No Mentioned in IBM’s Principal Goals, “long termvalue to shareholders”.
Philosophy No Based on IBM’s Guiding Principles.
Self-Concept Yes Presumed by word “lead”. Based on IBM’sNew Industry Model.
Concern for Public Image
No Mentioned in 2005’s IBM’s Business Model
Concern for Employees No Mentioned in 2005’s IBM’s Business Modeland Business Conduct Guidelines.
11
IBM Three Year Strategic Plan
Proposed Mission Statement
At IBM, we strive to lead in the creation, innovation, development and manufacture of the industry's most advanced information technologies, including hardware, software, networking systems, and Robotics.
We translate these advanced technologies into competitive value for our individual and corporate customers through our professional on-demand solutions and dedicated business services, while consistently generating high returns for our shareholders, and a shared commitment to our employees and the world.
12
IBM Three Year Strategic Plan
Business Values
Dedication to every client's success
Innovation that matters, for our company and for the world
Trust and personal responsibility in all relationships.
13
IBM Three Year Strategic Plan
Competitor Mission Statement (Microsoft)
Our Mission;At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.
Step 3
IBM Three Year Strategic Plan
Ratio Analysis
16
IBM Three Year Strategic Plan
Conti….
17
IBM Three Year Strategic Plan
Conti….
18
IBM Three Year Strategic Plan
Conti….
19
IBM Three Year Strategic Plan
Organizational Chart
20
1313
11
3322151510109988
18181717 1919
111144 1616
667755
12121414
IBM Three Year Strategic Plan
Flatter Organization Structure
21
11
12121414
1313
18181717 1919
667755
33226688991010 44 5577
IBM Three Year Strategic Plan
Market Poisoning Map
22
IBM Three Year Strategic Plan
Marketing strategies
IBM's new accessibility ad campaign focuses on what people can do, not what they can't.
IBM Systems Magazine
Impression-based to Impact-based formats
23
IBM Three Year Strategic Plan
24
IBM Three Year Strategic Plan
25
IBM Three Year Strategic Plan
Value Chain Analysis
Firm infrastructure
– Supply chains of IBM are becoming more complex, harder to manage and more costly to run
– In fact, nearly $3.4 trillion was spent on supply chains in 2006
– IBM’s (2006) Business Performance Management enables companies to visualize end-to-end processes across business and IT systems
26
IBM Three Year Strategic Plan
CONTI……
Procurement
– Business Partner relationships with establishment, best-of-breed Supply Chain Management solution providers.
– Acquisitions and mergers in order to improve their businesses on the high value products and services
– IBM's supply, manufacturing and logistics and customer fulfillment operations are integrated in one operating unit that has reduced inventories
27
IBM Three Year Strategic Plan
E-Commerce Efforts
28
IBM Three Year Strategic Plan
E-Commerce Efforts
29
http://www.ibm.com
http://www.ibm.com/support/
IBM Three Year Strategic Plan
Value of the Firm Analysis
30
Items 31-12-04 31-12-05 31-12-06
Total current assets 46,970,000 45,661,000 44,660,000
Total assets 109,183,00 105,748,000 103,233,000
Total current liabilities
39,798,000 35,152,000 40,090,000
Total liabilities 79,436,000 72,650,000 74,727,000
Total Stockholder Equity
29,747,000 33,098,000 28,506,000
Net Tangible Assets $19,521,000 $21,994,000 $13,450,000
IBM Three Year Strategic Plan
Strengths
Professional technical & managerial staff.
Global Integration
A Flatter Organization
Greater Operational Efficiency
Internal Competitive Advantage
Direct sales via mail, phone orders, and the Internet
Well-known Brand Name
31
IBM Three Year Strategic Plan
Conti….
Relationship with the company’s large corporate and government customers and continues to focus on these sales and service relationships
Technology Leader
Financial Recourses
32
IBM Three Year Strategic Plan
Professional technical & managerial staff
IBM has approximately 329,000 employees in 75 countries, and serving clients in 174 countries.
IBM has one of the most
Highly educated workforces
in the world. More than
200,000college graduates,
nearly 54,000 with
post-graduate degrees.
33
IBM Three Year Strategic Plan
Global Integration – a single global system
Global Delivery Centers
Globally Integrated Manufacturing
Globally Integrated Corporate Functions
Global Skills Marketplace
34
IBM Three Year Strategic Plan
Conti…
Global Delivery Centers
35
IBM Three Year Strategic Plan
Conti…
Globally Integrated Manufacturing
36
IBM Three Year Strategic Plan
Conti…
Globally Integrated Manufacturing
37
IBM Three Year Strategic Plan
Conti…
Globally Integrated Manufacturing
38
IBM Three Year Strategic Plan
Greater Operational Efficiency
Reduced Costs
Decreased inventory
Speedier procurement
39
IBM Three Year Strategic Plan
Technology Leader 1990: RISC System/6000
1991: Magnetoresistive heads
1992: ThinkPad
1993: IBM on space (SS/Endeavor, Hubble)
1994: Supercomputing
1995: elementary particle “glueball”
1996: Network Computers for e-Business
1997: e-Business; Deep Blue
1998: 1 GHz microprocessor (experimental)
1999: system-on-a-chip.
40
IBM Three Year Strategic Plan
2000- 2006 Advanced Technologies
IBM eServer, Commercial version of ASCI White, NetVista brand, ThinkPad X series, ViaVoice for Windows
ThinkVantage Technologies, Grid Computing
Enterprise Privacy Authorization Language (EPAL)
DB2 Information Integrator software, TotalStorage
“Cell” microprocessor (jointly with Sony and Toshiba)
Service oriented architecture (SOA).
41
IBM Three Year Strategic Plan
Weaknesses
Older and Aging Technical Personnel.
Non-acceptance of international agreements and standards proposed by international bodies.
IP and Copyright Infringement
Merger and Acquisitions Issues.
Diversity and Workforce Issues
42
IBM Three Year Strategic Plan
Older and Aging Technical Personnel
43
IBM Three Year Strategic Plan
Conti…..
Non-acceptance of international agreements and standards (CSR, Global Compact of UN), standards proposed by international bodies (ISO, GR Initiative, IncoTerms).
44
IBM Three Year Strategic Plan
Conti…..
Merger and Acquisition Issues.
45
IBM Three Year Strategic Plan
46
.10.1011.10.10Diversity and Workforce IssuesDiversity and Workforce Issues
.20.2022.10.10 Merger and Acquisitions Issues. Merger and Acquisitions Issues.
.10.1022.05.05IP and Copyright InfringementIP and Copyright Infringement
.30.3033.10.10Non-acceptance of international agreementsNon-acceptance of international agreements
.10.1022.05.05Older and Aging Technical PersonnelOlder and Aging Technical Personnel
WeaknessWeakness
.40.4044.10.10 Well-known Brand Name Well-known Brand Name
2.752.751.001.00TOTALTOTAL
.45.4533.15.15 Greater Operational Efficiency Greater Operational Efficiency
.20.2022.10.10A Flatter OrganizationA Flatter Organization
.30.3033.10.10Global IntegrationGlobal Integration
.60.6044.15.15Professional technical & managerial staffProfessional technical & managerial staff
Weighted
score
Weighted
scoreRatingRatingWeightWeight
IBM—Key Internal FactorsStrengths
IBM—Key Internal FactorsStrengths
Step 4
IBM Three Year Strategic Plan
Major Competitors
48
IBM Three Year Strategic Plan
Conti…..
49
IBM Three Year Strategic Plan
Industry Comparison
50
IBM Three Year Strategic Plan
CPM IBM Microsoft HP
51
3.003.003.40
3.40
3.35
3.35
1.001.00TotalTotal
0.300.30330.30
0.30
440.30
0.30
330.100.10Quality ProductsQuality Products
0.400.40440.30
0.30
330.30
0.30
330.100.10Knowledge ManagementKnowledge Management
0.450.45330.60
0.60
440.60
0.60
440.150.15Global Innovation Forerunner
Global Innovation Forerunner
0.30.3330.30.3330.40
0.40
440.100.10Technology LeaderTechnology Leader
0.150.15330.20
0.20
440.15
0.15
330.050.05Customer Loyalty Customer Loyalty
0.200.20220.30
0.30
330.40
0.40
440.100.10Research & DevelopmentResearch & Development
0.800.80440.60
0.60
330.60
0.60
330.200.20Financial PositionFinancial Position
0.400.40220.80
0.80
440.60
0.60
330.200.20Market ShareMarket Share
Score
Score
Rating
Rating
Score
Score
Rating
Rating
Score
Score
Rating
Rating
Weight
Weight
Critical Success Factor
Critical Success Factor
IBM Three Year Strategic Plan
Opportunities
Shift from commodity to annuity and transactional, from products to solution based segments.
Seizing future high-growth opportunities
Forerunner in IT’s shift to Open Computing
Emphasis on Corporate Data Security.
Joint Venture with any firm in Robotics
Resolution of Antitrust Lawsuit
52
IBM Three Year Strategic Plan
Shift of Business and Revenue Mix
53
IBM Three Year Strategic Plan
Seizing future high-growth opportunities
54
IBM Three Year Strategic Plan
Conti….
55
IBM Three Year Strategic Plan
Emphasis on Corporate Data Security
EduCause 2006 Survey: “Security and Identity Management edges out Funding IT as the top challenge.”
Gartner: Compliance, security and mobility for Midsize Enterprise will affect 2006 IT decisions.
56
IBM Three Year Strategic Plan
Robotics Sector
57
IBM Three Year Strategic Plan
Threats
Increasing Share of competitors
Weakened Dollar and Market Risks
Aftermath of 9/11 to foreign markets’ access
Influx of Offshore Outsourcing
Revival of IT Venture Capitalists and Startup Companies.
58
IBM Three Year Strategic Plan
Increasing Share of competitors
59
IBM Three Year Strategic Plan
Weakened Dollar and Market Risks
60
IBM Three Year Strategic Plan
Aftermath of 9/11 to foreign markets’ access
61
IBM Three Year Strategic Plan
62
.20.2011.15.15Revival of IT Venture CapitalistsRevival of IT Venture Capitalists
.20.2022.10.10 Influx of Offshore Outsourcing Influx of Offshore Outsourcing
.10.1022.05.05 Aftermath of 9/11 to foreign markets’ access Aftermath of 9/11 to foreign markets’ access
.15.1533.05.05 Weakened Dollar and Market Risks Weakened Dollar and Market Risks
.20.2022.15.15 Increasing Share of competitors Increasing Share of competitors
ThreatsThreats
.80.8044.20.20 Joint Venture with any firm in Robotics Joint Venture with any firm in Robotics
2.652.651.001.00TOTALTOTAL
.60.6044.15.15 Emphasis on Corporate Data Security. Emphasis on Corporate Data Security.
.10.1022.05.05 Forerunner in IT’s shift to Open Computing Forerunner in IT’s shift to Open Computing
.15.1533.05.05Seizing future high-growth opportunitiesSeizing future high-growth opportunities
.15.1533.05.05 Shift of Business and Revenue Mix Shift of Business and Revenue Mix
Weighted
score
Weighted
scoreRatingRatingWeightWeight
IBM—Key External FactorsOpportunities
IBM—Key External FactorsOpportunities
Step 5
IBM Three Year Strategic Plan
64
IBM Three Year Strategic Plan
65
IBM Three Year Strategic Plan
66
IBM Three Year Strategic Plan
67
IBM Three Year Strategic Plan
IBM’s SPACE Matrix
68
IBM Three Year Strategic Plan
69
IBM Three Year Strategic Plan
70
IBM Three Year Strategic Plan
IBM’s IE Matrix
71
IBM Three Year Strategic Plan
IBM’’s Summary of Strategies Based on Porter’s Value Chain
72
IBM Three Year Strategic Plan
73
Quadrant IV
Horizontal diversificationJoint ventures
Quadrant IV
Horizontal diversificationJoint ventures
Quadrant III
Horizontal diversification
Quadrant III
Horizontal diversification
Quadrant IMarket
developmentMarket penetration
Product development
Backward integrationHorizontal
integration
Quadrant IMarket
developmentMarket penetration
Product development
Backward integrationHorizontal
integration
Quadrant IIMarket
developmentMarket penetrationProduct
developmentHorizontal
integrationDivestiture
Quadrant IIMarket
developmentMarket penetrationProduct
developmentHorizontal
integrationDivestiture
RAPID MARKET GROWTHRAPID MARKET GROWTH
WEAK
COMPETITIVE
POSITION
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
SLOW MARKET GROWTHSLOW MARKET GROWTH
Grand Strategy Matrix
IBM Three Year Strategic Plan
74
Strong Competitive
Position
Slow Market Growth
Weak Competitive
Position
Quadrant III Quadrant IV
Rapid Market Growth
Quadrant II Quadrant I
Conti…..
IBM Three Year Strategic Plan
75
Strategic Alternatives
Key Internal Factors Weight
Emphasis on Corporate Data
Security.
Joint Venture with firm in Robotics
Strengths Weight AS TAS AS TAS
Professional technical & managerial staff. 0.1 4 0.4 4 0.4Global Integration. 0.05 4 0.2 3 0.15A Flatter Organization 0.1 3 0.3 3 0.3Greater Operational Efficiency 0.15 3 0.45 3 0.45Internal Competitive Advantage 0.1 4 0.4 3 0.3Direct sales via mail, phone orders, and the Internet 0.2 3
0.64
0.8Well-known Brand Name 0.01 3 0.03 4 0.04Technology Leader 0.1 3 0.3 3 0.3Financial Recourses 0.05 3 0.15 3 0.15Weaknesses
Older and Aging Technical Personnel. 0.025 2 0.05 3 0.075Non-acceptance of international agreements and standards proposed by international bodies..
0.025 1
0.025
2
0.05IP and Copyright Infringement 0.1 2 0.2 3 0.3Merger and Acquisitions Issues 0.025 1 0.025 2 0.05Diversity and Workforce Issues 0.05 2 0.1 3 0.15SUBTOTAL 1.00 3.23 3.515
IBM Three Year Strategic Plan
Key External Factors Weight
Emphasis on Corporate Data
Security
Joint Venture with firm in Robotics
Opportunities Weight AS TAS AS TAS
Shift from commodity to annuity and transactional, from products to solution based segments 0.11 3 0.33 3
0.33Seizing future high-growth opportunities 0.10 4 0.4 4 0.4Forerunner in IT’s shift to Open Computing 0.09 3 0.27 3 0.27
Emphasis on Corporate Data Security. 0.11 4 0.44 4 0.44Joint Venture with any firm in Robotics 0.12 3 0.36 4 0.48
Resolution of Antitrust Lawsuit 0.09 3 0.27 4 0.36Threats
Increasing Share of competitors 0.11 2 0.22 2 0.22
Aftermath of 9/11 to foreign markets’ access 0.06 1 0.06 1 0.06
Influx of Offshore Outsourcing 0.05 1 0.05 2 0.1
Revival of IT Venture Capitalists and Startup Companies. 0.09 2 0.18 2 0.18
Weakened Dollar and Market Risks 0.07 1 0.07 2 0.14
SUBTOTAL 1.00 2.65 2.98
SUM TOTAL ATTRACTIVENESS SCORE 5.88 6.495
IBM Three Year Strategic Plan
Recommendations
Strategies to be Continued;
– IBM signed an $84.4 million deal with Spanish utility Iberdrola to develop new information technologies and provide services for utility.
– IBM is creating a Global Center of Excellence for Nuclear Power in France to build a Nuclear power plant
– IBM is capitalizing on the global warming-triggered revival of interest in nuclear power as an alternative to coal-fired plants.
77
IBM Three Year Strategic Plan
Conti….. New Strategies to be Started
– Joint venture with National Robotics Engineering Consortium that need finances and technology help to made new generation Robots; for entering Robotic sector that is a future of world. The Joint Venture need an amount of $ 5,300M for fulfillment of all terms and condition of this strategy. Company get this amount through issuing of share or bonds.
– IBM focus more on resolving of corporate security issue. For this purpose company focus more on developing such devices or software that give 100% guarantee of solving corporate internal and external security problem. For this purpose company use its retained earning and annual profits, if needed.
78
IBM Three Year Strategic Plan
Conti…..
IBM need a close focus toward growth technologies like “Information Based Medicine” that is a need of emerging world. For this purpose IBM use its exiting core competencies of hardware and a good relation of needed software to fulfill this unserved segment
79
Step 6
IBM Three Year Strategic Plan
EPS/EBIT Analysis
$ Amount Needed: $ 5,300M
Tax Rate: 32%
Interest Rate: 7%
# Shares Outstanding: 31,271M
81
IBM Three Year Strategic Plan
82
Recession Normal Boom Recession Normal BoomEBIT $2,000,000,000 $4,000,000,000 $6,000,000,000 $2,000,000,000 $4,000,000,000 $6,000,000,000Interest 0 0 0 371,000,000 371,000,000 371,000,000EBT 2,000,000,000 4,000,000,000 6,000,000,000 1,629,000,000 3,629,000,000 5,629,000,000Taxes 640,000,000 1,280,000,000 1,920,000,000 521,280,000 1,161,280,000 1,801,280,000EAT 1,360,000,000 2,720,000,000 4,080,000,000 1,107,720,000 2,467,720,000 3,827,720,000# Shares 2,530,666,667 2,530,666,667 2,530,666,667 2,354,000,000 2,354,000,000 2,354,000,000EPS 0.54 1.07 1.61 0.47 1.05 1.63
Common Stock Financing Debt Financing
Recession Normal Boom Recession Normal Boom
EBIT $2,000,000,000 $4,000,000,000 $6,000,000,000 $2,000,000,000 $4,000,000,000 $6,000,000,000Interest 111,300,000 111,300,000 111,300,000 259,700,000 259,700,000 259,700,000EBT 1,888,700,000 3,888,700,000 5,888,700,000 1,740,300,000 3,740,300,000 5,740,300,000Taxes 604,384,000 1,244,384,000 1,884,384,000 556,896,000 1,196,896,000 1,836,896,000EAT 1,284,316,000 2,644,316,000 4,004,316,000 1,183,404,000 2,543,404,000 3,903,404,000# Shares 2,477,666,667 2,477,666,667 2,477,666,667 2,407,000,000 2,407,000,000 2,407,000,000EPS 0.52 1.07 1.62 0.49 1.06 1.62
70 Percent Debt - 30 Percent Stock70 Percent Stock - 30 Percent Debt
IBM Three Year Strategic Plan
83
Total Assets 2006 2007 2008 2009
Assets $ Million $ Million $ Million $ Million
Current assets:
Cash and cash equivalents 8022 9000 10000 11000
Marketable securities 2634 2800 2900 3000
Notes and accounts receivable 10789 11000 11500 12000
Short-term financing receivables 15095 16000 16500 16530
Other accounts receivable 964 1000 1100 1200
Inventories 2810 2900 3000 4000
Deferred taxes 1806 1803 1832 1865
Prepaid expenses and other current assets 2539 2550 3000 2590
Total current assets 44660 47053 49832 52185
Plant, rental machines and other property 36521 40000 41000 42100
Less: Accumulated depreciation (22082) (23000) (24000) (25000)
Plant, rental machines and other property—net 14440 17000 17020 17100
Long-term financing receivables 10068 8868 7668 6468
Prepaid pension assets 10629 11000 11050 12500
Goodwill 12854 13000 13050 13150
Intangible assets—net 2202 2500 1886 2403
Investments and sundry assets 8381 8500 8600 8700
Total Assets $103,234 $107,921 $109,106 $112,506
IBM Three Year Strategic Plan
84
Liabilities and Stockholders’ Equity 2006 2007 2008 2009Current liabilities: $Million $Million $Million $Million Taxes 4670 4700 4800 4900Short-term debt 8902 9000 9050 10000Accounts payable 7964 8000 9000 10000Compensation and benefits 4595 5435 4650 4700Deferred income 8587 8600 8700 8800Other accrued expenses and liabilities 5372 5500 5600 5700Total current liabilities 40091 41235 41800 44100Long-term debt 13780 15370 15370 15370Retirement and non-pension 13553 14000 14500 15000Other liabilities 7304 7500 7600 7700Total Liabilities 74728 78105 79270 82170Contingencies and Commitments 0 0 0 0Stockholders’ equity: Common stock, par value $.20 per share and additional paid-in capital 31271 32013 32013 32013Shares authorized: 4687500000 Retained earnings 52432 53000 53020 53520
Treasury stock, at cost (shares: 2006—501,987,771; 2005—407,279,343) (46296) (46296) (46296) (46296)Accumulated gains and (losses) not affecting retained earnings (8901) (8901) (8901) (8901)Total Stockholders’ Equity 28506 29074 29836 30336Total Liabilities and Stockholders’ Equity 103234 107179 109106 112506
IBM Three Year Strategic Plan
85
Consolidated Statement of Earnings 2006 2007 2008 2009Revenue: $Million $Million $Million $MillionGlobal Services 48,247 57896 69476 83371Hardware 22,499 26999 32399 38878Software 18,204 21845 26214 31457Global Financing 2,379 2855 3426 4111Other 94 113 135 162Total Revenue 91,424 109709 131651 157981Cost:Global Services 34,972 41966 50360 60432Hardware 14,175 17010 20412 24494Software 2,693 3232 3878 4654Global Financing 1,182 1418 1702 2042Other 107 128 154 185Total Cost 53,129 63755 76506 91807Gross Profit 38,295 45954 55145 66174Expense and Other Income:Selling, general and administrative 20,259 24311 29173 35008Research, development and engineering 6,107 7328 8794 10553Intellectual property and custom development income (900) (1080) (1296) (1555)Other (income) and expense (766) (919) (1103) (1324)Interest expense 278 334 400 480Total Expense and Other Income 24,978 29974 35968 43162Income from Continuing Operations Before Income Taxes 13,317 15980 19176 23012Provision for income taxes 3,901 4681 5617 6741Income from Continuing Operations 9,416 11299 13559 16271
IBM Three Year Strategic Plan
Liquidity Ratios
86
IBM Three Year Strategic Plan
Profitability Ratios
87
Step 7
IBM Three Year Strategic Plan
89
IBM Three Year Strategic Plan
90
IBM Three Year Strategic Plan
Published Sources of Strategy Evaluation
Fortune 1000, Fortune 500, Fortune 50
The Annual Report on American Industry
Business Week, Industry week and other publications
Rating Agencies
91
IBM Three Year Strategic Plan
Evaluation
Financial Objectives Projected Financial statements show a steady increase in
revenues by almost 10-15% that lead towards increase in shareholder wealth maximization
Non-Financial Benefits
Entry into new markets that is a requirement for growing world such as Robotics, Information based medicine etc
Grasping the major opportunities like resolving security problems lead toward higher satisfaction of corporate customer
92
Step 7
IBM Three Year Strategic Plan
94
Conclusion
Objective of Company
On-Going vs. New Strategies
Innovation
– R&D budget increases from 5.9% in 2004 to 6.4%, and 6.7% increase in 2006
– Innovation also lies in the core values
– Innovation-Jam