ibm...sm presentationn(final)

Presented By: Barkat Ullah Asad AzizHashmat UllahM. Hassan YousafM. Rafeh Umair

IBM “On Demand Business” Strategy

Asia Case Research CenterThe University of Hong Kong

Introduction To IBM

33

IBM in Growth Markets: over 140 countries

Latin America

Australia / New Zealand

ASEAN

Greater China Group

South Korea

Central & Eastern Europe

India / South Asia

Middle East & Africa

Q. 1) Strategic Objectives of IBM

• IBM Global Services

• IBM Research

• E-Business Strategy

• IT Innovation and Creative Solutions

• Consulting and Technology Integration

• Business Performance Transformation Services

• Business Process Outsourcing

• Market Growth

• Leader in Computer Machines

Q.2) Strategic Problems of IBM

• Declining in Core Business• Un-Productive Employees• Legal Anti-trust Problems• Strategic Decision Making

SWOT Matrix

STRENGTHS WEAKNESSES

• Brand Reputation• Leading provider of IT services• Strong Strategic Consultancy• Strong research and development capabilities

• Weak enterprise mobility product

portfolio• Expensive IT software solutions

and services• Focus mainly on large

enterprises

OPPORTUNITIES THREATS

• Expansion in emerging markets• Growing information on

demand tools market• Strategic acquisitions• Increase in BPO (Business

Processing Outsourcing)

• Intense competition• Economic Slowdown in US and Europe• High substitutes available in the

market

Proposed Strategies

1. S1O1 = Brand Reputation, Expansion in emerging markets.

2. S3O4 =Strong Strategic Consultancy, Increase in BPO.

3. S1T3 =Brand Reputation, High substitutes available in the market.

• S4T3 =Strong research and development capabilities,High• substitutes available in the market.

S2W2=Leading provider of IT services, Expensive IT software solutions and services.

• W1T1=Weak enterprise mobility product portfolio, Intense competition.

SPACE Matrix

© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012

Analytics2

More than 90% of business leaders contend information is a strategic

asset, yet fewer than 10% will quantify its economic value

Big Data1

More than 85 % of Fortune 500 will fail to effectively exploit big data

for competitive advantage

Mobile Enterprise5

66% of CIOs ranked mobility as a top investment priority in 2012

Social Business3

20% of business users will replace email as the primary interpersonal

communications with social networking

8 major trends will affect IBM’s markets thru 2015

9

Security7

Through 2016, the financial impact of cybercrime will grow 10 percent

per year, due to the continuing discovery of new vulnerabilities

Cloud6

63% of companies already are using (Cloud) or expect to use it in 2012,

up from 49% last year

Growth Markets8

IDC expects emerging markets to generate over

33% of all IT spending

Smarter Planet4

Over $100 billion: Global investment in technology to support smart city

development by 2020

Software

Tech

nolo

gy S

ervi

ces

Hardware

Business Services

BCG Matrix

IBM Strategies

HardwareAnd Services SoftwareIBM sold the personal computing department

To Lenovo

13

0%

1%

2%

3%

4%Worldwide IT Spend as % of N-GDP

4th era may increase IT’s share of worldwide GDP to 4% by 2030

1st era of IT

Mainframe

2nd era of IT

Personal Computing

3rd era of IT

InternetComputing

4th era of ITSmarter Planet

IBM 7000 mainframes with transistors

New IT/business architectures

Vertical solutions

Cross-industry solutions

Source: IBM Market Analysis extrapolated from IDC Black Book for IT and IBM Corp Finance for N-GDP, Forrester Research “Next Wave of IT Investment is Smart Computing” Jan 2010, IBM Research GTO 2011 “Frontiers of IT”

Worldwide IT Spend as % of GDP

DEC PDP-8 minicomputer

UNIX OS

Apple-1

IBM PCeBusiness Apps

Cloud Computing

Mobility

Netscape IPO

MS Windows 3.0; WW Web

Learning systems

Advanced robotics

Smart-net

Short Listed Strategies

• Value Added Services in IT Industry

• Expansion of Integrated Operations in Developing Nations

• Remixing of IBM Business for Better Integration

• Increase products and Services in Business To Customer

• IBM’s Mobo (A new step in Enterprises growth and Innovation)


IBM Mobo Strategy for B2B


IBM MOBO

19

2015 Roadmap 2010-2015 ~ $15B

incremental revenue Grow faster than the

market, gain share Outpace major markets

growth > 8 pts Approach 30% of IBM

geographic revenue Drive margin expansion Double Greater China Capture Africa’s growth

Country / Market Selection

Industry Leadership

Market Expansion

• Expand beyond major cities

• Expand into new countries

• Integrated offering & capabilities

• Integrated routes-to-market

IT InfrastructureDevelopment

• High-end Systems

• Software solutions

• Large Services Projects

• Investing in skills

• Leading in key industries

• Creating new IT markets

Strategic PrioritiesValue Creation

Smarter Planet, Business Analytics, Cloud ComputingResource Allocation

Sales Eminence

Integrity & ComplianceEnterprise Risk Management

Mar

gin

Expa

nsio

n

Growth Markets Strategies


Russia

The opportunity for Growth is significant

5.9 billion

$6.5 trillion

87% of the world's population

Real GDP growth 2010 to 2015 Over 57% of World GDP growth

100 million The number of people moving to urban cities every year, equivalent to 10 NYC's

Source: Demographic Data, United Nations; GDP Data, IBM Finance, Chief Economist, March 31 2011 IT Market Data, IBM Market Insights Market View (Jan 2011) at Constant Currency

Real GDP Growth ‘10-'15 Served IT Growth ‘10-'15 Served IT as % of Real GDP ‘10

Growth Markets

Major Markets

Growth Markets

Major Markets

Growth Markets

Major Markets

2.7%

6.0%

3.6%

8.7%2.3%

0.7%


IBM Robotics

• Implentation issues

– Right sizing

– Downsizing

– New technology investment

– Employees training

– Research and Development

• It will boost revenues

• Huge growth in present era and era coming next

• IT industry will boost in terms of profitability

ibm...sm presentationn(final)

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