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
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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
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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)
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
IBM Mobo Strategy for B2B
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
IBM MOBO
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
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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
© 2012 IBM Corporation42 Conference, Moscow, 28 May 201220
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%
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012
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
© 2012 IBM Corporation42 Conference, Moscow, 28 May 2012