IBM – A Business Model Review

Business Model Innovation

Agenda

1 Introduction

2 History and old Business Model

3 Business Model Analysis

4 Future Strategy

5 Conclusion

1 Business Model Innovation – 01.10.2015

Introduction Business Future
Introduction History Conclusion
Model Strategy

“Big Blue” - facts

• International Business Machines Corporation

• Founded in 1911 in New York out of a consolidation of 3 companies
• 380,000 employees in 2014
• Revenue 2014: 92.79 billion US$
• Net income 2014: 12.02 billion US$

2 Business Model Innovation – 01.10.2015

Old Business Model of IBM Business Future
Introduction History Conclusion
Model Strategy

IBM‟s crash and reaction

Pre-Crash Crash: 8.1 bil. $ loss in 1992
• Domination of the PC market in the early
1980‘s
• High investments in R&D + conservative
management decisions
• Structural problems
• Too many employees and redundant
processes and functions
• IBM‘s technologies started to erode

IBM‟s Reaction
• Change of Management, giving more attention to clients‗ needs
• Finding: firms struggle integrating separate computing technologies
• IBM‗s strength was ability to provide integrated solutions for customers
• Penetration of new business areas apart of hardware

3 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

4 Business Model Innovation – 01.10.2015

Business Model Analysis – Value Proposition Business Future
Introduction History Conclusion
Model Strategy

IBM‟s Value Proposition

Quote from IBM‟s Chairman

―IBM lives at the intersection of technology and business. This enables us to change
the way the world works, and in so doing, to be essential to our clients and to society.‖
- CEO Virginia M. Rometty

IBM‟s Value Proposition

• IBM never moves quickly, but it always listens

to it‘s customers.
• Providing integrated solutions to businesses
for client organizations
• Values: dedication to every client‘s success,
innovation that matters for the company and
the world, and personal responsibility in all
relationships.

5 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

6 Business Model Innovation – 01.10.2015

Business Model Analysis – Customer Segments Business Future
Introduction History Conclusion
Model Strategy

IBM‟s serves business customers from every sector

IBM‟s customers are large companies in every sector

IBM serves the business market segment

7 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

8 Business Model Innovation – 01.10.2015

Business Model Analysis – Channels Business Future
Introduction History Conclusion
Model Strategy

IBM‟s innovative way to approach its customers

One Channel Team for all Divisions
• Before: Direct Sales force:
• Mainly hardware and mainframes
• Now: Value Added resellers
• Handles software and services
• How: Indirect channels through their partners
• Direct sales teams only get paid if
cooperate with partners

Customer Touchpoints
Social Media TV Advertisement Website Communities

9 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

10 Business Model Innovation – 01.10.2015

Business Model Analysis – Customer Relationships Business Future
Introduction History Conclusion
Model Strategy

IBM provides clients communities and involvment

Customer Relationships
Personal Service Communities Co-Creation

• Personal sales force • Hosting of online forums • Development together

• 24/7 support via for expert users
telephone • Learning opportunities
• Visiting service team for inexperienced users
• Consultants • Public discussions and
support
with lead users and
customers
• Creating solutions that
perfectly fit with needs of
clients

11 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

12 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

IBM‟s core business consists of three main business activities

Core Business Supply Chain Management Research & Development

Services Software Hardware

13 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

Most important business division for IBM, representing the future of the company
Services Software Hardware

Global Technology Services Global Business Services

• Rapid growth in cloud business
• Over 30 companies acquired and 1000
patents registered in the past years
• Cloud revenue grew 60 percent, to $7 billion,
in 2014
• Market leader
• Cloud is catalyst for innovation
• Includes management consulting, system
integration, and application management
• Revenues have been decreasing, but are
still significant
• Yields small margins
• IBM uses division to promote more profitable
divisions e.g. software

14 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

IBM wants its enormous software portfolio become the foundation for its clients
Services Software Hardware

• IBM offers integrated software and solutions for all business and organizational challenges.
• Huge margins (88%)
• The market will keep growing
• Lot of competitors
• IBM is losing market share and profits
• Powers the expanding array of cloud-based solutions to clients.

15 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

IBM„s hardware business is becoming less important

Services Software Hardware

• Hardware division of IBM, Systems and Technology

Group (STG)

• uses hardware products (serves, storage systems)

alongside software and services to develop smarter
computing solutions for clients.

• from consumer electronics to supercomputers, IBM

Technology is in nearly every type of electronic device

• IBM is failing to succeed in this division

• Revenues and margins are decreasing

• No positive outlook for the future

16 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

Going back to the other key activities

Core Business Supply Chain Management Research & Development

17 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

Extensive integrated supply chain, procuring materials and services globally

Core Business Supply Chain Management Research & Development

• IBM spends $36.5 billion a year with global suppliers,

inclusive of $3.2 billion a year with diverse suppliers.

• High standards in all business dealings.

• Global Process Services organization.

• The supply, manufacturing and logistics operations are

integrated in one operating unit that has optimized
inventories over time.

• Providing a strategic advantage to create value for

clients

• Outsourcing service to optimize and help operating

clients‘ end-to-end supply chain processes, from
procurement to logistics.
18 Business Model Innovation – 01.10.2015
Business Model Analysis – Key Activities Business Future
Introduction History Conclusion
Model Strategy

R&D is key factor for IBM‟s innovations

Core Business Supply Chain Management Research & Development

High R&D Spending and Constant Business Reinvention

• Last year IBM spent about 6 percent of our revenue on research and development
• Since 22 years, IBM earns the most U.S. patents of any organization, averaging 20 a day.
Yearly spending of IBM on R&D from 2005 until Number of US-Patents of leading companies in 2014
2014 (Billion $) 0 1000 2000 3000 4000 5000 6000 7000 8000
8 IBM 7 534
6,11 6,15 6,34 6,03 6,26 6,3
5,84 5,82 5,74 5,44
6 Samsung 4 952

4 Canon 4 055

2 Sony 3 224

0 Microsoft 2 829
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OpenPower Ecosystem
• Allows partners to innovate and build on the Power technology.
• Began with five members and now stands at more than 100 around the world.
• The U.S. Department of Energy recently awarded IBM a long-term, $325 million contract to create
future supercomputers based on OpenPOWER technology.

19 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

20 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Ressources Business Future
Introduction History Conclusion
Model Strategy

IBM supports its employees personal and technical development

Employees Hybrid Cloud Brand Spending Power

• Employee‘s well-being is fully incorporated

• Impersonation of ideals of the company

• IBM creates an innovative, integrated whole environment

• ―Inclusion.―

• IBM‘s corporate culture and values remain central to

mutual success.

• IBM differences shape the individual IBM employee

• Work environment is defined by diversity—including

diversity of thought

• yields a commitment to creating client innovation

21 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Ressources Business Future
Introduction History Conclusion
Model Strategy

Hybrid Cloud allows to bring new technology together with previous systems
Employees Hybrid Cloud Brand Spending Power

Pain of Clients Solution: Hybrid Cloud

• Clients need to combine their existing
systems with new technology
• Separated ―islands‖
• Danger of not using full potential

IBM‟s Advantages
• Hybrid Cloud allows to combine new technology with previous installed systems
• IBM has unparalleled strength in both the existing and new markets of IT
• Data, Cloud and Engagement
• Unique and important capability in the market
• IBM supports its clients‘ critical processes
• Remains ―go-to‖ platform for clients

22 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Ressources Business Future
Introduction History Conclusion
Model Strategy

IBM„s brand relies on a century of history

Employees Hybrid Cloud Brand Spending Power

Brand Value 2015 in Billion $

0 50 100 150 200 250 300

Apple 246,99

Google 173,65

Microsoft 115,5

IBM 93,99

IBM‟s Brand Strength

• The company is leader in enterprise computing
• provides the foundation for strategic partnerships
• IBM works with 90 percent of the world‘s top banks, 9 of the top 10 oil and gas companies, 40 of
the top 50 retailers and 92 of the top 100 healthcare organizations.
• Half of the Fortune 100 companies outsource IT operations to IBM
• #4 ―Most Valuable Brands‖ according to Statista / Millward Brown
• IBM mainframes process 75 percent of the world‘s business data.

23 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Ressources Business Future
Introduction History Conclusion
Model Strategy

The company‟s spending power is enormous

Employees Hybrid Cloud Brand Spending Power

IBM spends loads of money on innovation and maintaining business position

1 Bn. $ on IBM Watson 1,2 Bn. $ on SoftLayer 1Bn. $ on IBM Bluemix

IBM company's sizable spending power is a unique resource that the company
must manage responsibly.

24 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

25 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Partners Business Future
Introduction History Conclusion
Model Strategy

IBM places emphasis on strong partnerships

The IBM Human Ability and Accessibility Center

Department with the sole purpose of managing IBM‟s partners

Maintain existing partnerships Find additional, valueable partners

The purpose is to provide complementary skills and expertise that can result
in greater client value.

26 Business Model Innovation – 01.10.2015

Business Model Analysis – Key Partners Business Future
Introduction History Conclusion
Model Strategy

IBM places emphasis on strong partnerships

Examples of Existing IBM Partnerships

• This alliance will let enterprises incorporate Twitter data into decision making
• Twitter represents an enormous public archive of human thought
• IBM‘s expertise is in integrating complex systems and data to make better
decisions

• Redefining the mobile industry by combining the exponential power of corporate

data with the world‘s best mobile technology
• IBM MobileFirst for iOS connects users to big data and analytics right on their
iOS devices

• Partnership for new cloud software business for corporate customers

• Many technology firms are jockeying for a slice of China's enterprise software
market, which promises to grow sharply in coming years

27 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

28 Business Model Innovation – 01.10.2015

Business Model Analysis – Revenue Streams Business Future
Introduction History Conclusion
Model Strategy

60% of IBM„s revenues come from Services

Revenue of IBM during 2004-2014 (Bn. $) Revenue of IBM„s divisions from 2010-2014 (Bn.$)
120 120
106,92 104,51
103,63
98,79 99,87 98,37
100 96,29 95,76
91,1 91,42 92,79 100 18,99 17,67
17,97 12,99
10
80 80 24,94 25,45 25,93 Systems and Technology
22,49 25,43
Software
60 60
Global Financing
19,28 18,57
18,22 18,4 17,83 Global Business Services
40 40
38,2 40,88 40,24 38,55 Global Technology Services
37,13
20 20

0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

• Services (Global Business and Global Technology)

• In form of long-term contracts or charged in terms of output or time
• Software
• Perpetual licenses, recurring licenses, or post contract support
• Hardware
• Refers mainly to servers, which can be acquired permanently, on leases, or rents
• Financing
• IBM facilitates the client‘s acquisition of information technology

29 Business Model Innovation – 01.10.2015

Business Model Analysis – Revenue Streams Business Future
Introduction History Conclusion
Model Strategy

IBM is the leader of global IT-Services

Revenue with IT-Services of leading companies from 2010- Revenue with server systems of leading companies from
2014 (Bil.$) 2009-2014 (Bil.$)
IBM HP Accenture Fujitsu CSC HP IBM Dell Others

70 50000

60,03 45000
60 58,67 5 951
56,3 5 943
40000 6159 7 936,5 10 025,9
7 814
50 7 016 8 057
35000
4944
8 497,5
30000 5 227 16 454 8 980
40 15 342
35,7 15 749
35,1 34,92
25000 14 153
12 745,9
30 26,85 9 366,2
25,3925,51 20000
23,37 23,81
21,25
20 15000
16,11 16,21 15,69 15 388 15 300
14 149 13 343,3
12 888 13 240,2
10000
10
5000

0 0
2010 2011 2012 2009 2010 2011 2012 2013 2014

The shift from hardware to software and services has made IBM the world‟s
market leader in IT Services.

30 Business Model Innovation – 01.10.2015

Business Model Analysis – Overview Business Future
Introduction History Conclusion
Model Strategy

Business Model Canvas of IBM

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments

Key Resources Channels

Cost Structure Revenue Streams

31 Business Model Innovation – 01.10.2015

Business Model Analysis – Cost Structure Business Future
Introduction History Conclusion
Model Strategy

IBM is investing huge amounts into R&D

IBM‟s Cost Structure
• Majority of spending goes into R&D and marketing  only company with higher R&D expenditure
than marketing
• Hard to maintain high margins due to emergence of open source and cloud computing
• McKinsey: cost structure and spending does not correlate with growth

32 Business Model Innovation – 01.10.2015

Future Strategy – Future Trends Business Future
Introduction History Conclusion
Model Strategy

Where is the industry going?

Future Industry Trends
• Restructuring of splitting of business units
• Ensure flexibility and focus
• Acquisitions
• Widening revenue streams for growth
• Cost cutting is not effective  outpacing
competitors
• Strong competition through smaller and more
flexible start-ups
• Cloud computing
• Internet of things
• Cyber security
• Data analytics
• Artificial intelligence
• Everything as a service (XaaS)
• Closer relationships and partnerships

33 Business Model Innovation – 01.10.2015

Future Strategy – IBM‗s Strategy Business Future
Introduction History Conclusion
Model Strategy

IBM follows a rapid transformation strategy in order to meet future trends

Quote from IBM‟s Chairman

―We will shift an additional $4 billion of spending to data, cloud and engagement this
year, aimed at deepening our differentiation in the marketplace.‖
- CEO Virginia M. Rometty

IBM‟s Overall Strategy

• Strategic imperatives: cloud, analytics,
social, mobile, and security
• Transformation roadmap:
• Transforming industries and professions
with data
• Remaking enterprise IT for the era of
cloud
• Reimagining work through mobile and
social technologies
• Rethinking the challenge of security
• Creating new infrastructure for a new era

34 Business Model Innovation – 01.10.2015

Future Strategy – IBM‗s Strategy Business Future
Introduction History Conclusion
Model Strategy

IBM focuses on new profitable business divisions

Transforming industries and professions with data

• New class of advanced analytics – IBM Watson

• Artificial intelligence system with same learning process as humans
• Applied in 17 different industries & enables cognitive computing for apps

Remaking enterprise IT for the era of cloud

• 4bil. Invested into software-as-a-service acquisitions

• Global and local cloud footprint  hybrid clouds catered to client‘s needs
• Partnership with SAP  deliver enterprise applications as a service in cloud

Reimagining work through mobile and social technologies

• IBM interactive experience is biggest digital agency

• Substantial expertise in mobile and social
• Strategic partnership with Apple for devolving business apps

35 Business Model Innovation – 01.10.2015

Future Strategy – IBM‗s Strategy Business Future
Introduction History Conclusion
Model Strategy

IBM focuses on new profitable business divisions

Rethinking the challenge of security

• IBM Threat Protection System includes an end-to-end architecture of

analytics and forensics software  worldwide leader
• 10 global Security Operations Centers manage & monitor 15 bil. events daily

Creating new infrastructure for a new era

• Internet of things transformation solutions  combines cloud and Watson

• IBM Power Systems strategy focused on open innovation
• Reimagined the mainframe for the tremendous growth of mobile workloads

IBM manages to address all relevant future trends with its transformation
strategy. However IBM does not consider to split its company even further.

36 Business Model Innovation – 01.10.2015

Conclusion - Comparison Business Future
Introduction History Conclusion
Model Strategy

IBM‟s transformation from hardware to software and services is a great success

Pros
• Higher Margins
• Innovation Culture
• Great touch with customer
• Efficency
• New valuable partnerships
• Became ―Big blue again‖
IBM did one of the greatest
• Explore New Markets
comebacks in American
history
• Positioning –
―what does IBM really do?‖
• Cost reduction - all about
efficiency no more ―job for life‖

Cons

37 Business Model Innovation – 01.10.2015

 Thank you for your attention!

38 Business Model Innovation – 01.10.2015

Sources
Anastacia. (2015, March 12). Entrepreneurial Insights . Retrieved from Entrepreneurial Insights: http://www.entrepreneurial-
insights.com/key-activities-block-business-model-canvas/
Anne, S. (2014, 07 04). marketrealist.com. Retrieved 09 29, 2015, from http://marketrealist.com/2014/07/must-know-why-
software-industry-is-cyclical/
Apple. (2015, 09 28). Apple and IBM. Retrieved from apple.com: http://www.apple.com/business/mobile-enterprise-apps/
Casey, T. J., & Hagen, H. (2015). www.strategyand.pwc.com. Retrieved 09 29, 2015, from
http://www.strategyand.pwc.com/perspectives/2015-technology-trends
Clarke, G. (2014, January 8). Channel Register. Retrieved from Channel Register :
http://www.channelregister.co.uk/2014/01/08/ibm_steve_smith_importance_of_partners
Denning, S. (2011, July 11). Forbes. Retrieved September 28, 2015, from Forbes:
http://www.forbes.com/sites/stevedenning/2011/07/11/will-ibm-survive-another-100-years/
Finance Yahoo. (2015, March 31). Retrieved from Finance Yahoo: http://finance.yahoo.com/news/did-ibm-software-division-
perform-170637518.html
Forbes. (2015, September 15). World's most valuable brands. Retrieved from World's most valuable brands:
http://www.forbes.com/powerful-brands/list/
Haber, L. (2013, August 27). Search IT channel. Retrieved from Search IT channel :
http://searchitchannel.techtarget.com/news/2240204187/IBM-STG-co-selling-model-requires-all-deals-to-go-through-partners
Hempel, J. (2015, 01 15). www.wired.com. Retrieved 09 29, 2015, from http://www.wired.com/2015/05/apple-side-ibm-grasps-
shiny-new-future/

39 Business Model Innovation – 01.10.2015

Sources
Henkel, S. (2014). Business Modeling & Business Model Innovation. Oestrich-Winkel: EBS business school.
Henkel, S. (2015). Business Modeling & Business Model Innovation. Oestrich-Winkel: EBS Business School.
IBM. (2011, December). Retrieved from IBM: http://www-
03.ibm.com/procurement/proweb.nsf/objectdocswebview/filesupplier+diversity+brochure/$file/supply_div_12_11_update_b.pdf
IBM. (2011). RISC Architecture. Retrieved September 29, 2015, from RISC Architecture: http://www-
03.ibm.com/ibm/history/ibm100/us/en/icons/risc/
IBM. (2014). IBM 2014 Annual Report. Retrieved September 29, 2015, from http://www.ibm.com/annualreport/2014/chairmans-
letter.html
IBM. (2015, September 28). Retrieved from IBM: http://www.ibm.com/technologyservices/us/en/
IBM. (2015, September 26). Retrieved from IBM: http://www-07.ibm.com/employment/au/aboutibm/who-we-are/system-
technology.html
IBM. (2015, September 28). Retrieved from IBM: www.ibm.com
IBM. (2015, 09 29). Analytics Platform Partners. Retrieved from www-01.ibm.com/: http://www-
01.ibm.com/software/data/bigdata/business-partner.html

40 Business Model Innovation – 01.10.2015

Sources
IBM. (2015). Annual Report 2014. Armonk, New York, U.S: IBM.
IBM. (2015). IBM Archives. Retrieved September 29, 2015, from IBM Archives: https://www-
03.ibm.com/ibm/history/history/year_1981.html
IBM. (2015). IBM developerWorks. Retrieved September 29, 2015, from IBM developerWorks:
https://www.ibm.com/developerworks/community/
IBM. (2015, 09 29). Partnerships. Retrieved from www-03.ibm.com/: http://www-03.ibm.com/able/partnerships/
IBM. (2015). www.ibm.com. Retrieved 09 29, 2015, from http://www.ibm.com/annualreport/
IBM annual report. (2015). Retrieved from IBM annual report: https://www.ibm.com/investor/att/pdf/IBM_Annual_Report_2014.pdf
IBM connections. (2015, September 30). Retrieved from IBM connections: https://www-
304.ibm.com/connections/communities/service/html/allcommunities
IBM partners. (2015, September 30). Retrieved from IBM partners: https://www-
304.ibm.com/partnerworld/wps/servlet/ContentHandler/pw_av_res_index
IBM partnerworld. (2015, September 30). Retrieved from IBM partnerworld: https://www-
304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_selling
Kar, S. (2014, March 14). Cloud Times. Retrieved from Cloud Times: http://cloudtimes.org/2014/03/14/big-data-cloud-social-
networks-and-mobility-ibm-key-trends-for-2014/
Market Realist. (2015, March). Retrieved from Market Realist: http://marketrealist.com/2015/03/ibms-global-services-perform-
fiscal-year-2014/
Market Realist. (2015, July). Retrieved from Market Realist: http://marketrealist.com/2014/07/ibms-hardware-segment-drags-
companys-performance/

41 Business Model Innovation – 01.10.2015

Sources
McKinsey & Company. (2014, 02). www.mckinsey.com. Retrieved 09 28, 2015, from
http://www.mckinsey.com/insights/high_tech_telecoms_internet/grow_fast_or_die_slow
Reuters. (2014, 10 29). IBM, Twitter to partner on business data analytics. Retrieved from reuters.com:
http://www.reuters.com/article/2014/10/29/us-twitter-ibm-analytics-idUSKBN0II1T720141029
Rolnicki, K. (1998). Managing channels of distribution.
Roos, G. (2015, February 10). Channel Insider. Retrieved from Channel Insider: http://www.channelinsider.com/tech-
companies/ibm-overhauls-its-channel-strategy-2.html
Rust, R., Moorman, C., & Bhalla, G. (2010, January). Harvard Business Review. Retrieved September 29, 2015, from Harvard
Business Review: https://hbr.org/2010/01/rethinking-marketing
Sallomi, P. (2015). www2.deloitte.com. Retrieved 09 29, 2015, from http://www2.deloitte.com/us/en/pages/technology-media-and-
telecommunications/articles/2015-technology-outlook.html
Shields, A. (2014, July). Market Realist. Retrieved from Market Realist: http://marketrealist.com/2014/07/ibms-software-segment-
still-means-hope-future/
Shields, A. (2014, 07 04). marketrealist.com. Retrieved 09 28, 2015, from http://marketrealist.com/2014/07/overview-
understanding-software-industry-cost-structure/
Taft, D. (2011, August 4). Eweek. Retrieved from Eweek: http://www.eweek.com/c/a/IT-Infrastructure/Why-IBM-is-the-Most-
Innovative-Company-in-IT-439547
Twitter. (2014, 10 29). Changing the way business decisions are made. Retrieved from blog.twitter.com/ibm:
https://blog.twitter.com/ibm

42 Business Model Innovation – 01.10.2015