FUTURE-READY

ORGANIZATION OF THE 21ST CENTURY

Name of Organization IBM (International Business Machines)

Industry IBM (International Business Machines) provides information technology
products and services. It operates through 5 segments:
✓ Cloud and Cognitive Software
✓ Global Business Services
✓ Global Technology Services
✓ Systems
✓ Global Financing.

Markets/Geography:
Customers Businesses and agencies need high-end consulting and hosting solutions in
nanotechnology and mainframe computing that require cloud solutions and
cognitive computing services.
Region The American multinational technology corporation, headquartered in
Armonk, New York, operates in more than 171 countries. In India, it has a
regional headquarters in Bangalore.
Size The Company has over 2,82,100 employees as of 2022.
Rate of Growth The rate of growth of revenue is 9-10%
The rate of change in gross profit is 6%

Key metrics:
Revenue ✓ IBM’s annual revenue for 2021 was $57.35B (a 3.93% increase from
2020)
✓ IBM revenue for the quarter ending June 30, 2022, was $15.535B,
a 9.26% increase year-over-year.
Market share Open-134.10
High 134.18
Low 130.34
Volume 4.19M (data as of 27-08-2022)
Share price 130.38

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Profits ✓ IBM’s gross profit for the quarter ending June 30, 2022, was $8.290B,
a 5.56% increase year-over-year.
✓ IBM’s gross profit for the twelve months ending June 30, 2022,
was $32.230B, a 10.67% increase year-over-year.
✓ IBM’s annual gross profit for 2021 was $31.485B, a 2.01% increase from
2020.
✓ IBM’s annual gross profit for 2020 was $30.865B, a 2.12% decline from
2019.
✓ IBM’s annual gross profit for 2019 was $31.534B, a 14.63% decline from
2018.
What makes it a future- IBM works with organizations worldwide in various sectors with their
ready new economy cognitive intelligence. In India, IBM believes it can profoundly impact sectors
organization of the 21st like education and healthcare. They are cultivating a workforce fit for the
Century? future. The Company has built many AI-based skill inference models for
technology functions. AI, Advanced Analytics, Data Science, Blockchain,
Cyber Security, and IoT are just some new technologies influencing and
transforming business processes in the modern workplace. Future-ready for
the 21st Century, the Smart Digital Workforce program will enable IBM to
hire and train Singaporeans for technology consulting and superior technical
skills relevant to today's and tomorrow's digital environment. The program
aims to make our leap into the new digital economy with practical
technology applications that will expand our current expertise and take us to
the next level of specialist technical knowledge.
Critical Values of the ✓ IBM follows the highest standards of social responsibility
organization
✓ Dedication to each client's success

✓ Innovations that are important for our Company and the world

✓ Trust and personal responsibility in all relationships

✓ The Company is ultimately responsible for our economic, environmental,
and social performance, as well as compliance with the laws, regulations,
and corporate policies that govern our operations and practices
worldwide

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To what extent do these IBM's values align with those of millennials.
values align with the Millennials are rising at work and shaping or making critical business
values of millennials, and decisions. It is essential to understand their impact on today's changing
how? workplace. Nevertheless, if the buzz is to be believed, they are either lazy
narcissists or energetic optimists out to save the world. In a
multigenerational global study of employees from large and small
organizations, we compared Millennials' preferences and behavior patterns
to those of Generation X. We found that Millennials want many of the same
things their older colleagues do. Contrary to some of the differences between
generations, the attitudes of millennials are not poles apart from other
employees.
The vision of the IBM's corporate vision is "to be the world's most successful and important
organization CompanyCompany in the field of information technology. They are
successfully helping customers use technology to solve their problems.
Successfully introducing this unique technology to new customers.
Important because we will continue to be the primary source of most of
what is invested in the industry."
Mission Statement of the IBM's corporate mission is to “lead the creation, development, and
organization production of the industry's most advanced information technology,
including computer systems, software, network systems, storage devices,
and microelectronics. Furthermore, the global network of IBM solutions and
services experts translates these advanced technologies into business value
for our customers. We translate these advanced technologies into value for
our customers through our professional solutions, services, and consulting
companies worldwide.”
Business Model of the IBM is a company of companies. The business model of IBM
organization or International Business Machines Corporation revolves around Cloud
computing, Artificial intelligence, Computer hardware, and software.
The business model of IBM is primarily involved in two types of
business activities, and they are-
• Research and Development
• Operations

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 Therefore there are different business units:
IBM Global Tech Services - platforms and hardware
IBM Global Business Services - management consulting
IBM Global Finance - funding and finance
IBM Analytics - how we can get data to create or save a value
IBM Cloud – cost-effective and flexible systems for the digital age
IBM Commerce - ways of conducting marketing, sales, and service
IBM Mobile - data, applications, platforms, and devices
IBM Research - that creates new methods, capabilities, products, and
components at scale and pace
IBM Social - the part of IBM that creates and understands collaborative ways
to work and interact
IBM Security - keeping physical and digital assets secure and safe
IBM Watson - the cognitive computing and intelligence arm of IBM
Each part has a slightly different model/maturity and focus.
Generally, each unit has Platforms, Software and Service program
management, enterprise architecture, software implementation, systems
integration, and business consultation, including strategy change and
process re-engineering).
The company is about the ideation, creation, harvesting, industrializing,
growing, innovating, and monetizing of assets, capabilities, people, content,
and methods.
How is the organization's IBM is transforming into a cognitive solutions and cloud platform company.
business model different IBM is in the process of transformation. It is becoming more than a
from traditional hardware, software, or services company. The restructuring of this
organizations based on organization was necessary to stop the declining revenue growth during the
the 2nd Industrial last five years.
Revolution? IBM started with the presentation of the IBM PC (IBM personal computer),
an essential machine in the history of modern computing which brought
personal computers to the mass public like no other. Now its business
model has changed; it has become a company based on core values that
define a society. IBM has scaled its programs and initiatives to achieve
maximum benefit.

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The journey of IBM is a global technology company that provides hardware, software,
conceptualization/ cloud-based services, and cognitive computing. Founded in 1911 following
inception in case it the merger of four companies in New York State by Charles Ranlett Flint, it
started from scratch was initially called Computing-Tabulating-Recording Company. IBM has
been present in India since 1951. Since its inception, IBM India has
expanded its operations with regional headquarters in Bangalore and offices
across 20 cities. IBM India has established itself as one of the leaders in the
Indian Information Technology Industry.
The process of Strategic During 1994 and 1995, the remainder of the IBM field organization
Transformation in case it transitioned to a structure and processes that strongly resembled what we
evolved from a did in the trading area. The IBM business results speak for themselves. IBM’s
traditional organization? revenue grew from about $64.5 billion in 1992 to $107 billion in 2011. This
What was the inflection increase in revenue was accompanied by an increase in the percent of
point that brought about revenue attributed to services (solutions) from 9.38% in 1992 to 41% in
this change? 2011, based on IBM annual reports from those years (IBM, 2011). According
to the same annual report, pre-tax income grew from $9.6 billion in 2000 to
$22.9 billion in 2011. During that time, total pre-tax income from services
and software grew dramatically, while the percentage of pre-tax income
from hardware and financing shrank over the same period.

The inflection point in IBM started with a complaint received from a

customer, a tweet posted by a happy or aggrieved customer, a strange
question that a customer asked, an unusual request somebody made, or
something unusual appearing on the radar. Executives must have an internal
mechanism to access uncomfortable news from non-tabulated data. Data-
driven insights, especially unstructured data, are usually the source of this.

Current challenges for ✓ These days, IBM is trying to stay relevant in the fast-changing technology
the organization market.
✓ IBM angered investors further by cutting its earnings outlook for the
fourth time in five quarters.
✓ IBM faces a massive problem in differentiating its hardware from its
competitors.

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 ✓ IBM is the largest provider of computer services and, at the same time,
offers specific industry consultancy. For years, services have been a cash
cow for IBM. This is no longer the case in the now mature market. Global
Technology Services revenue fell 10 percent in the most recent quarter.
✓ The Company faces two challenges: alternative cloud platforms and
acquiring new customers. Gartner's analysis also questioned how IBM
could appeal to organizations already invested in other distributed cloud
players in recent customer acquisitions. In terms of alternative cloud
platforms, analysts questioned how effective IBM's cloud strategy is for
customers who choose not to replace their existing OpenShift container
strategy.
How does it ensure IBM has had a continual, unambiguous commitment to environmental
environmental leadership for decades. They manage ecological sustainability as a strategic
sustainability? imperative and maintain a high level of capability. We endeavor to anticipate
and prevent rather than react and fix. And we leverage our work through
purposeful internal and external communication. For example, in 2013, IBM
published its 23rd annual voluntary Corporate Environmental Report,
uninterrupted since 1990.
IBM sustains sustainability by recognizing and managing this topic as an
operational business issue and making it systemic.

Sustainability has seen a massive shift from being a buzzword to a top

business priority. Becoming a sustainable enterprise without disrupting
your business objectives is complex and challenging. IBM provides
sustainability and climate risk services to help you drive environmental and
social impact.

How does it attain International Business Machines Corp. (IBM) sells a wide range of products
financial sustainability? and services, including software, consulting, and hybrid cloud
infrastructure. The company also provides financing services to its clients
to facilitate their acquisition of its information technology (IT) systems,
software, and services. The company has clients in more than 175 countries
and competes with hundreds of companies, from small businesses to large

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 multinational corporations. In its annual report, IBM said its financial
results reflected progress in several key growth areas, such as technology
and consulting. The company noted that the COVID-19 pandemic created a
business environment of uncertainty. But at the same time, the pandemic
has reinforced the need of many of IBM's clients to modernize their
businesses. The company's hybrid cloud and artificial intelligence (AI)
solutions are helping companies to transform their businesses digitally.
How does it align with The IBM Institute for Business Value uses data-driven research and expert
sharing in its operations? analysis to deliver thought-provoking insights to leaders on the emerging
trends that will determine future success. IBM aims to speed the delivery of
higher-quality software by automating and integrating the efforts of
development and IT operations teams. By linking these previously siloed
units, organizations can build a software development and delivery process
with continuous communication, collaboration, and shared responsibility.
The result is faster workflows and streamlined processes that meet software
users’ ever-increasing demand for frequent, innovative new features and
uninterrupted performance and availability.
How does it employ the By combining IoT data with IBM Cloud technologies, IBM can gain valuable
Internet and the Internet insights to improve virtually every aspect of its operations and enable
of Things in its innovative, new business models.
operations? IoT sensors can monitor building conditions at the point of use and measure
how their space is used to inform better ways of performing maintenance
and improving future spatial designs. Their goal is to enrich the employees'
experience of our buildings and make them more comfortable, aesthetically
pleasing, and technologically advanced.
This is how IBM uses IoT to make their buildings smarter and safer.
How does it achieve IBM uses the following measures to achieve higher efficiency and low
higher efficiencies and marginal cost; it increased its PR/SM dispatching overhead and reduced
lower marginal costs? cache efficiency. The company has been running multiple workloads by
leveling off the peaks and valleys of the individual partitions. The second
metric is using CPU capacity to do valuable work rather than wasting it on
unproductive overhead activities.

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How does it relate to IBM has incorporated sustainability into the company’s business strategy.
principles of biospheric Through its products and services, IBM works with government and
consciousness? commercial entities in areas ranging from agriculture to transportation
worldwide to developing business and technology solutions while
incorporating sustainability.
What future do you IBM has focused on five technologies that are believed to have the potential
visualize for this to change the way people work, live, and communicate over the next five
organization? years:
✓ Diagnosing illness from what people write and speak
✓ Hyper-imaging makes invisible parts of the electromagnetic spectrum
visible
✓ Big data analytics unlock insights from the Internet of Things
✓ Lab-on-a-chip technology for disease detection at the nanoscale level
✓ Sensors that process data at the speed of light detect and signal the
release of pollutants
How will it disrupt IBM remains the best stock on the scale of dividend performance. IBM is the
traditional organizations only tech company that has consistently maintained yearly dividend
based on its approach, increases over the past decade. In addition, IBM has grown its annual
technology, and business revenues consistently by over 10 percent since 1997, which is unmatched by
model? any other tech company. Indeed, no other traditional organization can match
IBM’s penchant for consistent dividend increases because most of its cash
flow and revenues are made overseas. Repatriating its cash from abroad
may attract a rather punitive tax rate of up to 30 percent.
The achievements so far: ✓ Key software achievements of IBM in 2021 include: -
1. Updating IBM Spectrum Protect
2. Catalog acquisition
3. Spectrum Fusion for OpenShift
4. Storage Suite for Cloud Paks
5. Game Changer incentive program
IBM has also received awards for some achievements such as: -
✓ In 2008-9, IBM created the Smarter Planet and Smarter Cities programs.
✓ In 2004, IBM created the World Community Grid – a public grid

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 computing project to address scientific research projects that benefit
humanity.
✓ In 1981, IBM introduced the first IBM PC
✓ In 1967, IBM employee Benoit Mandelbrot asked: How long is the Coast of
Britain, and a new branch of mathematics (fractal geometry) was born.
In case you were a ✓ They should focus on improving the supply chain performance by
consultant, what would strategically integrating proven business-process-transformation
have been your advice for methodologies and emerging technologies.
the top management of ✓ IBM should give teams the tools to focus on higher-value tasks and
this organization? deliver more effectively against business goals.
✓ Also, to improve the interactions between your people, data, and
processes in supply chain planning, sourcing, manufacturing, and
fulfillment.

Submitted to

Dr. Karminder Ghuman

Submitted by

Harsheen Kaur
(401906011)

Submitted on

28/08/2022

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