IBM

•IBM has been well known through most of its recent history as
one of the world's largest computer companies.
•International Business Machines Corporation, abbreviated IBM and
nicknamed "Big Blue" (for its official corporate color), is a multinational
computer technology and IT consulting corporation headquartered in
Armonk, New York, United States.
•IBM manufactures and sells computer hardware and software and
offers infrastructure services, hosting services, and consulting services
in areas ranging from mainframe computers to nanotechnology
•IBM have with over 388,000 employees worldwide.
•IBM has eight research laboratories worldwide.
•The company has scientists, engineers, consultants, and sales
professionals in over 170 countries.
• IBM employees have earned Five Nobel Prizes, four Turing Awards,
five National Medals of Technology, and five
National Medals of Science
 ESTABLISHMENT OF IBM
• The roots of IBM date back the 1880s, decades
before the development of electronic computers.
• The company was formed through a merger of
three different companies:

1. Tabulating Machine Company (with

origins in Washington, D.C. in the
1880s),
2. the
International Time Recording Company
(founded 1900 in Endicott),
3. and the Computing Scale Corporation
(founded 1901 in Dayton, Ohio, USA)..
[1]

The merger was engineered by noted

financier Charles Flint, and the new company was
called the
Computing Tabulating Recording (CTR) Corporati
on
[2]. CTR was incorporated on June 16, 1911 in
Endicott, New York, U.S.A..
•The companies that merged to form CTR manufactured a wide range of
products,
but Flint believed that since they all focused on equipment that made
businesses more efficient, there were synergies and cross selling
opportunities to be had.
• The new company had 1,300 employees and offices and plants in Endicott and
Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and
Toronto, Ontario.

Tabulating Machine Company

•The companies merged to form CTR, the most technologically significant was the
Tabulating Machine Company, founded by Herman Hollerith, and specialized in
the development of punched card data processing equipment.
•Hollerith's series of patents on tabulating machine technology, first applied for in
1884
•Creating markets for the new technology was a struggle, and by 1911 Hollerith,
now 51 and in failing health, was looking to rest on his laurels.
• He sold the business to Flint for $2.3 million (of which Hollerith got $1.2 million),
who then created C-T-R. Hollerith remained involved with C-T-R for some years
as a consultant,
 ENTRY OF WASTON
• Watson became General Manager of C-T-R in 1914 and President
in 1915.
• Watson quickly implemented a series of effective business tactics:
•Generous sales incentives,
• A focus on customer service,
• An insistence on well-groomed,
•Dark-suited salesmen,
•An evangelical fervor for instilling
company pride
• and loyalty in every worker.
• He also stressed the importance of the
customer.
. The strategy proved successful, as during Watson’s first four years, revenues
doubled to $2 million, and company operations expanded to Europe, South
America, Asia and Australia.
 In 1915 he introduced his favorite slogan, "THINK," which quickly
became a corporate mantra.

• He use Open Door policy for employees.

• The company also expanded its product line through innovative engineering.
• In 1920, the company introduced the first complete school time control system, and
launched the Electric Accounting Machine.

• Three years later the company introduced the first electric keypunch,
• and 1924’s Carroll Rotary Press produced punch cards at previously unheard of
speeds.

• In 1928, the company held its first customer engineering education class,
demonstrating an early recognition of the importance of tailoring solutions to fit
customer needs. It also introduced an 80-column punched card.

• In 1928, which doubled its information capacity. This new format, soon dubbed the
"IBM Card", became and remained an industry standard until the 1970s.

• The Great Depression of the 1930s presented an unprecedented economic

challenge, and Watson met the challenge head on