IBM- a Case Study in Innovation
Innovations which the company introduces are those factors which can help it to win a considerable share of the market and become the top company in the industry. There are many cases when companies gained a large share of the market due to the successful innovations they were introducing. In some industries, there can be radical innovations which will immediately put the company in the top of the industry. For example, in computers industry, every new invention can be crucial. IBM is a great example of a radical innovation which placed the company at the very top immediately after they introduced their technologies.
IBM is one of the top players in the market of computer systems, software, networking and other products connected with information systems. It was founded in 1911 IBM is the largest company providing IT services and financing by the criterion of revenues. “IBM Global Financing is the largest IT financier in the world, with an asset base of $35. 9 billion. It delivers financial services to nearly 125,000 customers in more than 40 countries. ” (Background. [Online]. Available from: http://www. ibm. com. ) In the production of software, the company is rated second.
IBM was rated 8th in the list of companies in Forbes 500 list of the organizations which obtained the largest revenues. In 2004, the revenues of the company were estimated by 96,2 billion dollars. IMB provides its activities in 75 countries and is constantly seeking to increase its influence in the world by opening branches in new countries. There are 329,000 employees working for IBM in all of the countries and their number is increasing year after year due to the expansion of the company. The largest manufacturing plants are located in the North America, Europe, and Asia Pacific.
The major goal of the company is the creation of competitive computer systems which enable all of their users to obtain success in the shortest period of time. “At IBM, we strive to lead in the creation, development and manufacture of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions and services businesses worldwide. ” (Background. [Online].
Available from: http://www. ibm. com. ) IBM’s values include dedication to every client’s success; innovation that matters, for our company and for the world; trust and personal responsibility in all relationships. IBM corporate culture has be characterized by many unique features which differ it from other companies. Compared to world class competitors, IBM strives to lead in the invention, development and manufacture of the industry’s most advanced information technologies. Today, IBM is aligned around a single, focused business model: innovation.
IBM takes its breadth and depth of insight on issues, processes and operations across a variety of industries, and invents and applies technology to help solve its clients’ most important business and competitive problems. Although it remains committed, as ever, to lead the development of state-of-the-art technologies and the products and service offerings built around them, the company measures itself today by how well it helps clients succeed. That’s at the core of what IBM values, but it is also because the IT industry is on the cusp of a profound shift.
The ubiquity of networked computing is changing the ways organizations can, should, and will do business — bringing dramatic improvements in productivity, transforming industries, and creating opportunities for entirely new market segments. That is what its meant when IBM talks about ‘On Demand Business’. The firm knows it must stay in tune with markets and know its customers well. Therefore, market research plays a key role as not only it helps to drive the creativity for idea generation and indeed generation of tailored products and services, but also it helps to reduce uncertainty and innovation risks.
This is the innovative organizational culture that shapes IBM as the basis of its organizational structure. ‘Relationship’ Orientation is also being carried on the level of IBM professionalism- a very high level. IBM struggles to understand its customers’ needs and go beyond their expectations. IBM’s own business model — once primarily known for the products they made and sold — is now largely defined by the relationships they establish, develop and support. A good example of its approach to such engagement is the Global Innovation Outlook (GIO) — an examination of three areas that affect broad swaths of society and are ripe for innovation:
2006 the future of healthcare; 2007 the relationship between government and its citizens; 2008 the intersection of work and life. This initiative represents something that is broadly characteristic of IBM: A combination of world-class technology leadership, expertise in business and industry, and a concern for our collective future. By developing deep relationships with a broad range of clients, governments, universities and other ecosystem members around the world, the company is able to elevate the dialogue around important issues and examine the broad implications for the world.