Building a resilient infrastructure: News stories

Headlines of terrorist attacks have unsettled company executives, who are increasingly thinking about business continuity and disaster recovery planning. Many companies risk major financial losses if they are unprepared after a major incident, and stand a significant chance of failing.

China is quickly ramping up its radio frequency identification (RFID) capabilities to streamline its supply chain. China has begun to adopt and endorse the various global standards for RFID, and will likely establish a common national standard for RFID by 2006 at the latest.

IT becomes a strategic asset when it is creates value for customers, and IBM's On Demand Innovation Services is an excellent example. For BostonCoach, IBM developed a fleet optimisation system, a unique solution using advanced wireless systems and algorithms developed by IBM researchers.

IBM is reasserting itself and again setting the course in the IT market. The on demand vision has made the company more responsive to the needs of its customers. IBM executives make their case directly to CEOs of customer companies, emphasising the business benefits, not the technology specifics.

IBM Global Services has put together a wireless enterprise application solution for home moving firm Bekins HomeDirectUSA. The new service, a competitive differentiator, will enable Bekins employees to instantly tap into back-office inventory, warehouse, and Web order management systems.

IBM Global Services is launching Linux consulting services in Brazil, and opening a new front in its advocacy of the Linux operating system. IBM has reorganised its software and services groups along industry lines, and will specifically target the retail, government, and financial markets.

Korean firms need to focus on better management practices instead of investing only in product development. Korean pharmaceuticals, consumer products, and financial services firms all have tremendous opportunity abroad and should follow the lead of the electronics sector.

IBM has recently won several services contracts with financial institutions worldwide. HSH Nordbank, Plus Bank, Banco Guipuzcoano, Bank Boston in Brazil, and Venezolano de Credito have signed on with IBM for various IT infrastructure services.

Outgoing IBM Global Services group executive Doug Elix says growing the $40-billion organisation is a challenge that involves partnering with smaller integrators, a careful re-investment in the customer, and the creation of entirely new markets.

Linux is gaining ground in the public sector with new operational tools that make it easier for government customers to create new applications. These new tools allow end-to-end management of Linux infrastructure with the same level of security as proprietary products.

In a 10-year deal worth 850 million British pounds, the U.K. Department for the Environment, Food, and Rural Affairs (Defra) has engaged IBM to maintain and support Defra's IT systems, improve the desktop infrastructure, and help develop new applications.

Banks understand the need for more business agility, but are inhibited by their rigid operational structures. To fully capitalise on new integration technologies and achieve an enterprise view of the business, banks should determine the business components that make their company tick.

Aspects of company security are converging, leading more businesses to appoint chief security officers that bring security under centralised control and better executive management. The appointment of executive-level security officers means security has become a serious issue.

The advance of CRM systems now enable companies to segment their customers based on their long-term value. While this will result in better service for upper-echelon customers, experts say the system will most likely benefit everyone involved.

IBM Australia reported its financial results for the first time ever, after recently restructuring to become more aligned with its global parent. Analysts say that IBM has grown faster than the industry average in all three of its operations: hardware, software, and services.

Bharti Tele-Ventures CIO Jai Menon says his organisation is ahead of the game in using IT for strategic advantage. Bharti aspires to be a large, agile telecommunications firm that uses IT to add business value. Bharti's IT outsourcing contract with IBM is part of that plan.

Recent changes in IBM's executive structure emphasise its services and e-business on demand business strategy. IBM CFO John Joyce will take over as IBM Global Services (IGS) head, while Doug Elix, former leader of IGS, will now run IBM's sales and distribution operation.

Two new managed services for small- and medium-sized businesses (SMBs) that bring legitimacy to the market. The IBM Desktop Management Services and IBM Network Management Services are offered by IBM Global Services under the IBM Express portfolio.

A recent IBM Business Consulting Services global survey of 370 executives found more CRM success stories than in the past, as well as surprising attributes of successful CRM implementations. Employee concerns are actually the most important factor in CRM success.

Four new small- and medium-sized business (SMB) offerings from IBM simplify the maintenance and management of companies' back-end infrastructure. The services include network operation and management, infrastructure recovery, infrastructure management, and high availability.

Morgan Stanley's Individual Investor Group will draw its computing resources from IBM's on demand infrastructure. IBM Global Services will provide computing, storage, bandwidth, application management, and help desk support for roughly 20,000 Morgan Stanley employees.

The State of Texas has hired IBM to build a new traffic records management system that helps law enforcement and transportation agencies better protect drivers from accidents. The new IBM system uses business intelligence technology from MicroStrategy, Web portal technology, and document imaging.

IBM offers both consulting services and software in its services-oriented architecture (SOA) effort. IBM's offerings focus on transforming companies into reconfigurable entities that can quickly adjust business processes in response to market changes.

A new digital video system designed by IBM Global Services promises to improve officer and public safety in the Tyler, Texas Police Department. IBM will build a wireless network that will let headquarters and other cruisers monitor officers' camera views in real time.

IBM and the Moffitt Cancer Center & Research Institute are collaborating on a new consolidated data warehouse that will give doctors and researchers better resources to fight cancer. The new system will replace several existing data repositories that make it difficult to draw conclusions.

IBM will acquire Indian back-office outsourcing firm Daksh, significantly bolstering its presence in India and its business process outsourcing capabilities. Daksh provides call centre services to 13 business customers, including e-tailer Amazon.com.

Procter & Gamble is setting the standard in the consumer packaged goods industry with its outsourcing drive, meant to reduce costs and increase business effectiveness by focusing on core competency. P&G pegged one of the largest human resources outsourcing deals ever with IBM last September.

IBM is taking its own on demand philosophy seriously and transforming its operations to become more flexible and responsive to customer demand. While IBM's No. 1 priority is helping its customers with that transformation, IBM needs to demonstrate change itself.

Indian mobile services provider Bharti Tele-Ventures and IBM have signed one of the largest IT services agreements in India. IBM will provide IT services, software, and hardware to Bharti, as well as consolidate data center assets and help desks, and boost data recovery capabilities.

IBM is supplying an open source IT infrastructure to Indian digital animation firm Crest Communications. IBM's Digital Content Creation solution includes hardware and software tailored to the needs of special effects artists and digital media producers.

IBM Web services director Bob Sutor says service-oriented architecture (SOA) and the greater adoption of Java programming are enabling unprecedented Web services links inside companies and between them. Companies that use SOA are designing for connectivity.

The U.S. Department of Defense has signed on IBM to provide business consulting advice as it manages the rollout of radio frequency identification (RFID) technology in its supply chain. Defense Department suppliers have been given until January 1, 2005, to start using RFID.

International Truck and Engine has partnered with IBM Global Services to provide fleet owners with telematics systems that can reduce maintenance costs and provide real-time location information. Fleet managers will be able to receive automatic alerts and regularly generated reports on fleet status.

Napster has teamed with IBM to provide universities with a music download service meant to wean students off resource-consuming, peer-to-peer, file-sharing networks. The new Super Peer service relies on IBM infrastructure and services.

IBM laid out plans for expanding its on demand program with channel partners at the PartnerWorld conference. CEO Sam Palmisano said that an improved business environment set the stage for tremendous opportunity, as on demand technologies and concepts help companies achieve new levels of growth.

In a seven-year, $255 million outsourcing deal, Dutch life insurance company Delta Lloyd Group is outsourcing its IT infrastructure responsibilities to IBM, including the IT help desk, network operations, server administration, and desktop environment maintenance.

Merrill Lynch will hand over its human resources, accounting, marketing, and other administrative IT functions to IBM. Merrill Lynch expects to realise significant cost savings through the deal as well as provide better service and focus on core business activities.

In a new five-year contract, IBM intends to improve Sprint's customer service through customer segmentation, call routing, and handle times, IBM will also assume the management of many of Sprint's call centers. Sprint expects to save $550 million over the next three years.

IBM has new industry-specific software and services packages for the financial services sector, and plans to release similar offerings for other industries. The so-called Middleware Solutions target banking, insurance, and finance firms with offerings crafted in response to customer requests.

Deutsche Bank says it has done well in its infrastructure outsourcing agreement with IBM. The $2.5 billion, 10-year deal achieved its goals of reduced costs and access to new technology. Deutsche Bank is considering expanding the deal to cover software development and data centre infrastructure.

IBM has new on demand management services that give customers greater choice about data center outsourcing. The "flexible support" services are a hybrid IT outsourcing offering that enables clients to retain control over their IT assets and employees.

IBM Global Services (IGS) has made significant progress in partnering with smaller solution providers. IGS cut out much of its internal bureaucracy when dealing with third parties. Channel partners say IBM has changed its sales compensation structure to encourage partnering in the midmarket.

While IBM CEO Sam Palmisano may have an understated style, he is making bold bets. Among his changes are the dramatic increase of IBM's business consulting and software resources, and more recently, the fundamental reorganisation of the company's business units.

IBM is helping the U.K. Environmental Agency to design and build a national customer call center that will provide fast, seamless information delivery to residents. The improved citizen services systems will allow the Environmental Agency to save money and to devote personnel to environmental work.

IBM has acquired Dresdner Bank's financial market database operation and is outsourcing to provide the bank with reference data on demand. The database was created for risk control purposes. IBM will resell the service to universal and investment banks, insurers, and asset management firms.

IBM and JPMorgan Chase are in year two of their IT outsourcing agreement, important because of its size and variable-pricing benefits. JPMorgan Chase is the largest beta customer for IBM's e-business on demand principles and technologies. In 2004, executing the integration strategy is primary.

Atlantic Coast Airlines has tapped IBM Global Services to develop new self-service kiosks for its new Independence Air low-cost regional airline. The airline's CEO said IBM's technological innovation was key in giving customers fast, flexible, and efficient service.

As IBM shifts from making IT products to helping customers solve unique business problems, its research operation is moving its focus as well. Deploying its 3,000 researchers has helped IBM to win some major contracts that otherwise would be defined only by product and margin.

Banco Populare di Milano has moved its branch platform to Linux and Web services architecture, a "calculated risk" that has paid off in lower costs, new scalability, and improved response times. IBM tested the feasibility of migrating to Linux, then developed a new Web architecture.

Retailer Target has awarded IBM a 10-year contract to manage the merchant's mainframe IT infrastructure. The agreement establishes a variable, on demand pricing model under which Target will pay only for the IT services it uses.