IBM is reasserting itself and again setting the course in the IT market. When IBM CEO Sam Palmisano launched the on demand initiative in 2002, he said business was about to experience a cultural transformation enabled by technology. The on demand vision has brought together the 350,000 employees of IBM and made the company even more responsive to the needs of its customers. Tony Scott, chief technology officer at General Motors, a large IBM customer, says, "I see a focus and a drive there that is unprecedented, in my mind, in IBM history, and a vision that is pretty broad and far-reaching in its scope and impact." Former IBM head Lou Gerstner helped change the focus, strengthening IBM's services and software capabilities during the 1990s. Under Palmisano, the company is pushing innovative new solutions, led by its services group, and making waves among its competitors. Not only is IBM gaining market share in key enterprise technology product areas, but it is advocating new strategies to business IT, such as the bundling of hardware, services, and consulting for specific industries. Palmisano and other key IBM executives often make their case directly to the CEOs of customer companies, emphasising the business benefits, not the technology specifics. "Technology vendors have learned their lessons that if you're going to talk to the CEO, you'd better talk about the business value," says analyst Amy Wohl. Gartner analyst Tom Bittman says on demand has brought cohesiveness to IBM, a powerful force given that IBM is the world's largest technology company. "Now you can go to any division at IBM and hear an on demand story that doesn't conflict with other parts of IBM. That's pretty powerful," he says. Copyright 2004 INFORMATION, INC. |
