PROJECT REPORT ON MANAGEMENT PRACTICES OF IBM SUBMITTED TO:
SUBMITTED BY:
PROF. ANITA SINGH
ATIN GARG ATUL SAFFAR ATUL YADAV AVANEE TYAGEE BHUMIKA ROHTAGI CH. DENIS SINGH DANISH ZAMEER DEBASISH DATTA DEEP RAJ JANGID DEEPAK K. DINKAR RISHABH AGARWAL
GROUP MEMBERS
SL. NO.
NAME
ROLL NO.
1
ATIN GARG
BM051
09
2
ATUL SAFFAR
BM052
09
3
ATUL YADAV
BM053
09
4
AVANEE TYAGI
BM054
09
5
BHUMIKA ROHATGI
BM055
09
6
CHINGAKHAM DENIS SINGH
BM056
09
7
DANISH ZAMEER
BM057
09
8
DEBASISH DATTA
BM058
09
2
9
DEEP RAJ JANGID
BM059
09
10 DEEPAK KUMAR DINKAR
BM060
09
11 RISHABH AGARWAL
BM244
09
ACKNOWLEDGEMENT
We want to thanks to all team members for their headwork and their valuable time. First of all we want to take the opportunity to thank Prof. Anita Singh, for her appreciation and guidance. Mr. Yati Yatind ndra ra Sing Singh h (Technical We also also want ant to than thanks ks Mr. (Technical Software Software
Engineer, IBM, Bangalore) and Mr. Abhimanyu Choudhary (Technical Software Engineer, IBM, Gurgaon), for their valuable cooperation and suggestion given to us for our project.
3
TITLE OF THE REPORT
MANAGERIAL PRACTICES OF 4
INTERNATIONAL BUSINESS MACHINES (IBM)
OBJECTIVE In the very high pace of the technological growth in the sector of Information Technology, IBM is surely one of the pioneering organizations. We, the team, have decided to work upon the managerial practices, i.e. work culture, human resource policy, marketing strategy, organizational structure, and business lines of IBM, achievements and awards and SWOT analysis of the company.
5
TABLE OF CONTENTS SL. NO.
CHAPTERS
PAGE NO.
1
INTRODUCTION
7
2
COMPANY PROFILE
8
2.1 HISTORY OF IBM
9
2.2 SWOT ANALYSIS
12
2.3 ACHIEVEMENTS & AWARDS
13
2.4 OR ORGANIZATIONAL ST STRUCTURE
16
MANAGEMENT PRACTICES
18
3.1 IBM BUSINESS LINES
19
3.2 HUMAN RESOURCE POLICY
20
3.3 MARKETING STRATEGY
22
3.4 WORK CULTURE
25
4
CONCLUSION
28
5
REFERENCES
29
3
6
1. INTRODUCTION International Business Machines Corporation abbreviated IBM and nicknamed "Big Blue" (for its official official corporate color), is a multinatio multinational nal
comput computer er techno technolog logy y and IT consult consulting ing corpor corporati ation on headqu headquart artere ered d in Armo Armonk nk,, New New York York,, Unit United ed Stat States es.. The The comp compan any y is one one of the the few few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, host hostin ing g serv servic ices es,, and and cons consul ulti ting ng serv servic ices es in area areas s rang rangin ing g from from mainframe computers to nanotechnology. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator, with over 388,000 employees worldwide, IBM is the largest and most profitable information technology employer in the world. IBM holds more patents than any other technology company and 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 four Turi Turing ng Awar Awards ds,, five five Nati Nation onal al Meda Medals ls of Tech Techno nolo logy gy,, and and five five National Medal Of Science. As a chipmaker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leader in past years.
7
2
COMPANY PROFILE
8
2.1 HISTORY OF INTERNATIONAL BUSINESS MACHINES The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, Hollerith, in Broome County, New York (Endicott, New York or Binghamton, New York), York), where it still mainta maintains ins very very limit limited ed operat operation ions. s. It was incorp incorpora orated ted as Computing Tabulating Recording Corporation (CTR) on June 16, 16, 1911, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild. Fairchild. CTR' CTR's s Canad Canadia ian n and and late laterr Sout South h Amer Americ ican an subsi subsidi diar ary y was was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control. 1875–1925: The origin of IBM
IBM's history dates back decades before the development of electronic computers. Of the companies merged to form what later became IBM, the oldest was the Tabulating Machine Company, Company, founded in 1896 by Herman Hollerith, 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, drew on his work at the U.S. Census Bureau from 1879–82. Hollerith was initially trying to reduce the the time time and and comp comple lexi xity ty need needed ed to tabu tabula late te the the 1890 1890 Cens Census us.. His His tran transi siti tion on to the the use use of punc punch h card cards s in 1886 1886 laid laid a found oundat atiion for for generations of equipment and a core component co mponent of what would become The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, Hollerith, in Broome County, New York (Endicott, New York or Binghamton, New York), York), where it still maintains very limited operations. It was incorporated as Computing Tabulating Recording Corporation on June 16, 16, 1911 1911,, and was listed on the New York Yor k Sto Stock ck Exc Exchang hange e in 1916 by Georg George e Wint Winthrop hrop Fairc Fairchild hild.. CTR' CTR's s
9
Canadian and later South American subsidiary was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control of it. Intern Internati ationa onall Busine Business ss Machin Machines es Corpor Corporati ation, on, abbrev abbreviat iated ed IBM and nick nickna name med d "Big "Big Blue Blue”” is a multinational computer technology and IT consulting corporation headquarte headquartered red in Armonk Armonk,, Ne New w Yo York rk,, United States.. The company is one of the few information technology companies States with with a cont contin inuo uous us hist histor ory y dat dating back ack to the the 19t 19th cent centur ury. y. IBM IBM manufactures and sells computer hardware computer hardware and software (with a focus on the latter latter), ), and offers offers infras infrastru tructu cture re servic services, es, hosti hosting ng servi services ces,, and consulting consul ting servic services es in area areas s rangi anging ng from from mainf mainframe rame comput computers ers to nanotechnology.. nanotechnology IBM has been well known through most of its recent history as the world's largest computer company and systems integrator . With over 388,000 employees employees worldwide, worldwide, IBM is the largest largest and most profitable profitable information technology employer in the world. IBM holds more patents than any other U.S. based Technology Company and has eight research laboratories worldw worldwide ide.. The compan company y has scient scientist ists, s, engine engineers ers,, consul consultan tants, ts, and sales professionals in over 170 countries. IBM employees have earned five No Nobe bell Pr Priz izes es,, four Tu Turi ring ng Aw Awar ards ds,, five Na Nati tion onal al Me Meda dals ls of Technology,, and five National Medals of Science. Technology Science. As a chip maker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years. In 2002, IBM strengthened its business advisory capabilities by acquiring the the cons consul ulti ting ng arm arm of prof profes essi sion onal al serv servic ices es firm firm.. The The comp compan any y has has increasingly focused on business solution-driven consulting, services and soft softwa ware re,, with with emph emphas asis is also also on high high-v -val alue ue chip chips s and and hard hardwa ware re technolo ologies; as of 2005 it emp employs about 195,000 technical professionals. That total includes about 350 «Distinguished Engineers» and 60 IBM Fel Fellow lows s, its its most most-s -sen enio iorr engi engine neer ers. s. It shoul should d be note noted, d, however, that IBM and some other U.S. firms’ use the term 'engineer ' engineer ' in a broad sense, applying it to technician technicians s from diverse disciplines disciplines that may not be graduates from Engineering Schools of recognized Universities Universities.. In 2002, IBM announced the beginning of a US$10 billion program to
10
research and implement the infrastructure technology necessary to be able able to prov provid ide e supercomputer -lev - level el reso resour urce ces s "on "on dema demand nd"" to all all busin busines esses ses as a mete metere red d util utilit ity. y. The The progr program am has sinc since e then then been been implemented. In the same year its hard disk operations was sold to Hitachi Hitachi.. IBM has steadily increased its patent portfolio since the early 1990s, which is valuable cross licensing with other companies. In every year from 1993 to 2005, IBM has been granted significantly more U.S. patents than any other company. The thirteen-year period has resulted in over 31,000 patents for which IBM is the primary assignee. In 2003, IBM earned 3415 patents, breaking the US record for patents in a single year. Prot Protec ecti tion on of the the comp compan any' y's s inte intellllec ectu tual al prop proper erty ty has has grow grown n into into a business in its own right, generating over $10 billion dollars to the bottom line for the company during this period. A 2003 Forbes article quotes Paul Horn, head of IBM Research, saying that IBM has generated $1 billion in profit by licensing intellectual property. property. In 2004 2004,, IBM announced the proposed sale of its PC business to Chinese computer maker Lenovo maker Lenovo Group, Group, which is partially partially owned by the Chinese government, for US $650 million in cash and US $600 million in Lenovo stock. The deal was approved by the Committee on Foreign Investment in the United States in March 2005, and completed in May 2005. IBM acquired a 19% stake in Lenovo, which moved its headquarters to New York State and appointed an IBM executive, Steve Ward, Ward, as its chief executive officer. The company retained the right to use certain IBM bran brand d name names s for for an init initia iall peri period od of five five year years. s. As a resu result lt of the the purchase, Lenovo inherited a product line that features the ThinkPad ThinkPad,, a line of laptops of laptops that had been one of IBM's most successful products. As of 2004, IBM had shifted much of its focus to the provision of business consult consulting ing & re-eng re-engine ineeri ering ng servic services es from from its hardwa hardware re & techno technolog logy y focu focus. s. The The new new IBM IBM has has enha enhanc nced ed glob global al deli delive very ry capa capabi bililiti ties es in consulting, software and technology based process services—and this change is reflected in its top-line. On Ju June ne 20 20,, 2006 2006,, IBM and Geo Georgi rgia a Ins Instit titute ute of Tec Techno hnolog logy y jointly announced a new record in silicon-based chip speed at 500 GHz. This
11
was done by freezing the chip to 4.5 K (−269 °C °C;; −452 °F °F)) using liquid helium and is not comparable to CPU speed. speed. The chip operated at about 350 GHz at room temperature. IBM acquires SPSS in July 2009 for $1.2 billion.
2.2 SWOT ANALYSIS
STRENGTH
WEAKNESS
Valuable
intellectual property, Software, patents, ideas. Talented work force Research & development ($5.7 Billion) A multi-national organization
260,000
expensive employees High operating costs
OPPORTUNITY Low
cost generic (commoditization)
THREATS competition ion
Outsourcing New
competitors in services market (e.g., Dell, Accenture)
EXTERNAL ENVIRONMENT ANALYSIS
Figure: - SWOT Analysis of IBM
12
2.3 ACHIEVEMENTS & AWARDS IBM IBM stan stands ds 14 in Fort Fortun une e 500 500 comp compan anie ies s with with a reve revenu nue e scal scale e of $103,630 millions with profits profits of $12,334 millions. millions.
AWAR AW ARDS DS :
•
Corpor Corporate ate Citize Citizensh nship: ip: IBM
•
was ranked the no.1 ethical corporation by Covalence, the Swiss ethical ranking agency, above 581 businesses across 18 sectors, The rating is based on capture of inform informati ation on from from media media and the intern internet, et, matchi matching ng corpor corporate ate offerings to specific societal expectations. Corporate Citizenship: IBM Singapore won seven awards at the
Singapore HR Awards 2009 including the category of Corporate Social Responsibility. •
Corporate Corporate Citizenshi Citizenship: p: IBM was named one of the "50 Most
Social Socially ly Respon Responsib sible le Corpo Corporat ration ions" s" by MacLea MacLean's, n's, a Canadi Canadian an weekly magazine. •
IBM Cana Canada da Ltd. Ltd. has has been been sele select cted ed as one one of Environment: IBM Canada's Greenest Employers. This special designation recognizes the employers that lead the nation in making environmental values part of their organizational culture. Winners of this competition have develop developed ed except exception ion earthearth-fr frien iendly dly initia initiativ tives es and are attrac attractin ting g empl employ oyee ees s and and cust custom omer ers s beca becaus use e of thei theirr envi enviro ronm nmen enta tall leadership.
•
Accessibility: IBM Spain was recognized as the best company for social
action in 2008 by the Randstad Foundation. •
Corporate Corporate Citizenshi Citizenship: p: Stan Stan Lito Litow, w, Vice Vice Pres Presid iden ent, t, IBM IBM Corp Corpor orat ate e
Citizenship & Corporate Affairs, was chosen to ring the opening bell at
13
the the NY Stoc Stock k Exch Exchan ange ge on Febr Februa uary ry 23, 23, Inte Intern rnat atio iona nall Corp Corpor orat ate e Philanthropy Day. He accepted the National Philanthropy Award from the Committee Encouraging Corporate Philanthropy, which recognized IBM's On Demand Community. •
Corporate Citizenship: In Taiwan, IBM was ranked No. 2 in the
Corp Corpor orat ate e Citize tizen n Surve urvey y of the forei oreign gn com company pany group roup of Commonwealth Magazine's 2009. For the last three consecutive years, IBM has been selected as one of the top 10 corporate socially responsible companies. Corporate Citizenship: IBM Poland has been awarded the status of 'Best Practice for Business and Society' by the Responsible Busi Busines ness s Foru Forum, m, the the count country ry's 's larg larges estt corp corpor orat ate e orga organi niza zati tion on focused on corporate social responsibility. Corporate Corporate Citizenshi Citizenship: p: IBM Romania has been recognized with a 'diploma' award from the Romanian Donors Forum and the Trust for Civil Society in Central and Eastern Europe for being one of the top corporate socially responsible companies. Accessibility: IBM Spain and Association Semilla's joint Social GNU project has won the title of best 'Best IT Project' at an awards ceremony hosted at the Ministry of Industry. Corporate Corporate Citizenshi Citizenship: p: IBM IBM China hina was awa awarded rded a cert certiifica ficatte of appreciation for their outstanding contribution to education by the China Ministry of Education (CME) at the Spring Festival Reception for more than 30 multinational companies. Corporate Citizenship: For the seven consecutive year, IBM Hong Kong has been awarded with "The Caring Company Award" by the Hong Kong Council of Social Services. •
•
•
•
•
AWARD ASSOCIATED WITH IBM:
•
Impact Best of Show Award - Cross View, Inc.
The Impact Best of Show Award recognizes Cross View, one of the IBM IBM spon sponso sors rs of the the Impa Impact ct conf confer eren ence ce,, for for the the solu soluti tion on that that best best demon demonst stra rate tes s the the uniq unique ue powe powerr of usin using g IBM IBM SOA SOA and and WebS WebSph pher ere e components to solve customer business challenges. •
SOA Cost Optimization Award - Miracle Software Systems, Inc.
The SOA Cost Optimization Award recognizes Miracle Software Systems, Inc. and its web methods to WebSphere Message Broker and WebSphere Process Server migration solution for exploiting IBM SOA 14
and WebSphere and providing a proven solution that helps customers achi achiev eve e cost cost opti optimi miza zati tion on,, agil agilit ity, y, and and incre ncreas ased ed ROI ROI (Ret (Retur urn n on investment). •
Business Process Technology
Management
Award
-
Ascendant
The Business Process Management Award recognizes Ascendant Technology for its “Invoice Workflow” for Accounts Payables as the most excepti exceptiona onall soluti solution on in helpin helping g custom customers ers to impro improve ve their their effici efficienc ency, y, elas elasti tici city ty,, and and cont contro roll of thei theirr key key busi busine ness ss proc proces esse ses s acro across ss the enterprise. •
Green Partner Award - Enterprise Information Management
The The Gree Green n Part Partne nerr Awar Award d recog recogni nize zes s Ente Enterp rpri rise se Info Inform rmat atio ion n Management (EIM) for its GreenCert solution for excellence in helping busines businesses ses throug through h use talent talent,, natura naturall resour resources, ces, and techno technolog logy y in smarter ways. IBM's GreenCert play an important role in helping address business challenges, including rising energy costs, regulatory mandates, and customer demand for eco-friendly products. GreenCert measures the reduction in greenhouse gases an energy company realizes when it takes steps to reduce emissions. •
Distributor Excellence Award
The Distributor Excellence Award recognizes Tech Data Azlan as a high value-add distributor who is leading the charge in building their Business Partners' ability to leverage IBM SOA and WebSphere software capabilities in creative, leading edge, and exciting way.
15
2.4 2.4 ORGA ORGANI NIZA ZATI TION ONAL AL STRU STRUCT CTUR URE E IN IBM Projectized Organization Any organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project. A project organization is generally a temporary thing. It will only exist from the projects start until its end. All the project team members are coming from different organizations of part of the organization. They will all have a temporary assignment to the project. So, they have not only a project manager, but also their 'normal' boss, who orders him around when the employee is not in the project. These 'normal bosses' are an important group of stakeholders. The projectized organization should be a result from the project strategy; it shou oulld be con ons stru tructed ted in such uch a way tha hatt the strat trateg egy y can be impl implem emen ente ted d wi with thin in the the en envi viro ronm nmen entt of the the proj projec ect. t. A very very ob obvi viou ous s exam exampl ple: e: if the the stra strate tegy gy cont contai ains ns an aspec aspectt of ha havi ving ng inde indepen pende dent nt reviews, the organization should support its independence, by creating a separate working group with no ties to the other team members. The project team that does the work should be as small as possible. Small Small is bea beauti utiful ful,, and eff effect ectiv ive. e. Don Don't 't start start inviti inviting ng everyo everyone ne to the organization. Only people who have an added value and will spend a significant amount of time to the project can be in the core organization. Try to avoid going overboard on working groups. Working groups can drown a project in communication overhead. If there should be that much discussion anyway, postpone the project and first make up the minds. Next to the people who do the work, are the people that have some influence on it, but do nothing; a large part of the stakeholders. The project organization can be used to satisfy some wishes of stakeholders 16
to create the much needed win-win situations. In its most simple form, you can create a project trashcan where you put in the people who just want to be involved in the project (to save their territory), but which you have no use for.
Current members of the board of directors of IBM are: • • • • • • • •
•
• • • • •
Cathleen Black – President, Hearst Magazines William R. Brody – President, Johns Hopkins University Kenneth Chenault – Chairman and CEO, American Express Company Juergen Dormann – Chairman of the Board, ABB Ltd Ayan Barua – CEO, PICSimon Shum Siu-hung – CEO, Lenovo Computer Ltd. Michael L. Eskew – former Chairman and CEO, United Parcel Service, Inc. Shirley Ann Jackson – President, Rensselaer Polytechnic Institute Minoru Makihara – Senior Corporate Advisor and former Chairman, Mitsubishi Corporation Ria Leslie Sanchez – Junior Director International Programming Operations and External Affairs, IBM James W. Owens – Chairman and CEO, Caterpillar Inc. Samuel J. Palmisano – Chairman, President and CEO, IBM Joan Spero – President, Doris Duke Charitable Foundation Sidney Taurel – Chairman, Eli Lilly and Company Lorenzo Zambrano – Chairman and CEO, Cemex SAB de CV
IBM INDIA
The head of IBM India is called a country manager. These people have headed IBM India during its history in the country. * 1966 – 1976 – Alec Taylor * 1976 – 1978 – T Brian Finn * 1992 – 1994 – Michael Klein * 1994 – 1996 – John R. Whiting * 1996 – 1998 – Ravi Marwaha * 1998 – 2000 – Ranjit Limaye * 2001 – 2003 – Abraham Thomas, currently in IBM Singapore * 2003 – Present – Shanker Annaswamy, current Country-head. SOME OTHER INMPORTANT PERSONALITIES ARE : Shanker Annaswamy, Country Manager & South Asia Head Rajesh Nambiar, Vice President & GM, Global Delivery, IBM India Dave Seybold, Vice President and Partner Global Delivery, Consulting & Application Services, IBM Global Business Services India Arnab Saha, General Manager, Business Development, Global Delivery 17
India
3
MANAGEMENT PRACTICES
18
3.1 IBM BUSINESS LINES
IBM manufactures and sells computer hardware and software (with a focus on the latter) Offers infrastructure services:
Helps identify problem areas and determines where further in-depth analysis is required. It also help to remediate and repair issues that have have been been iden identi tifi fied ed,, incl includ udin ing g thos those e rela relate ted d to appl applic icat atio ion n infr infras astr truc uctu ture re,, serv servic ices es mana manage geme ment nt and and iden identi tity ty and and acce access ss management.
Hosting services:
IBM provides one of the most comprehensive application hosting services in the industry from basic support to global deployments. With With IBM IBM Appl Applic icat atio ion n Host Hostin ing g serv servic ices es,, you you can can leve levera rage ge the the leading applications that can help reduce your time to market or boost customer satisfaction without the usual upfront infrastructure costs or the ongoing implementation and management headaches.
Consulting services:
IBM business strategy consultants support clients in the translation of innovative and core competencies into real business value by formulati formulating ng strategies strategies,, managing managing change, change, and realizing realizing benefits. benefits. Working collaboratively with clients, we provide solutions to the business needs that your organization is confronted with, such as grow growin ing g reve revenu nues es,, stre stream amlilini ning ng cost costs s and and link linkin ing g stra strate tegy gy to execution.
Recently entered into an outsourcing business (customer services and technical support) support) a unit called IBM DAKSH is specially specially set up for for the the out out sour sourci cing ng busi busine ness ss.. Deal Dealin ing g in cust custom omer er serv servic ice, e, technical support, billing assistance etc.
19
Green sigma:
IBM’s goal with the Green Sigma TM offering is to partner with client clients s to drive drive innova innovatio tion, n, achiev achieving ing econom economic ic benefi benefits ts for the busines business s and reducing reducing impac impactt to the environm environment ent.. This This focus focus on ways to develop processes to bring down the carbon intensity of products and processes and create a lean green business"
3.2 HUMAN RESOURCE POLICY The The Hum Human Reso Resour urc ce (HR) (HR) poli olicy must must be abl able to del deliver iver deliberate insights to business units, enabling the organization to more effectively source, evaluate and motivate employees in an increasingly turbulent business environment. At the the same same time time,, HR need needs s to cont contin inue ue to prov provid ide e admi admini nist stra rati tive ve services that are reliable, cost-effective and responsive to the needs of business units around the globe. HR must perform both roles effectively to contribute to the long-term success of the organization. This perspective shaped a series of discussions that took place in March 2006 with more than 25 senior HR executives from around the globe. Over four days, HR leaders from various industries, including utilities, financial services, retail and government - to name a few - engaged in a dialogue to share insights and best practices on a variety of topics. These included issues such as changing workforce demographics, the role of workforce analytics in developing strategic insights, and the structure and competencies of the HR policies of the future. Across Across indust industrie ries, s, changi changing ng busine business ss condit conditio ions, ns, demogr demograph aphics ics and glob global aliz izat atio ion n have have rais raised ed the the need need to unde unders rsta tand nd and and mana manage ge the the dynamics of talent, from sourcing to resource management to recognition systems. To allow HR to focus on these more strategic issues, the next generation HR organization must promote the use of shared services and employee self-service to move away from its traditional role of answering questions and resolving disputes. Further, the HR organization needs to work more effectively with other vendors in its extended enterprise, providing the tighter coordination that is needed to deliver administrative services. Finally, HR needs to look inward at its own talent model, to help ensure that its employees have the
20
capabilities, skills and confidence to provide strategic guidance to the business. The roundtable participants highlighted the clear need for the HR function to focus its limited time, energy and resources on four critical areas: • Understanding the impact of both globalization and changing workforce demographics on the supply of talent. • Determining the drivers of employee retention and developing strategies for retaining top performers. • Engaging with the corporate strategy process to determine the need for critical skills and capabilities • Balancing the supply and demand for talent on a dynamic basis within and across business units.
Implications for the next generation HR organization
For the HR organization to take on these new responsibilities, it must be able to shed some of its more routine tasks and restore its internal capability. Many organizations have moved to using outsourcing vendo vendors rs to perf perfor orm m rout routin ine e admi admini nist stra rati tive ve task tasks, s, whil while e othe others rs have have continued to retain these activities in a shared services environment. The key steps toward achieving this include: • Getting out of the business of “answering questions, ”shifting to Spend d less less time time deal dealin ing g with with issu issues es that that are are more more stra strate tegi gic. c. Spen managing routine transactions and interactions that too often fill the days of HR professionals. Place the nexus of addressing administrative issues in one place. Track employee inquiries to determine whether HR policies and procedures are easy to understand and apply, and whether they need improvement. At the same time, increase the availability and use of employee and managerial self-service. • Developing relationships across organizational boundaries: More and more, companies are looking to outsiders to take over administrative components of the HR function - particularly non-core tasks such as payroll and benefits administration, as well as employee service center mana manage geme ment nt,, recr recrui uiti ting ng,, comp compen ensa sati tion on admi admini nist stra rati tion on and and HR data data management. It is increasingly important to view these companies as part of a larger extended enterprise. • Building capability in the HR talent pool: Improve or acquire the skills needed for a greater strategic orientation in several ways: bringing 21
in professionals from outside the company; attracting existing employees from outside the HR function to join the HR team; providing education to exist existin ing g HR prof profes essi sion onal als; s; and and fost foster erin ing g oppo opport rtun unit itie ies s for for outs outsid ide e development. To pros prospe perr in a new new envi enviro ronm nmen ent, t, HR prof profes essi sion onal als s need need a more ore strategic perspective on their services and capabilities. The window for evolving into a more strategic HR organization is now - miss it, and more than the power and prestige of the HR function will be at stake.
3.3 MARKETING STRATEGY Today’s marketplace involves substantial risk and full of surprises. We can consider a few recent twists and turns in marketing point of view: • Bricks and Clicks — not “simply clicks” : Despite an early lead by
Internet pure plays with their plentiful brand awareness campaigns, brickand-click enterprises now-a-days seem to have the major advantages. • Private trumps public: Creative marketing tactics could not save the
multitude of public interactions launched over the last few years. With the excepti exception on of a few, few, large large indust industry ry stalwa stalwarts rts,, enthus enthusias iasm m surrou surroundi nding ng public exchanges has now shifted to private models that enable true business value to be more readily achieved. • Inside turns out : Companies are discovering that internal assets, such as online employee training, can be turned into effective marketing tools. Busine Businessss-mod model el experi experimen mentat tation ion does does not always always produc produce e expect expected ed results. In fact, to many executives, today’s marketing expenditures can feel more like wagers than investments. Through IBM works with leading marketers across a variety of industries, IBM has honed in on five pragmatic tips that can help position a business for solid performance — even in turbulent times also.
Creation of Global Brand Blueprint
Many leaders establish a central framework for their brand — one that that clea clearl rly y comm communi unica cate tes s what what elem element ents s shoul should d rema remain in constant across geographies and what elements can vary in order to capitalize on local insights. 22
A blueprint should be “global” — not only in geographic terms, but also also in mark market etin ing g dime dimens nsio ions. ns. It shou should ld addr addres ess s the the enti entire re marketing mix — from advertising to the Web presence. Example — a company’s website might vary in appearance, even functional area across different geographies.
Architect Consistent Customer Experience
An expe experi rien ence ce is not not simp simply ly abou aboutt the the qual qualit ity y of serv servic ices es received during a business transaction, but also it is the overall feeling a consumer has after each encounter with a company. IBM has has deve develo lope ped d a meth method odol olog ogy y that that can can help help the the comp compan anie ies s architect the exact type of emotional “imprint” they would like to leav leave e with ith custo ustome mers rs at each ach and every very touc touch h poin pointt. This his “Experience Architecture” begins with a ornamentation — a easily understandable set of target emotional outcomes, marketing and operations into alignment and reinforce the brand blueprint.
Gain a Single View of the Customer
While providing the customer with a single, consistent view of the enterprise is critical; enterprises must also develop an overall view view of each each cust custom omer er.. A cons consol olid idat ated ed view view bene benefi fits ts both both the the customers and the business. IBM practices on some practical ways to achieve a unified picture of the customer: o
Analyz yzes es when when,, wher where e and and how how Look Look At The The Deta Detail ils: s: Anal customer data can be gathered.
o
Establish Rules: Create a governance framework with the
management policies and practices that encourage customer centricity. o
Build Build Common Common Ground: Ground: Set up consistent processes for
cust custom omer er rela relati tion onsh ship ip mana managem gemen entt acro across ss all all sale sales s and and service organization. o
ader, who is Take Take Lead Leader ersh ship ip Seri Seriou ousl sly: y: A strong leade accountable for all touch points, must be appointed. IBM has established an executive position — Chief Experience Officer, for this particular matter.
23
Insist On Robust IT Infrastructure
Mark Market etin ing g in a com complex plex busi busine ness ss envi enviro ron nment ment requi equirres sophisticated IT support. Marketers cannot go far without the right techno technolog logy y platfo platform rm for implem implement enting ing market marketing ing initia initiativ tives. es. To position themselves and retaining their positions most flexibly, IBM is putting in place a hub-and-spoke architecture. This allows them to build a “spoke” whenever new application needs to be integrated with a “hub” — a preferable alternative to constructing point-to-point connections between the new application and all other systems.
Partner In Innovative Ways
As businesses search for the right relationship to capitalize on future opportunities, IBM evaluates potential partners from several perspectives: o o
Pick an appropriate mix of global and local partners Find a spot in someone else’s net value
As one of the world’s most recognized brands, IBM make out the constant challenges of being on the market frontline.
24
3.4 WORK CULTURE Employees are the essence of each and every organization. IBM has one of the largest professional workforces around the world. IBM is the one of the the most most admi admire red d comp compan any y in the the worl world, d, and and is also also reta retain inin ing g the the position. It is possible only with the support of the quality of the leaders and managers. IBM brought the expertise of their people, a workforce that is responsive to market requirements, with the skills and expertise to deliver value to clients, is resilient to market forces and delivers strong leadership into the market. There are mainly three-fold initiatives for the employees because of Which IBM is able to retain its position as one of the World’s top Employer over the years:
Rigoro rous us and and ongo ongoin ing g care career er/s /ski killlls s deve develo lopm pmen entt Capability: Rigo programs
Climate: A challenging, empowering work environment, with world-
class infrastructure Culture: Sensitive to a global workforce
The attributes that qualify these 3Cs are the Top Reasons that people come to work at IBM.
CAPABILIT LITY – Moldi oldin ng Global Leaders and Fosteri ering Employee Employee Talent: Talent: To be a leading international company, it is
important to develop an organization of global leaders and dynamic international employees. IBM is committed to the employee wellbein being g and and care career er grow growth th.. IBM IBM offe offers rs a wide wide bask basket et of care career er opportu opportunit nities ies allowi allowing ng employ employees ees to move move to differ different ent jobs jobs and 25
career paths within the com company. IBM offers employees intern internati ationa onall career careers, s, offeri offering ng immens immense e scope scope for profes professio sional nal deve devellopm opment ent and and care career er grow growth th,, acros cross s tech techn nolog ologiical cal and functional areas. IBM recognizes talent and offers global career growth opportunities beyond India with fast track options, offering a comp comple lete te care career er adva advant ntag age e of work workiing for for an IT lead leader er and and visionary in the On Demand world. One of IBM’s key strategies and policies is to attract, motivate and retain the best talent in our indu indust stry ry,, and and deve develo lop p them them into into globa globall lead leader ers. s. The The comp company any makes sure talented employee yees are recognized for their achievements and encourages them to seek fresh challenges and learn new skills through training and mentoring programs. Besides offering a myriad of technology avenues for employees to work on and and inno innova vatte on newe newerr ones ones,, IBM IBM offe offers rs empl employ oyee ees s seve severa rall programs for employee development, to help IBMers become more effective in their jobs. Some of these initiatives include Mentoring, Stud Study y assi assist stan ance ce plan plan,, Lead Leader ersh ship ip deve develo lopm pmen ent, t, Indi Indivi vidu dual al Development Plan, and Certification & IBM Certified Professionals, and well-d well-defi efined ned and compre comprehen hensiv sive e Traini Training ng Progra Programs. ms. IBM’s IBM’s investments in training prepare employees with the skills they need now and in the future. IBM earned the No 1 ranking in Training Magazine's "Training Top 100" list, an annual ranking of companies that understand, embrace and use training to achieve real business results, support corporate values and enhance the work lives of employees. IBM has ranked among the top five of the Training Top 100 since the magazine began issuing the awards in 2001.
CLI CLIMATE: ATE: Fle Flexibi xibili lity ty At Work Work and Employ ployee ee Wel Wellness ness Programs: IBM believes in empowering employees as partners to
succ succes ess, s, offe offeri ring ng a glob global al work work cult cultur ure e and and best best work workpl plac ace e amen amenit itie ies. s. At IBM, IBM, cubi cubicl cles es are are out out and and mobi mobile le offi office ces s are are in. in. Workforce flexibility is a competitive advantage for IBM. It helps make the Employer of Choice for new hires, and enables them to retain their top talent. Some of IBM’s IBM’s workplace flexibility flexibility programs programs include individualized daily work schedule, Flexible Work Week, Regular Part-Time, Leave of Absence, and Remote/Mobile Work Opti Option ons. s. IBM IBM stri strive ves s to make make life life more more conv conven enie ient nt for for the employees so they can save their energy and be more productive at work. The idea is to ensure IBMers work better even when they are home, or on the move. Most mobile employees are provided with with IBM IBM lapt aptops, ops, which hich func functi tion on like like thei theirr offi office ce “cabi cabine nett,” containing all their files, presentation materials, and a whole extent of support services that they need to meet their clients’ and other 26
requir requireme ements nts.. Be it downlo downloadi ading ng files, files, checki checking ng and replyi replying ng to mail, or linking to the electronic library, IBMers can dial into the IBM net network work,, and and get conn connec ecte ted, d, throu hrough gh the near neares estt landl ndline ine telephone. CULT CULTUR URE: E: Work Workfor force ce Dive Divers rsity ity:: Diversity in IBM means welcoming all the people to the workplace regardless of factors unr unrelat elated ed to job job perf perfor orma manc nce. e. The The miss missio ion n of IBM’ IBM’s s Glob Global al Workforce Diversity is to guide in creating a business environment, whic which h reco recogn gniz izes es our our indi indivi vidu dual al diff differ erenc ences es as a comp compet etit itiv ive e strength and a critical requirement for our success in the global market. This environment enhances the success of the employees, enhan enhance ces s the the abil abilit ity y to satis satisfy fy thei theirr clie client nts s and and adva advanc nce e IBM’ IBM’s s continued growth. IBM's definition of diversity includes all human char charac acte teri rist stic ics s that that make make us uniq unique ue as indi indivi vidu dual als. s. It incl includ udes es everyone and excludes no one. Race, gender, geographic origin, culture, lifestyle, age, disability, economic status, marital status, and religion are just some of the characteristics that define them as people. IBM has received numerous awards for workforce diversity. Recently, Jyotindra Mehta, an employee of IBM, was awarded the Helen Keller Award in 2004, by the National Center for Promotion of Employment of Disabled People.
27
We have studied the information on the various management practices and its’ structures followed by IBM and we have have analyz analyzed ed their their workin working g strat strategy egy,, busine business ss lines, and their achievements and awards. By analyzing all these subjects, we can conclude that IBM will surely gain all all it’s it’s succ succes esse ses s and and ach achieve ieveme ment nts s due due to thei theirr well well trained and maintaining management team, well prepared HR policies and the working environment for the employees.
28
1. IBM OFFICI OFFICIAL AL WEB SITE SITE LINKS: www.ibm.com/in/en/ http://www.ibm.com/technologyservices/in/en/ 2. WIKI WIKIPE PEDI DIA A LINKS: http://en.wikipedia.org/wiki/IBM 3. THROUG THROUGH H EMPLO EMPLOYEE YEE OF OF IBM: IBM: (Techn hnic ical al Soft Softwa ware re Engi Engine neer er,, IBM, IBM, Mr. Mr. Yati Yatind ndra ra Sing Singh h (Tec Bangalore) (Technical Software Software Engineer, Engineer, Mr. Abhima Abhimanyu nyu Choudh Choudhary ary (Technical IBM, Gurgaon)
29
