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PGP/17D/043
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investments in internet products and services and shifted IBMs focus from
software applications to middleware. He developed an open technology
model of work in IBM and organized EBOs to ensure corporate guidance
and oversight.
6. What made IBM a great company during the 1990s and 1970s?
During 1970s IBM flourished as an organization because of its
organization culture & core values. IBM emphasized on Dark suited
salespeople, strong culture of corporate pride & loyalty, Lifetime
employment & Work ethics. These factors were motivating for the
organisation. During Watson Jr. time IBM made $5bn investment in
development of system 360 computer, development of FORTRAN
language, invention of Hard disk / floppy disk technology, installation of
Supermarket checkout station & Automated Teller Machines (ATM).All
these turned out to be positive for IBM.
During the early 1990s the then CEO, John Akers realized the need
of the hour & implemented cost cutting measures like cutting employee
perks, Voluntary Retirement Schemes (VRS) schemes & forced layoffs to
reduce the workforce. These measures were the needed during those
critical times and helped IBM to survive. Moreover Gerstners strategic
moves helped IBM to leverage upon its IT operations, enterprise support
processes, revenue generating capabilities, business analytics; IT enabled
product / service offerings & created new options in terms of Life Sciences,
Business Transformation Services. All these increase IBMs revenues and
helped it to maintain its market position.