IBM: How the Innovation Process Has Been Managed

IBM: How the Innovation Process Has Been Managed



Abstract

IBM has a history of successfully turning organisational data into useful information, allowing customers to store, retrieve, analyze, access and distribute data. The core components IBM offers its customers include database search engines and middleware for distributed databases, tools for systems management and administration, and access enabling tools for data replication and decision support. The company has a distinguished record in the database industry since it introduced the successful IMS/ESA Database Manager in 1968. The data management market segment has undergone significant change and IBM must provide complete solutions targeting customer interests and trends including open client-server environments, systems platforms and data management. The company is investing in the fast-paced LAN and workstation market for data management, offering products including DB2 and IMS DB.

IBM: How the Innovation Process Has Been Managed

Introduction

IBM has set the pace for strategic development in the IT sector in the last few years. The move into outsourcing and other services, in particular, was a masterstroke which has maintained IBM's dominance of the IT consulting sector. Since then the company has pursued a focused and generally fearless strategy, showing no qualms about ditching heritage sectors, such as PCs and disk-drives, in favour of higher margin non-manufacturing operations. There seems little doubt that IT outsourcing and consulting will continue to be a growth industry in the near and medium term, and IBM is also taking steps to transfer operations to low-cost regions such as India to maintain its margins. The main threat to the company is further erosion of its remaining hardware and software operations.

Hippel (2006) mentions in today's global, highly-competitive economy, turning organisational data into an informational asset is key to gaining competitive advantage (Hippel, 2006). To create and manage this informational asset, customers need to store, retrieve, access, analyze and distribute their data.

IBM: How the Innovation Process Has Been Managed- A Discussion

The core componentry IBM offers customers to do this includes database engines together with middleware for distributed databases, access enabling tools for data replication and decision support, tools for systems management and administration, and tools for application development. These data management offerings integrate with complementary components for transaction management, networking and work-group solutions. In addition, these products combine with appropriate service, support and application offerings to provide complete and open data management solutions to customer business problems (Hippel, 2006).

To satisfy customer needs for uniform and open software across diverse environments, IBM develops these solutions for a variety of IBM and non-IBM platforms, including PCs, workstations, midrange and large systems. IBM offerings are designed to run on uniprocessor and parallel systems, in simple and complex environments, and are focused on making distribution of data and Client/Server (C/S) solutions easy-to-use while maximizing customer value.

The IBM Database Heritage

IBM has a long and distinguished record as a pioneer in database technology and as an industry leader in delivering "industrial-strength" data management solutions to customers. IBM's highly successful IMS/ESA Database Manager was first introduced in ...