IBM Transformation—A Summary of Results
IBM was on the verge of breakup: Bureaucracy, complexity, and silos was slowing IBM down—costing money and keeping the organization too opaque to function decisively. Stock prices were at a 20-year low, and the company had posted an $8.1 billion loss.
IBM drove common processes across lines of business: IBM began by breaking down barriers between lines of business, implementing enterprise-wide standards for five core processes:
Market planning
Product development
Procurement
CRM
Fulfillment
Then | Now | |
---|---|---|
Number of CIOs | 128 | 1 |
Host data centers | 55 | 12 |
Web hosting centers | 80 | 11 |
Networks | 31 | 1 |
Applications | 16,000 | 5,200 |
Results: IT spending was reduced by 31 percent over the past ...
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