Presentation on theme: "Tim Padden Jeff Younger"— Presentation transcript:
1 Tim Padden Jeff Younger IBM: Beyond BlueTim PaddenJeff Younger
2 IBM entering the business consulting and outsourcing services industry “IBM is changing its definition from international business machines to international business models.” –David Cearly of researcher META GroupIBM entering the business consulting and outsourcing services industrySold PC division to China’s Lenovo Group Ltd.Bought PricewaterhouseCoopers Consulting in 2002 for $3.5 billion50,000+ employees focused on business rather than pure technology
3 $96 billion total revenues $46 billion in services$3 billion in business outsourcing, up 45% from previous yearStock Price: $80.50Projected 12.5% gain in earnings per share this yearIBM worked with the Mayo Clinic on improving medical researchSigned $180 million, 7 year contract with Dun & Bradstreet Corp.IBM now handles some of their credit report data-processing
4 Competitors: Accenture Ltd. Dell Inc. Wipro Technologies $15.6 billion in services$2.2 billion in business outsourcing, up 50%Dell Inc.$4 billion in servicesGrowing 30% annuallyWipro TechnologiesBased in IndiaGrowing fast, hiring 1,400 employees per monthSlightly different strategy than IBM
5 DiversificationIBM wants to be free of the computer industry, which is growing at only 6% annuallyEntering into six new markets, including after sales service for consumer electronics, insurance claims processing, and supply chain optimizationIBM is demonstrating Moderate to High Levels of DiversificationLess than 70% of revenue comes from the dominant business (computer industry)All of IBM’s businesses are linked together
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