1. IBM’S E-BUSINESS STRATEGY Presented by: Josh Nichols

2. IBM-International Business Machines  1911- Computing- Tabulating- Recording  IBM- Started in the 1940’s  Continually changes its business strategy to stay competitive  Formed www.ibm.com www.ibm.com

3. Relationship to strategy initiation, formulation, and implementation.  Initiation- IBM examined itself and realized that a change must occur for them to stay competitive.  Formulation- The company decided that they must join the online community as an e-business.  Implementation- Formed Enterprise Web Management to put their plan into action.

4. Enterprise Web Management  EWM is an independent division that IBM formed to mange its e-business strategy.  EWM goals: –Lead the transformation of IBM into an e- business. –Help IBM use the Internet more effectively. –To make IBM’s online environment. –Inform customers of the potential of e- business.

5. IBM’s Advertising Campaign  IBM, in the largest account move in the history of advertising, dumped around 80 ad agencies around the world.  November 1997 - IBM's "e-business" campaign was developed by Ogilvy & Mather Worldwide  Why did IBM Choose Ogilvy & Mather? –Steve Hayden, president of worldwide brand services at Ogilvy & Mather, wrote the ad introducing Macintosh famous 1984 –In 1995, the Advertising Age said the ad was the greatest commercial of all time.

8. IBM Simplification  Reduced number of data centers from 131 to 16  Reduced number of IT applications from 16,000 to 8,000  Reduced global networks from 31 to a single network

9. Reasons to simplify business processes before doing e-commerce  Business process becomes easier and more efficient.  Higher profits, higher productivity and less stress.  Transition to e-commerce will not be as much of a strain on the business as a whole.

10. Factors that contributed to IBM’s success.  IBM created effective advertising and marketing.  They made the switch from their digital brochure type website to a more attractive, more user friendly site.  Made customer connection building on of their primary concerns.

11. Competitors  Hewlett-Packard Hewlett-Packard  Microsoft Microsoft  Micron PC Micron PC Micron PC  Dell Dell  Gateway Gateway

12. Thanks for watching!