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Ibm on Demand Business

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Ibm on Demand Business
| SUPPLY CHAIN MANAGEMENT | IBM’S „ON DEMAND BUSINESS” STRATEGY | |

Group 12:Bochyńska Monika 69136
Szymański Konrad 69135Zarzycki Michał 69134 |

Table of contents

1. Introduction 3
2. Business history 3
3. IBM 4
4. Problem identification 6
5. Analysis 8
6. Personal conclusions and lessons learned 10
7. Recommendations 11
8. IBM nowadays 12
9. Bibliography 13
10. Group elements evaluation 13

1. Introduction

IBM, the biggest IT company in the world, from more than 80 years is the lider in supporting the innovation in business. The company offers complex solutions, adjusted to customers requirements. In 2002 this outsourcing giant was facing a new business opportunity. Its CEO, Sam Palamisano, led the company to new corporate strategy, which was based on the concept of “on demand business”. IMB wanted to show, how the business should evolve and structure after the e-business era. This case study will discuss and analyze opportunieties, risks and goals connectes with new IBMs strategy. First we are going to give a brief presentation of the business of outsourcing and the history of IBM. Than there will be a problem presentation with its’ analyzis and recommendation for the future. 2. Business history

Outsourcing is an abbreviation for outside-resource-using, what means in practice “using external resources”. This term is used to describe business concept which implies the transfer of part of their business to another company when it’s profitable. Initially, outsourcing was associated with a strategy for manufacturing companies that relocated their factories to countries where production costs were lower. Nowadays, outsourcing is associated not only with production, but with every areas of activity like HR, IT, financial services etc. The main difference between outsourcing of goods and services is that in case of services there are no transportation costs.
The rapid growth of interest in outsourcing, is observed in

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