ibm canada

CIS9230 GlobalizationandTechnologyTeamA

IBM Canada Ltd: Implementing Global Strategy SITUATION ANALYSIS

1. Macro-environment With IBMs increasing global expansion boosting the number of multinational companies it is working with, new client needs emerge. In order for IBM to meet its goals of more efficiently as well as more costeffectively serving the needs of the growing customer base, the IT strategy must be aligned with the business strategy. A sophisticated and integrated global CRM system tend to facilitate cost reduction, promote innovation which again will enhanceproductivityandultimatelyleadtoahighercustomersatisfaction.In this case, we can point out these variables to be relevant in relation to the new system rollout.

Political/Legal: Local governmental regulations regarding data collection, data privacy and information security laws (Schaeffer). Some countries have fairly strict data retention and privacy laws to avoid marketing spamming and to protect its citizens from identity theft. Hence, this may present a huge challenge to a CRM systemwhosepurposeistoprovidedetailedinformationaboutallcustomers.

Economic: As developing countries are getting increasingly technologically advanced,biggrowthopportunitiesforevenfurtherglobalexpansionarerelevant.

Social: Language barriers in certain countries can result in miscommunication. If software is localized to local language, it is vital that translation is accurate. Moreover, similarly to the political/legal aspect, customers in some countries are reluctant to provide companies with specific information, presenting challenges to the existence of a globally consistent CRM system (Schaeffer). Furthermore, IBM enjoys a good reputation as a global IT company (Mohammadi). If localized IT systems lead to inconsistency and unproductivity in terms of customer relations, the wellestablishedreputationmightbetainted.

Technological: IBM is faced with an increasingly competitive environment and a continuous pressure to maximize productivity. Competitors that already have globally integrated CRM systems might be better equipped to meet clients' needs more efficiently. IT infrastructure and advancement in some countries that IBM operate in might also present an issue depending on the advancement of the new system(Schaeffer).


Market and Organizational Pulse IBM is a multidomestic company (Jain, 2013) that launched a global initiative in the year, 2000. The lowering of trade barriers, the rise of the developing world and the emergence of the World Wide Web were unleashing the flow of work on a global scale (IBM, 2009). This led to the adoption of new business models and a new form of the corporation itself, a globallyintegratedenterprise.

In addition, distributed computing was replacing the client/server approach evidenced with the advent of cameras, phones, cars, appliances, etc. facilitated by the Internet. Processing power, data mining/ analytics of big data and cloud computing provide astute inferences, making an even stronger case for a global company. There are two basicdriversforthischangecustomersandthecostreductionopportunities.

IBMs customers are end users in medium to large sized organizations. In line with its mission to provide leadership technology for the systems business, IBM developed a strategy to help achieve its goals of helping clients succeed in delivering business value by becoming more innovative, efficient and competitive through the use of business insight andITsolutionsandprovidinglongtermvaluetoshareholders.(IBM,2009)

Since innovation had become a valued need of clients, IBM evolved to meet these demands by transitioning from a computer hardware company to multinational IT Solutions firm. To this end IBM adopted the aggressive growth strategy of acquisition leading to natural diversification of its products/services. As of 2009, IBM differentiated itself through its R&D efforts feeding into its exploration strategy. This was combined with an exploitationstrategytomeetitsshorttermneedsprovidingadistinctiveedge.

Competition: IBM first began its Canadian operations in 1917. It maintains an Ontario based

software research and development laboratory that is one of the largest in the world. IBM Canadas main regional competitors are Cisco Systems Canada Co., HewlettPackard Canada Co., and Dell Canada Inc. (Hoovers). Its global competitors are Accenture plc., HewlettPackardCompanyandMicrosoftCorporation(YahooInc).


5. SWOT Analysis: Strengths

1. Brand reputation: significant market penetration throughout the world. Theyre a market leader in terms of technological patents. According to Interbrand, IBM has consistently ranked as one of the worlds most innovative, profitable, and sustainablebrands(currently#3worldwidebehindCocaColaandApple).

2. First mover in cloud computing: IBM initially moved towards a strategy for cloud computing in 2007, stating its mission to build clouds for enterprise clients and provideservicesthatcomplementtheproduct.

3. A diversified business: IBM has organized its business into 4 divisions: hardware, software,services,andfinancing.

4. Strong portfolio of acquisitions: approximately 80 companies acquired from 20012008.

Weaknesses1. IBMs colossal size: ironically a source of weakness, in terms of orchestrating

organizationalchangeswhichallowthemtocompeteinaquicklyevolvingindustry.2. Relativelyexpensiveserviceandsoftwaresolutions.3. Focusonlargeenterprises.

Opportunities1. Expand services and software divisions: open source trend, small/medium

businesses.


2. Globalization:canimproveprofitabilitybysourcingbusinessinputsmoreefficiently.3. Increasingdemand:cloudbasedservices,analytics,bigdatatrends.

Threats1. Increasingcompetition(e.g.Microsoft,HP,Intel,Sun/Oracle,Accenture).2. Slowdownofworldeconomy.


REFERENCES Hoovers.(n.d.).IbmCanadaltd.Competition.Retrievedfrom

http://www.hoovers.com/companyinformation/cs/competition.IBM_Canada_Ltd.f93928f1af21

0784.html

IBM.(2009).2009AnnualReport.Retrievedfrom

http://www.ibm.com/annualreport/2009/2009_ibm_annual.pdfJain,R.(2013).IntroductiontoGlobalization[PowerPointslides].Retrievedfrom BlackboardKing,C.(2009,March03).IBMandHP:NottheCompetitorsPeopleThink.Retrievedfrom

EcommerceTimes:IBMandHP:NottheCompetitorsPeopleThinkMohammadi,Amir.(2008,Dec31).IBM.Slideshare.Retrievedfrom

http://www.slideshare.net/amir1980/ibmpresentationSchaeffer,Chuck.(n.d.)GlobalCRMImplementationChallenges.Retrievedfromhttp://www.crmsearch.com/globalcrmchallenges.phpVance,A.(2009,March22).RivalsSayI.B.M.StiflesCompetitiontoMainframes.NewYork

Times.Retrievedfromhttp://www.nytimes.com/2009/03/23/technology/companies/23mainframe.html?pagewanted=allYahooInc.,.(2013,September26).IBMCompetitors|InternationalBusinessMachines

Stock.RetrievedfromYahooFinance:http://finance.yahoo.com/q/co?s=IBM+Competitors

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