In 2011,
Fortune ranked IBM the 18th largest firm in the U.S.,
[5] as well as the 7th most profitable.
[6] Globally, the company was ranked the 31st largest firm by
Forbes for 2011.
[7][8]Other rankings for 2011 include #1 company for leaders (
Fortune), #2 best global brand (
Interbrand), #1
green company worldwide (
Newsweek), #12 most admired company (
Fortune), and #18 most innovative company (
Fast Company).
[9] IBM employs more than 425,000 employees (sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.
[10]IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide.
[11] Its employees have garnered five
Nobel Prizes, four
Turing Awards, nine
National Medals of Technology, and five
National Medals of Science.
[12] Famous inventions by IBM include the
automated teller machine (ATM), the
floppy disk, the
hard disk drive, the
magnetic stripe card, the
relational database, the
Universal Product Code (UPC), the
financial swap,
SABRE airline reservation system,
DRAM, and
Watson artificial intelligence.
The company has undergone several organizational changes since its inception, acquiring companies like
SPSS (2009) and
PwC consulting (2002),
spinning off companies like
Lexmark(1991), and selling off product lines like
ThinkPad to
Lenovo (2005).
[edit]History
Main article:
History of IBM[edit]1880-1929
Starting in the 1880s, various technologies came into existence that would form part of IBM's predecessor company.
Julius E. Pitrap patented the
computing scale in 1885,
[13] Alexander Dey invented the
dial recorder in 1888,
[14] and a year later
Herman Hollerith patented the
Electric Tabulating Machine,
[15] and
Willard Bundy invented a time clock to record a worker's arrival and departure time on a paper tape.
[16] On June 16, 1911, these technologies and their respective companies were merged by
Charles Ranlett Flint to form the
Computing-Tabulating-Recording Company (C-T-R).
[17] The
New York City-based company had 1,300 employees and offices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and Toronto, Ontario. It manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers, along with tabulators and punched cards.
Flint recruited
Thomas J. Watson, Sr., from the
National Cash Register Company to help lead the company in 1914.
[17] Watson implemented "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and an evangelical fervor for instilling company pride and loyalty in every worker".
[18] His favorite slogan, "THINK," became a mantra for C-T-R's employees, and within 11 months of joining C-T-R, Watson became its president.
[18] The company focused on providing large-scale, custom-built tabulating solutions for businesses, leaving the market for small office products to others. During Watson's first four years, revenues more than doubled to $9 million and the company's operations expanded to Europe, South America, Asia, and Australia.
[18] On February 14, 1924, C-T-R was renamed the
International Business Machines Corporation (IBM),
[9] citing the need to align its name with the "growth and extension of [its] activities".
[19][edit]1930-1979

NACA researchers using a IBM type 704 electronic data processing machine in 1957
In 1937, IBM's tabulating equipment enabled organizations to process unprecedented amounts of data, its clients including the
U.S. Government, during its first effort to maintain the employment records for 26 million people pursuant to the
Social Security Act,
[20] and the
Third Reich. In 1938, the IBM World Headquarters Building, located at 590 Madison Avenue in New York, New York, was dedicated.
In 1952,
Thomas J. Watson, Jr., became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of
artificial intelligence. In 1957, IBM developed the
FORTRAN(FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and
Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines.
In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on the moon.
On April 7, 1964 IBM announced the first computer system family, the
IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their applications.
[edit]1980-present
Financial swaps were first introduced to the public in 1981 when IBM and the
World Bankentered into a swap agreement.
[22] In 1991, IBM sold
Lexmark, and in 2002, it acquired
PwCconsulting. In 2003, IBM initiated a project to rewrite its company values. Using its
Jamtechnology, the company hosted Internet-based online discussions on key business issues with 50,000 employees over 3 days. The discussions were analyzed by sophisticated text analysis software (eClassifier) to mine online comments for themes. As a result of the 2003 Jam, the company values were updated to reflect three modern business, marketplace and employee views: "Dedication to every client's success", "Innovation that matters - for our company and for the world", "Trust and personal responsibility in all relationships".
[23] In 2004, another Jam was conducted during which 52,000 employees exchanged
best practicesfor 72 hours. They focused on finding actionable ideas to support implementation of the values previously identified.
[24] [edit]Corporate affairs
The company has nine research labs worldwide—
Almaden, Austin, Brazil,
China,
Haifa,
India ,
Tokyo,
Watson (New York), and
Zurich—with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Other campus installations include towers in
Montreal,
Paris, and
Atlanta; software labs in
Raleigh-Durham,
Rome and
Toronto; buildings in
Chicago,
Johannesburg, and
Seattle; and facilities in
Hakozaki and
Yamato. The company also operates the
IBM Scientific Center, the
Hursley House, the
Canada Head Office Building,
IBM Rochester, and the
Somers Office Complex. The company's contributions to architecture and design, including Chicago's
330 North Wabash building designed by
Ludwig Mies van der Rohe, were recognized with the 1990
Honor Award from the
National Building Museum.
[29]IBM's
Board of Directors, with 14 members, is responsible for the overall management of the company. With
Cathie Black's resignation from the board in November 2010, the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. P. Belda '08 (
Alcoa),
William R. Brody '07 (
Salk Institute /
Johns Hopkins University),
Kenneth Chenault '98 (
American Express),
Michael L. Eskew '05 (
UPS),
Shirley Ann Jackson '05 (
Rensselaer Polytechnic Institute), Andrew N. Liveris '10 (
Dow Chemical), W. James McNerney, Jr. '09 (
Boeing),
James W. Owens '06 (
Caterpillar),
Samuel J. Palmisano '00 (IBM), Joan Spero '04 (
Doris Duke Charitable Foundation),
Sidney Taurel '01 (
Eli Lilly), and
Lorenzo Zambrano '03 (
Cemex).
[30][edit]Corporate recognition and brand
In 2011,
Fortune ranked IBM the 18th largest firm in the U.S.,
[5] as well as the 7th most profitable.
[6] Globally, the company was ranked the 31st largest firm by
Forbes for 2011.
[31] Other rankings for 2011 include the following:
[9]For 2010, IBM's brand was valued at $64.7 billion.
[33][edit]Working at IBM
In 2010, IBM employed 105,000 workers in the U.S., a drop of 30,000 since 2003, and 75,000 people in India, up from 9,000 seven years previous.
[34]IBM's employee management practices can be traced back to its roots. In 1914, CEO Thomas J. Watson boosted company spirit by creating employee sports teams, hosting family outings, and furnishing a company band. In 1924, the Quarter Century Club, which recognizes employees with 25 years of service, was organized and the first issue of Business Machines, IBM's internal publication, was published. In 1925, the first meeting of the Hundred Percent Club, composed of IBM salesmen who meet their quotas, convened in Atlantic City, New Jersey.
IBM was among the first corporations to provide group life insurance (1934), survivor benefits (1935) and paid vacations (1937). In 1932 IBM created an Education Department to oversee training for employees, which oversaw the completion of the IBM Schoolhouse at Endicott in 1933. In 1935, the employee magazine Think was created. Also that year, IBM held its first training class for women systems service professionals. In 1942, IBM launched a program to train and employ disabled people in Topeka, Kansas. The next year classes begin in New York City, and soon the company was asked to join the President's Committee for Employment of the Handicapped. In 1946, the company hired its first black salesman, 18 years before the Civil Rights Act of 1964. In 1947, IBM announces a Total and Permanent Disability Income Plan for employees. A vested rights pension is added to the IBM retirement plan.
In 1952, Thomas J. Watson, Jr., published the company's first written equal opportunity policy letter, one year before the U.S. Supreme Court decision in Brown vs. Board of Education and 11 years before the Civil Rights Act of 1964. In 1961, IBM's nondiscrimination policy is expanded to include sex, national origin, and age. The following year, IBM hosted its first Invention Award Dinner honoring 34 outstanding IBM inventors; and in 1963, the company named the first eight IBM Fellows in a new Fellowship Program that recognizes senior IBM scientists, engineers and other professionals for outstanding technical achievements.
On September 21, 1953,
Thomas Watson, Jr., the company's president at the time, sent out a controversial letter to all IBM employees stating that IBM needed to hire the best people, regardless of their race, ethnic origin, or gender. He also publicized the policy so that in his negotiations to build new manufacturing plants with the governors of two states in the U.S. South, he could be clear that IBM would not build "
separate-but-equal" workplaces.
[35] In 1984, IBM added sexual orientation to its nondiscrimination policy. The company stated that this would give IBM a competitive advantage because IBM would then be able to hire talented people its competitors would turn down.
[36]IBM was the only technology company ranked in
Working Mother magazine's Top 10 for 2004, and one of two technology companies in 2005.
[37][38] On October 10, 2005, IBM became the first major company in the world to commit formally to not using
genetic information in employment decisions. The announcement was made shortly after IBM began working with the
National Geographic Society on its
Genographic Project.
IBM provides same-sex partners of its employees with
health benefits and provides an anti-discrimination clause. The
Human Rights Campaign has consistently rated IBM 100% on its index of gay-friendliness since 2003 (in 2002, the year it began compiling its report on major companies, IBM scored 86%).
[39] In 2007 and again in 2010, IBM UK was ranked first in Stonewall's annual Workplace Equality Index for UK employers.
[40]The company has traditionally resisted labor union organizing,
[41] although unions represent some IBM workers outside the United States. In 2009, the
Unite union stated that several hundred employees joined following the announcement in the UK of pension cuts that left many employees facing a shortfall in projected pensions.
[42]A dark (or gray) suit, white shirt, and a "sincere" tie
[43] was the public uniform for IBM employees for most of the 20th century. During IBM's management transformation in the 1990s, CEO
Louis V. Gerstner, Jr. relaxed these codes, normalizing the dress and behavior of IBM employees to resemble their counterparts in other large technology companies. Since then IBM's dress code is
business casual although employees often wear formal clothes during client meetings.
[citation needed]On 16 June 2011, the company announced a grants programs, called IBM100, to fund its employees participation in volunteer projects - the year long initiative is part of the company's centenary celebrations.
[44][edit]Research
In 1945, The Watson Scientific Computing Laboratory was founded at
Columbia University in New York, New York. The renovated fraternity house on Manhattan's West Side was used as IBM's first laboratory devoted to pure science. The lab was the forerunner of IBM's Research Division, which today operates research facilities around the world.
In 1966, IBM researcher Robert H. Dennard invented
Dynamic Random Access Memory (DRAM) cells, one-transistor memory cells that store each single bit of information as an electrical charge in an electronic circuit. The technology permits major increases in memory density, and is widely adopted throughout the industry where it remains in widespread use today.
[edit]Selected current projects
developerWorks is a website run by IBM for
software developers and IT professionals. It contains how-to articles and tutorials, as well as software downloads and code samples, discussion forums, podcasts, blogs, wikis, and other resources for developers and technical professionals. Subjects range from open, industry-standard technologies like
Java,
Linux,
SOA and
web services,
web development,
Ajax,
PHP, and
XML to IBM's products (
WebSphere,
Rational,
Lotus,
Tivoli and
Information Management). In 2007, developerWorks was inducted into the Jolt Hall of Fame.
[48] alphaWorks is IBM's source for emerging software technologies. These technologies include:
- Flexible Internet Evaluation Report Architecture – A highly flexible architecture for the design, display, and reporting of Internet surveys.
- IBM History Flow Visualization Application – A tool for visualizing dynamic, evolving documents and the interactions of multiple collaborating authors.
- IBM Linux on POWER Performance Simulator – A tool that provides users of Linux on Power a set of performance models for IBM'sPOWER processors.
- Database File Archive And Restoration Management – An application for archiving and restoring hard disk drive files using file references stored in a database.
- Policy Management for Autonomic Computing – A policy-based autonomic management infrastructure that simplifies the automation of IT and business processes.
- FairUCE – A spam filter that verifies sender identity instead of filtering content.
- Unstructured Information Management Architecture (UIMA) SDK – A Java SDK that supports the implementation, composition, and deployment of applications working with unstructured data.
- Accessibility Browser – A web-browser specifically designed to assist people with visual impairments, to be released as open source software. Also known as the "A-Browser," the technology will aim to eliminate the need for a mouse, relying instead completely on voice-controls, buttons and predefined shortcut keys.
In May 2002, IBM and Butterfly.net, Inc. announced the Butterfly Grid, a commercial
grid for the online video gaming market.
[52] In March 2006, IBM announced separate agreements with Hoplon Infotainment, Online Game Services Incorporated (OGSI), and RenderRocket to provide on-demand
content management and
blade server computing resources.
[53]IBM announced it will launch its new software, called "Open Client Offering" which is to run on
Linux,
Microsoft Windows and Apple's
Mac OS X. The company states that its new product allows businesses to offer employees a choice of using the same software on Windows and its alternatives. This means that "Open Client Offering" is to cut costs of managing whether to use Linux or Apple relative to Windows. There will be no necessity for companies to pay Microsoft for its licenses for operating systems since the operating systems will no longer rely on software which is Windows-based. One alternative to Microsoft's office document formats is the
Open Document Format software, whose development IBM supports. It is going to be used for several tasks like:
word processing, presentations, along with collaboration with
Lotus Notes,
instant messaging and blog tools as well as an
Internet Explorer competitor – the
Mozilla Firefox web browser. IBM plans to install Open Client on 5% of its desktop PCs. The Linux offering has been made available as the IBM Client for Smart Work product on the
Ubuntuand
Red Hat Enterprise Linux platforms.
[54]UC2 (Unified Communications and Collaboration) is an IBM and
Cisco Systems joint project based on
Eclipse and
OSGi. It will offer the numerous Eclipse application developers a unified platform for an easier work environment. The software based on UC2 platform will provide major enterprises with easy-to-use communication solutions, such as the Lotus based
Sametime. In the future the Sametime users will benefit from such additional functions as
click-to-call and
voice mailing.
[55]Redbooks are publicly available online books about best practices with IBM products. They describe the products features, field experience and dos and don'ts, while leaving aside marketing buzz. Available formats are Redbooks, Redpapers and Redpieces.
[edit]Internal programs
Extreme Blue is one of IBM's
internship programs, which tasks students with developing high-value technology.
[56] In 2003, participants in the program filed 98
patents.
[57]In May 2007, IBM unveiled
Project Big Green, a re-direction of $1 billion per year across its businesses to increase energy efficiency.
On November 2008, IBM’s CEO, Sam Palmisano, during a speech at the Council on Foreign Relations, outlined a new agenda for building a
Smarter Planet.
[58] In addition, an official company
blog exists.
Smarter Planet @ IBM[edit]Environmental record
The birthplace of IBM,
Endicott, suffered pollution for decades, however. IBM used liquid cleaning agents in
circuit board assembly operation for more than two decades, and six spills and leaks were recorded, including one leak in 1979 of 4,100 gallons from an underground tank. These left behind
volatile organic compounds in the town's soil and aquifer. Trace elements of volatile organic compounds have been identified in Endicott’s drinking water, but the levels are within regulatory limits. Also, from 1980, IBM has pumped out 78,000 gallons of chemicals, including
trichloroethane,
freon,
benzene and
perchloroethene to the air and allegedly caused several cancer cases among the townspeople. IBM Endicott has been identified by the Department of Environmental Conservation as the major source of pollution, though traces of contaminants from a local dry cleaner and other polluters were also found. Despite the amount of pollutant, state health officials could not verify whether air or
water pollution in Endicott has actually caused any health problems. According to city officials, tests show that the water is safe to drink.
[60][edit]Solar power
Tokyo Ohka Kogyo Co., Ltd. (TOK) and IBM are collaborating to establish new, low-cost methods for bringing the next generation of
solar energy products, called
CIGS (Copper-Indium-Gallium-Selenide)
solar cell modules, to market. Use of
thin film technology, such as CIGS, has great promise in reducing the overall cost of solar cells and further enabling their widespread adoption.
[61][62]IBM is exploring four main areas of photovoltaic research: using current technologies to develop cheaper and more efficient
silicon solar cells, developing new solution processed thin film photovoltaic devices,
concentrator photovoltaics, and future generation photovoltaic architectures based upon
nanostructures such as semiconductor
quantum dots and
nanowires.
[63][edit]Company logo and nickname
IBM's current "8-bar" logo was designed in 1972 by
graphic designer Paul Rand.
[64] It was a general replacement for a 13-bar logo that first appeared in the public on the 1966 release of the TSS/360.
Logos designed in the 1970s tended to be sensitive to the technical limitations of photocopiers, which were then being widely deployed. A logo with large solid areas tended to be poorly copied by copiers in the 1970s, so companies preferred logos that avoided large solid areas. The 1972 IBM logos are an example of this tendency. With the advent of digital copiers in the mid-1980s this technical restriction had largely disappeared; at roughly the same time, the 13-bar logo was abandoned for almost the opposite reason – it was difficult to render accurately on the low-resolution digital printers (240
dots per inch) of the time.
Big Blue is a nickname for IBM. There are several theories explaining the origin of the name. One theory, substantiated by people who worked for IBM at the time, is that IBM field representatives coined the term in the 1960s, referring to the color of the mainframes IBM installed in the 1960s and early 1970s. "True Blue" was a term used to describe a loyal IBM customer, and business writers later picked up the term.
[65][66] Another theory suggests that Big Blue simply refers to the Company's logo. A third theory suggests that Big Blue refers to a former company
dress code that required many IBM employees to wear only white shirts and many wore blue suits.
[65][67] In any event, IBM keyboards, typewriters, and some other manufactured devices have played on the "Big Blue" concept, using the color for enter keys and carriage returns. IBM has also used blue logos since 1947, making blue the defining color of the company's corporate design, which might be another, more plausible reason for the term.
[edit]See also
[edit]References
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[edit]Further reading
[edit]External links
- Business data