Sam Palmisano Essay Example | Topics and Well Written Essays - 1000 words

Sam Palmisano - Essay Example His vision for IBM and the sweeping changes he has made to the business of IBM have been met with optimism as well as cynicism. Some are succeeding while some are lackluster. His ideas, taken one at a time, seem to be all over the road, but when taken in context of his broader plans, they are indeed focused and revolutionary. The capstone of Palmisano's business plan is On Demand Computing. In the world of high technology Palmisano believes, "IBM can create and win high-margin opportunities in everything from Web-site management software to corporate technology services to mainframe computers" (Bergstein). His on demand vision creates the environment for the company to provide consulting, storage, computing, and management all from a single source. Palmisano has eagerly pushed for increased research and development while promoting the exploration of new communication methods to make on demand possible. His on demand process has been met favorably as businesses realize they need additional expertise outside their own walls to grow. The client can use what they want, when they need it, and without huge up-front outlays. It has also helped, if not required, the successful implementation of another Palmisano pet project, the IBM Partner Program. IBM's partner program is an integrated technology network that provides technology solutions throughout dissimilar business environments. It enables small to medium sized businesses to take advantage of IBM's expertise. In return, IBM gets access to their markets and clients. The expanding server market, where IBM has been gaining market share from HP, has attributed its rapid growth to the partner network. Palmisano reports, "It would be impossible for us to be that effective without them, so that works very well" (Palmisano Interview). Horizontal integration is another area that Palmisano has stressed with success. Palmisano believes the future lies in the ability to provide across the board, integrated solutions to increase the efficiency of the workflow process. Integration can connect supply-chain management, business modeling, streamlined production, employee management, and scientific research. His vision will offer IBM's customers the ability to view, in real time, every aspect of their product, schedule, and clients' needs. He has thrown the old concept of services out the window and replaced it with his new idea of integration. In his words,"... people should not think of 'services' as only a labor-intensive business." (Schlender). Integration has not just been a marketing tool for Palmisano. He has worked to guide IBM through a period of what he calls internal reintegration, the reassembling of his own company to make it more responsive and versatile. IBM has traditionally been plagued with complaints of the overwhelming bureaucracy that was confronted when attempting to do business with IBM. Palmisano acknowledges that they have a long way to go, but has taken steps to consolidate corporate entities and eliminate the need for their clients to deal with multiple business units. It's this attitude that has led to closing regional sales offices so the customer can deal directly with IBM, and encouraging his 35000 member sales staff to share information. Having an integrated philosophy removes any question about whether the numbers are correct or not.