Transformation pain
IBM's first-quarter financial report showed that revenue for the quarter was 23.4 billion US dollars, down 5.1% compared with 24.7 billion US dollars last year. Net profit was US $ 3.032 billion, down 1.1% from US $ 3.066 billion in the same period last year. This was the first time since 2005 that the company ’s profitability was lower than market expectations. IBM believes that the decline in performance is because the sales team failed to conclude a series of valuable software and hardware transactions. Earlier news showed that IBM had intended to sell X86, the server product with the lowest profit margin, to Lenovo, a Chinese company.
Shortly after IBM announced its first quarter 2013 revenue and profit decline, there were media reports that IBM would lay off 6,000 to 8,000 employees worldwide, but until the BPO department was "blood washed", it was considered a development Whether China, the center of gravity, will have large-scale layoffs has not been determined. With the clarification of the situation, rumors about layoffs in China have appeared in multiple versions ranging from 300 to 2,000 people, but no one knows the truth.
Regarding the specific details of the layoffs, Tang Leilei, Director of the Corporate Planning Department of IBM Greater China, declined to respond positively. He said that because the company is in a competitive industry, the company does not openly discuss the details of the staffing planning. But transformation is a necessary characteristic of IBM's business model, so a certain degree of staff reorganization will become an ongoing requirement of IBM's business.
In fact, it is not only Chinese employees who are dissatisfied with the layoffs. On an IBM employee voicing website called ibmemployee.com, IBM employees in different countries are disclosing the number of layoffs and departments in real time. Angry employees even Starting to unite requires IBM President and CEO Luo Ruilan to step down, "Why should we pay for her and executives' 2015 plans, and why should we please Wall Street and lose their jobs for them!"
For IBM employees in China, in addition to layoffs, the signs of IBM's upcoming changes have already been revealed one by one. First, the annual fixed salary adjustment was changed from April to July, and then from July to October; and then to various types of reimbursement. Approval is tight; the more cumbersome business travel process system and so on. In short, although IBM's stock price rose to an all-time high, it has reduced employee service to an all-time low.
The departure of Fan Yu, IBM's global vice president and general manager of the Greater China Government and Public Business Department, has made IBM employees in China feel a sense of crisis. The highest-ranked mainland Chinese executive in IBM is IBM's first in China. One of a group of employees, although not well-known in the outside world, is regarded as an idol of IBM Chinese employees internally, and it will be highlighted in the training of new employees, but even if he decides to leave IBM, the dike will collapse It is already a unified understanding of employees in China.
IBM officials said that the biggest reason for this layoff is to reduce the size of employees to meet the goal of 16.70 US dollars per share this year. This is also an established goal of the IBM 2015 plan. The plan taken to please Wall Street shows that the company's earnings per share will increase to at least $ 20 by 2015; at the same time, it will continue to return cash to shareholders of $ 70 billion by the end of 2015.
Technological change
At present, IBM is trying to achieve performance goals through the application of new technologies such as mobile, cloud computing, big data analysis and social media. On June 5, IBM announced the acquisition of SoftLay-er, a cloud computing company, for $ 2 billion to enhance its competitiveness in the field of cloud computing. IBM expects that the cloud computing business will bring about $ 7 billion in revenue by 2015 .
Regarding IBM's performance in China's cloud computing market, IBM's outstanding engineer CTO of IBM China Development Center and Mao Xinsheng, Dean of IBM's Innovation Engineering Institute, are not lucky. A month ago, IBM's competitor in the database and operating system field, Microsoft, announced that it would enter the Chinese market in cooperation with domestic operation and maintenance service providers.
On June 6, IBM released its China cloud computing market strategy. The goals include integrating new technologies; providing a comprehensive solution portfolio; building a cloud computing ecosystem, and sorting out industry authorities by promoting the establishment of cloud computing standards. To win the "stern competition", IBM must show customers how extensive and powerful their experience in this field is. "In the past year, IBM's business analysis, cloud and smart earth products accounted for about half of its revenue from software." Hu Shizhong, general manager of IBM Software Group Greater China, said that in the past 18 months, IBM software in China, including China The performance of Greater China continues to grow, and the main business opportunities come from "cloud computing" and "smart earth".
IBM predicts that by 2015, revenue from analytics and related "big data" technologies will reach $ 20 billion. "These products and solutions account for a greater proportion of IBM's business. They drive higher-quality revenue streams and improve revenue structure and profitability." Hu Shizhong said. In May 2013, the IBM Software Group proposed marketing slogans in response to the "new era of computing" in Greater China to provide services to high-value-added corporate customers and government departments.
Industry Voice
The online version of "Forbes" magazine also published an article recently, elaborating on IBM's plan to launch a dominant position in the mobile field. The article points out that IBM is planning to dominate the mobile market through its most comprehensive mobile solution portfolio, MobileFirst (mobile first). The key points of this strategy include building an omni-channel retail business, building the Internet of Things, and building a machine learning platform.
In 1995, no one had even heard of Amazon, Google (Weibo) or Facebook; and these companies have dominated the technology industry to this day. If you think about it, you will be surprised how many startups have grown into huge global giants since the Internet became mainstream. However, if you feel that things stop there, then you are wrong, because there are still countless companies that have completely reinvented themselves in order to succeed in the digital world. For example, e-commerce alone has become a business worth up to one trillion dollars.
In the e-commerce industry, many companies are supported by IBM's e-commerce innovation program. Irving Wladawsky-Berger, IBM ’s vice president of technology and strategy, explained that IBM ’s success came largely from the company ’s recognition of the Internet industry The opportunities are not only open to startups, but existing companies can also unlock huge value by transforming their businesses. Now, IBM is planning to do so again with its most comprehensive mobile solution portfolio, MobileFirst. Here are five key points related to IBM MobileFirst's strategy.
1. Build an omnichannel retail business
The "consumer decision journey" that marketers like to say is actually a "drunk man's pace". In this "journey", consumers will first go to the store to see the good, then use the mobile application, and then look at the recommendations from the website and friends, so as to obtain information from various sources before making a purchase decision. As a result, retail is increasingly becoming an omni-channel activity; in this activity, merchants and their suppliers can provide a way from the store to the consumer ’s home before, during or after the consumer ’s purchase. Even a seamless experience on mobile platforms. The experience consumers want is to search for their favorite products online, "showrooming" in the store, and then make purchases at any time and place.
For any company, this is a demand. To do this, they not only need to integrate their online assets with the legacy POS (point of sale) system (some of which can be traced back to decades ago), but also to ensure that their services are Consistency can be maintained on the device, regardless of the operating system the consumer uses, the size of the display screen, or other different factors. Then, the company also needs to make adaptive changes to its internal processes.
IBM has developed an all-in-one solution that enables developers to write code once and adapt it to the requirements of omni-channel retailing. At the same time, Amazon's consulting department can also help train company employees, so that whether the interaction between consumers and merchants occurs in retail stores, online, or in customer service centers, the services provided by the company are all Can maintain consistency. Compared with IBM, few companies have the scale and scope to do the same thing.
2. Internet of Things
In today's world, everything is about data. From invisible connections between people, to the roar of car engines, to the vital characteristics of patients in hospitals, data is everywhere. The Internet has made human communication activities popular, and the new Internet of Things (Web of Things) is doing the same for physical things.
A business tablet must have powerful business functions. At present, users use tablet products more for entertainment, and insufficient development of commercial value has become a major factor restricting the development of tablet computers. Many far-sighted terminal manufacturers have set their sights on the business tablet field.
Generally speaking, when business users choose tablet PC products, they still focus on "regular items" such as processor, battery, operating system, and built-in applications, especially office software applications, which are a good helper for business users.
First of all, there must be powerful office software such as customer management software, which can record customer data and related information anytime, anywhere. There is also a need for powerful marketing software, software marketing, reducing manual intervention, and one person can handle all the publicity and customer information.
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