The market is changing increasingly faster

The Portrait Gallery stretches in a wide corridor on the first floor of the headquarters of IBM in Armonk. They are all there, the eight leaders who presided over the fortunes of the computer giant for a hundred years. The paintings are impressive. Models pose, standing up for posterity. Only Sam Palmisano, the current CEO, missing. Once his term is completed, it will take place with those who have shaped the history of the company.

A lower floor, another corridor, while length. Here are listed all the inventions developed by IBM engineers. The history of the computer intones over the years. Some exposed machines seem straight out of a science fiction film. For the visitor, the awareness is immediate: the firm American played a critical role in the last 100 years technological progress, but also in the economy, while the Group has, by its size, its revenues and its ability to innovate, long represented the quintessence of the multinational firm. The history of IBM is summarized, on two floors: a learned marriage of men and machines, allowing the company to remain one of the most important high-tech companies in the world, one hundred years after its creation.

It all started in 1911. At the time, it does not IBM again, but his ancestor, CTRC Computing-Tabulating-Recording Company (), born this year there from the merger of three American companies. Based in New York, society account 1,300 employees and manufactures scales and mechanical measuring instruments, but also to point machines. The arrival of Thomas Watson in 1914 coincides with the first phase of growth and expansion. Considered the founder of IBM father, he remain President until 1956, after taking care of pass the reins to his son, Thomas Watson Jr. He died two months after the retirement.

Under his chairmanship, the CTRC becomes IBM: International Business Machines. If the name changes in 1924, international expansion begins as early as the mid-1910s. In the 1930s, the multinational is already implemented in 79 countries.

In 1936, while the great depression lingers, the group generates sales $ 25 million and 9 million in profits. That year, IBM delivers to the Government two calculating machines very sophisticated, intended to identify the 26 million American workers, under the Act on social security adopted by Roosevelt. A technical feat, which sealed the beginning of a fruitful collaboration with the Government. It leads to the involvement of IBM in the conquest of space in the 1950s. Computers and the IBM engineers played a leading role in the success of the Apollo 11 operation, which saw the first man to walk on the Moon in 1969.

This is the real golden age of the firm, renamed at the time "big blue". Since the passage of witness between Thomas Watson and his son, IBM launches a series of innovations that mark the advent of a new computer era. Hard disks, floppy disks, typewriters, the large computers - called "mainframe" - out all of the laboratories of the New York society and to provide many commercial success. IBM becomes unavoidable, and opportunity. In the space of thirty years, from 1950 to 1980, the turnover and profit are multiplied by 10, reaching respectively 26 billion and $ 3.4 billion, with 340,000 employees.

This golden age reached its peak in 1981, when the Group began marketing its first personal computers. IBM is not a precursor to this niche: Apple has released its first PC in 1976. But the multinational will take off the market and promote the democratization of the individual computer.

Paradoxically, the commercial success that flows from signs the beginning of the descent to the underworld. Unlike the large computers that he has used to sell to professionals, the PC market is otherwise more competitive. New players emerge, more agile and more aggressive, like Microsoft and Intel. IBM is no longer the only engine in the industry. But hard to be convinced. "There has not sufficiently been attention to the market and customers, recognized Linda Sanford, Executive Vice President, who has spent most of his career in the business." It has forgotten to reinvent itself, to renew itself, yet was our strength until then. "Unable to change its strategy, one which is then described as"dinosaur"by the influential"time"magazine loses foot. Accumulated deficits: in 1993, the group displays a record loss of $ 8 billion. Over three years, it is$ 16 billion. Facing bankruptcy. "It had touched the wall", recalls Linda Sanford.

IBM is in need of a shock. This is Lou Gerstner in charge. Named President in 1993, the leader is not a "IBMer". A first in the history of "big blue", which symbolizes the magnitude of the trauma. Former boss of RJR Nabisco, he brings a new vision. The moult will be radical. Manufacturer of "hardware", IBM will become a provider of it solutions, in which it combines software and hardware support services. Objective: to increase the added value of offerings, with higher margin activities. Left to separate the historical activities, subject to strong pressure on prices. In the space of ten years, hard disks, printers and network equipment are resold.

"big blue" transformation continues under the leadership of Sam Palmisano, the successor to Lou Gerstner in 2002. It leads in 2005 sale of PC business to Chinese Lenovo. A symbol, for the computer industry as to the global economy. The same year, IBM completes acquisition of division Council of PricewaterhouseCoopers, confirming its strategic diversification. The incompetent 1993 will leave traces. "No one has forgotten this period, recognizes John Kelly, the Director of research. But this has forged our ability to adapt to the market.

IBM has changed. The sale of equipment - essentially the servers - represents more than 16 of its turnover. But made molt allowed the company to find a role. The windfall generated by its new activities - 15 billion profit in 2010 - to both invest in research-6 billion per year - and multiply the acquisitions in high-growth segments such as "cloud computing" or data analysis software. The shareholders are not forgotten: since 2000, "big blue" has paid more than $ 100 billion in the form of dividends and share buyback.

Centennial is therefore rather well. And does not hide her excitement in terms of the changes underway in the computer. "The market is changing increasingly faster." This is what motivates the teams from IBM, enthuses Linda Sanford. Because we are part of these changes and we enjoy. "On the stock market, the firm battle now with Microsoft to take the place of second technology group, behind the rival Lord, Apple. A true renaissance