May21972 Organizational A Change in Action BADM Presented By: Bin, Nancy, Shaarah, and Rebekah

Company background Background situation Platform of Capabilities Core Competencies SWOT Analysis Factors Driving Change Compelling Reasons for Change Change Vision Making strategies happen Strategy growth staircase to our vision Goals Quarterly Plan Themes Communication Plan Summary

 A leading provider of advanced information technology, products, services and business consulting expertise.  Headquartered in Markham, Ontario, and has nationwide responsibilities for sales, marketing and service.  key contributor to the Canadian economy through significant R&D investment, job creation and the use of Canadian suppliers.

 IBM should follow Dell in online customization to fit consumer needs  IBM is losing market share  Issue of being sustainable in the long term  Want to be competitive to sell online to its customers like Dell

 Growth Enabling Skills  Privileged assets › Credibility  Special relationships  Rebekah read the notes please

To PlayTo Win Gain more market sharesPositive cash flow Sustainability To have more customers Positive cash flow To gain more customers May21972

 Strengths › Industry reputation › Credibility › High brand loyalty  Opportunities › New emerging markets › Customization › Customer needs

 Weaknesses › Not a leader in technology  Threats › Global competition › Losing market share

 Internal drivers › Loss of profits › Costs › sustainability  External macro level drivers › High demand for customization of products- changing consumers’ tastes › Increased competition

Technology Key Implications For Us Supply Demand Competition/ New Entrants Compelling Reason for Change May21972

 “IBM Canada Ltd. is one of Canada's leading providers of advanced information technology, products, services and business consulting expertise. We are dedicated to helping our clients innovate and succeed through the end-to-end transformation of their business models and the application of innovative technology and business solutions. “

May21972  Customer driven innovation  Put customers first  Be committed to deliver products and services that directly address customer needs  Be interactive with customers  Give customers the power of choice

“Making The Strategy Happen” Requires Three Types of Initiatives: Top Down Bottom Up Cross Organizational May21972

Strategy Growth Staircase Towards Our Vision Vision May21972 Strategy Growth Staircase Towards Our Vision

 Create new focus for customer driven innovation  Re-structure › organizational goals › Approach to R&D, marketing, etc  Re-vamped organizational culture

 1 st Quarter  2 nd Quarter  3 rd Quarter  4 th Quarter

2009 Theme: Stock: $ Customers: million May21972 Vision Use copies of this slide on a year by year basis Show effect on various indicators

2010 Theme: Measurements May21972 Vision

2011 Theme: Measurements May21972 Vision

2012 Theme: Measurements May21972 Vision

Theme: Measurements May21972 Vision

 Financial › Increase in market share  Customer › Increase in customer satisfaction  Sustainability

Communications Plan May21972  Objective › market share › consumers’ needs/tastes  Audience › Any computer user  Message › Bringing IBM back in trend. What others can offer, so can IBM. Only better.  Strategy › Website, Press release, staff meetings, Board meetings, Surveys, TV Commercials, Print Media etc.

 Costs of major initiatives › TV Commercials (~$450,000) › Print media (business magazines, newspapers tailored to students, businesses)  Benefits › Long term benefits › Customers retention › New customers  Create a compelling business case

 Major Risks to organization › Consumers’ rejection : consumers’ minds are fickle › Bad reputation: copying Dell’s strategy  Risks of not implementing the plan › Losing market share, particularly the large,younger segment of the population who demands sleek, stylish, fast P.C’s  Risk mitigation strategies › Consumer’s research (surveys from computer magazines › Polls on popular websites

 Create innovation…