IBM – Setting direction through a roadmap
The International Business Machines Corporation (IBM) considers itself “the world’s most forward-looking company”. Why? Because it wants to change the paradigm from “react” to “anticipate”. IBM believes in a smarter planet where the solutions offered will drive companies’ effectiveness and efficiency, will turn information into insights and will connect people.
Each year, IBM presents its performance in a detailed road map. A long-term perspective ensures IBM is well positioned to take advantage of major shifts occurring in technology, business and the global economy.
IBM has established 5 Key Road Map objectives for 2015:
- Increase software profit so that it represents 50% of the overall profit;
- Reach 30% in market growth of geographic revenue;
- Generate $8 billion in productivity through enterprise transformation;
- Return $70 billion to shareholders;
- Invest $20 billion in acquisitions.
IBM claims that “to sustain an innovation model in our industry, a company must do more than accommodate major technology shifts.” To remain competitive, IBM has to continue its learning and development, both in what it does and how it does it. The company has to continue to offer higher value in its products and skills, in its operations and management practices and in the transformational capabilities it delivers to clients.
In 2012, by aligning its objectives and monitoring them through its Road Map, IBM achieved record $ Operating earnings per share, record $ Free cash flow and record % Profit margins. This performance is a proof of its strategic position and capabilities, and of the discipline of its management systems.