IBM Canada LTD
Implementing Global Strategy

1) How has IBM's IT strategy evolved over time, and what are some of the implications for IBM Canada?

IBM has been a global innovator of computer related hardware for over 100 years. IBM’s success has come from executing a well-thought computer structure into a multinational computer technology firm. Its corporate structure has expanded into 200 countries with emphasis on developing a business strategy suited to that particular country’s needs. IBM has utilized its computer innovation model to expand its operations throughout the globe. By expanding into territories outside the United States, IBM has increase corporate net profits to $12.3 billion in 2008.

IBM realized that in a changing IT environment it had to streamline their business model in order to keep profits high. IBM has continually expanded since its inception and has developed numerous computer applications and programs, some of which were unique to Canada alone. IBM’s CIO realized that some of those applications needed to be reduced and further streamlined. IBM realized that the number of applications and servers exceeded their needs. By downsizing their data centers dramatically from 155 to five and further reducing their software applications from 16,000 to 4,700. This realized a booked gross profit of $600 million.

2) Should Peter Silvanovich recommend that the Siebel CRM implementation proceed as planned? Why or why not?

Yes, the switch should occur because of the incurred costs already associated with the implementation. Continued delay will only further complicate the implementation with additional costs. The CRM application was already slated to take a year to switch over. Most of the staff was already versed in the implementation via email and through town hall type meetings. Despite the fact that a project