The International Business Machines Corporation (IBM) is an American multinational
technology and consulting corporation, with headquarters in Armonk, New York, United States. IBM manufactures and markets computer hardware and software, and offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. The company was founded in 1911 as the Computing Tabulating Recording Company (CTR) through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Company. CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Securities analysts nicknamed IBM Big Blue in recognition of IBM's common use of blue in products, packaging, and logo. In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number of employees (435,000 worldwide, approximately 100,000 in the US), the No. 4 largest in terms of market capitalization, the No. 9 most profitable, and the No. 19 largest firm in terms of revenue. Globally, the company was ranked the No. 31 largest in terms of revenue by Forbes for 2011. Other rankings for 2011/2012 include No. 1 company for leaders (Fortune), No. 1 green company worldwide (Newsweek), No. 2 best global brand (Interbrand), No. 2 most respected company (Barron's), No. 5 most admired company (Fortune), and No. 18 most innovative company (Fast Company). IBM has 12 research laboratories worldwide and, as of 2013, has held the record for most patents generated by a company for 20 consecutive years. Its employees have garnered five Nobel Prizes, six Turing Awards, ten National Medals of Technology, and five National Medals of Science. Notable inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, the RDBMS and SQL, SABRE airline reservation system, DRAM, and Watson artificial intelligence. The company has undergone several organizational changes since its inception, acquiring companies such as Kenexa (2012) and SPSS (2009) and organizations such as PwC's consulting business (2002), spinning off companies like Lexmark (1991), and selling off product lines like ThinkPad to Lenovo (2005). KM AT IBM In November 2007, US-based International Business Machines Corporation (IBM) was inducted into the Global Most Admired Knowledge Enterprises (MAKE) Hall of Fame. A panel comprising executives from Global Fortune 500 companies and KM experts chose the winners of the 2007 MAKE awards. IBM was one of 21 winners. Commenting on the winners, Rory Chase, Managing Director of Teleos, which administers the MAKE program, said, These organizations have been recognized as global leaders in effectively transforming enterprise knowledge into wealth creating ideas, products, and solutions. They are building portfolios of intellectual capital and intangible assets which will enable them to outperform their competitors now and in the future. IBM had won the KMWorld Awards in 2005 too, in the KM Reality category. The winners were chosen from among 120 nominees by a panel comprising analysts, vendors, and employees of KMWorld magazine. On choosing IBM, KMWorld reported, In years past, they have recognized customers that have implemented a solution, but this time around they acknowledged a vendor for its internal knowledge management (KM) program, because in this particular case it has resulted in significant benefits to all its customers. IBM creates complete business solutions that integrate hardware, software and services and, hence, requires true enterprise-wide knowledge exchange and collaboration. They were building the entire IBM Company around the concept of knowledge management. IBMs KM initiatives date back to the early 1990s, when the company was reorganized under Louis Gerstner (Gerstner). He brought in several changes in the company, and at that time, the company started paying attention to KM. IBM used KM as a means to bring about transformation and turn the business around. The KM program in the company facilitated exchange of knowledge within the company among the different business units. IBMs KM strategy consisted of turning the company into a leading knowledge management based company, using technology for sharing knowledge, and building the required IT infrastructure. The main objective of the KM framework was to facilitate knowledge sharing and collaboration among employees. IBMs first KM initiative started in 1994. At that time, the companys focus was on providing knowledge about work and co-workers so as to enable reuse of knowledge assets at the business unit level. By creating the knowledge base, they planned to deliver solutions to its clients with more accuracy and higher speed. The program they undertook was called Intellectual Capital Management (ICM) and its main aim was to make KM a formal practice across the company. The asset reuse program was extended across different units of the company globally, to facilitate capturing and reusing the assets and intellectual capital that had created a significant impact in each division. The program was also implemented in other divisions of the company. In 1995, IBM came up with a new business model in which it developed communities of practice. These were self-organized communities, where employees with similar job functions and similar interests, came together. In IBM, communities of practice were known as knowledge networks. They were responsible for gathering, evaluating, structuring, and spreading knowledge. The knowledge thus disseminated was shared among colleagues. The knowledge networks included methods, processes, tools, experiences, and documentation. Knowledge networks adopted a set of roles for managing the knowledge. The roles included a leader and a core team. The core team consisted of a router who went through all the publications that were submitted, and decided on who would be evaluating those publications. The core team also consisted of category owners, who were experts in a particular field. They were responsible for managing the knowledge generated in a specified area. The communities of practice represented knowledge in several areas that included enterprise systems management, testing methods and practices, organization change, e-business, and systems management in industry areas like automotive, finance, healthcare, insurance, etc. In 1997, to turn itself into a KM driven company, IBM upgraded its IT infrastructure by investing around US$ 400 million to facilitate knowledge sharing. This included the largest single-company rollout ever of groupware to 240,000 Lotus Notes users. The corporate KM program in IBM set the direction for KM activities in the company, provided leadership and guidance, and deployed KM solutions across the organization. The projects that the company carried out generated knowledge. Such knowledge was managed through project management support and tools. At the end of the project, the knowledge generated was placed in the Intellectual Capital Repository IBM encouraged frequent interaction among team members, which generated knowledge that was either tacit or explicit. To share and reuse the knowledge and to manage it effectively, IBM used Lotus Notes/Domino, e-mail, etc. The company used several KM tools to capture, share, and manage knowledge across the company. These tools included K Portal, ICM AssetWeb, Competency network, On Demand workplace, etc. K Portal: IBMs KM portal, called K Portal, was used as a tool to help employees find the relevant documents, customer references, and details of the customers products, and contact external sources. The portal was also used to access information about competitors and their products and about the people in the company who had expertise in certain areas. To capture the data and retrieve the documents, K Portal used a technology known as Grand Central Station (GCS). GCS used a crawler to locate the documents in the Lotus Notes and Web sites. The data was extracted in several formats such as Lotus Notes and Microsoft Office applications. The information was also obtained from attached documents and was used for indexing and analysis. In K Portal, the crawler gathered data from different disparate repositories and database websites. The content was then transformed into the XML format. The content of the documents was indexed in a searchable text index and the documents were categorized. It used the Knowledge Map Editor tool that specified the repositories to access, and how to categorize the documents. ICM AssetWeb The Intellectual Capital Management AssetWeb (ICM AssetWeb) a Lotus Notes-based application, was essentially a portal that was widely used for sharing knowledge in the company. Though this was initially developed for internal use, it was later made available for external users and was among the most widely used KM tools. Review, classification, and certification of documents were a part of the document management process in ICM AssetWeb. This was carried out by teams of experts within the company. Security was also ensured as the users were required to enter their ID and password to access some of the documents. ICM AssetWeb enabled IBM to obtain data from different sources, both internal and external, and use the knowledge to provide its clients with better solutions. Several tools like multiple database search, version management, etc., formed a part of ICM AssetWeb. ICM AssetWeb had a search tool called Navigator that enabled users to search and find the required topic. To foster the culture of creativity and idea generation, discussion forums were made a part of ICM AssetWeb through Knowledge Caf, which was a Lotus Notes application. Knowledge Cockpit was a business intelligence tool. Knowledge Caf and Knowledge Cockpit Knowledge Caf was a repository of information maintained centrally. It provided easy access to information that employees needed. It had several categories, which made sorting the information easy. Knowledge Cockpit allowed the experts in a subject to mine information. It had mobile agents that collected information from the Internet. Knowledge Cockpit also obtained information from several other sources and channeled it to a single location. Competency Network As a part of its KM efforts, IBM created a competency network a community of experts within the company. The main task of the community was to collect and share intellectual capital with others across the company. There were several competency networks in the company, with each being responsible for creating, evaluating, and structuring the data that became a part of its database. On Demand Workplace In the year 2004, IBM started a portal for online training, called On-demand Workplace (ODW). This portal focused on critical job roles in the company and provided the employees access to asset management programs and best practices in different fields. One such program was Learning@IBM. Based on the geographic location, job profile, business unit, etc., Learning@IBM provided learning recommendations and resources, which users could access right from their desktop. It provided the employees with mandatory sessions, recorded the details of employee training, and also offered additional training sessions as per the convenience of the employees. Learning@IBM was highly popular and in August 2005, it recorded more than 400,000 page views. ODW served more than 300,000 employees of the company (between 1998 and 2003) all across the world. ODW provided the employees with personalized access to all IBM resources. As of 2007, ODW had recorded more than 2.8 million page views per business day, and 130 million hits per week. Around 80 percent of the employees in IBM visited ODW at least once a day. ODW integrated content learning, expertise, collaboration, and business applications. There were six basic elements in ODW collaboration, business unit tools, content, enterprise tools, expertise, and e-learning. BluePages As there were more than 300,000 employees in IBM, locating the required talent and expertise could occasionally prove to be problematic. To address this issue, IBM launched BluePages, a corporate directory with instant messaging and e-mail facilities. As of mid-2006, more than 80 percent of the employees in IBM were registered with BluePages; it recorded more than 4 million searches every week. BluePages provided a wide range of information on members and using the links available, the members could be contacted. BluePages was placed on the banner on the top of IBMs W3 ODW. It could also be accessed through the Lotus Notes. The Role of the Manager @ IBM IBM designed a company-wide initiative, The Role of the Manager @ IBM, which aimed at transforming the role of the managers in the company. One of the components of this initiative was ManagerJam, which enabled all the managers in IBM working all across the world to share best practices. The session took place on the corporate intranet. This was based on a virtual environment, through which managers discussed six topics building careers, managing performance, fostering innovation, translating strategy to results, human face, and new customer landscape, which were identified as crucial. IBM employees willing to volunteer acted as moderators and facilitators of the discussion forums. Their role was to support and maintain the flow of the discussions by encouraging dialogue among the participants, and providing an insight about the topic being discussed. A session was conducted for around 48 hours in May 2001, and over 25 percent of all the managers in the company participated. Most of the managers said that they intended to apply what they had learnt through the session in their daily activities. After this session, on several occasions, IBM used the intranet to interact with the employees, clients, and others. Jam in IBM referred to online discussions to bring out different perspectives from the employees. Between July 29 and August 01, 2003 a session called ValuesJam was conducted. The session was led by the Chairman and CEO of the company, and witnessed participation from thousands of employees. In this session, the employees discussed what defines IBM and IBMers? The result of this session was the reformulation of the almost a century old core values of IBM. The new values that were to guide the company were Dedication to every clients success Innovation that matters, for our company and for the world Trust and personal responsibility in all relationships. Another session called WorldJam was conducted between October 26 and October 28, 2004, with the objective of identifying actionable ideas which would help the company reflect its values. About 56,870 employees participated in the 54-hour session, during which several thousands of proposals came forward which were deliberated on, and 191 proposals were created. The employees were asked to rate these proposals over the next seven days and 35 top rated proposals were to be considered by the top management of the company. The InnovationJam conducted in 2006 witnessed participation from employees, business partners, and clients of IBM which included 67 companies in 104 countries. This was a 72-hour session during which participants discussed the exploiting of IBMs research technologies and their application in the real world. The result was an investment of US$ 100 million on ten new business ideas. InnovationJam 2008 was held between October 05 and October 09, 2008. Employees from more than 1000 companies participated in the event along with the employees of IBM. Subject matter experts also took part in the discussion whose central idea was enterprise of the future. It aimed at tapping the insights of various leaders from around the world. Collaboration Forums IBM also provided its employees with several opportunities to collaborate. One such forum was CollaborationCentral, a portal that provided collaboration guidance, tools, and best practices. A part of the CollaborationCentral was Team Rooms, through which teams that were located across the world could share information and collaborate in their work. As of mid-2006, there were around 27,000 active Team Rooms in CollaborationCentral. IBM used a collaboration tool called e-meetings, which used web technology to conduct meetings among the employees located across the world. Through an outbound service, the customers, vendors, and business partners could also participate in the Web conferences. Another collaborative forum was the ThinkPlace. It was a web application through which employees could share their ideas with each other. Employees could browse through ThinkPlace and rate others ideas, collaborate with others, and search for ideas that they could use. ThinkPlace was designed to encourage open community-based collaboration in order to drive innovation. ThinkPlace originated from the research labs of IBM to enable researchers to share ideas. Later on, all employees began to participate and they posted their ideas about solving the problems in the company and growing their business. The ideas submitted by the employees were evaluated by experts on that subject every month and those found relevant were pursued. Instant Messaging & VoIP Instant messaging was also widely used as a collaboration tool in the company. It comprised a list of users who were online and were ready to talk. IBM used VoIP to carry the voice and data signals. Through this system, voice, voice mails, and faxes were converted into data that could be transported over the Internet effectively. Another advantage of this system was that the employee could work from anywhere around the globe with a single phone number. Blogs & Wikis BlogCentral was a feature that allowed employees to create blogs and access each others blogs. Blogging was done to encourage exchange and learning in the company and with the clients. As of April 2006, Blog Central had 23,000 users and more than 3,500 active blogs. In Spring 2005, IBM bloggers began using Wiki14 for creating guidelines for blogging. Through these guidelines, the employees were individually made responsible for their posts. It was required of employees to post their name and designation when they posted blogs about IBM. Role of Communities At IBM, the business units encouraged the formation of knowledge networks, when the need to share the knowledge was felt. The heads of the units instigated the formation of groups with assistance from the specialists. Over a period of time, several domains of knowledge became a part of the communities. These included enterprise system management, application development, testing methods and practices, e-business, systems management, and industry level competencies in the chemical, automotive, petroleum, finance, insurance, and healthcare fields among others. The communities were fostered through a comprehensive KM framework that included the vision, strategy, and value system of the company, incentives, technology, processes, and leadership. Through this framework, the community was aligned with the goals and the value system of the organization. The roles and activities of the community members included managing the intellectual capital of the community, sharing knowledge that was tacit, communications, socialization, content management, development and execution of business strategy, and developing competency. CommunityMap enabled employees to find new members, and also enabled the communities to find new members. In CommunityMap, community leaders created entries describing their community. The employees could browse through the details of the community and could join, if they wished to do so. CommunityMap had over 250 entries on varied topics like technology, management, strategy, innovation, e-business, consultancy, industry, etc. Benefits from KM IBM in increasing efficiency by the reuse of captured assets and by the transfer of knowledge to improve the skills of employees. It helped the company innovate by bringing in the employees across time and geographic boundaries to share ideas. KM helped IBM derive business value by improving asset utilization. Due to the increased efficiency, IBM was able to reuse the captured intellectual assets, and improve the skills of the employees through knowledge transfer. As a part of the asset reuse program, from 2004, in a span of two years, the team delved into several cases where KM had been used successfully. The team came out with 384 instances, due to which it realized cost savings of US$ 81 million, US$ 2.6 billion in service revenues, and US$ 63 million in asset revenues. The time the company needed to find the experts in a particular field also went down, resulting in productivity improvement of US$ 50 million per year.
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