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By CNET News.com Staff
Posted on ZDNet News: Jun 14, 2004 11:11:00 AM

Recruiting Lou Gerstner as IBM's new CEO proved to be a pivotal step in getting the ailing company healthy again.


Special Report
IBM: The future is now
Success "On demand"

[1993]
Having reported $8 billion in net annual losses, IBM taps Lou Gerstner from RJR Nabisco to be the new CEO, replacing John Akers.

[1994]
After years of layoffs, IBM has about 220,000 employees, down from more than 400,000 in the mid-1980s.

[1995/1996]
IBM acquires PC software maker Lotus Development in 1995 and Tivoli Systems in 1996 to develop its software business and break its dependence on hardware sales.

[1996]
The company provides the technology for the Olympic Games in Atlanta. Despite some technical glitches, the event is viewed as a success.

[1996]
Big Blue establishes an Internet division, which becomes a unifying technical focus for its product groups.

[1997]
IBM begins a massive advertising campaign around e-business--the idea of using the Internet to streamline business.

[1999]
The company pledges to spend billions of dollars on the Linux open-source operating system to make it suitable for corporate computing.

[2002]
Samuel Palmisano replaces Gerstner as CEO in a planned transition. Gerstner remains chairman through the end of the year.

[2002]
Palmisano launches the "on demand" initiative to deliver computing resources on an as-needed basis.

[2003]
IBM is awarded 3,415 patents, marking the 11th straight year that it is the U.S. Patent and Trademark Office's top patent recipient.

Sources: IBM, CNET News.com

A demanded explanation
Confusion has surrounded the term "on demand" ever since IBM introduced it. Making matters worse, other companies have adopted their own versions of the idea, using such jargon as utility, grid and pervasive computing.

According to IBM, "on demand" means:

  • Better access to computer systems and data, within and between companies, via Internet technologies.
  • Integrated business processes for easier information sharing among employees and business partners.
  • Quicker response times, helping companies react "on demand" to business changes.

Big Blue further defines the transition to an "on-demand business":

1. Access: Use Internet technologies to obtain information.

2. Integrate: Share data among systems and divisions, such as manufacturing and finance, linking some business processes.

3. Enable on-demand action: Connect corporate processes end to end, enabling systems to share information among employees and with partners. Computer systems will be responsive enough to help companies react quickly to changes such as competitive threats or new business opportunities.

Sources: IBM, CNET News.com research

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