Building IT function for a Global Business Manpreet K Goraya Contents Background Global integration Transforming IBM s IT function Positioning BT IT for the future Background Merger of three companies in 1911 in NY Computing Tabulating Recording machinery equipment like meat and cheese slicers Large scale tabulating business solutions 1940 s Entered computing business 1952 Introduced first large computer 1960 Unbundling software and services Problem IBM sold technology managers centralized departments Individuals and divisions purchased own computers Loosing money from 1990 s Changes Restructure and consolidate the business Cutting expenses Integrate solutions and services Global Integration Globalizing and standardizing processes Introduce common systems and processes Partnership between IT and business processes BUSINESS TRANSFORMATION and IT Transforming IT function Made it centralized Global technology services worked with Global Business Services Integrate IT within BU 2009 Transformation Streamlined IT structure A Run with GTS and GBS 3 transform Set standards 5 horizontal IT functions across run and transform Run organization Worked with GTS and GBS Cost savings by setting standards Found standards looked for author otherwise dropped Reduced from 121 to 20 Common services Transform organization Identified level 1 processes Assigned enterprise process owner EPO VP VP CEO Level 2 processes for level 1 Process owner and KPI Transform executives Changes for new business functionalities Horizontal structure Shared services Identified shared services Standardized integrate and streamline global processes IT prioritization Allocated IT budget Voted on important projects Allocated IT budget BT IT for the future New positions Project managers business analysts Cross process expertise More opportunities for advancement Question Why was IBM loosing money in 90 s It shut down some of its important operations It didn t establish relationships with individuals and divisions which started buying their own computers The demand for computer and services started declining It wasn t loosing money Question Why was IBM loosing money in 90 s It shut down some of its important operations It didn t establish relationships with individuals and divisions which started buying their own computers The demand for computer and services started declining It wasn t loosing money