Slide 1ContentsBackgroundProblemChangesGlobal IntegrationTransforming IT function2009 TransformationRun organizationTransform organizationHorizontal structureShared servicesIT prioritizationBT/ IT for the futureQuestionQuestionBuilding IT function for a Global BusinessManpreet K GorayaContentsBackgroundGlobal integrationTransforming IBM’s IT functionPositioning BT/IT for the futureBackground•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 servicesProblem•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 ITTransforming IT function•Made it centralized•Global technology services worked with Global Business Services.•Integrate IT within BU2009 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 servicesTransform 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 functionalitiesHorizontal structureShared services•Identified shared services.•Standardized, integrate and streamline global processesIT 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