Innovation Strategy at IBM

It may come as a surprise to readers that International Business and Machines or IBM dedicates 20% of the services to hardware manufacture and 80% to consulting on the fields of computer and technology.

The consulting programs of this American giant share a common characteristic of being smart or any other word derivative from it. What is very apparent is the fact that these smart programs reignited innovation strategy at IBM as well as creativity in this world which demands equitable balancing of social, economic and environmental concerns.

IBM was founded in Endicott, New York in the years 1911. From the time it was founded, this company has been a front runner when it comes to strategic innovations.

Some of the introduced business practices, in the past or the current ones, were either controversial or developed responsibly to answer the demands of both customers and shareholders. In this market that is full of challenges, innovation strategy at IBM introduced a new approach.

They intend to address issues from safe food, to clean water, smarter work and more empowered community. The choices are not between citizen focused strategy or business focused strategy, but both.

It is quite amazing to trace the evolution of this multinational company and how their strategic innovations continuously hold it on its place in the market. Strategy innovation at IBM can be reflected on the patent number that it is holding. From the year 1993 to 2007, this company was awarded by over 38,000 patents as it invested around $5 billion on research and developments, and engineering.

The active portfolio of the company contains around 26,000 US patents and about 40,000 worldwide which resulted from its investments.

Ostensibly, this company is one fearsome organization which effective come up with new programs in order to make new assets, optimize their existing assets and make excellent analysis of their data in order to better the lives of their customers.

Part of strategy innovation at IBM is the established corporate policy about the protection of the environment. In a report from the company, it the last years, the hazardous waste coming from its production have significantly decreased.

The hazardous wastes being eliminated comes from both manufacturing and non-manufacturing operations. In the last decade, the company was able to redesign their processes in order to eliminate closed-loop recycling with materials that are more environmental friendly.

It has also created a modeling solution for the protection of the environment which helps in reducing their carbon footprint. They have come up with the Green Sigma system, they are partnering with their clients in order to achieve economic benefits and reduce its environmental.

In the last two years, IBM has a decreased employment in the US and on European countries. However, their determination to broaden the focus on emerging market, this was offset by increased employment in India, China and the Philippines.

There was a recruitment boom because of lesser regulatory controls, lower wages and increased percentage of skilled and educated business and technical workers.

The company explained the reconstitution of their global workforce as a crucial part of their strategy of rebalancing their portfolio when it comes to professional skills.

Strategy innovations at IBM include bold moves in order to demonstrate, innovative and new type of leadership. It has launched new programs which include the City One IBM.

This program collects data and analyzes it in order to project when bridges, roads and highways are already dangerous and will need immediate repair and attention. It will also try to address problems when it comes to inefficient banking, infrastructure, communication, transportation and even crime control.

The data which will indicate the shift on demographics including peak times of communicating, commuting and monetary transactions will be gathered and interpreted.

This will then be translated into policies designed to better the quality of life of the citizens and to improve customer service. in this crime control aspect, IBM was able to develop a technology which detects a gunfire and reports that suspicious criminal activities on the nearest police station even before 911 call can be made.

The US government passed the food safety modernization act which mandates the implementation of a system that is science based when it come to production, processing, preparing and transporting of food to maximize its safety. These changes can be addressed by IBM since it already has its traceability system that is use on pharmaceutical industries.

It can also be used to trace food products from the farm, to factory to the stores.

IBM working with FDA can effectively monitor precise movement when it comes to product storage in food chains and can invoke recall in order to minimize the outbreak of any air borne diseases.

Indeed, IBM has taken progressive steps in order to further the betterment of the lives of people.