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IBM

Globalization & Forecasting - Services Operations Management
by

Randall Wu

on 31 July 2013

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Transcript of IBM

The Corporate Service Corps
Globalization & Forecasting
By: Yong Sup, Jeong Min, Ho Hyun, Randall
Introduction
Scope
Q1
Internet
Three-
Core
Who?
Top-notch employees
At least 2yrs at IBM
Top 15-20% in performance over a 3year period (80% of IBM don't qualify)
Corporate Citizenship
& Globalization

Corporate Service Corps
What?
Short-term(6months)
3 months pre-work
1 months work in-country
2 months post-work
Skills-based
Community Service Projects
Developing Countries
Opportunity to further IBM own strategies
Rather than just improving employee morale
Why?
Participant Experiences
Looking Forward
Participant Experiences
Self organized

Assembled in the country of their assginment
Pre work curriculum provide cultural awareness, overview of country
Problem
4 - pre-work
5 - teaming
6 - effect
7 - appreciation
Deep appreciation to IBM
leadership skills
global knowledge & awareness
Questions for CSC
Length
Risk of the model
leader development
location, country
selecting the area
meeting the diverse needs
benefits for IBM vs Society
share the model, procedure
Which Generic International Strategy should Corporate Services Corps pursue going forward?
1. Introduction
2. Corporate Services Corps
3. Case - Theory Application
4. Q&A Discussion

Consideration in Selecting
a Global Service Strategy

Multi-site & Multi-service
Expansion Strategies

100years (2011)
170 Countries
380,000 Employees
$100 billion total revenue (2008)
1990s : PC Boom, Decentralized Computing
-> Crisis for IBM
2002: Samuel J. Palmisano became CEO
Identified need for IBM to transform to continue leading
Created IBM Business Consulting Services

2005: Sold PC division to group
Globally Integrated
Enterprise

Definition:
Corporation that structured itself around economics, skills, and business environment.
History
The Corporate Services Corps Projects
Ghana 2 Tanzania 2 Romania 2 Philippines 3 Vietnam 2
Launching
The Corporate Service Corps
Right implementation partners
How many in each team
Type of projects wanted
Which organizations to partner
Program duration
Employee preparation & selection
How?
Partners: Request-for-proposal
Found 32 potential organisations
Base level of infrastructure
Maximum exposure to local culture
Secondary Metro Markets
Romania, Ghana, Tanzania, Vietnam, The Philippines
Who?
5,500 applicants from 54 different countries
Application review boards in 8 regions
India, USA, Northeastern Europe, Southwestern Europe, Japan, and three Asian Pacific regions

50-point scoring system
IBM talent-development program
Volunteer history
Essay
40-60 hours of work on top of job
Team development
Skills development
Logistics
Assignment related tasks
International Corporate Volunteering Programs
Exhibition 1
Location : Asia, Africa, Latin America, Eastern Europe
Partner : NGOs, Govt.
Nurses, Doctors, Teachers, Business consultants, Epidemiologists, etc.
International AIDS Vaccine Initiative, US agency of international
development, Transatlantic Partners agianst AIDS, Family Health
International, American Cancer Society, CARE international
Term : up to 6 months
Number : 30~40 projects over 34 countries

Health care issues, combat diseases
Pfizer cover all expenses
Global Health Fellowship
Pharmaceutical firm
Business Strategy
CSR Strategy
Benefit
Countries
Volunteers Work
Improve
Development
Training opportunity for employees
New skill
Practice
Americas Area Corporate Social Responsibility Fellows Program
Send employees to countries in North and South America
Help entrepreneurs improve business practices

Term : 3 month
E&Y provide funding and support
Also benefit to multinational firm by their participation
Employees
volunteered as consultants
utilizing their skills and knowledge to better entrepreneurs strategies and business operations
Improve their skills and leadership capabilities
Practice them abroad
Bring it back to the firm
Pre-work
team process training
Different climates & cultures
Preparing
Teaming
New perspective of world
Ability to deal with adversity and challenges
Interacting with local people
Learn
Exhibition
History
Globally Integrated
Enterprise
Changes:
Many Supply Chains
One Supply Chain
R&D, Professional Services
Individualized by Region
R&D, Professional Services
Global Units
Globally Integrated
Enterprise
Moved company units to most advantageous areas:
Web Technology
Financing Back Office
Brazil
Semiconductor R&D & Manufacturing
New York
Data Center Enlarged
Colorado
Web Technology
Ireland
Global Services Delivery
India
Global Procurement Mission
China
Globalization
New Economies
fold
Approach

Strengthen its Brand
Increase Shareholder Value
Market itself as Trustworthy
Training & Education
Assistance in changing careers
Personal Empowerment
Opportunities to give back to communities
Benefit employees through:
- Use IBM talent
- Solve global problems :
Climate change
Poverty
Disease
Impact society at large:
community
Close alliances
w/ public sector
Respect for
Individual
Trust
Innovation
Values:

Globally Integrated Enterprise
Assembled Team
Contacted 20 Countries
How globalization affected them
Put together a list of critical issues
Existing IBM programs addressed 80% of globalization issues.
Q2
Is one month on the ground long enough to produce measurable differences?
Q3
After Forecasting, found out there is a need to increase the capacity of service.
Should increase the capacity of service?
Globally
Integrated
Enterprise
Q&A
Q4
Is Corporate Services Corps Model an aspect of 's Intellectual Property, or should they share this model?
Forecasting Methods
CSC was the part of IBM’s global business strategy & had identified as growth opportunities for the future in new markets.

CSC was a program in which IBM’s top-notch employees worked on skill-based community service projects.

IBM chose local implementation partners.

CSC participants were educated knowledge of the destination country and cross-cultural management.
IBM sent 11 teams to Ghana, Tanzania Romania, the Philippines, and Vietnam.

Teams engaged in a diverse variety of projects

In Romania : improve regional business network hub

In Ghana : conduct a supply-chain assessment of the handicraft sector

In Philippines : develop an online marketing service facility
A technological forecasting method that uses a group of experts to arrive at a consensus about the future.

Important characteristics : series of feedback through survey reach consensus after series of feedback
Multi-site X Multi-service
Global Service Strategy:
Following Your Customers
Forecasting Method
Q5
The Participants of did not receive any monetary incentives, nor were the pre-works tracked.
Q6
chooses its best and brightest people as members of the projects.
For the long-run, should change this to enhance motivation?
Do you think its important for IBM to
1. invest in a small number of its brightest people?

OR

2. give an equal opportunity to all its employees to let the company grow globally as a whole.
Results

IBM’s success as a globally integrated enterprise headquartered in the U.S. is directly linked to the skills and capabilities of IBMers. CSC has taught IBMers from the U.S. how
with customers who do business globally, and win against competitors from around the world. CSC has also , giving us inroads into new and emerging markets – a key to growth for any large U.S. company.
environmental
sustainability
economic
social
Harvard Business Review:
cultural intelligence
resiliency
global leadership
measurable improvements
Corporation:
lead diverse global teams,
engage effectively
enhanced IBM's brand
Section One
Section Two
Section Three
Section Four
Section Five
Section Six
Employees: Global employees, global citizens
Communities : A systemic approach to problem solving
Environment: Innovating to avoid or reduce environmental impacts
Supply Chain Responsibility: A commitment to collaboration
Governance: Managing risk, maintaining trust
Public Policy: Promoting policies to address societal challenges
Issues
3 Months Pre-work
Ghana
Improve business process
Provide training
Supply chain assessment
Provide training on NGO
AGI, NGO
Romania
Develop training course
marketing, sales, supply chain
Develop tourism
website, search capability
Tanzania
KickStart
Tanzania association of Tour Operators
Center for Entrepreneurship and Executive Development
Business network hub
Improve regional market access
Vietnam
SME
Consultation
Training programs in IT
Design
Network
The Philippines
Davao City
Chamber of Commerce
Online marketing service facility
Investment opportunity DB
Networks development
Organization Post-Survey
CCCA had a list of critical issues resulting from globalization.

Conduct a survey employees in 20 countries about globalization issues. (feedback)

CCCA team created a list of 10 to 12 potential programs that could meet the globalization issues. (consensus)

Ask senior leaders and employees in another countries their opinion of the list of programs. (feedback)

The group eventually chose three major program one of which is CSC. (consensus)
A process of creating CSC
Delphi method
Feel
Full transcript