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In the 1880s, various technologies came into existence that would form part of IBM's predecessor company. Julius E. Pitrat patented the computing scale in 1885;[16] Alexander Dey invented the dial recorder (1888);[17] in 1889, Herman Hollerith patented the Electric Tabulating Machine[18] and Willard Bundy invented a time clock to record a worker's arrival and departure time on a paper tape.[19] On June 16, 1911, these technologies and their respective companies were merged by Charles Ranlett Flint to form the Computing-Tabulating-Recording Company (C-T-R).[20] The New York City-based company had 1,300 employees and offices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and Toronto, Ontario. It manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers, along with tabulators and punched cards. Flint recruited Thomas J. Watson, Sr., formerly of the National Cash Register Company, to help lead the company in 1914.[20] Watson implemented "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and an evangelical fervor for instilling company pride and loyalty in every worker".[21] His favorite slogan, "THINK", became a mantra for C-T-R's employees, and within 11 months of joining C-T-R, Watson became its president.[21] The company focused on providing large-scale, custom-built tabulating solutions for businesses, leaving the market for small office products to others. During Watson's first four years, revenues more than doubled to $9 million and the company's operations expanded to Europe, South America, Asia, and Australia.[21] On February 14, 1924, C-T-R was renamed the International Business Machines Corporation (IBM),[13][not in citation given] citing the need to align its name with the "growth and extension of [its] activities".[22] 1930–1979 NACA researchers using an IBM type 704 electronic data processing machine in 1957 In 1937, IBM's tabulating equipment enabled organizations to process unprecedented amounts of data, its clients including the U.S. Government, during its first effort to maintain the employment records for 26 million people pursuant to the Social Security Act,[23] and the Third Reich,[24] largely through the German subsidiary Dehomag. During the Second World War the company produced small arms for the American war effort (M1 Carbine, and Browning Automatic Rifle). IBM provided translation services for the Nuremberg Trials. In 1947, IBM opened its first office in Bahrain,[25] as well as an office in Saudi Arabia to service the needs of the Arabian-American Oil Company that would grow to become Saudi Business Machines (SBM).[26] In 1952, Thomas Watson, Jr. became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of artificial intelligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines. The IBM Selectric typewriter was a highly successful model line of electric typewriters introduced by IBM on July 31, 1961. In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land man on the moon. On April 7, 1964 IBM announced the first computer system family, the IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their application. In 1974, IBM engineer George M. Laurer developed the Universal Product Code.[27] On October 11, 1973, IBM introduced the IBM 3660, a laser-scanning point-of-sale barcode reader which would become the workhorse of retail checkouts. On June 26, 1974, at Marsh's supermarket in Troy, Ohio, a pack of Wrigley's Juicy Fruit chewing gum was the first-ever product scanned. That pack is now on display at the Smithsonian Institution’s National Museum of American History in Washington, D.C. IBM's Blue Gene supercomputers were awarded the National Medal of Technology and Innovation by U.S. President Barack Obama on September 18, 2009. In the late 1970s, IBM underwent some internal convulsions between those in management wanting to concentrate on their bread-and-butter mainframe business, and those wanting the company to invest heavily in the emerging personal computer industry. 1980–Present Financial swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement.[28] The IBM PC, originally designated IBM 5150, was introduced in 1981, and it soon became the industry standard. In 1991, IBM sold Lexmark. In 1993, IBM posted what at the time was the biggest loss in the history of corporate America: US$8 billion.[29] In 2002, it acquired PwC consulting. In 2003, IBM initiated a project to rewrite its company values. Using its Jam technology, the company hosted Internet-based online discussions on key business issues with 50,000 employees over 3 days. The discussions were analyzed by sophisticated text analysis software (eClassifier) to mine online comments for themes. As a result of the 2003 Jam, the company values were updated to reflect three modern business, marketplace and employee views: "Dedication to every client's success", "Innovation that matters—for our company and for the world", "Trust and personal responsibility in all relationships".[30] In 2004, another Jam was conducted during which 52,000 employees exchanged best practices for 72 hours. They focused on finding actionable ideas to support implementation of the values previously identified.[31] IBM showing their various innovations at CeBIT 2010 in Hanover, Germany In 2005, the company sold its personal computer business to Lenovo, and in the same year, agreed to acquire Micromuse.[32] A year later, IBM launched Secure Blue, a low-cost hardware design for data encryption that can be built into a microprocessor.[33] In 2009, it acquired software company SPSS Inc. Later in 2009, IBM's Blue Gene supercomputing program was awarded the National Medal of Technology and Innovation by U.S. President Barack Obama. In 2011, IBM gained worldwide attention for its artificial intelligence program Watson, which was exhibited on Jeopardy! where it won against game show champions Ken Jennings and Brad Rutter. As of 2012, IBM had been the top annual recipient of U.S. patents for 20 consecutive years.[34] IBM's closing value of $214 billion on September 29, 2011 surpassed Microsoft which was valued at $213.2 billion. It was the first time since 1996 that IBM exceeded its software rival based on closing price. On August 16, 2012, IBM announced it entered an agreement to buy Texas Memory Systems.[35] Later that month, IBM announced it has agreed to buy Kenexa. The acquisition is expected to close in the fourth quarter.[36] The deal is worth $1.3 billion and was paid in cash by IBM.[37] In June 2013, IBM acquired SoftLayer Technologies, a web hosting service, in a deal of around $2 billion;[38] and in July 2014, the company announced a partnership with Apple Inc. in enterprise mobility.[39][40] On August 11, 2014, IBM announced it has acquired the business operations of Lighthouse Security Group, LLC, a premier cloud security services provider. Financial terms were not disclosed. [41] In September 2014, it was announced that IBM would sell its x86 server division to Lenovo for a fee of $2.1 billion.[42] Corporate affairs IBM's headquarters complex is located in Armonk, Town of North Castle, New York, United States.[43][44][45] The 283,000-square-foot (26,300 m2) IBM building has three levels of custom curtain wall. The building is located on a 25-acre (10 ha) site.[46] IBM has been headquartered in Armonk since 1964.[47] The company has twelve research labs worldwide—Almaden, Austin, Australia, Brazil, China, Dublin, Israel, India, Tokyo, Watson (New York), Zurich and Nairobi—with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Other campus installations include towers in Montreal, Paris, and Atlanta; software labs in Raleigh-Durham, Rome, Cracow and Toronto; Chicago is IBM's oldest research center once at Chicago, Johannesburg, Seattle; and facilities in Hakozaki and Yamato. The company also operates the IBM Scientific Center, Hursley House, the Canada Head Office Building, IBM Rochester, and the Somers Office Complex. The company's contributions to architecture and design, including Chicago's IBM building which was the centre of IBM's research division after World War II up until the 1980s 330 North Wabash building designed by Ludwig Mies van der Rohe, were recognized with the 1990 Honor Award from the National Building Museum.[48] IBM's Board of Directors, with 14 members, is responsible for the overall management of the company. With Cathie Black's resignation from the board in November 2010, the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. P. Belda '08 (Alcoa), William R. Brody '07 (Salk Institute / Johns Hopkins University), Kenneth Chenault '98 (American Express), Michael L. Eskew '05 (UPS), Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute), Andrew N. Liveris '10 (Dow Chemical), W. James McNerney, Jr. '09 (Boeing), James W. Owens '06 (Caterpillar), Samuel J. Palmisano '00 (IBM), Joan Spero '04 (Doris Duke Charitable Foundation), Sidney Taurel '01 (Eli Lilly), and Lorenzo Zambrano '03 (Cemex).[49] On January 21, 2014 it was announced that IBM executives would forgo bonuses for fiscal year 2013. The move came as the firm reported a 5% drop in sales and 1% decline in net profit for 2013, from the prior year. The company stated that it would invest more than $1.2bn expanding its data centers and cloud-storage business, building 15 new centers.[50] IBM Rochester (Minnesota), nicknamed the "Big Blue Zoo" IBM Avenida de América Building in Madrid, Spain Somers (New York) Office Complex, designed by I.M. Pei IBM Japan Makuhari Technical Center, designed by Yoshio Taniguchi IBM Haifa Research Lab, Haifa, Israel Corporate recognition and brand In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number of employees,[7] the No. 4 largest in terms of market capitalization,[8] the No. 9 most profitable,[9] and the No. 19 largest firm in terms of revenue.[10] Globally, the company was ranked the No. 31 largest firm in terms of revenue by Forbes for 2011.[11] Other rankings for 2011/2012 include the following:[13] No. 1 company for leaders (Fortune) No. 1 green company worldwide (Newsweek)[51] No. 2 best global brand (Interbrand) No. 2 most respected company (Barron's)[52] No. 5 most admired company (Fortune) No. 18 most innovative company (Fast Company) For 2012, IBM's brand was valued by Interbrand at $75.5 billion.[53] For 2012, Vault ranked IBM Global Technology Services No. 1 in tech consulting for cyber security, operations and implementation, and public sector; and No. 2 in outsourcing.[54] Working at IBM IBM's employee management practices can be traced back to its roots. In 1914, CEO Thomas J. Watson boosted company spirit by creating employee sports teams, hosting family outings, and furnishing a company band. In 1924 the Quarter Century Club, which recognizes employees with 25 years of service, was organized and the first issue of Business Machines, IBM's internal publication, was published. In 1925, the first meeting of the Hundred Percent Club, composed of IBM salesmen who meet their quotas, convened in Atlantic City, New Jersey. IBM was among the first corporations to provide group life insurance (1934), survivor benefits (1935) and paid vacations (1937). In 1932 IBM created an Education Department to oversee training for employees, which oversaw the completion of the IBM Schoolhouse at Endicott in 1933. In 1935, the employee magazine Think was created. Also that year, IBM held its first training class for female systems service professionals. In 1942, IBM launched a program to train and employ disabled people in Topeka, Kansas. The next year classes begin in New York City, and soon the company was asked to join the President's Committee for Employment of the Handicapped. In 1946, the company hired its first black salesman, 18 years before the Civil Rights Act of 1964. In 1947, IBM announced a Total and Permanent Disability Income Plan for employees. A vested rights pension was added to the IBM retirement plan. In 1952, Thomas J. Watson, Jr., published the company's first written equal opportunity policy letter, one year before the U.S. Supreme Court decision in Brown vs. Board of Education and 11 years before the Civil Rights Act of 1964. In 1961, IBM's nondiscrimination policy was expanded to include sex, national origin, and age. The following year, IBM hosted its first Invention Award Dinner honoring 34 outstanding IBM inventors; and in 1963, the company named the first eight IBM Fellows in a new Fellowship Program that recognizes senior IBM scientists, engineers and other professionals for outstanding technical achievements. An IBM delivery tricycle in Johannesburg, South Africa in 1965 On September 21, 1953, Thomas Watson, Jr., the company's president at the time, sent out a controversial letter to all IBM employees stating that IBM needed to hire the best people, regardless of their race, ethnic origin, or gender. He also publicized the policy so that in his negotiations to build new manufacturing plants with the governors of two states in the U.S. South, he could be clear that IBM would not build "separate-but-equal" workplaces.[55] In 1984, IBM added sexual orientation to its nondiscrimination policy. The company stated that this would give IBM a competitive advantage because IBM would then be able to hire talented people its competitors would turn down.[56] IBM was the only technology company ranked in Working Mother magazine's Top 10 for 2004, and one of two technology companies in 2005.[57][58] On October 10, 2005, IBM became the first major company in the world to commit formally to not use genetic information in employment decisions. The announcement was made shortly after IBM began working with the National Geographic Society on its Genographic Project. IBM provides same-sex partners of its employees with health benefits and provides an anti-discrimination clause. The Human Rights Campaign has consistently rated IBM 100% on its index of gay-friendliness since 2003 (in 2002, the year it began compiling its report on major companies, IBM scored 86%).[59] In 2007 and again in 2010, IBM UK was ranked first in Stonewall's annual Workplace Equality Index for UK employers.[60] The company has traditionally resisted labor union organizing,[61] although unions represent some IBM workers outside the United States.[62] In 2009, the Unite union stated that several hundred employees joined following the announcement in the UK of pension cuts that left many employees facing a shortfall in projected pensions.[63] A dark (or gray) suit, white shirt, and a "sincere" tie[64] was the public uniform for IBM employees for most of the 20th century. During IBM's management transformation in the 1990s, CEO Louis V. Gerstner, Jr. relaxed these codes, normalizing the dress and behavior of IBM employees to resemble their counterparts in other large technology companies. Since then IBM's dress code is business casual although employees often wear business suits during client meetings.[65] On June 16, 2011, as part of its centenary celebrations[66] the company announced IBM100, a year-long grants program to fund employee participation in volunteer projects. (IBM) is an American multinational technology and consulting corporation, with headquarters in Armonk, New York, United States. IBM manufactures and markets computer hardware and software, and offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.[3] The company was founded in 1911 as the Computing Tabulating Recording Company (CTR) through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Company.[4][5] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Securities analysts nicknamed IBM Big Blue in recognition of IBM's common use of blue in products, packaging, and logo.[6] In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number of employees (435,000 worldwide),[7] the No. 4 largest in terms of market capitalization,[8] the No. 9 most profitable,[9] and the No. 19 largest firm in terms of revenue.[10] Globally, the company was ranked the No. 31 largest in terms of revenue by Forbes for 2011.[11][12] Other rankings for 2011/2012 include No. 1 company for leaders (Fortune), No. 1 green company worldwide (Newsweek), No. 2 best global brand (Interbrand), No. 2 most respected company (Barron's), No. 5 most admired company (Fortune), and No. 18 most innovative company (Fast Company).[13] IBM has 12 research laboratories worldwide and, as of 2013, has held the record for most patents generated by a company for 20 consecutive years.[14] Its employees have garnered five Nobel Prizes, six Turing Awards, ten National Medals of Technology, and five National Medals of Science.[15] Notable inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, the RDBMS and SQL, SABRE airline reservation system, DRAM, and Watson artificial intelligence. The company has undergone several organizational changes since its inception, acquiring companies such as Kenexa (2012) and SPSS (2009) and organizations such as PwC's consulting business (2002), spinning off companies like Lexmark (1991), and selling off product lines like its personal computer and server businesses to Lenovo (2005, 2014). |
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