Reference no: EM132984666

This case describes how IBM's "Let's Put Smart To Work" initiative is (1) based on IBM's core values, (2) translated into a business strategy, and (3) implemented for companies in a variety of industries. Interviews with senior IBM executives explain how this is done from both a conceptual and practical perspective.

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IBM began as the Tabulating Machine Company more than 100 years ago. Since then the company has shifted from tabulation machines, to typewriters, to computers, to business services and consulting, to artificial intelligence in response to changes in technology, the global economy, and business practices. Today IBM is positioned as a cognitive solutions and cloud platform provider, it has $79 billion in sales, 380,000 employees, and is ranked 34th on the Fortune 500.

IBM's strategy is built on three core values: (1) a dedication to every client's success, (2) innovation that matters for IBM and for the world, and (3) trust and personal responsibility in all relationships. The values influence IBM's use of strategic tools such as portfolio analysis and SWOT analysis, which have led the company to focus on a few core brands including IBM Watson, IBM Cloud, IBM Security, IBM Services, and IBM Research. The overall strategy for IBM is called "Let's Put Smart To Work."

To facilitate implementation of the "Let's Put Smart To Work" initiative IBM holds an annual conference called IBM Think. The conference creates an opportunity for IBM employees, partners, clients, and industry representatives and technology leaders to meet and discuss business needs. IBM seeks to be an "incumbent disruptor" and help make businesses smarter. Industry examples include agriculture where IBM Watson helps improve harvest yields, the automotive industry where IBM uses data from IoT sensors to create better experiences for drivers, and health care where IBM AI is used to accelerate research and find new drugs.

The IBM marketing organization is adopting an approach they call "agile marketing" which is based on improvisation, testing and data, and collaboration, and which results in speed, adaptability, and creativity. The details of the approach are articulated in a marketing plan which includes many traditional and emerging marketing tools, including TV, radio, out-of-home and digital advertising, social media, events, and sponsorships. The combination of innovative technologies and changing businesses has created an exciting combination for IBM as it moves forward with its "Let's Put Smart To Work" strategy.

Problem 1. What is IBM's "Let's Put Smart To Work" strategy?

Problem 2. How does this strategy relate to IBM's values?

Problem 3. Conduct a SWOT analysis for IBM's "Let's Put Smart To Work" initiative. What are the relevant trends to consider?

Problem 4. What marketing tools described in Chapter 2 are prominent in IBM's strategic marketing process?

Problem 5. What is "agile" marketing at IBM? Why does IBM use the agile approach?