IBM 2001 Annual Report Download - page 17

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no. 3
We rewired the enterprise
TRANSFORMING OUR CRITICAL PROCESSES AND
BECOMING AN E-BUSINESS
We had met the enemy, and it was us. Too slow, too costly,
too insular.
So in 1994, we rolled up our sleeves and started to trans-
form the way IBM works, from end to end. Most companies
attempt one major reengineering project at a time. We
launched 11
—
from the way we manage internal information
systems, to the way we develop products and serve customers.
It was ambitious
—
but it wasn’t enough.
We came to realize that important organizational change
also has to happen in a company’s social structures
—
in how
people understand what is expected of them, in how they are
rewarded and managed, in the ways that ideas are shared. In
order to deliver on our value proposition, we had to change
the very nature of work.
Speed
since 1993, cycle time for large systems development
has been slashed 56 months to 16 months today. for low-end systems,
it’s seven months—down from two years
Superior Quality
between 1997 and 2001,the hardware reliability of our
high-end servers improved by more than 200 percent while computing
power increased by a factor of four
Simplicity
since 1993,we have reduced I/Tspending by 31 percent
(e.g.,by consolidating data centers)—for a total savings
of more than $2 billion
Trust
employees regard ibm’s intranet as their most trusted source
of company information—surpassing external media,coworkers
and their immediate managers