IBM 2007 Annual Report Download - page 11

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9
we believe that IBM has excellent opportunities in 2008 and
beyond
—
in an environment that presents significant challenges for
our competitors. They are not as global, as strong in high-growth
segments or as able to deliver complete solutions, nor do many have
the experience and discipline to adjust their economic models as
conditions require.
So we will pursue growth, while at the same time remaining
prudent and disciplined about expenses and productivity. That is,
we will operate ambidextrously
—
seizing the new opportunities
that the external marketplace presents, while never ceasing to
reexamine our own operations or to transform our organization.
This is difficult; not every workforce has the focus and maturity
to do it. But IBM has been here before, and we know what to do.
Historically, this is when we have gone on offense.
At the opening of this letter, I said that we intend to capitalize
on our strengths in order to seize the growth, profit and
leadership opportunities presented by today’s global marketplace.
Let me close with some thoughts on what will be required of any
company seeking to do that.
On the prospects for continued global growth: When people
look out at the global economy today, some are concerned about
ripple effects. They fear the impact on overall growth
—
even in the
developing world
—
of a possible downturn in parts of the developed
world. Now, I’m not an economist, but let me offer a perspective
based on my experiences as I visit IBM’s clients and our own opera-
tions around the world.
You only have to get outside of the United States to see that
something very new is happening today. The world’s growth markets
are no longer as dependent on import-export, on the exchange of raw
materials for industrial goods. Instead, they are innovating. They are
differentiating. Most importantly, their people are becoming consumers;
they’re joining the middle class. Hundreds of millions of people are
opening their first bank accounts, getting their first cell phones, using
their first credit cards. Tens of millions are buying their first automobiles.
These are historic developments, and are pretty far removed from
economic fluctuations in the United States, Europe and Japan.
And consider what has to happen to give all of those people
cell phones, financial services and cars. Infrastructure has to be
built and developed, and not only the IT infrastructure I discussed
earlier, but business infrastructure
—
for banking, manufacturing,
telecommunications, transportation and government services.
Hundreds of millions of people are opening their first bank accounts,
getting their first cell phones, using their first credit cards.
A New
World