IBM 2015 Annual Report Download - page 5

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2015 IBM Annual Report 3
Then last year, we launched integrated
units to make it easier and quicker to put
together solutions drawn from our expanding
digital portfolio, further accelerating growth
and enhancing client experience. We shifted
more than $5billion of investment to add fuel
to our strategic imperatives, and in 2015 these
businesses delivered solid growth, contributing
35percent of IBM’s total revenue, up signifi -
cantly from 22percent two years ago.
Now, in 2016, we have reached a new
stage in our transformation. As important
as “becoming digital” is to our clients, it
has become clear that it is not the destination.
Rather, digital business is converging with
a new kind of digital intelligence—what you will
recognize as Watson. We call this Cognitive
Business. In October we launched a global
conversation about this new era of business
and technology.
Cognitive Business simultaneously speaks
to clients about the coming era and explains
the IBM that is now emerging. Let me describe
it in greater depth.
In this year’s report, I will share my
perspective on what this means to you and
to our clients around the world. I will discuss
our results from 2015 and what we expect
to achieve this year and beyond. Although more
must be done and the work of transformation
is never complete, I believe we have reached
a turning point in our journey.
The Progress of Our Transformation
Two years ago, we laid out our strategic plan
to transform IBM, in order to ensure that we meet
the changing needs of our clients and capture
the highest-value opportunities for our investors.
As part of this, we divested commoditizing
businesses that provided diminishing value
to our clients and contributed revenue but little
or no profi t. We restructured other businesses,
of which hardware was the largest—businesses
vital to our future but in need of reinvention.
At the same time, we dramatically accelerated
the growth of our strategic imperatives—
Data and Analytics, Cloud, Mobile, Social and
Security—to help our clients become “digital.”