IBM: Building the IT Function for a Global Business

Abstract

In 1993, CEO Louis Gerstner initiated a transformation at IBM that Sam Palmisano continued when he took the reins in 2003. The transformation involved a change from a hardware and software business to a solutions and services business and from a regionally aligned organization to a global organization. IBM’s IT organization, which became known as Business Transformation and Information Technology played a critical role in the firm’s transformation that continued through 2010. This case study describes the evolution of the IT organization and how it was designed and governed to support global business processes in 2010.