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Final Paper: IT Strategic Plan Report-IBM

IT-6001

Professor (Dr. David Loutfi)

Calvin Prathush Chalanti

cchalanti@sfc.edu

St. Francis College

04/07/2024
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Overview of IBM:

IBM, namely International Business Machines Corporation, is the most renowned tech

company operating in the United States and is a multinational company with over a century of

experience. In 1911, the company, originally called CTR for Computing, Tabulating, and

Recording, later reformed and changed its name to IBM in 1924. Throughout its entire existence

IBM has featured prominently thus far, playing a pivotal role in the technology space which has

led to groundbreaking technological advancements in computing, storage of data, and

information technology services. In the past times, IBM has undergone from mere fabrication of

hardware, consisting of typewriters and mainframe computers that is from hardware production

to a comprehensive set of software, hardware, and cloud solutions. Service aggregates that deal

with AI, blockchain, cybersecurity, data analysis, and quantum computing are just one segment

of its diversified portfolio. IBM is a good example of what research and development can do,

cleverly being combined with a high level of creativity to develop new and innovative

solutions. In Nanjing, the CMS technology incubator employs numerous laboratories all around

the world where discoveries are made in the fields of artificial intelligence, nanotechnology, and

quantum computing. Along with advancing innovation, like IBM's, another thing that masks it as

a multipurpose organization is the corporate social responsibility and sustainability that it puts

into practice. The business executes a broad range of projects toward greening both its operations

and the overall environment, improving diversity and employee inclusivity and charity works

including community contributions. Today, IBM still occupies a primary seat in the global

technology sphere, integrating its services and products in areas such as finance, healthcare,

manufacturing, and government. Not less than this, the digital era guided by its constant
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inventiveness, striving for perfection, and societal contribution, and it presents the best way to go

in society as well as the power of influence (IBM Blockchain, n.d.)..

SWOT analysis of IBM:

Strengths:

Brand Recognition: IBM is one of the most recognizable and trusted brands in the technology

industry, with a long-standing reputation for innovation and reliability (IBM Blockchain, n.d.).

Diversified Portfolio: IBM offers a wide range of products and services, including hardware,

software, cloud computing, artificial intelligence, and consulting services, which helps mitigate

risks associated with fluctuations in any single market segment (IBM Blockchain, n.d.).

Research and Development: IBM has a strong commitment to research and development, with a

history of pioneering breakthrough technologies and maintaining a large number of patents (IBM

Blockchain, n.d.).

Global Presence: With operations in over 170 countries, IBM has a vast global reach, allowing it

to serve a diverse range of clients and access various markets (IBM Blockchain, n.d.).

Strategic Partnerships: IBM has established strategic partnerships with other industry leaders,

academia, and startups, enabling it to leverage complementary expertise and resources (IBM

Blockchain, n.d.).

Weaknesses:

Declining Revenue: IBM has experienced declining revenue in recent years, primarily due to

challenges in its legacy hardware business and competition from cloud computing providers.
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High Operating Costs: IBM's large workforce and extensive infrastructure contribute to high

operating costs, which can impact profitability, especially during economic downturns (BMC

Blogs, 2022).

Dependence on Legacy Business: While IBM has diversified its portfolio, it still relies on

revenue from legacy businesses, such as mainframe systems and software, which face declining

demand (BMC Blogs, 2022).

Integration Challenges: IBM's acquisitions and diverse portfolio may lead to integration

challenges, including cultural differences and technological complexities (BMC Blogs, 2022).

Perception of Slow Innovation: Despite its history of innovation, IBM is sometimes perceived as

slow to adapt to emerging technologies compared to its competitors (BMC Blogs, 2022).

Opportunities:

Cloud Computing Growth: The growing demand for cloud computing presents significant

opportunities for IBM's cloud services, including hybrid cloud solutions and artificial

intelligence applications (Paladin et al., 2024).

Artificial Intelligence and Analytics: IBM is well-positioned to capitalize on the increasing

demand for artificial intelligence and analytics solutions across various industries, leveraging its

Watson platform and expertise (Paladin et al., 2024).

Digital Transformation Services: IBM can capitalize on the trend of digital transformation by

offering consulting and integration services to help businesses modernize their operations and

improve efficiency (Paladin et al., 2024).

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Blockchain Technology: IBM's investments in blockchain technology present opportunities to

develop innovative solutions for supply chain management, financial services, and other

industries (Paladin et al., 2024).

Emerging Markets: IBM can expand its presence in emerging markets, such as Asia-Pacific and

Latin America, where there is growing demand for technology infrastructure and digital

solutions (Paladin et al., 2024).

Threats:

Intense Competition: IBM faces competition from both established technology companies and

startups across its various business segments, which could erode market share and pricing power

(Paladin et al., 2024).

Rapid Technological Change: The pace of technological change is accelerating, making it

challenging for IBM to stay ahead of competitors and meet evolving customer demands.

Security and Privacy Concerns: Increased cybersecurity threats and regulatory scrutiny pose

risks to IBM's reputation and business operations, particularly in industries handling sensitive

data (Paladin et al., 2024).

Economic Uncertainty: Economic downturns and geopolitical instability could impact IBM's

business, leading to reduced IT spending by clients and lower demand for its products and

services (Paladin et al., 2024).

Talent Retention: IBM faces challenges in attracting and retaining top talent, especially in high-

demand areas such as artificial intelligence, cybersecurity, and cloud computing, which could

affect its ability to innovate and deliver value to clients (Paladin et al., 2024).
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IT Infrastructure Investments:

Investing in IT infrastructure is crucial for organizations to maintain competitiveness, enhance

operational efficiency, and support business growth. Here are some necessary investments in IT

infrastructure along with their justifications:

1. Cloud Computing Services: Investing in cloud computing services, whether public,

private, or hybrid, offers several benefits:

Cost Efficiency: Cloud services provide scalability, allowing organizations to scale resources up

or down based on demand, resulting in cost savings by avoiding over-provisioning (Aithal,

2023).

Flexibility and Agility: Cloud computing enables rapid deployment of applications and services,

facilitating agility in responding to market changes and business needs (Aithal, 2023).

Disaster Recovery and Business Continuity: Cloud-based backup and disaster recovery solutions

ensure data redundancy and business continuity in case of unforeseen events.

2. Network Infrastructure Upgrades: Upgrading network infrastructure is essential for

ensuring reliable connectivity and data transmission. Justifications include:

Increased Bandwidth: As data volumes grow and applications become more bandwidth-

intensive, upgrading network bandwidth helps prevent congestion and ensures smooth operations

(Aithal, 2023).

Security Enhancements: Investing in advanced security appliances, such as firewalls, intrusion

detection/prevention systems, and secure VPN solutions, strengthens network security and

protects against cyber threats (Aithal, 2023).

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Support for Remote Workforce: With the rise of remote work, upgrading network infrastructure

to support remote access, video conferencing, and collaboration tools is essential for maintaining

productivity and connectivity.

3. Data Storage and Management Solutions: Investing in data storage and management

solutions is crucial for handling the ever-increasing volumes of data. Justifications

include:

Scalability: Scalable storage solutions accommodate growing data volumes and support future

expansion without compromising performance.

Data Security and Compliance: Implementing robust data encryption, access controls, and

compliance management tools ensures data security and regulatory compliance, protecting

sensitive information from unauthorized access or breaches.

Data Analytics Capabilities: Investing in advanced data analytics platforms enables organizations

to derive valuable insights from their data, driving informed decision-making and gaining a

competitive edge.

By prioritizing these investments in IT infrastructure, organizations can build a robust

foundation that supports their current operations and future growth while addressing evolving

business and technology challenges (Aithal, 2023).

Enabling Business through IT:

IT does a unique job among other business models that act as a conduit or a hidden force and

is relied on by the company to achieve or drive its business objectives in different aspects. Here's

how IT can contribute to achieving business objectives: Here's how IT can contribute to
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achieving business objectives:

Enhancing Operational Efficiency: IT systems and other technologies speed up businesses to go

through numerous processes, automatize processes that repetitive tasks, and eventually reduce

manual actions for better operating efficiency.

For example: Enterprise Resource Planning (ERP) systems vary one another. The key business

functions integrated by the ERP systems and and ensuring data sharing across departments are

two main capabilities. The main functions of Customer Relationship Management (CRM)

systems are to consolidate customer data, facilitate individual in-touch processes, and organize

sales and marketing efforts. These tools automate routine tasks, approvals, and notifications

reducing the time spent by employees and increasing the productivity of processes as well as

avoiding errors (Cao et al., 2023).

Facilitating Decision-Making: Through IT, all classes of an organization connect and get hold of

real-time data extraction and come in possession of advanced analytics tools and the production

of equitable business data that enable decision-making at all levels of the organization.

For example: Business intelligence (BI) and analytics platforms exploit the datasets’

manipulation in order to be able uncovering actionable trends, and patterns and give decisive

insights to the business decision-makers. Predictive analytics models are foreseeing the future

like customers' orientation, market dynamics, and more, helping them to make decisions and plan

actively. Charts and reports help to monitor and analyze the key business metrics in real-time,

displaying performance metrics in the kinds of visualizations that are helpful

Improving Customer Experience: IT lets businesses engage customers on a personal level via

different channels and respond immediately to renew their confidence.

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For example: A customer contact app and website let customers choose to do everything

possible, from accessing information to placing orders and solving their problems, by

themselves. Using customer feedback and sentiment analysis tools, specific categorization of the

feedback, and evaluation of customer sentiment across various touchpoints helps organizations

understand and meet customer needs. Omnichannel communication platforms bring into play

multiple channels like, email, chat, social media, and voice; all these channels work in harmony

to synchronize the message and make communication convenient across layers (Cao et al.,

2023).

By leveraging IT effectively, organizations can align technology initiatives with business

objectives, drive innovation, enhance customer experiences, and gain a competitive edge in

today's dynamic business environment.

Planned IT Innovations:

1. Quantum Computing: IBM has been a pioneer in quantum computing research and

development. It's likely to continue investing in this area to bring quantum computing

capabilities to enterprises. Expect advancements in quantum hardware, software

development kits (SDKs), and cloud-based quantum computing services.

2. Hybrid Cloud Solutions: IBM has been strengthening its position in the hybrid cloud

market, aiming to provide seamless integration between on-premises and cloud

environments. Look for innovations in hybrid cloud management tools, multi-cloud

integration, and hybrid cloud security solutions.

3. Artificial Intelligence and Machine Learning: IBM's Watson AI platform continues to

evolve, with a focus on industry-specific AI solutions, natural language processing, and

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augmented intelligence applications. Anticipate advancements in AI algorithms, deep

learning frameworks, and AI-driven automation tools.

4. Blockchain Technology: IBM has been actively involved in blockchain technology,

particularly in enterprise blockchain solutions for supply chain management, financial

services, and healthcare. Watch for developments in blockchain platforms,

interoperability protocols, and industry-specific blockchain applications.

5. Cybersecurity Solutions: Given the increasing cybersecurity threats, IBM is likely to

invest in innovative cybersecurity solutions, including threat intelligence platforms, zero-

trust security architectures, and AI-driven security analytics.

6. Edge Computing: As edge computing gains traction, IBM may explore innovations in

edge computing infrastructure, edge analytics, and edge AI solutions to support IoT

deployments and real-time data processing at the network edge (The Strategy Watch,

2021).

Strategic IT Projects:

Cloud Migration and Modernization: IBM may take up strategic work to migrate obsolete

materials and infrastructure to the cloud and along with it also to upgrade and optimize the

existing systems. This proposal interconnects the strategic objective by using cloud computing

feature implementation for improving the impact of agility, scalability, and cost effort-

effectiveness able to take advantage of these technologies and the cloud-native techniques by

using containers and microservices itolower the speed of the software development and

deployment cycles (The Strategy Watch, 2021).

AI-Powered Customer Experience Enhancement: IBM could start a project which would
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improve its customers' experiences through AI and machine learning applications. Our project

comprises of the addition of AI-driven chatbots, virtual assistants, and personalized

recommendation engines which gives proactive commercial help, personal interactions, and

customized product suggestions. The past strategy which aims to provide superb customer

experiences, propel customer satisfaction, and enhance customer loyalty includes this.

Blockchain-based Supply Chain Transformation: IBM could spearhead a planned initiative that

will use blockchain technology towards supply chain management innovation. It is a project is

that solving this task and providing a blockchain-based platform will give transparency,

traceability, and efficiency to all participants within supply chain ecosystem. This empowers

IBM to make significant contributions to the supply-chain, namely to prevent the circulation or

supply of fake products, tackle disruptions in their supply-chain, and to improve mismanaged

processes, while strengthening the trust and commitment among supply-chain partners.

Data Analytics and Insights Platform: As part of IBM’s strategic plan, it might devote to a

project aimed at the creating an integrated analytics/insights platform. The project combines data

from various sources, performs advanced analytics, and gives analysis outputs to the data

atmosphere at the company for intelligent decision-making. It follows the strategic goal of

leveraging data analytics potential to conduct inventiveness, make business processes more

intelligent, and remain ahead of the competition.

Cybersecurity Transformation Initiative: IBM would develop a strategic initiative to particularly

focus on bolstering cybersecurity capabilities and strength against threats. This project consists

of adopting cutting-edge detection and response mechanisms for threats, strict identity

management and access controls, and carrying out vulnerability assessments and drilling security

mitigation tactics. The plan combines it with the strategic goals of ensuring the protection of
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business's critical assets, the protection of customer data, and the mitigation of growing cyber

risks in a digitally connected environment.

Digital Transformation Acceleration Program: As IBM has just started its journey towards digital

transformation, an initiative could be adopted by the management to expedite these initiatives

within the organization. To achieve this, we will create a work environment that will be

predicated on an innovative and agile culture as well as to facilitate collaboration among

employees who will possess digital skills. It is comprised of building digital solutions, the body

of related platforms, and partners to generate new business models and delve into new

markets. It works on the strategic goal related to introducing digital innovations to the

organization, increase its competitiveness, capture new markets, and get ready to respond to new

business trends (The Strategy Watch, 2021).

These strategic IT projects are aligned with IBM's overarching business objectives and

priorities, enabling the company to drive innovation, enhance competitiveness, and deliver

sustainable value to customers and stakeholders.

Budget:

1. Cloud Migration and Modernization:

Infrastructure Costs: $500,000

Software Licensing Costs: $300,000

Labor Costs: $700,000

Total Budget Allocation: $1,500,000

2. AI-Powered Customer Experience Enhancement:

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Development Costs: $600,000

Data Acquisition and Preparation Costs: $200,000

Deployment and Maintenance Costs: $400,000

Total Budget Allocation: $1,200,000

3. Blockchain-based Supply Chain Transformation:

Development Costs: $800,000

Training and Adoption Costs: $300,000

Maintenance and Support Costs: $400,000

Total Budget Allocation: $1,500,000

4. Data Analytics and Insights Platform:

Data Integration Costs: $400,000

Analytics Tools and Licensing Costs: $500,000

Talent Acquisition Costs: $600,000

Total Budget Allocation: $1,500,000

5. Cybersecurity Transformation Initiative:

Security Solution Costs: $700,000

Training and Awareness Costs: $300,000

Incident Response Preparedness Costs: $500,000

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Total Budget Allocation: $1,500,000

6. Digital Transformation Acceleration Program:

Platform Development Costs: $800,000

Talent Development Costs: $400,000

Strategic Partnership Costs: $300,000

Total Budget Allocation: $1,500,000

Overall, the total budget for all strategic IT projects amounts to $9,000,000. This budget

allocation ensures adequate funding for each project to achieve its objectives and deliver value to

the organization (actiTIME, n.d.).

Goals:

In the near term (0-12 months), the technological IT projects of IBM are intended to highlight

the critical underlying steps that can make innovation and efficiency easier to attain. The projects

range from cloud migration and modernization to the use of AI for customer experience

enhancement, blockchain-based supply chain transformation, creation of data analytics and

insights platforms, cybersecurity transformation, development of systems that provide digital

transformation, and also digital transformation acceleration. Regarding the move to the cloud and

the modernization of the systems, the goal is to migrate at least 50% of eligible applications and

the optimize of infrastructure as soon as possible, in a term of 12 months. In terms of AI

capabilities for customer interaction development, the company intends to launch chatbots and

personalized recommendation engines within 6 months and to complete pilot projects already in

a year. In the blockchain-base supply chain transformation project, IBM set the direction to
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implement a blockchain platform that would be studied and implemented for the pilot projects

within 6 months and onboard them and their initial pilots within a year. In the same vein, the

target is for both data analytics and the insights platform to be integrated and delegated within

the duration of 6 months, followed by full deployment to all the stakeholders at the end of a year.

The initiatives of cybersecurity transformation strongly involve the establishment of advanced

security solution implementation and training within 6 months as well as establishing incident

response protocols within 1 year. In final, the digital transformation strategy the IBM propose

consists of the development the digital platforms and running the training within 6 months and

the strategic partnerships to be initiated as soon as possible (actiTIME, n.d.).

Ultimately (12-36 months) IBM envisages the Jerarization of Tangible Business goals and

term Growth from such programs. As an instance, for cloud migration and modernization the

goal is the transfer of a higher amount of applications, and 3 years later cost minimization could

be achieved. In another case, when it comes to AI-embedded customer experience enhancement,

the possible results of the whole venture are all about bringing AI capabilities to their highest

level and obtaining undeniable results such as increased customer satisfaction and retention rate

within 3 years. In this scenario, IBM endeavors to unveil the universal Blockchain network for

all interoperability and improvement by 3 years. At this point, we should not forget that the

initial whitepaper requires rationale in the upcoming paragraphs, as well. For the aim of data

analytics and insights platform is will be a widespread adoption and measurable business impact

of the platform within next 3 years. Modern cybersecurity transformations aim to establish the

most efficient cybersecurity capabilities and at the same time adopt a proactive approach to

protecting the organization within 3 years. Our digital acceleration program enables IBM to

introduce digital capabilities in its core revenue-generating activities and thus to grow
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sustainably and compete aggressively in up to 3 years. This has overall objective and timelines

pave way for IBM to accomplish its goals as well as ensures innovation, and to deliver the value

to the customers and other stake holders in the short or long term (actiTIME, n.d.).

References:
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IBM Blockchain - Enterprise Blockchain Solutions and Services. (n.d.). IBM Blockchain -

Enterprise Blockchain Solutions and Services | IBM. https://www.ibm.com/blockchain

IT Strategic Planning: Why You Need An IT Strategy. (2022, January 28). BMC Blogs.

https://www.bmc.com/blogs/it-strategic-planning-why-is-an-it-strategy-so-important/

What Are Project Costs? (And How Do You Budget for Them?). (n.d.). actiTIME - Time

Tracking Software. https://www.actitime.com/project-cost-management/project-cost

Cruz, L. (2022, December 20). Short-Term vs Long-Term Goals (Examples, FAQs) | ClickUp.

ClickUp. https://clickup.com/blog/short-term-vs-long-term-goals/

Team, T. T. (2021, November 7). SWOT Analysis of IBM (International Business Machines

Corporation). The Strategy Watch. https://www.thestrategywatch.com/swot-ibm/

Paladin, Zdravko, Sanja Bauk, Rasim Mujalović, Nexhat Kapidani, and Žarko Lukšić.

"Blockchain Technology’s Effects on Big Data in Maritime Transportation." In 2024 28th

International Conference on Information Technology (IT), pp. 1-7. IEEE, 2024. DOI:

10.1109/IT61232.2024.10475774

Aithal, P. S., How to Create Business Value Through Technological Innovations Using ICCT

Underlying Technologies (June 30, 2023). International Journal of Applied Engineering and

Management Letters (IJAEML), 7(2), 232-292. ISSN: 2581-7000, 2023, Available at

SSRN: https://ssrn.com/abstract=4541179

Cao, Dongping, Xuejiao Teng, Yanyu Chen, Dan Tan, and Guangbin Wang. "Digital

transformation strategies of project-based firms: case study of a large-scale construction

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company in China." Asia Pacific Journal of Innovation and Entrepreneurship 17, no. 2 (2023):

82-98.