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Using Networks for Changing Innovation Strategy: The Case of IBM

Using Networks for Changing Innovation Strategy: The Case of IBM

Dittrich, Koen, Duysters, Geert and de Man, Ard-Pieter, "Using Networks for Changing Innovation Strategy: The Case of IBM" (December 2004). ERIM Report Series Reference No. ERS-2004-111-ORG.

Abstract:

    Large-scale strategic change projects in companies may be supported by using alliance networks. This paper shows that IBM's change from an exploitation strategy towards an exploration strategy required a radically different network strategy as well. By entering into more non-equity alliances, involving new partners in the network and loosening the ties with existing partners, IBM supported its transformation from a hardware manufacturing company to a global service provider and software company.
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Facts on IBM Software

IBM WebSphere Application Server works with a number of Web servers including Apache, Netscape Enterprise and Microsoft Internet Information Services (IIS) as well as IBM HTTP Server for AS/400, IBM HTTP Server for OS/390 and IBM HTTP Server for AIX, Windows NT, Solaris.

Mitch Kapor got the name for his company from 'The Lotus Position' or 'Padmasana'. Kapor used to be a teacher of Transcendental Meditation technique as taught by Maharishi Mahesh Yogi. Incidentally, competitor Borland code-named their Quattro Pro software "Buddha", as the software was meant to "assume the Lotus position" and take over Lotus 1-2-3's market.

With headquarters in Cupertino, California, and Lexington, Massachusetts, Rational has more than 3,400 employees and customers in 89 countries. Rational estimates that more than 600,000 software developers use its software tools. IBM intends to merge Rational’s business operations and employees into the IBM Software Group as a new division and fifth brand, joining WebSphere, Lotus, Tivoli and DB2. When the acquisition closes, Mike Devlin will become the general manager of the new division and will report to Steve Mills.

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