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.

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.

It has been repeatedly alleged that in 1997 the NSA had backdoored the export version of Notes, but this is a mis-characterization of what actually happened. Prior to that year, Lotus had been restricted from exporting software that used encryption keys that were longer than 40 bits by United States law. Under an agreement with the US government, Lotus was allowed to start exporting 64 bit keys, so long as 24 bits of each key were recoverable using a special key issued by Lotus to the NSA. The result was that the newer version of Lotus Notes provided stronger protection against industrial espionage than any previous version had been allowed to provide, and it provided no less protection against decryption by the NSA than the previous versions had given. (US export regulations were changed in 2001, so current versions of Lotus products are able to use longer keys and they no longer provide NSA with access to any key bits.)

Rose, a software modeling program, arose from a few engineers formerly at GE in Waukesha, Wisconsin. After Rational acquired the product, it moved much of the development to California.

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