Smarter Planet’ is not an advertising campaign, it’s not even a marketing campaign, it is a business strategy,” explains Ann Rubin, vice president of advertising at IBM. The “Smarter Planet” strategy is based on the idea that the next major revolution in the global marketplace will be the instrumentation and integration of the world’s processes and infrastructures, generating unprecedented amounts of data. The data captured and analyzed in industries such as banking, energy, health care, and retailing will allow IBM to help businesses be more efficient, productive, and responsive.

THE COMPANY Founded in 1911, IBM has a history of innovation and focus on customers. The blue covers on its computers, blue letters in the IBM logo, and dark blue suits worn by IBM salespeople led to the now popular company nickname, “Big Blue.” Today, it has over 430,000 employees in more than 170 countries. Forbes magazine ranks IBM as the fourth most valuable brand in the world. The company is a leading developer of new business technologies, receiving more than 5,000 patents each year. Some of its well-known inventions include the automated teller machine (ATM), the hard disk drive, the magnetic stripe card, relational databases, and the Universal Product Code (UPC). In addition, IBM recently gained attention for its artificial intelligence program called Watson, which challenged two Jeopardy! game show champions and won! According to Virginia Rometty, the current CEO of IBM, “IBM is an innovation company.”

VALUES, MISSION, AND STRATEGY 

Recently, IBM initiated a project to facilitate online discussions of key business issues among 50,000 employees to identify common themes and perspectives. According to Sam Palmisano, former CEO of IBM, “We needed to affirm IBM’s reason for being, what sets the company apart, and what should drive our actions as individual IBMers.” The results were three underlying values of IBM’s business practices: (1) dedication to every client’s success, (2) innovation that matters—for our company and for the world, and (3) trust and personal responsibility in all relationships.
These values now come to life at IBM in its “policies, procedures, and daily operations,” explains Palmisano.
IBM’s core values also help to define its mission, or its general function in society. In clear, concise,
inspirational language, IBM’s mission statement is:
● At IBM, we strive to lead in the invention, development and manufacture of the industry’s most advanced information technologies, including computer systems,
software, storage systems, and microelectronics.
● We translate these advanced technologies into value for our customers through our professional solutions, services, and consulting businesses worldwide.

Questions
1. What is IBM’s “Smarter Planet” business strategy? How does this strategy relate to IBM’s mission and values?
2. Conduct a SWOT analysis for IBM’s Smarter Planet initiative. What are the relevant trends to consider for the next three to five years?
3. How can IBM communicate its strategy to companies, cities, and governments?
4. What are the benefits of the Smarter Planet initiative to (a) society and (b) IBM?
5. How should IBM measure the results of the Smarter Planet strategy?