What problems was IBM experiencing in the mainframe market by 1970? How did it change its strategy to deal with the problems? T. V. Learson

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What problems was IBM experiencing in the mainframe market by 1970? How did it change its strategy to deal with the problems?

T. V. Learson took over as CEO of IBM after Tom Watson Jr. in 1971 and became the head of a company that had a 75% share of the world market for mainframe computers—computers powerful enough to manage the information processing needs of an entire company. Learson had made a major personal contribution to IBM’s emergence as the dominant global mainframe manufacturer when he led the development of IBM’s highly successful System/360 mainframe series that led to the rapid rise in the company’s fortunes. IBM’s 360 mainframes fully automated a company’s manual information processing systems, such as payroll, accounting, and customer record keeping, making the punch card obsolete. As the former head of the 360 program, Learson understood the critical importance of research and development (R&D) in maintaining and defending IBM’s preeminent position in the mainframe market. Because of this, he initiated and oversaw the development of IBM’s new, more powerful System/370 computer series.