Innovation and New Product Development Case Study

IBM: On-Demand Losing Demand?

OR

Abstract:
When Sam Palmisano took over the reins at IBM in late 2002, he laid out a grand vision for the company. He termed his vision ‘E-business On-Demand’ and placed a gamble on the concept of providing computing power and services on-demand, like electricity, where the user paid for services used. Although On-Demand was publicised as the best thing to happen after the Internet, the concept itself was inlaid with a few major flaws that needed to be ironed out before the idea took root in the market. The early 2000s saw IBM lose major contracts with its customers plunging the entire On-Demand initiative into uncertainty.

Pedagogical Objectives:

• To discuss the concept of On-Demand computing
• To understand the problems that needs to be resolved before accepting On-Demand
• To elucidate how IBM uses On-Demand model.

Keywords :  IBM; Big Blue; On Demanding Computing; Innovation Management Case Study; IBM Global Services; Grid Computing; PWC consulting; Computing on tap; E-business On Demand; Open standards; Resource sharing; JP Morgan Chase; Hewlett Packard; Sun Microsystems; Sam Palmisano; Web services

Contents:

• The Conceptual Framework
• The Practical Hiccups
• Gamble in Shambles?