IBM has been in the forefront of the IT & Computing industry even before the term “IT & Computing” was coined. Today, IBM’s success still casts a large shadow over several younger competitors in the industry yet still continues to set a pace in the development of new technologies. Innovation has always been a key factor in IBMs success, but without a strategy to popularize and mass-market any product, those developments will never be lucrative enough to see investments.
The name IBM is almost synonymous to the word “computer”, as the company is responsible for developing some of the first general-use computers. In the early 1900s, IBM invested on the idea of punch card tabulating machines and started mass producing these special use computers. Originally a Computing-Tabulating-Recording Company, the company benefited from finding ways to compute, tabulate, and record census data. Only two decades later, revenues increased greatly and led to more profitable Time and Accounting machines to answer to the needs of its customers, mainly other companies.
During the great depression, IBM managed to survive by providing insurances and by investing on their relatively large assets. Although demand was low and economy was dwindling, the company managed to obtain contracts for accounting operations for the U.S. government. IBMs ability to find customers in the midst of chaos was soon demonstrated again during the Second World War. As the company fell into the disposal of the American government, the Mark I was created to produce even faster computations and results. The U.S. military soon realized the advantages of more sophisticated technology in war.
Shortly after the war, technology in pop culture became a large hit during the 50s. The decade saw some of the most important technological advancements in time. Some important inventions made during these years include the Transistor radio, video recorders, credit cards, modems, solar cells, and nuclear power. As culture soon began to see the importance of technology, more and more companies came up with innovations to make everything more convenient for man. While technology was increasing its pace, IBM also took several steps forward during the 1950s.
Several computing systems were created for the U.S. Air Force. Some of which were to be used as a Ballistic Missile Early Warning System. During the 1950s, the first vacuum tube computer was created. These were smaller and faster, and soon rendered the Mark I obsolete. Although these computers were still primarily used for government and research work, the vacuum tubes moved the computers into business applications such as billing, payroll, and inventory control. IBM also developed the first computer disk storage system and was soon followed by the first effective algebraic computer language, FORTRAN.
As IBM saw new leadership during the 50s, IBMs marketing strategy also changed. As a new decade came to be, the company made a gamble by changing what was an already effective technique in selling technology. Instead of hardware and software sold in packages, parts were now being sold individually and “unbundled”. Although there were 7 other computer companies aside from IBM, this strategy opened the doors to a multi-billion dollar software and services industry. The system/360 was introduced in the late 60s, which allowed computer owners to choose from a variety of modifications or upgrades. This bold move by the company even resulted to charges claimed by the government on monopolizing the industry. Due to these cases, IBM sought opportunities in dealing with other companies in developing software applications. While more tasks could be done by computers, the number of potential customers grew as well. IBM found even more value in general-purpose computers.
As leadership once again changed, IBM took another step forward into weaving the computer industry in our daily lives. The 70s saw the integration of computers in groceries in banks, even giving birth to the automated teller machine. Although rather expensive, businesses saw potential in IBM PCs being an everyday tool. Still using the unbundled method in selling, the processor came from Intel, and the Operating System came from what was then only a 32-person company, Microsoft.
Public interest grew more rapidly as more ways were found to ease work and let computers do what would normally be tedious and time consuming. IBM then continued on mass producing PCs and finding ways to entice customers. Discounts were offered to universities, which showed students the importance of computers and gave birth to other ideas on how computers can be used. Although most that see the true potential of personal computers were actually the wealthier and more educated individuals, there was no avoiding the significance of computers in everyday lives.
During the later years, more emphasis was shown by customers in desktop computing. In the mid 80s IBM came up with the Token-Ring Local Area Network, which allowed users to exchange information and share printers within a small office building. During those years, Networking also became as popular as the personal computer.
In the 90s, IBM developed the first ThinkPad laptop computer, ushering the computer even further in the realm of personal use. Today, individuals still continue to see the importance of the PC as a tool to help us with different tasks. As personal computers find their way into our homes, regular business tasks can now be done even after business hours. As technology continues to move forward, aesthetics and functionality of PCs also changes. Until today, we still see the benefits in using PCs to aid us in all kinds of work. In the present, PCs have become a regular household appliance and is slowly becoming a necessity.
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