IBM – History of the Big Elephent

In the late nineteenth century, the United States, the statistician Herman Hollerith devised a solution to the 1890 census. Hollerith devised various electrical machines for the sum and count data that were represented in the form of punched paper tape. Through these holes, the data they represented could be computed in a fast and automatic, by means of electrical circuits. With this process, the United States to closely monitor the growth of its population. The results of the 1890 census were provided after three years, saving us several years of work.

In 1896, Hollerith established the Tabulating Machine Company, and introduced innovations in their discovery: the paper tape has been replaced by cards. These would become the basic element of IBM machines for processing data from a few decades ago. Already in 1911, two other companies, the International Time Recording Co. (mechanical time recorders) and the Computing Scale Co. (tools for measuring weight), joined her at the suggestion of the dealer and banker Charles R . Flint, forming then the Computing Tabulating Recording Co. – CTR.

Three years later, in 1914, Thomas J. Watson (industrial leader who was one of the richest men of his time) became president of the organization and established work standards absolutely innovative for its time. At that time, the CTR had fewer than 1,400 employees and the constant engineering research resulted in the creation and development of new accounting machines, required by the rapid industrial development. Before the year 1924, this small group of men had increased and diversified his experience too. The products have gained higher quality, new machines and with them new sales offices and more vendors.

In February 1924, CTR changed its name to one that would occupy a leading place in the technological process: INTERNATIONAL BUSINESS MACHINES – IBM.

The acronym IBM has become, since the formula so that industry and commerce continue to solve their development problems.

As a result of constant and rapid development, International Business Machines Corporation created in 1949 to IBM World Trade Corporation, a subsidiary wholly independent, whose goal was to increase sales, service and production outside the United States.

The activities of IBM World Trade Corporation today extends over 150 countries. The factories and laboratories of IBM operating in 15 different countries.

Such factories are integrated with development labs in France, Germany, Spain, Italy, Netherlands, Sweden, England, Brazil, Argentina, Colombia, Mexico, Canada, Australia and Japan.In 2001 Wal-Mart has awarded a $40 million contract to IBM to replace Wal-Mart’s older IBM mainframes.

IBM is a company that invests in research and development keeping in the leadership ranks of the publication of patents for 16 consecutive years – IBM earned 4,914 U.S. patents in 2009, setting a record for the Big Blue, maintaining its leadership against competitors like Samsung (3,611 patents) and Microsoft (2906 patents). IBM technology is present in major supercomputers in the world and also in millions of homes in some of the most powerful and modern video games of today are equipped with chips from IBM.

Over the past five years, IBM has completely transformed its business model. The type of work that the company can do today is very different from the work of five years ago. IBM got rid of several activities that were transformed into commodities, such as PCs and printers segments, and increased investments in key areas of high value, such as consultancy, Information and Services on Demand. In 2005, its PC division was acquired by China’s Lenovo.



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