Revised Mission

At IBM, our purpose and drive stems from the ability to create short-term and long-term solutions for our clients. We analyze our clientele's needs and predict future requirements to build a better selection of solutions for the future. Our definition of innovation has never changed. Our core strategic imperatives will always revolve around the drive of success that is shared among our competitors. In order to do this, we have a vast amount of products and services geared towards efficiency and dynamics to push innovation to its peak. We aim to serve every available avenue of needs revolving around IT infrastructure and IT consulting. IBM is a jack of all trades and a master of all. We specialize in enterprise technology and the management of distinct technological processes. Our values are derived from the need for adaptation in an ever changing environment. Building off of a firm base in why we succeed is a priority in all planning phases. Lastly, we strive to empower and support our colleagues as well as the environment around us. We must prepare for a better tomorrow by being a better influence today.

Current Strategies

• Transition IT Consulting into their Economic Moat
• Increase ROI on Watson
• Expand market share into IoT products
• Focus in on Cognitive Solutions

Executive Summary

Increase Presence in the Healthcare Industry and Raise ROI on Watson

NPV: $ 687,765,299

IRR: 98%

Matrix Analysis

SWOT - Key Points

Strengths --

• Strategic Imperatives: Cloud, Data Analytics, Mobile, Social, and Security Solutions
• Watson is open-source and easy to implement

Weaknesses --

• ROI on Watson is low
• Presence in consumer electronics is low

Opportunities --

• Government Contracts are a sustainable source of revenue
• IoT is a growing market among corporate and consumer markets

Threats --

• Cloud Computing and Management risks include hacking and data leaks

IFE & EFE

IFE -- 2.36 -- Core Competencies stem from Consulting and Cloud

EFE -- 2.13 -- Opportunities in Government and Emerging Technologies

CPM

Competitors -- Oracle and SalesForce

Oracle -- 3.04

SalesForce -- 2.57

IBM -- 2.88

Grand & Space Analysis

Grand Strategy -- Rapid Market Growth & Strong Competitive Position

Space Strategy -- Aggressive / Competitive

Bivariate

SO --

• Use Software as a Service selling techniques to promote and sell hybrid cloud solutions to companies in the healthcare industry.
• Use Watson software to capitalize on a government contract to increase efficiency, quality of care and decrease costs at Veteran Affairs Hospitals.

ST --

• IBM is currently focused on expanding its consulting department. It can use its broad range of SBU to leverage itself to obtain consulting contracts with companies with overly-specialized IT department.
• Use R&D resources to create security software to secure cloud computing for customers.

WO --

• Outsource Watson software to healthcare providers to increase ROA.
• Inexpensive Software as a Service can be used to automate selected services the company offers to cut costs and improve efficiency.

WT --

• Work with government organizations to suppress present threats of data leaks.

QSPM

VA Hospital -- TAS 2.24

Consumer Behavior -- TAS 2.13

Our Strategy

• We will work with the Veteran Affairs Hospital to bring them a new integrated software
• Replace Proprietary Vista System with a Watson integrated cognitive solution along with sufficient hardware
• Watson will analyze medical records and provide actionable recommendations

Implementation

Forecasted Costs and Revenues

Contract -- $482,000

• Lawyers, Paralegal, and Negotiation Team

Software R&D -- $357,000,000

• Salaries of Software Engineers, Project Managers, and Cyber Security Experts

Hardware Expense -- $15,280,500

• Includes Servers, Outsourced Installation, and Laptops

Training -- $125,000

• Training Official, Call Service Employees, Software Engineer, Project Director

Post-Sale Expense -- $4,550,000

• Call Service Employees, Outsource Maintenance, Software Engineer, Project Director

Total Cost and Revenues

Total Cost

• 2017 -- $ 412,437,500
• 2018 -- $ 88,464,400
• 2019 -- $ 99,324,400

Total Revenues

• 2017 -- $ 669,441,000
• 2018 -- $ 441 Million
• 2019 -- $ 457 Million

Historical Ratios

Current Ratio: 1.2403

Debt-to-Total-Assets: .8695

Long-term Debt-to-Equity: 4.2847

Net Profit Margin: 16.14%

Earnings-per-Share: $13.48

Forecasted Ratios

Current Ratio: 1.2948

Debt-to-Total-Assets: .7625

Long-term Debt-to-Equity: 1.0506

Net Profit Margin:18.60%

Earnings per Share: $15.49

Balance Scorecard

Finance

1. Increase ROI for Watson
2. Increase Net income
3. Improve Shareholder value and position

Customer

1. Quicker Patient Turnover
2. Lower Doctor with Patient time
3. Quicker diagnosis time
4. Better image among Veterans

Operations

1. Give VA doctors and nurses tools they need to be more efficient.
2. Create contract with U.S government with V.A hospital
3. Create healthcare software underneath Watson

Learn & Grow

1. Increase product awareness in the Healthcare Industry
2. Increase consumer perception of company in America by creating solutions to the VA.
3. Decrease employee turnover by developing employee integration and engagement with Watson health

Q&A