I.B.M. expected to name head for new global on-line unit

Article Abstract:

IBM will establish a new unit targeting consumers, especially for PC sales and online services. The unit will be led by James A. Firestone. The new division represents a significant business initiative. Research indicates that consumers will spend $116 billion in 1998 for computer products and services, compared to $54 billion in 1993. Consumers will make up 39% of the market for information technology, up from the 18% of the market they constituted in 1993. IBM has had trouble reaching the consumer market segment, although it claims to have consumer-related sales in the billions. IBM will move its Prodigy on-line service and its PCs to the new unit. The unit will have branches dedicated solely to the marketing and development of about 10 products and will target 10 countries. IBM believes about half these products will be PC-related, including games, add-ons and software, with the other products coming from on-line related services.

Company Operations, Company Restructuring/Company Reorganization

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House that Lou built reflects a new I.B.M

Article Abstract:

IBM's new corporate headquarters in Armonk, NY, represents the computer manufacturer's new emphasis on employee empowerment and efficiency. The new 280,000-sq-ft, Z-shaped building offers an open floor plan and allows IBM's 600 employees to conduct wireless Internet connections from any site. IBM is moving from its 420,000-sq-ft, 900-employee headquarters that was built in 1964 on the same property. The old building shielded its employees from the public and included scores of private offices, which embodied the previous IBM centralization strategy. Kohn Pedersen Fox Associates designed the new building on a $75 million budget. Louis V. Gerstner Jr., CEO since 1993, said the new building is designed for IBM and its customers. All IBM employees, except for upper management and attorney, work in open cubicles to foster cooperation.

Computers & Auxiliary Equip, Company analysis

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I.B.M. promotes executive who may gain top post

Article Abstract:

IBM CEO Louis V. Gerstner has promoted Samuel J. Palmisano to senior VP. Palmisano is being given control over a new division that will include the network computer division, the PC division, the consumer division and a joint venture with Toshiba called Display Technologies, which makes flat-panel displays. At 44, Palmisano is IBM's youngest top executive and has the potential to become Gerstner's heir apparent. Palmisano gained the attention of Gerstner as a manager responsible for a large amount of growth in the company's services business. Palmisano's ascension is by no means a sure thing, according to analysts. G. Richard Thoman a close friend and confidant of Gerstner is also a candidate for the top position when Gerstner decides to retire.

Computers, Human resource management, Company restructuring/company reorganization, Company personnel management, Company executive, Computer executives

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