IBM Earnings Highlight the Value of Performance Management
Last week IBM announced their 2nd Quarter earnings. The numbers were almost universally regarded as positive even though their revenue declined 13% and did not meet analyst expectations. Why was this perceived so positively? Because earnings were up 12% and they beat EPS estimates despite declining revenue.
A Business Week article credits a "strategic focus" for IBM's ability to perform in a declining economy. I would agree with this and also would add that not only did they set a strategic focus (that's the easy part), they have actually executed on that strategy as evidenced by their Q2 numbers.
Those of us who write about performance management (PM) are always being asked for real-world examples showing the tangible impact of investments in PM and business intelligence (BI). IBM's Q2 performance is a real-world example right before our eyes with a compelling ROI story.
I would love to see IBM develop a case study about how eating their own BI and PM dog food has contributed to their Q2 achievements, their ability to thrive in a turbulent economy, and their ability to execute on their strategic focus. This is exactly what many clients and prospects need in order to justify new or additional investment in BI and Performance Management initiatives.
A Business Week article credits a "strategic focus" for IBM's ability to perform in a declining economy. I would agree with this and also would add that not only did they set a strategic focus (that's the easy part), they have actually executed on that strategy as evidenced by their Q2 numbers.
Those of us who write about performance management (PM) are always being asked for real-world examples showing the tangible impact of investments in PM and business intelligence (BI). IBM's Q2 performance is a real-world example right before our eyes with a compelling ROI story.
I would love to see IBM develop a case study about how eating their own BI and PM dog food has contributed to their Q2 achievements, their ability to thrive in a turbulent economy, and their ability to execute on their strategic focus. This is exactly what many clients and prospects need in order to justify new or additional investment in BI and Performance Management initiatives.
Posted by Dave Kasabian at 7/20/2009 9:16 AM 
Categories: Vendor News,Real-World Experience
Tags: Cognos PM IBM
Categories: Vendor News,Real-World Experience
Tags: Cognos PM IBM
It is impressive that IBM has used their performance management capabilities and software to help them manage their business in this tough economy. Just as impressive are companies that used forecasting processes and software prior to the downtown to position their business for the recession. One may wonder why many well managed companies didn't see the downturn coming earlier. Furthermore, are these same companies setting themselves up for the recovery? Many of our customers at Right90 did see the downturn coming through the insight Right90 provided. These same companies are using Right90 to prepare for a recovery and positioning themselves better than their competitors. And yes, here at Right90 we drink our own champagne and it has helped us manage through this volatile economy.
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Thanks for the comment Southard. I see you like the champagne vs. dog food analogy as do most of your peers on the vendor side. Your point about foresight vs. reaction is true. It is better to predict and prepare than to experience and react. I welcome you and other vendors to provide links in your comments to my blogs to case studies or press releases highlighting client success stories on this front. Clients and prospects can never get enough of these real-world examples to help build the case for BI and PM ROI. Thanks again for your input.
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