`Index`

Page numbers followed by f indicate figures; those followed by t indicate tables.

Accounting
in different industries, 79
at the expense of investing, 582–583
IBM devices for, 77–78
and investors, 559
under John Opel, 434–435
and reporting, 503–504
and stock value, 585–586, 604–605
during World War II, 139
ACM Turing Award, 403
Acquisitions
and electric typewriters, 86
and employees, 249, 591–592
and IBM growth in the 1920s and 1930s, 67, 69
and losses, 673n11
and patents, 75–76
and revenue, 673n8
and software business, 519–521
Adam Smith, 58
ADP (rival service bureau), 226
ADR (rival software company), 226
Adstar, 451
Advanced Engineering Development Division, 210
Affirmative action, 251
Africa
and branch offices, 48, 113
and Cold War, 353
colonial outposts in, 195
and computer market, 410
IBM employees in, 290
and World Trade, 292, 320–321
Age discrimination, 497, 569, 570
Aiken, Howard, 127–128
Ainsley, Bryson H., 33, 34, 50, 129–130, 626n9
Air traffic control systems, 266
Akers, John F., 432f
and accounting practices, 428
and author, 620
and board of directors, 461, 463–464, 611
and corporate culture, 442, 538
and excess employees, 401–402
and financial performance, 625–626n4
financial record of, 582
firing of, 421–423, 453
and fragmentation, 486
and growth strategy, 432–434
and IBM’s decline, 313–314, 425–426, 431, 439–441, 457
and layoffs, 664n46
legacy of, 468–469
and Lexmark, 448
and market-driven quality, 446–447
on market share, 430
under John Opel, 311–312
and PC business, 400, 411
and reorganization, 449–452, 452, 459, 467–468, 485, 609, 641n3
and stock value, 429
and U.S. v. IBM (1969–1982), 338
and worldwide services strategy, 512
and Year of the Customer, 456
Albrecht, Michael, 512–513
Alcoa, 330
Algol (programming language), 364
Alliance@IBM, 540–541, 671n47, 673n6
Almunia, Joaquin, 350
Altair 8800, 382
Amazon, 350, 536, 549, 558, 575, 577, 583
Amdahl, Gene, 227, 262, 263, 464
Amdahl Corporation, 227, 261, 262, 270, 310–311, 345, 437
American Airlines SABRE system, 267
American Astronomical Society, 85
American Cash Register Company, 32
American Chicle, 10
American Express, 477, 481, 482
American Standard, 400
Americas/Far East Corporation (AFE), 297–298
Analytics, 570, 571, 584, 592
AN/FQ-7 computer system, 169
Antitrust challenges, 63. See also monopolies
and bundling, 259
and card sales, 68
and Frank T. Cary, 305–307
chronology of, 1969–1975, 334t
conclusion of in 1982, 312
and corporate culture, 495–496
cost of, 331
and global performance, 287–288
IBM’s fear of, 413
and IBM’s Golden Age, 150
and legal advice, 300–301
ongoing nature of, 104
and rate of return, 276
by rival companies, 332–337
study of, 653n10
and System 360, 228
and U.S. government, 105
and Thomas Watson Jr., 185–189
and Thomas J. Watson Jr.’s health, 230
Thomas Watson Jr.’s reaction to, 173
AOL Time Warner, 539
APICS (American Production and Inventory Control Society), 181
Apollo, 404
Apple
and antitrust cases, 327, 345
as beneficiary of IBM errors, 412–413
as desirable employer, 434
and early desktop computers, 382–383, 411
as early rival to PC business, 310, 459
Louis V. Gerstner Jr.’s attempt to acquire, 519
IBM partnership with, 549, 571, 574, 584
and IT ecosystem, 380, 588, 600
market share of, 405, 406
and PC market, 457
and technical standards, 487
Apple II, 383
Applications Business Systems (ABS), 451
Applications Solutions, 451
Architecture, 215
Armonk (New York), 11
and John Akers’s reorganization, 440
and centralized control, 281–282, 292, 445, 612
as Corporate headquarters, 238
and Federal Systems Division, 266
and financial objectives, 552–553
under Louis Gerstner, 491–492
and imperatives, 583
and layoffs, 443
and new Corporate headquarters, 624n17
and Sam Palmisano, 531
and paucity of non-U.S. senior management, 253, 458–459
and PC business, 393, 397, 410–411
and PC development, 387
and personnel practices, 566–567
and Ginni Rometty, 539
and U.S. v. IBM (1969–1982), 304–305, 325
Armstrong, Mike, 464
Army Ordnance Department, 155
Arthur Andersen and Company, 511
Arthur D. Little, 339
Artificial intelligence, 517, 523, 571–577, 592, 601, 665n23
ASCC/Mark I. See Mark I
Asia
IBM customers in, 82
IBM expansion in, 113
and IBM Japan, 294
and multinational corporations, 285–286
sales to during Great Depression, 95
as source of inexpensive labor, 533
Assembler (programming language), 175, 364
Association for Computing Machinery (ACM), 359
Association for Computing Machinery Journal, 179
Association of Information Technology Professionals (AITP), 181
AT&T, 126, 155, 326, 330, 345–346, 350, 351, 396, 580
Austin, Gareth, 285–286
Austin, Tom, 576
Austria Control Center, 369
Austrian, Geoffrey D., 5, 15, 23
Automatic Sequence Controlled Calculator Mark I. See Mark I
Automation, 488
Avionics, 266

“Baby Blues,” 451–452, 512
Backus, John, 153–154
Baldwin, Richard, 607–608
Barr, Thomas D., 338, 339f, 341, 345, 347
Barr, Tom, 337
Basic Beliefs. See also corporate culture
and John Akers, 610
codification of, 236–237
and Corporate, Domestic, and World Trade spheres, 238
and corporate culture, 233–235, 537, 589–590
and decision-making, 240
decline of, 587
emergence of, 54
Louis V. Gerstner Jr.’s replacement of, 442, 474, 496
and IBM struggles in 1990s, 422
Jon Iwata’s contributions to, 536
and layoffs, 550, 569
Sam Palmisano’s replacement of, 543, 608
BASIC programming language, 391
Batista, Fulgencio, 295
Baxter, William F., 345–346, 347
Beardslee, Max, 259
Bednorz, Georg, 588
Beitzel, George B., 338
Bell, Alexander Graham, 183
Benefit reductions, 538, 539, 567–568, 568t, 570
Beniger, James, 7, 16–17
Berlin Wall, 372–373
Bertram, John E. “Jack,” 402–403
Best practices, 47, 86
Big Data, 517, 523, 560, 565, 571, 574, 594, 601
Billings, John Shaw, 17
Bining, Gerd, 588
Birkenstock, James W., 144–145, 159–160, 164
Blue Letters, 214
Board of directors
of C-T-R, 40–41
in different countries, 72
and Louis V. Gerstner Jr., 473, 478–480
during Great Depression, 97–98
and IBM’s decline, 440, 441, 460–461, 463–466
during IBM’s early years, 5
members of, 610–613, 674n39
and Sam Palmisano, 524–526
reporting to Thomas J. Watson Sr., 70
and resistance to investing, 213
and Ginni Rometty, 564
secrecy of, 663n36
transitions within, 533
Boca Raton (Florida), 385, 388, 392, 396, 410–411, 416
Boeing, 162, 384
Bonuses
and appraisal system, 568
and banded employees, 662–663n19
and corporate culture, 235
and early retirement, 254–255
and employee ranking, 444
and growth strategy, 605
and IBM benefits, 250
and IBM sales culture, 49
and layoffs, 542–543
and PC sales, 417
and poaching by rival firms, 262
and quotas, 242, 245
reduction of, 670n24
and S/360, 224
and shift away from leasing, 313
Boorstin, Daniel, 16
Booz Allen Hamilton, 512
Bork, Robert, 341
Braitmayer, Otto, 40, 69–70
Branch offices, 49f, 56f
employees of, 244–245
and engineering team, 79
and excess employees, 255
and Family Dinners, 117–118
in former Iron Curtain countries, 374
during Great Depression, 96
implementation of, 48
location of, 55
and market demand, 145
overseas during World War II, 142–143
and PC sales, 391
and reporting, 246
and sales reports, 51
and territory, 52
and Thomas J. Watson Sr., 628n41
Branding
and “Baby Blues,” 451
and Louis V. Gerstner Jr., 474, 477
and Internet adoption, 520–521
and logos, 64–65
and name recognition, 588–589
of professions with IBM name, 84
Bribery, 248–249
Bricklin, Daniel, 383
British Empire, 88, 113
British Tabulating Machine Company (BTM), 113, 196, 289
Brooks, Frederick P. Jr., 210–211, 220, 223, 338, 638n52
Brown, Charlie, 457, 470
Brown University, 134
Bryce, James Wares, 69–70, 75, 76, 81, 130, 155–156
Budgets, 241–243
Buffett, Warren, 549, 669n4
Bullen, Richard H. “Dick,” 191
Bundles, 198, 259
Bundy, Harlow E., 12–13
Bundy, Willard H., 13
Bundy, Willard Legrand, 12–13
Bundy Manufacturing Company, 12–13, 113–114
Bundy Time Recording Company, 13
Burdick, Walter E. “Walt,” 255, 457, 468–469, 675n40
Bureaucracy. See also micromanagement
and antitrust cases, 350
CEO struggles against, 467
and company-wide policies, 300
Compaq’s lack of, 400–401
and employee morale, 254
and failure of leadership, 454
Louis V. Gerstner Jr.’s struggle against, 477–478
and IBM growth in the 1960s and 1970s, 279–280
in Latin American IBM branches, 298
and operating costs, 447
and path dependencies, 176
and product development, 385, 392–393, 406, 411
and resistance to unions, 320
and stock value, 429
and technological innovation, 175
and total quality management, 601
and Thomas J. Watson Sr., 39
Jerome York’s struggle against, 490
Burke, James E., 422, 453, 462f, 465, 479–480, 613
Burroughs Corporation
and compatibility, 262
consolidation of, 10
and customers, 82
demise of, 580
during Great Depression, 79, 81, 97
as IBM competitor, 67, 76
and IBM’s Social Security win, 101, 102
and India, 316, 317
information ecosystem of, 271
and IT services, 511
and mainframes, 225–226
Business ethics, 248–249, 256, 294, 331, 343, 434, 603
Business Machines (internal corporate publication), 72, 113, 122
Business Practices Department, 349
Business Services Department, 68
Business strategy
and corporate culture, 665n26
at C-T-R/IBM, 1914–1924, 57
and donating computers to universities, 166
errors in, 582–587
failure of, 424–425
under Louis Gerstner, 485, 506
and global performance, 323–324
during Great Depression, 96
and IBM growth in the 1920s, 65–66
and IBM’s decline, 431–434
and imperatives, 592–594
and reorganization, 467–468
under Ginni Rometty, 562–563, 564–565
in the twenty-first century, 550
and Thomas J. Watson Sr., 58–59
Business Week, 346, 452, 459, 497–498

CAD (computer-assisted design), 404
CAM (computer-assisted manufacture), 404
Campbell-Kelly, Martin, 195, 197, 198, 227, 265, 301, 550
Canada
and AT&T’s breakup, 351
and C-T-R/IBM name change, 64
on C-T-R/IBM name change (1924), 61–62
and Herman Hollerith, 20
and IBM’s global expansion, 112t
and ITR, 43
and Walter Jones, 627n21
and layoffs, 548–549, 567
and services business, 513
and John Thompson, 518
Canby, Edward, 14
Cannavino, James A. “Jim,” 396, 402, 404, 406, 411, 412
Cape Cod System, 168–169
Capital gains, 15, 23, 264
Capitalization, 10, 25, 61, 545
Capital markets, 460
Carroll, Fred M., 41–42, 44, 75, 76, 78, 81
Carroll, Paul, 428
Carter, Jimmy, 344, 368, 372
Cary, Frank T., 303f
and John Akers, 422
and antitrust cases, 325–326
appointment to CEO of, 230
and author, 620
and Cold War–era computing, 370–371
and global growth, 302–310
and global performance, 285
growth under, 311f
and John Opel, 457
and PC development, 384, 385, 388, 392, 405, 416
on rumors of acquisition, 580–581
and U.S. v. IBM (1969–1982), 338, 343, 346
Cash flow
and accounting practices, 548, 559, 673n11
and asset sales, 484–485, 491–492
and business performance (1992–1997), 494t
and business performance (1998–2001), 544t
and leasing, 86, 98, 155–156, 239, 276
and leasing-to-selling transition, 313, 436, 661n18
and mainframe sales, 380
and market share, 650n15
Sam Palmisano’s focus on, 536
and punch card sales, 20, 68
and Roadmap 2010, 552
and Roadmap 2015, 562
and Ginni Rometty, 553–554
and stock buybacks, 565–566
and Tabulating Machines, 44–45, 70
and World Trade, 320–321
Cash registers, 10–11, 32, 124, 142, 227
Cash reserves, 25, 44, 45, 96–98, 125, 479, 565, 588
Cassani, Kaspar V., 452
Castro, Fidel, 295
CDC. See Control Data Corporation (CDC)
Central Europe
after the Cold War, 374
and branch offices, 368
business fairs in, 370
and Adolf Hitler, 113, 116
and Sam Palmisano’s strategies, 534
and services business, 513
and Soviet computers, 362
and World War II, 139–140
Ceruzzi, Paul, 172
Chalmers, Hugh, 32
Champy, James, 271
Chandler, Alfred D. Jr.
on business strategy, 57–59, 235
on commercialization, 381
on coordinated action, 197
on corporate culture, 234
influence of, 550
on path dependencies, 500
on professional managers, 5–6, 11, 205
on response to market conditions, 441
Chaplin, Charlie, 377, 390, 391f, 483
Chicago, 48, 55, 421
China, 196, 408, 533, 539
Chips, 263–264, 395, 400, 410, 414. See also integrated circuits
Christensen, Clayton M., 417, 599, 660n44
Chronology
of antitrust cases, 329, 334t, 653n11
of IBM’s growth, 1930s, 112t
of IBM-Soviet activities, 1949–1995, 375t
of IBM strategies, 1980s–1990s, 483
and path dependencies, 58
periodization of, 4
Chrysler Corporation, 116, 481–482
CIA (Central Intelligence Agency), 356, 362, 367, 558
CICS (Customer Information Control System), 265, 288
CII (France), 225
Clark, Ramsey, 340, 347, 348
Clarke, David R., 181
Clayton Act, 104, 329
Clegg, Stewart R., 5
Cloud computing
and Corporate financial objectives, 570–571
customers’ shift to, 583, 604
and IBM competitors, 535–536, 558
IBM’s slow shift to, 178, 547–548, 552, 584
and investors, 594
as IT outsourcing, 68
and outsourcing, 512
Sam Palmisano’s nurturing of, 526
and Roadmap 2015, 554
and technology life cycles, 600–601
CMOS technology, 484
COBOL, 175, 364
Cocke, John, 403, 404
Codd, Edgar F. “Ted,” 153–154
Cognitive Business Group, 576, 577, 633n33
Cognitive computing
in annual report, 627n26
and business strategy, 592
emergence of, 523
revenue from, 587
and Ginni Rometty, 560, 609–610
and software, 583
and technology life cycles, 600–601
and Watson computer, 573–577
Cohen, Stephen S., 385
Cold War
and computer technology, 353
end of, 373
and GPS, 515–516
and IBM R&D, 167–170
and IBM’s Golden Age, 151–152
and military computing, 199
and Soviet Europe, 368–372
Collaboration. See teamwork
COLOSSUS, 131–132
Columbia University
and Wallace Eckert, 153, 154
and Herman Hollerith, 19
IBM ties with, 85, 127
and Moore School computing meeting, summer 1946, 155
Commercial applications
of artificial intelligence, 575–576
of computers, 151, 161, 199
of data processing, 85
and System 360, 215
Commissions, 49, 52, 224, 242, 417, 662–663n19
Commodore Business Machines, 383, 414
Communications Workers of America, 540–541
Communist Europe, 360–361, 363, 369, 376. See also Soviet Union
Compagnie Internacionale pour l’Informatique (CII), 291
Compaq. See also Hewlett-Packard (H-P)
acquisition of by H-P, 586
as beneficiary of IBM eminence, 395
and Bill Gates, 397
as IBM competitor, 310, 311, 595
and IT ecosystem, 380
and open standards, 398
and PC business, 400–401, 411, 447, 457
and speed to market, 395, 406
Compatibility
and Cold War–era computing, 272
and IBM competitors, 225–227, 262–263, 293, 302, 304–305, 310–312, 326, 396, 399–400
and mainframes, 207–212
and PC business, 405–406
and PC Jr., 395
and Social Security, 101, 119
and Soviet computers, 362–365, 367
and System 360, 215, 217–218
and technology life cycles, 597
Competition
under John Akers’s restructuring, 468–469
among IBM divisions, 192, 309
and antitrust cases, 105–106, 187, 351, 495–496
and Frank T. Cary, 304–306
and computer industry, 177–178
and C-T-R, 56
and customers, 466
and demand, 145
and desktop computing, 404
and distributed computing, 486–487
and employee ranking, 590
and European Union antitrust case, 349–350
and evolving technologies, 576, 595
under Louis Gerstner, 492, 499
and global market share, 298–302
and IBM’s decline, 425–426, 437
and IBM’s Golden Age, 150, 237–238
from Japan, 292–294, 455, 457
and leasing-to-selling transition, 312–313
and mainframes, 282
and market-driven quality, 448
and NCR, 32
and net income, 321t
and new markets, 385
and John Opel, 311
regulation of, 326
and small stored-program computers, 165
and Soviet computers, 356
and trusts, 7
and U.S. v. IBM, 330–331, 340, 347, 348–349
and World Trade, 196–197, 322–324
Computer industry
and antitrust cases, 635n10
and bundling, 198
and bureaucracy, 175–176
and Communist Europe, 376
and constant reinvention, 550
development of, 332
emergence of, 182–185
and European national champions, 291
and former IBM employees, 270
fundamental changes in, 275
and global markets, 301–302
IBM entry into, 127, 149–150
and IBM’s decline, 486
and IBM’s growth, 202
IBM’s slow response to changes in, 404
and IBM’s successes, 178
and IBM’s transition to services, 511
and “IBM Way,” 249
in India, 315–317
in Japan, 292–293
and PC business, 380–381, 382, 384, 392–396
physical locations of, 459
and product development, 279
and recession, 230, 254, 260–261, 321t
and SAGE, 169–170
and sale of PC business to Lenovo, 527
and software, 518
and System 360, 204, 217, 223, 226, 228–229
and technology life cycles, 600
and U.S. v. IBM (1969–1982), 324, 335–336, 340, 345, 347, 348
and World Trade, 194–197
Computer Industry Report, 452
Computer Journal, 179
ComputerLand, 391–392
Computers
and American Express, 477
as commodities, 456
and competition, 258–259
dropping costs of, 278
and global performance, 289
and IBM growth in the 1950s, 190
and IBM’s Golden Age, 149–150
and IBM’s market domination, 178
IBM’s turn to, 156–157
lines of, 1950s and 1960s, 174–175
mass production of, 626n13
and operating costs, 643n31
and power measurement, 659n18
purpose-built, 657n17
in Soviet bloc, 356–368
and Soviet economic failures, 376
upgradability of, 206–207
and user communities, 180–182
and Williamsburg reorganization (1956), 193–194
world market for, 1960–1983, 266
and World Trade, 194–197
during World War II, 127–128
Computers and Automation, 179
Computer Sciences Corporation (CSC), 511
Computerworld, 271, 335, 452
Computing ecosystem, 176, 267–272, 486–487
Computing Scale Company, 14–15, 41, 44
Computing-Tabulating-Recording Company. See C-T-R
Comshare, 226
Concentration camps, 142
Condeni, Dave, 246
Congress
and antitrust laws, 8, 330
and export controls, 375–376
and George Fairchild, 29, 55
and Social Security, 99, 102
and Soviet computers, 359
and U.S. census, 17
and World War II, 123
Conrad, Lee, 541, 542, 543
Conrades, George, 312, 452, 464
Consensus
and corporate culture, 235, 240
and escalation, 457–458
and management committee, 484
and System 360, 203, 204, 209, 641n2
versus teaming, 446
Consent decree of 1956, 185–189, 226, 248, 330–331, 348–349, 516
Consulting
and acquisitions, 523, 552, 555, 571
after 9/11, 530
and branding, 521
and former IBM employees, 270, 586
and Louis V. Gerstner Jr., 490–492, 494
and globalization, 533
IBM’s shift to, 409, 508–517
by rogue branch employees, 472
and Ginni Rometty, 539, 589, 590–591
versus finance and planning, 239
Consulting Group, 512–513
Consumer market, 383, 385–387, 394–395, 406, 407
Control Data Corporation (CDC)
and antitrust case against IBM, 225–228, 332–334, 654n20
and export controls, 291, 353, 654n17
and supercomputers, 173–174, 194
and U.S. v. IBM (1969–1982), 306, 335, 339, 342
Cook, P. E. “Bud,” 246
Coolidge, Calvin, 72
Corporate (IBM headquarters)
and accounting practices, 414–415
and antitrust cases, 186
and commercial computing, 161
and competition, 259
and concern over competition, 299
culture of, 238–239
and engineering managers, 174
and financial performance, 273–277
and financial strategy, 240–243
and government contracts, 159
and growing pains, 190
as holding company, 452
and lack of international representation, 253
and Latin America, 297–298
and PC business, 410
and post–World War II reorganization, 143–144
Product Planning and Market Analysis departments, 164
and software, 518
and subsidiaries under Axis control, 138–139
and System 360, 213
and Williamsburg reorganization (1956), 192
and World Trade, 196
Corporate culture. See also Basic Beliefs
and antitrust cases, 348–349, 351
and author, 620
and business strategy, 665n26
and change management, 160
changes to, 1990s–2010s, 537–544
and computing ecosystem, 176
and drinking, 604f
and employees, 236–238
evolution of, 589–590
and failure of leadership, 455
under Louis Gerstner, 495–497, 499
and globalization, 318–320
during Great Depression, 92
and IBM information ecosystem, 71–72
and IBM’s decline, 457
and IBM’s Golden Age, 151
and IBM’s market domination, 178, 233
and IBM success, 4–5
and IBM values, 38–39
importance of, 58
and longevity, 28, 603–604
and market conditions, 441
at NCR, 11
and PC market, 413
and singing, 73
as strategic asset, 235
study of, 234
and Watson family, 627n28
and Thomas J. Watson Sr., 37
Corruption, 253, 295, 331–332, 374, 543
Cost-cutting, 491–492
Council for Economic Mutual Assistance (CEMA), 363, 367
Country clubs, 52–53
CPC, 157, 165
Crash of October 1929, 93–94
Cray, Seymour, 228
Cray Research, 228
Cryptanalysis, 131–132, 160
C-T-R
and Bundy Manufacturing, 12–13
evolution into IBM of, 27–28
and Charles R. Flint, 9, 10
and Charles R. Flint’s scams, 24–26
and Frank E. Hamilton, 164
and Herman Hollerith, 22–23
and Hollerith-Watson relationship, 5
as IBM’s predecessor, 3
logo, 65f
name change to IBM, 61
and patents, 82
and punch card revenue, 20
and Thomas J. Watson Sr., 34–35, 36–37
and World War I, 42
Cuba, 295
Cuban, Mark, 563
Customer engineers, 245
Customer relationship management (CRM), 490
Customers
and 9/11, 528–529
and “Baby Blues,” 451–452
broken ties with, 456
and bundling, 259
and Frank T. Cary, 308
and cloud computing, 559
and Cold War, 372
competition for, 161
and computer industry, 165–166, 179–182, 197, 198
and corporate culture, 236–237, 538
and cost of systems, 264
and C-T-R/IBM name change (1924), 62
and demand, 125, 228–229
and disk storage innovation, 171–172
early increases in, 56
and employees, 536–537, 616–617
and engineers, 403
and evolving technologies, 604
and executives, 268–269
and failure of leadership, 454
and global performance, 288–289
during Great Depression, 92
IBM commitment to, 602f
IBM influence on, 83–84
and IBM innovation, 73
IBM response to, 82
and IBM’s decline, 425, 460, 466, 486
and IBM’s Golden Age, 150–151
and IBM’s long survival, 580
and IBM’s recovery plan, 481
and IBM’s shift to services, 511
IBM training of, 38
and “IBM Way,” 267
and industry-specific services, 517
and innovation, 77, 79
international expansion by, 111
and leasing, 85–86
and Lenovo sale, 409
and magnetic tape technology, 158
and operating costs, 643n31
and PC business, 417, 447
and sales culture, 46, 50, 52–53, 87–88, 248
and Selected International Accounts (SIA) program, 302
and U.S. v. IBM (1969–1982), 343
as valuable stakeholders, 585
and Thomas J. Watson Sr., 39, 64
Cybersecurity, 570, 571, 592
Czarnecki, Gerald “Gerry,” 483
Czechoslovakia, 108

Daly, George F., 75
Database management tools, 383, 523
Data centers
and 9/11, 528–529
in Africa, 320–321
and John Akers, 512
and cloud computing, 571, 583
and compatibility, 262
and corporate culture, 267
and digital computing, 78–79
and expansion, 206–207
and Louis V. Gerstner Jr., 490
as IBM service, 68–69
and IBM’s information ecosystem, 270f
versus PCs, 394
portable, during World War II, 126–127
and software, 261
and Soviet computers, 361–362, 366–367
and System 360, 219
and unbundling, 306
Data General, 264, 265, 345
Datamation, 179, 218, 271, 343, 452
Data processing
and antitrust cases, 305
and bundling, 198
and commercial computing, 161–167
and competition, 73
and computer industry, 199, 289
and corporate culture, 603
and customers, 82–89, 150, 157, 206–207, 417–418, 602
and data centers, 68
demand for, 323
and disk storage innovation, 171f
and electronics, 197
in France, 291
IBM dominance in, 101–102, 199, 256
in India, 314, 318
and information ecosystem, 271
during interwar years, 119
in Japan, 292
and keypunch machines, 78–79
in Latin America, 295
and leasing-to-selling transition, 436
and networking, 397–398
John Opel on, 433
and Project Stretch, 173
as Second Industrial Revolution, 594
and Soviet computers, 356, 360, 375t
and System 360, 217, 229
in the United Kingdom, 289
and user communities, 180–181
and Thomas J. Watson Sr., 72, 107
during World War II, 126, 127
Data Processing Division (DPD), 217, 262, 297, 304, 309, 312, 643n28
Data Processing Group, 304, 309
Data processing machines, 16f
customers of, 88–89
and early computer users, 82
and Herman Hollerith, 15
and IBM customer acquisition, 83
as IBM’s early focus, 10
and management style, 119
and Thomas J. Watson Sr., 72
Data Processing Product Group, 309
Data Systems Division (DSD), 194
David, Paul A., 151
Dávila, Carlos, 285–286
Dayton Scale Company, 61, 69, 111
Debelier, Eric A., 375
De Gaulle, Charles, 272, 291
Dehomag (Deutsche Hollerith Maschinen Gesellschaft mbH), 113–114, 138, 139, 142
DeLamarter, Richard T., 346
Dell, 380, 408, 414, 539
Deming, W. Edwards, 576, 601
Democrats, 103
Depreciation, 239–240
Desktop computers, 381–382, 404
Dies, Robert “Bob,” 505
Digat, Marcial, 295
Digital Computer Newsletter, 179
Digital Equipment, 396, 402
Digital Equipment Corporation (DEC)
and changing computer industry, 415
and failure to adopt standards, 396
as IBM competitor, 311, 402, 432
and mainframes, 194, 227
and minicomputers, 264, 265, 380
and Soviet computers, 368
Digital Research, Inc. (DRI), 387, 390, 398
DiMaggio, Paul, 151
Disk drives. See also hardware
and competition, 263
and customers, 229
IBM’s sale of business, 514, 526–527, 534
innovations in, 172
as peripherals, 214, 227
and pricing strategies, 305
and San Jose laboratory, 280
and Soviet computers, 360, 367
Disk storage, 171–172
Distinguished Engineers (DEs), 591
Distributed processing, 414, 486, 505
District managers, 35, 48, 52, 186
Diversity, 251
Dividends
consistency of, 588
disputes over, 44
and IBM growth in the 1920s and 1930s, 68
and IBM’s decline, 439–440
and IBM stock value, 274–277
Domestic, 238, 273–274
Donick, Jim, 369, 371
Donofrio, Nick, 505–506
DOS, 388, 390, 397, 399, 406
Dot-com crisis, 534, 595
DPD (Data Processing Division), 245–246, 254, 262, 264–265, 280, 304, 309, 312
DPMA (Data Processing Management Association), 181
Dunwell, Stephen W. “Steve,” 173–174, 638n52
DuPont, 106, 326
Durfree, Benjamin M., 75

Earnings. See profits
Earnings per share (EPS), 554, 559, 560, 562–563, 670n27
Eastern Europe, 533
East Germany, 358, 361, 363, 365, 368, 370, 372–373. See also Germany
Eastman, George, 183
Eastman Kodak. See Kodak
Eckert, J. Presper Jr., 130, 154–155, 339
Eckert, Wallace John, 85, 153, 154
Eckert-Mauchly Award, 403
Economies of scale, 7, 9, 25, 433
Economist, 271, 424, 452, 498
Edelstein, David N., 338, 342, 345, 347, 348
Edison, Thomas, 10, 183
Edwards, Paul, 170
Eisenhower, Dwight D., 126, 162
Eisner, Marc Allen, 352
Electric Accounting Machine (EAM) Division, 81, 126
Electrical Manufacturing, 181
Electric typewriters
and IBM acquisitions, 86
market for, 87
markets for, 164
and Poughkeepsie plant, 132–133
and punch card sales, 73
and revenue, 152
and sales skills, 245–246
and secretary preferences, 631n40
and Thomas J. Watson Sr., 156
and World Trade, 297
Electromatic Typewriter Company, 86, 98
Electronic circuits, 130. See also integrated circuits
Electronic Data Systems (EDS), 226, 511, 586
Electronics
and computer industry, 197
and computer performance, 209
and Wallace Eckert, 153
IBM entry into, 130, 151
and integrated circuits, 213
and internal conflicts, 155
and W. Wallace McDowell, 159
and Ralph Palmer, 157
and Thomas J. Watson Jr., 156, 176
and Thomas J. Watson Sr., 152
during World War II, 127–128, 131–132
Elorg-Data Company, 370
E-mail
and 9/11, 528–530
about leadership turnovers, 452
and John Akers, 422–423
and Louis V. Gerstner Jr., 486, 490
as IBM software focus, 523
and Lotus, 519, 521
John Opel’s avoidance of, 392
origins of, 86
and Ginni Rometty, 555
spread of within IBM, 411
Emerging markets, 265, 384
Emerging technologies
and antitrust cases, 350
and growth strategy, 432
and IBM’s decline, 440
IBM’s failure to invest in, 548, 582–583
and “IBM Way,” 257
and Lenovo sale, 527
and Ginni Rometty, 609
and System 360, 199, 205
Employees
under John Akers’s restructuring, 442–445, 449, 459, 468
and appraisal system, 568–569, 590
around the world, 288
and banding system, 662–663n19
and board of directors, 466, 612
and bureaucracy, 280–282
on CEOs, 609
and changing personnel practices, 249–256
and company activities, 73
and corporate culture, 538
at C-T-R/IBM, 1914–1924, 57t
and C-T-R/IBM name change (1924), 61–62, 64
and C-T-R sales culture, 46
and customers, 181–182, 536–537
and financials, 1980–1985, 426t
and financials, 1986–1993, 427t
under Louis Gerstner, 491–493, 496–497, 499, 499–500
and globalization, 319–320
growth in number of, 184f, 185, 229, 230f, 273–274
at IBM, 1914–1940, 66t
and IBM expansion, 71
and IBM’s decline, 425
and IBM’s Golden Age, 150, 277–278
and IBM’s legacy, 614–617
and IBM’s reunification, 485–486
and IBM’s successes of 1960s, 636n15
and IBM’s survival, 603–604
and layoffs, 415, 446, 482, 488, 542–543, 646n19
and Lenovo sale, 408, 409
and matrices, 241
morale of, 539–540, 547, 561, 565, 586
numbers of, 1946–1960s, 202
numbers of, under Frank T. Cary, 307
numbers of in 2010s, 587
numbers of in early 1990s, 440
numbers of kept secret, 671n51
under Sam Palmisano, 531–533
and product transition, 152–153
recruitment of, 239
and rogue practices, 472
and salaries, 236
satisfaction of, 1950–1980s, 200–201
and suggestions, 639n21
training of, 655n49
as valuable stakeholders, 585
Wall Street pressure to cut, 427
and Thomas J. Watson Sr., 39
women as, 84
Emulators, 212, 643n23
Endicott (New York)
and C-T-R, 44
and engineering center, 78
engineering culture of, 170
and Factory No. 1, 11
and family picnics, 53
under Louis Gerstner, 491
and IBM employees, 71
and IBM’s legacy, 614
and IBM’s turn to computing, 198
and layoffs, 567
and rivalry with Poughkeepsie, 208, 210
during World War II, 132
Engineering
at C-T-R, 41, 44
and government contracts, 159
during Great Depression, 95
and Mark I, 128
and postwar product development, 152
in United States, 1870s–1930s, 6–7
Engineering Research Associates (ERA), 161, 228
Engineers
in competitors’ sales forces, 161
and customers, 403
and digital computing, 163
and IBM customers, 38
and IBM R&D, 174–175
and IBM’s dominance of computing, 172
and magnetic tape technology, 158
during 1920s, 72
and performance increases, 209
and postwar growth, 150
productivity of, 74
and Social Security, 99–100
and System 360, 213
English Electric, 196, 289
ENIAC, 130, 154–155, 339
Enterprise Systems, 451
Entrepreneurs, 6, 7, 10–11
Entry Systems Division (ESD), 393, 396
Ernst & Young, 512
Esaki, Leo, 588
Estridge, Philip Donald “Don,” 389f
death of, 396, 406
and internal conflicts, 393, 410
and PC business, 392, 411
and PC development, 388
and PC Jr., 395
and PC launch, 379, 390
and standards, 414
Europe
and antitrust cases, 327–328, 349–350, 351
competition from, 225, 440
and global performance, 292
growth of computers in, 266
IBM customers in, 82
IBM dominance in, 226, 272, 632n10
IBM expansion in, 113
IBM factories in, 111
IBM operations in before Great Depression, 115
IBM strategy for, 507
and IBM subsidiaries under Axis control, 139
labor laws in, 445, 472
and multinational corporations, 285–286
and national champions, 649–650n13
sales to during Great Depression, 95
and Social Security, 99
and World Trade, 195
during World War II, 123–124
Evans, Bob O. “Boe,” 210–211, 223, 224, 259, 268, 309–310, 338
Evans, Harry, 73
Executive bands, 662–663n19
Executive Compensation Committee, 461
Expansion
and computer industry, 190, 226
and C-T-R/IBM name change (1924), 64
and failure of leadership, 455
and growth strategy, 432–433
of IBM, 1914–1940, 115t
and IBM’s decline, 467
and international markets, 111, 112t
of manufacturing, 70
under John Opel, 434–438
during postwar period, 145
throughout Great Depression, 110
and World Trade, 196
during World War II, 121

Facebook, 350, 575
Failure
accountability for, 608
and John Akers, 464, 466, 468, 469
and bureaucracy, 447–448
and consensus, 458
and corporate culture, 381
decisions leading to, 410
Louis V. Gerstner Jr.’s attitude toward, 92
and IBM v. Telex, 335–336
internal spin on, 434
of PC business, 412–413, 421
and Project Stretch, 173–174
Ginni Rometty’s reaction to, 609
and Soviet computers, 376
study of, 237
of union organizers, 541
Thomas J. Watson Jr. on, 233
and Thomas J. Watson Jr.’s health, 230
Thomas J. Watson Sr.’s attitude toward, 34–35
Fairchild, George W.
and C-T-R/IBM name change, 27, 64
and dividend disputes, 29–30, 35, 44
political career of, 40–41, 55
and Thomas J. Watson Sr., 28
Fall Planning, 243, 281
Family Dinners, 53, 54, 117–118, 296
Family disputes, 12–13, 133–134, 156, 625n30
Faw, Hillary, 304–305, 338
Federal Aviation Agency, 167–168
Federal Systems Division (FSD), 169, 266, 491–492, 499, 516
Feigenbaum, Edward, 339
Fentriss, Ray, 370
Ferranti, 196, 289
Field engineers, 51, 72, 245, 250
Finance and planning (F&P), 235, 239–243, 301, 440
Financial engineering, 561–563
Financial performance. See also profits
under John Akers’s restructuring, 447
and business, 1998–2011, 544t
under different CEOs, 425–430
under Louis Gerstner, 494t
and growth strategy, 605
under Sam Palmisano, 534
under Ginni Rometty, 582
and workforce, 1980–1985, 426t
and workforce, 1986–1993, 427t
Fisher, George, 478
Fitzgerald, Robert, 63, 606–607
Flamholtz, Eric G., 499
Flamm, Kenneth, 170
Flint, Charles R., 8f
and Bundy Manufacturing, 12
and C-T-R, 23, 28, 29–30
and George Fairchild, 35
and Herman Hollerith, 20–21
and investors, 625n34
and ITR, 13–14
scams of, 24–25
as stock market promoter, 5–6, 7–10
and Thomas J. Watson Sr., 26, 36, 41, 55
Forbes magazine, 270, 560–561
Ford, A. Ward, 40, 41–42, 44
Ford, Eugene A., 74–75, 76, 78
Ford, Henry, 7, 104, 116–117, 183
Ford Motor, 10, 85, 116, 482
FORTRAN, 153–154, 175
FORTRAN-4, 364
Fortune magazine, 224, 270, 434, 437–438, 450–451, 452, 459
Foy, Nancy, 239, 281–282
France, 64, 111, 290–291
Francis, Charles, 483
Freeland, Robert, 176
Fridenson, Patrick, 58
Friedel, Robert, 396
Friesen, G. Bruce, 412–413, 428, 430
Frist, Thomas F. Jr., 463
FS (Future Systems), 261, 458, 468
Fujitsu, 270, 292, 404
Future Demands Department, 79

Galambos, Louis, 123, 550
Galbraith, Jay R., 241
Game theory, 155
Garcia-Swartz, Daniel D., 195, 197, 198, 227, 301, 550
Gartner, Gideon, 270, 279, 550
Gartner, Gideon I., 339
Gates, Bill
and Jim Cannavino, 402
and desktop computing, 504
hands-on experience of, 392
and IBM’s CEO search, 478
and Bill Lowe, 396, 398–399
and PC business, 660n37
and QDOS, 388
and Jack Sams, 386–387
as second-ranked business influencer, 183
success of, 377
and Windows, 397
and Windows 95, 405
General Business Division, 309
General Electric
exit from mainframe business by, 227, 262
and government contracts, 198
as IBM competitor, 208, 225–226
as IBM customer, 162
and Moore School computing meeting, summer 1946, 155
and Nazi Germany, 116
success of, 10
General Motors
financial performance of, 453
Robert Freeland’s study of, 176
as IBM customer, 162, 247, 302, 536
and innovation, 10
and Nazi Germany, 116, 142
and New York World’s Fair (1939–1940), 108
stock of, 274
turnaround of, 498
and Jerome York, 482
General Products Division (GPD), 193–194, 211, 385
Germany. See also East Germany; Nazi Germany
after World War II, 195
and automation of national card file, 634n34
and Berlin Wall breaching, 372–373
and branch offices, 247
competitors in, 196
and C-T-R, 64
during Great Depression, 92, 110
IBM expansion in, 113
IBM factories in, 111
IBM laboratory in, 265, 272, 280
and IBM’s European common market, 283–284
and national champions, 314
and Roadmap 2015, 567
and U.S. firms, 1930s, 116–117
and World Trade, 286, 290, 300
Gerovitch, Slava, 358
Gerstner, Louis V. Jr.
on 9/11, 529–530
and John Akers, 469–470
and board of directors, 463, 611
board of directors’ search for, 471–472
and business ethics, 603
compensation of, 542
and corporate culture, 92, 500, 537–538
and customers, 466, 589–590
on dropping stock values, 453
on executive presentations, 238
and financial performance, 544–545
and Dick Gerstner, 402
and growth strategy, 504–508
and IBM’s history, 666n55
and IBM’s recovery plan, 481–487
and IBM’s rescue, 425, 438, 487–488, 490–494, 641n3, 664n43
and IBM values, 38
as imperial leader, 467
introduction of, 422
and layoffs, 664n46
leadership style of, 472–473
and Lotus, 519–520
and mainframes, 456
on Microsoft’s outperforming IBM, 407
and Sam Palmisano, 531
and PC business, 411
and personnel practices, 539
pre-IBM life of, 474–476
recruitment of, 477–480
retirement of, 524
and shift to services, 511, 514–515
and software, 518
and stock splits, 585
and urgency of transformation, 503–504
and Y2K, 507–508
Gerstner, Louis V. Sr., 475–476
Gerstner, Marjorie, 475–476
Gerstner, Richard “Dick,” 402, 476, 479
Global business, 110–111, 124, 302
Global economy, 231, 557, 579, 596
Globalization, 304, 318–320, 455, 539, 603, 607–608
Global Services Division (GSD), 505, 513, 516, 517, 521, 565
Golden Age of IBM, 149–150, 237–238, 252, 258–266, 273–277
Gomory, Ralph E., 338
Goodman, Seymour E., 353, 360, 367, 376
Goodwill accounting practices, 585–586
Google
and antitrust cases, 327
and artificial intelligence, 577
and cloud computing, 535–536
and cognitive computing, 575
as IBM competitor, 549
and outsourcing, 512
and technology ecosystem, 588
and technology life cycles, 600
Gorbachev, Mikhail, 373
Gordon, Robert J., 6
Government computing, 158–159
Government contracts
and board of directors, 610–611
in Central Europe and Russia, 374–375
and CIA’s award to Amazon, 558
and cognitive computing, 594
and Federal Systems Division (FSD), 266, 491–492
and IBM business model, 277
and IBM customers, 536
and IBM’s Golden Age, 151–152
and IBM’s survival of Great Depression, 101–102, 103
in Latin America, 296–297
and mainframes, 261
and Nashville branch office, 246
and Poughkeepsie plant, 198
and product development, 323
and R&D, 159
and sale of PC business to Lenovo, 409
and services business, 517
and software, 523
Grad, Burton, 307
Graham, Margaret B. W., 548
Graphical user interface (GUI), 398
Great Britain, 64, 111, 113
Great Depression
atmosphere of, 91
and data processing, 97
and Herbert Hoover, 470
and IBM corporate culture, 92
and IBM customer retention, 119
IBM product innovations during, 69
IBM’s survival of, 59–60, 66–67
and inventors, 6
Great Recession, 538
Greulich, Peter E., 584–585, 586
Greyhound, 226
Greyhound v. IBM, 336–337
Grosch, Herb, 154
Groupthink, 486, 601, 605
GSD (General Systems Division), 245–246, 262, 265
Guaranty Trust Company, 25, 44
Guido, Phil, 557

Haanstra, John W., 211
Haddad, Jerrier A., 210
Hamilton, Frank E., 164–165, 167
Hammer, Michael, 271
Hancock, Ellen, 452
Hardware. See also specific types
and bundling, 198, 215
and compatibility, 211
decline of, 516–527
declining revenue from, 504
dropping sales of, 547
under Louis Gerstner, 506
IBM’s declining focus on, 523
maintenance as service, 513
new forms of, 570–571
at odds with software, 309
and PC development, 405
revenue from, 1980–2015, 509–510
and Soviet computing, 359–360
Harreld, Bruce, 506, 515, 516
Harvard Business Review, 271, 498–499
Harvard Business School, 271, 407, 459–460, 466, 664n46
Harvard University, 127–128, 129–130, 154, 155, 169
Harvey, Charles, 5
Hastings, Samuel, 40
Haynes, Munro K. “Mike,” 168
Heidinger, Willy, 113, 114, 634n31
Heidrich & Struggles, 479
Heller, R. Andrew “Andy,” 403, 404
Hewlett-Packard (H-P), 264, 265, 311, 380, 519, 586, 600. See also Compaq
Hitachi, 292, 404, 526
Hitler, Adolf, 108, 113, 116
Hobart Manufacturing, 69, 98
Hofstede, Geert, 318–320
Hollerith, Herman, 19f
and adaptation, 579
and C-T-R, 23–24
as inventor-entrepreneur, 15–23
and marketing, 87–88
and patents, 82
and James Powers, 37, 595
and punch card business, 4–6
sales practices of, 42
sidelining of, 55
temperament of, 26
and Thomas J. Watson Sr., 28, 40–41
Holocaust, 123, 141–142
Honeywell, 208, 211–212, 225–226, 227, 262
Hoover, Herbert, 103, 469–470
Howe, Robert M. “Bob,” 515
Hughes Aircraft, 464
Humphrey, Watts S., 269
Hungary, 115, 358, 363, 368, 369–370, 374, 375t
Hunt, William, 18
Hurd, Cuthbert, 159–160, 165

Iacocca, Lee, 457
IBM AS400, 265, 402
IBM AT, 392
IBM Card, 77
IBM Card-programmed Electronic Calculator (CPC). See CPC
IBM Consulting Group, 472
IBM Country Club, 185, 567, 628n37
IBM Datamaster, 384
IBM Day, 108–110
IBM Defense Calculator, 160–161
IBM 5100, 384
IBM 1400 series, 175, 194, 199, 226
IBM Global Union Alliance, 540–541
IBM Journal of Research and Development, 179
IBM Mark I, 128–130, 129f, 153
IBM PC, 388, 392
IBM PC Jr., 394–395, 406, 437
IBM PS/2, 400–401, 454
IBM RS/6000, 402–403, 404–405
IBM Selectric, 631n40
IBM Service Bureau Division, 68
IBM 700 series, 159–162, 163f, 180, 194, 199
IBM 7090 Data Processing System, 173
IBM 603 Electronic Multiplier, 130–131, 153
IBM 604, 131, 131f, 157, 165
IBM 650 Magnetic Drum Calculator, 164–166, 166f, 194, 199
IBM Songbook (Evans 1925), 73
IBM System 360, 216f
and Gene Amdahl, 227
and antitrust cases, 228, 332–333
and Frank T. Cary, 304–306
and compatibility, 212, 657n23
and competition, 261–262
and corporate culture, 495
customers of, 218, 225
development of, 199, 211
drama surrounding, 205–206
as gamble, 203–204, 219, 576
and IBM’s Golden Age, 150–151
launch of, 213–214
movie about, 643–644n35
and path dependencies, 597
and Project Stretch, 173–174
and sales force, 217
and software, 223
and Soviet computers, 361, 362–363, 364, 364t
upgradability of, 215
and U.S. v. IBM, 325–326
and R. C. Warren, 643n28
and Thomas J. Watson Jr., 611, 627n24
IBM System 370, 259–262, 260f, 361, 364–365
IBM System/38, 265
IBM System/32, 265
IBM System/3, 265
IBM 305 RAMAC, 171–172, 171f, 194, 354–355
IBM 350 Disk Storage Unit, 172
IBM 3090, 437
IBM Trade Development, 370–371
IBM Type 405, 81, 81f
IBM Type 600, 77–78
IBM Type 601, 77–78
IBM Way, The (Rodgers), 244
IBM World Trade Corporation. See World Trade
IBM XT, 392, 393
IDC (industry watch group), 576–577
IEEE (Institute of Electrical and Electronics Engineers), 269
IEEE Computer Society, 359
Imperatives
difficulty of implementing, 670–671n36
execution of, 592–594
and financial performance, 583–584, 587
products of, 575
and quarter-to-quarter accounting, 547–548
and Ginni Rometty, 562, 565–566, 609
Import/export laws, 374–376
Independent business units (IBUs), 450–452
India, 314–318, 531, 539, 567
Industry-specific services, 517
Inflation, 114, 295–296
Informatics, 226
Information ecosystems, 270f
and Cold War–era computing, 366
IBM as, 59
and IBM corporate culture, 71–72
and IBM market share, 89
IBM’s place in, 588
and “IBM Way,” 267–272
and social milieu, 629n50
Information Storage Systems, 263
Information Systems Group (ISG), 450
Information technology
and Holocaust, 123
in IBM divisions, 490–491
and IBM ecosystem, 257
long-lived firms in, 600
and Wall Street, 429–430
Innovation
during 1980s and 1990s, 351
and big bets, 672n66
at C-T-R/IBM, 1920s–1930s, 80t
during Great Depression, 97
and patents, 73–74
and path dependencies, 151
and risk, 77
U.S. government funding of, 154
Thomas Watson Sr.’s emphasis on, 628n42
Innovator’s Dilemma, 264–265
Innovator’s Dilemma, The (Christensen), 599, 660n44
In Search of Excellence (Peters and Waterman), 244, 271, 434
Insider trading, 555
Institute for Advanced Study in Princeton, New Jersey, 155
Integrated circuits, 263–264, 276. See also chips; electronic circuits
Integrated Systems Solution Corporation (ISSC), 512, 513, 516
Intel 4004, 382
Intel Corporation, 263–264, 380, 382, 396
and 386 chips, 400
and Japanese competition, 457
and PC development, 388, 390
and PC market, 412–413
Interbrand, 589
International Business Machines Corporation, 3–4
International Chamber of Commerce, 107, 115–116, 119–120
International Electric Tabulating and Accounting Machines, 69–70
International Industrial Scales and Counting Devices, 69
International Time Recorder Company (ITR), 12–14, 23–24, 36–37
and card sales, 68
and C-T-R, 26
and C-T-R name change to IBM, 61
management of, 69–70
and recession of 1920–1922, 43–44
and wartime manufacturing, 43
and Thomas J. Watson Sr., 41
International Time Recording Company, 11
Internet, 410, 521–522
Inventors, 6–7, 10–11, 57
Investors
and C-T-R, 625n34
and C-T-R/IBM name change (1924), 62
and earnings per share, 559, 670n27
and IBM’s CEO search, 471
and Sam Palmisano, 534
and Roadmap 2015, 553–554
and Ginni Rometty, 565
Iron Curtain, 196, 357, 370–371
Italy, 64
IT integration, 486–487, 505, 511, 512, 514–517, 521–522, 534–535
IT services industry, 345, 487, 509–510, 512, 521–522, 547
Iwata, Jon, 536

Japan
and Cold War–era computing, 357
competition from, 225, 314, 432, 437, 455
growth of computers in, 266
and IBM business practices, 292–294
and IBM during World War II, 143
IBM training centers in, 272
labor laws in, 472
and manufacturing, 221
militarization of, 113
and World Trade, 195
JD Edwards, 519
Jennings, Andrew, 113–115
Jeopardy! 572, 573, 574
Jobs, Steve, 382–383, 403, 660n37
Johnson, George F., 71
Johnson, Reynold B., 170–171
Johnson & Johnson, 181, 463
Jones, Geoffrey, 138, 139, 205–206, 285–286, 550
Jones, Gilbert E., 288, 338
Jones, Walter D., 42–43, 627n21

Kalis, David B., 482
Kane, Gus, 278
Katzenbach, Nicholas, 337, 338, 347
Kavner, Robert M., 478
Kelly, Kevin, 550, 574
Kennedy, John F., 373
Khrushchev, Nikita, 354–355, 362
Kildall, Gary, 387, 390
Kipping, Matthias, 326–327
Kirk, Charles A., 156, 157, 185
Knuth, Donald, 166
Kobe Steel Works, 143
Kodak, 10, 11, 20, 35, 155, 580
Kohnstamm, Abby F., 482–483
Kondolf, Frank N., 29–30
Korean War, 160
Kotter, John P., 498–499
Krohnke, Duane W., 336–337
Krowe, Allen J., 310, 311, 452, 464
Kuehler, Jack, 310, 312, 437, 453

Labor costs, 84, 158, 264, 312, 568
Labor laws, 445, 472, 495, 542, 567
Lake, Clair D., 41–42, 44, 75, 76, 78, 81, 128, 130
Lamassonne, Luis A., 296
LaMotte, Louis H. “Red,” 158–159, 191
Laptops, 408, 409
Larsen, Roy, 182
Latin America
and C-T-R/IBM name change, 64
IBM customers in, 82
IBM entry into, 630n8
IBM expansion in, 113
IBM training centers in, 272
and multinational corporations, 285–286
sales to during Great Depression, 95
as source of inexpensive labor, 533
and World Trade, 195, 294–298
Lautenbach, Terry R., 450, 452, 505
Lawsuits
and AT&T’s breakup, 351
and Frank T. Cary, 325–326
chronology of, 334t
and corporate culture, 303–304
costs of, 348
and IBM’s Marketing Guidelines, 248
as influence on corporations, 327
and legal expenses, 277
over patents, 13
and punch card sales, 68, 106–107
and unbundling, 306, 653n10
Layoffs. See also personnel practices
and accounting practices, 548–549
under John Akers’s restructuring, 442–445, 446, 447
CEO use of, 664n46
and corporate culture, 538
and corporate failure, 421–422
at C-T-R, 44
employee complaints about, 542–543
and expense controls, 557
and failure of leadership, 454
under Louis Gerstner, 488, 494–495
during Great Depression, 91–92, 96
and IBM’s decline, 457
and investors, 560
media advice on, 459
and Robert Moffat, 555
numbers of, 671n47
and outsourcing, 584, 646n19
under Sam Palmisano, 527, 532
under Ginni Rometty, 565, 566–570
and union organizing attempts, 541
in Watson Health, 672n72
and Jerome York, 482
Lazonick, William, 120, 204, 424–425
Learson, T. Vincent
and changing IBM culture, 303
and EDPM, 162
as interim CEO, 1971–1973, 230
and internal conflict resolution, 210–211
and management committee, 191
pricing expertise of, 304
and System 360, 220
and U.S. v. IBM (1969–1982), 338
and Arthur K. Watson, 221–222
Leasing
and amortization, 20
and antitrust cases, 105, 187–188, 334–336
and cash flow, 661n18
and depreciation, 277
and earnings per share, 241
in Europe during interwar years, 111
and F&P staff, 239
during Great Depression, 98, 118–119, 119
and IBM accounting system, 243
and IBM customer retention, 85–86
and net income, 321t
and operations during World War II, 139
pretax return on, through 1970s, 276
and refurbished equipment, 651n42
revenue from, 67–68
by rival companies, 226, 227, 278, 302, 304–306, 310, 313, 326
and ties to customers, 436, 456
worldwide revenue from, 1964, 201
Lenovo, 379, 407–409, 412, 526–527, 542, 660n37
LEO (Lyons Electronic Office), 289
Leo Computers, 196
Lesher, Brad, 370–371
Lexmark, 448–449
Linux, 454
Lipartito, Ken, 28
Lipartito, Kenneth, 234
Lipsky, Abbott, 345
“Little Tramp,” 390, 391f
Livermore Laboratory, 162
Lobbying, 143–144
Logos, 64–65, 65f
Lohr, Steve, 577
Loral Corporation, 491–492
Los Alamos Laboratory, 162
Lotus Development, 327, 390, 519, 523
Lotus Notes, 519, 520
Lowe, William “Bill,” 386f
and Bill Gates, 396, 398–399
measured pace of, 400
and PC business, 397, 411, 659n22
and PC development, 385–388, 392, 412, 416
resignation of, 402
Lowenstein, Todd, 559
Lucente, Ed, 464
Lyman, Richard, 465

Machine learning, 523, 571–577
Machines Bull, 88
Macintosh, 406
Maclean, Mairi, 5
Madden, Jim, 182
Magnetic tape, 158, 172, 182
Mainframes
and antitrust cases, 336
and bundling, 198
and control of IBM, 499
cost of, compared to PCs, 383
and customers, 456
declining profits in, 401
dropping costs of, 278–279, 484, 488, 499
and growth strategy, 432–433
and IBM competitors, 310
IBM dominance in, 233
IBM exit from business of, 226–227
and IBM’s Golden Age, 150, 258–266
and IBM’s growth strategy, 436–437
and need for service elevators, 637n28
and John Opel’s growth strategy, 604
during PC era, 380–381
and RISC architecture, 404
shift away from, 524
and System 360 competitors, 225–226
Maisonrouge, Jacques, 253, 458
Management committee
and board of directors, 611
and bureaucracy, 447
and James Cannavino, 402
and Louis V. Gerstner Jr., 484, 493
and Bill Lowe, 659n22
and PC business, 387–388, 400, 411, 415–416
presentations to, 238
and SPREAD, 213
and Arthur K. Watson, 193
and Thomas J. Watson Jr., 164, 191
Managerial practices
Alfred D. Chandler Jr.’s notion of, 205
of IBM CEOs, 608–609
and IBM’s decline, 439–440
and IBM success, 4–5
and market-driven quality, 445–448
and personnel practices, 252–254, 590
and quarter-to-quarter accounting, 548
and structure, 246–248, 415–416
of Thomas J. Watson Sr., 28–29
and Thomas J. Watson Sr., 120
Maney, Kevin, 5, 39, 40, 70, 102, 109, 183
Manhattan Project, 127
Mann, Marvin L., 448
Manufacturing
of chips, 220
during Great Depression, 95, 98
of integrated circuits, 213
and layoffs, 566–567
and production increases, 221
and productivity, 602
and women, 229
Manzi, Jim, 520
Market Analysis, 164, 165
Market-driven quality (MDQ), 445–448, 488, 662n9
Marketing, 52, 63, 87–88, 145
Marketing and Services Group, 309
Marketing Guidelines, 248
Marketing Practices Guidelines, 331
Market research, 271–272, 515
Market segmentation, 63, 199
Market share
and John Akers, 423, 426, 430, 433–434
and antitrust cases, 104, 187, 348, 495
and Apple, 405
and automotive industry, 384–385
and Compaq, 400–401
of compatibles market, 225–226
and computer industry, 178, 275–276
definitions of in Corporate and World Trade, 299–300
and distributed computing, 486–487
in Europe, late 1960s and 1970s, 286–287
and horizontal model, 279
for large mainframes, 1950s–1960s, 194
and layoffs, 582
and market growth, 88
and Microsoft, 397, 399, 407
and net profits, 650n15
and Sam Palmisano, 534
of PC sales, 380, 393–394
and Roadmap 2015, 551
and timing, 414
and Williamsburg reorganization (1956), 192
Marshall, Burke, 340–341
Martin, James, 267–268, 269
Massachusetts Institute of Technology (MIT), 19, 155, 168–170, 410
Mathematical Tables and Other Aids to Computation, 179
Matrices, 241
Mauchly, John, 130
Mauchly, John W., 154–155, 339
McCabe, Frank, 129
McCloskey, Deirdre Nansen, 69
McCraw, Thomas K., 179
McDowell, W. Wallace, 159–160, 174, 220
McGrath, Bob, 255–256
McHenry, William J., 359
McKinsey and Co., 434, 476–477, 512
McKittrick, Charles E., 186
McPherson, John C., 79, 128, 154, 165, 168
Media
and James Burke, 613
coverage of Louis V. Gerstner Jr., 473, 480, 497–499
and failure of leadership, 459–460
and IBM’s brand, 588–589
and IBM’s CEO search, 471–472
and IBM’s decline, 455
on IBM’s shrinking revenue, 547
on IBM’s slump, 558–559
and layoffs, 544
and System 360, 217–218
Memorex Corporation, 226, 263, 270, 336
Memory, 410
Mercer, David, 349
Metropolitan Life Insurance Company, 182
Metz, Frank A. Jr., 453
Meyerson, Morton, 478
Microcode, 212
Microelectronics Division, 526
Micromanagement, 39, 241, 279–280, 320, 586–587. See also bureaucracy
Microsoft
and antitrust cases, 327
and artificial intelligence, 577
and cloud computing, 536
and former IBM leaders, 464
as IBM competitor, 519
as IBM vendor, 396, 398–399
and mobile services, 584
and operating system, 400
and OS/2, 415, 518, 523
and outsourcing, 512
and PC business, 380
and PC development, 411
and PC market, 406–407, 412–413
and shift to Internet, 600
and software market, 457
and Windows, 402, 406–407
Middle East, 113, 292
Middleware, 519, 521
Military contracts, 122, 151
Military-industrial complex, 162
Mills, D. Quinn, 412–413, 428, 430
Mills, Steven A., 555
Minicomputers, 263–264, 310, 385, 414
Minorities, 250–251
MITI (Japan’s Ministry of International Trade and Industry), 292–294, 326
Mizushina, Ko, 143
Mobile devices, 527
Mobile Machine Records Units (MRUs), 126–127
Mobile technologies, 570
Modularity, 217
Moerner, William E., 588
Moffat, Robert, 555, 603
Moneyweight Scale Company, 15
Monolithic chips, 259
Monopolies, 7, 8, 186–187. See also antitrust challenges
Moore, Gordon, 263–264
Moore School lectures, 155, 179
Moore’s Law, 263, 395, 595
Morgan, J. P., 7
Morison, H. Graham, 186, 187–188
Mowery, David C., 548
Müller, Alex, 588
Munitions Manufacturing Corporation, 124
Mussolini, Benito, 116

Nashville (Tennessee), 55, 246
National Accounts Division (NAD), 245, 246, 312
National Bureau of Standards, 155
National Cash Register Company (NCR)
and antitrust case, 32, 41
and antitrust cases, 331, 335
consolidation of, 10–11
and cryptanalysis, 132
and C-T-R, 23
and C-T-R recruitment, 40
demise of, 580
during Great Depression, 97
as IBM competitor, 67, 225–226, 262
and IBM corporate culture, 37–38
and IBM employees, 75
and IBM sales culture, 50–51
and sales culture, 28–29
and Thomas J. Watson Sr., 30, 31
National Marketing Division (NMD), 245, 312
National Medal of Science, 403
National Medal of Technology, 403
National Recovery Act (NRA), 103
National Security Agency, 162
National Socialism. See Nazis
NATO (North Atlantic Treaty Organization), 272
Navigation systems, 266
Nazi Germany. See also Germany
and Dehomag, 114, 634n31
and Henry Ford, 116–117
and Holocaust recordkeeping, 140–143
and IBM, 122–123, 138–139, 603
and Thomas J. Watson Sr., 113, 116
Nelson, Richard, 548
Nepotism, 184, 195, 200
Net earnings
at C-T-R/IBM, 1914–1924, 57t
at IBM, 1984–1990, 274t
Net profits, 241
under Frank T. Cary, 307
and global performance, 287–288
and personnel practices, 249–250
of World Trade, 1949–1990, 320–323, 321f
Netscape, 327
Networking
and IBM’s e-business, 521
and killer apps, 383
and open standards, 505
and software revenue, 510
and Systems Application Architecture (SAA), 398
Networking Systems, 451
New Deal, 97, 98–99, 103
New York Times, 109, 182–183, 346, 409, 465
Nichol, Frederick W., 40, 68, 69–70
Nippon Electric (NEC), 292, 404
Nixon, Richard, 230, 354
Nobel Prizes, 588
Nolan Norton, 512, 513
NORC (Naval Ordnance Research Calculator), 159
Norris, William C., 228, 333, 339
Northrop Aircraft, Inc., 157, 199
Noyce, Robert, 263–264
NSA (National Security Administration), 291
Nuance Communications, 576

Office of Naval Research, 155
Office Products Division (OPD), 245, 309, 311, 403–404
Ogilvy and Mather, 483
Olegario, Rowena, 5, 179
Olympics (Berlin 1936), 116
Olympics (Moscow 1980), 371
100 Percent Club, 50–51, 54, 235, 296, 604f
Opel, John R., 435f
and John Akers, 422, 457
and board of directors, 463
and competition, 310–314
and George Conrades, 312
and Data Processing Product Group, 309
and Don Estridge, 396
and growth strategy, 432, 434–438, 440, 604
and IBM competitors, 311
and IBM’s decline, 425
legacy of, 469
and PC business, 399, 411
and PC development, 392–393
retirement of, 401, 453
and RISC architecture, 403–404
and System 360, 222, 326
as technocrat, 609
and U.S. v. IBM (1969–1982), 338, 346
Open-source software, 519, 523–524
Operating costs, 414–415, 442–445, 447
Operating systems, 406–407, 413
Optimism, 36, 60, 71, 93, 95, 120, 237
Organizational theory, 4–5, 151
Organization charts, 70, 193
OS/2, 397, 398, 400, 402, 406–407, 415, 468, 518
OS/360, 223
Outsourcing, 408
under John Akers, 469
under Louis Gerstner, 511
and Global Services, 505
as IBM service, 512
and IT services, 521–522
and layoffs, 646n19
and operating costs, 539
and personnel practices, 540
profit margins on, 514
Ozias, Orange O., 14
Ozzie, Ray, 520

Padgett, John F., 500
Page, Ralph E., 75
Palmer, Ralph, 157, 160, 220
Palmisano, Sam, 525f
and acquisitions, 523
and John Akers, 453
and Basic Beliefs, 543–544
and board of directors, 611
career at IBM of, 524–525
on changing technology, 582
compensation of, 541
on core values, 503
and delegation, 467
and financial performance, 625–626n4
financial record of, 545–546
financial strategies of, 533–536
and layoffs, 589, 605, 664n46
and Lenovo sale, 408–409
on Microsoft’s outperforming IBM, 407
and PC business, 411, 506, 660n37
and personnel practices, 531–532, 539
and Roadmap 2010, 551–552
and sale to Hitachi, 526
and services business, 517
and stock buybacks, 585
and John Thompson, 519
and Watson computer, 572
Patent disputes, 12, 13, 21–22, 104–106
Patents
and antitrust cases, 106–107
and competition, 258–259
and computing, 128
at C-T-R/IBM by 1950, 81–82
and electric typewriters, 86
and IBM acquisitions, 75–76
and IBM Card, 77
licensing of, 330
and market timing, 73–74
for punch card system, 18
in United States, 1870s–1930s, 6
Path dependencies
and bureaucracy, 176
and evolving technologies, 597, 599
and IBM ecosystem, 258
and IBM’s evolution, 58–59
and IBM’s recovery, 500
and innovation, 151
of IT firms, 601
and professional management, 205
Patterson, John H., 10–11, 30–31, 31f, 32–33, 34–35, 36
Patterson, Robert P., 127
Pavitt, Keith, 205
PC (personal computer)
and IBM CEOs, 412
IBM decline in, 504
IBM difficulties with, 395–397
and IBM revenue, 313
and IBM’s decline, 379–381, 412–418
and IBM’s growth strategy, 436–437
introduction of, 390–391
and market share, 265
maturing market for, 405–406
as Time honoree, 394
and U.S. v. IBM (1969–1982), 345
PC Company, 451
PC Division, 404
PC Magazine, 418
Penalty box, 34, 252
Penicillin, 127
Pennant Systems, 451
Pension plans, 567–568
PeopleSoft, 519
People with disabilities, 250
Performance
appraisal system, 568–569
and employee rankings, 444–445
and failure of leadership, 454
financial record of, 1998–2011, 544t
under Louis Gerstner, 494t
and incentives, 46
measurement of, 34
measurement under Thomas J. Watson Sr., 52, 184f
and personnel practices, 253
Peripherals
and antitrust cases, 336
and bundling, 198
and Cold War–era computing, 367
and compatibility, 207–208, 209, 211–212
and competition, 258
and IBM competitors, 310
and mainframes, 262–263
and PC Jr., 395
revenue from, 1960s–1970s, 224
and System 360, 214–215, 219, 221, 224
Peronne, Tom, 616
Perot, Ross, 226, 478
Personal Systems, 451
Personnel practices, 249–256, 483, 568–569, 588. See also layoffs
Peters, Benjamin, 356
Peters, Thomas J., 244, 434
Pfeiffer, Ralph A. Jr., 297–298, 338
Phillips, John G., 127–128, 185, 189, 191
Pidgin, Charles, 18
Pierce, J. Royden, 75–76, 81
Pinker, Steven, 550
Piore, Emanuel R., 174
Pirated clones, 355
PL/1 (programming language), 364
Plug boards, 75
Poland, 358, 365
Poughkeepsie (New York)
and compatibility, 209
and electronics, 155–157
engineering culture of, 170, 174
and IBM’s turn to computing, 198
and layoffs, 567
and rivalry with Endicott, 208, 210
and SAGE, 168
and wartime manufacturing, 124, 132–133
Powell, Walter W., 500
PowerPC microprocessor, 405
Powers, James. See also Powers Accounting Machine Corporation
and antitrust cases, 104
death of, 60
and Herman Hollerith, 21, 26, 37
and punch card technology, 595
and Thomas J. Watson Sr., 23, 57
Powers Accounting Machine Corporation, 67, 69, 70, 88, 104, 113–114, 139. See also Powers, James
Powers-Samas, 289
Prentice-Hall, 268
PriceWaterhouseCoopers Global Management Consulting and Technology Services (PwC), 513–514, 526–527, 586
Pricing, 304–305, 307, 308–309
Prime, 264
Printer-lister, 43–44
Processors
and bundling, 198
and compatibility, 211–212, 262
desktop, 265, 436–437
distributed, 299
and emulation, 643n23
and System 360, 215, 221, 227
and System 370, 261
Process redesign, 446, 488, 490
Product development process, 52, 64, 79, 81, 575
Productivity
and automation, 488
and billable hours, 584
customer desire for, 73, 438
Louis V. Gerstner Jr. on, 507
during Great Depression, 6, 95
and hiring of Thomas J. Watson Sr., 54–55, 87
IBM decline in, 585
IBM effect on, 581
IBM reputation for, 434
and labor, 323, 444, 454, 464
and manufacturing, 95, 602
Sam Palmisano on, 532, 535
and quality, 193
and Roadmap 2015, 551
Ginni Rometty on, 554
and System 360, 203
and World Trade, 284
Product Planning, 164
Profits. See also financial performance
versus benefits, 570
and card sales, 68
under Louis Gerstner, 506–507
and government contracts, 102
at IBM, 1914–1940, 66t
and IBM’s recovery plan, 481
and optimism, 588
and outsourcing deals, 511
and PC business, 527
and product development, 647n12
and Roadmap 2015, 533
under Ginni Rometty, 547
Programmers, 229
Programming, 153–154
Programming languages, 175, 364, 398
Project Stretch, 171–172, 173–174, 638n52
Propublica, 570
Protected groups, 250–251
Protestant values, 11
Public policies, 97, 103–104
Pugh, Emerson, 5, 169, 197, 223, 269
Punch cards, 18–20, 106, 119, 142, 164

QDOS (“quick and dirty operating system”), 388, 390
Quaker Oil, 116
Quality Control Department, 221
Quarter Century Club, 37, 53
Quota system, 48–52, 134–135, 242–243, 245, 247–248, 590

R&D
of advanced electronics, 152
at C-T-R, 41–42, 44
funding for, 159
as goal of Thomas J. Watson Sr., 70
and IBM growth in the 1920s and 1930s, 68
IBM investment in, 430
in Poughkeepsie, 157
U.S. government funding of, 154
RAMAC. See IBM 305 RAMAC
RAND Corporation, 162, 169, 271
Randle, Yvonne, 499
Raytheon, 168
RCA, 198, 225–226, 227, 262, 343
Reagan, Ronald, 344, 373
Reagan administration, 251, 344, 346, 352, 399, 563
Recessions
of the 1970s and 1980s, 231
of 1920–1922, 44
during Richard Nixon’s presidency, 230
and personnel practices, 254–255
of the twenty-first century, 538
Redundancies, 490
Reengineering the Corporation (Champy and Hammer), 271
Regional Office Europe Central and East (ROECE), 369
Relational database management software, 154
Remington Rand
and antitrust cases, 105, 106
and computing customers, 161, 162
consolidation of, 10
and ERA, 228
during Great Depression, 97
as IBM competitor, 82, 87
and patent cross-licensing, 104
and postwar computing R&D, 154
and James Powers, 37
and Powers Accounting Machine Corporation, 67
and punch card business, 77
and SAGE, 168, 170
and Sperry Rand, 626n11
Type 400-2 calculator, 165
and UNIVAC, 173
Remington Typewriter Company, 30
Reorganizations, 69, 449–452, 453, 464–465, 541
Republicans, 103
Research Division, 174, 587–588
Resistor, 497
Resource actions (RAs). See layoffs
Retirement, early or voluntary, 254–255, 274, 401–402, 421, 659n24
Retroengineering, 261, 361–362
Revenue
and acquisitions, 673n8
under John Akers’s restructuring, 453
under Frank T. Cary, 307
and CEOs, 625–626n4
at C-T-R/IBM, 1914–1924, 57t
and evolving technologies, 598f
from first-year PC sales, 392
from Fortune 1000 enterprises, 536
under Louis Gerstner, 484–485, 487–488, 506–507
and global performance, 287–288
during Great Depression, 101, 119
growth of, 1946–1960s, 201–202
growth of, 1960s–1970, 229
growth of, under Thomas J. Watson Jr., 230f
growth of, under Thomas J. Watson Sr., 184f
and growth strategy, 432f, 605
at IBM, 1914–1940, 66t
and IBM growing pains, 190
and IBM’s long survival, 579
and investors, 559
and mainframes, 484
versus net earnings, 273
under John Opel, 434–435
and optimism, 588
and personnel practices, 249–250
from punch cards, 20
ranking in early 1990s, 440
and Roadmap 2015, 533
under Ginni Rometty, 547, 564, 566
from RS/6000, 404–405
by segment, 1980–2015, 509f
from services, 513
trends in, 1980–2015, 508–510
during World War II, 125
Reverse engineering, 42
RISC architecture, 403, 404, 458, 468, 575
Ritty, James, 10–11
Rizzo, Paul, 338, 437, 463, 479
Rizzo, Paul J., 453
RJR Nabisco, 477–478, 479, 481
Roadmap 2010, 533, 551–552, 583
Roadmap 2015, 533, 551, 553–566, 567, 570, 583, 611
Rockefeller, John D., 7, 9, 183
Rodgers, “Buck,” 244, 268, 312, 338, 434
Rogers, Joseph, 41–42
Rogers, William, 224
Rohrer, Heinrich, 588
Rojot, Jacques, 613
Rometty, Virginia M. “Ginni,” 556f
and author, 620
blogs about, 461, 558
and board of directors, 611
business strategy of, 408, 570–577
career at IBM of, 251, 554–556
compensation of, 542, 609
and employees, 549, 610, 669n1, 670n24
and financial engineering, 561
and financial performance, 625–626n4
financial record of, 544, 547, 582, 585
and growth strategy, 560
on IBM CEO duties, 467
and IBM’s aspirations, 606
on IBM’s purpose, 579, 581
and layoffs, 589, 605, 664n46
and personnel practices, 539
and PwC consulting acquisition, 513–514
and reboot strategy, 546
and Roadmap 2015, 553, 557, 559, 562
and sales culture, 590–591
Roosevelt, Franklin D., 97–99, 103–104, 119, 124, 469–470
Rosen, Ben, 478
Roy, William G., 441
Royal, 87
RPG (programming tool), 175, 364
Russia, 358, 374–375
RYAD computers, 362–365, 364t

SABRE airline reservation system, 170, 267
SAGE (Semi-Automatic Ground Environment), 169–171, 198–199
Sales force
and antitrust cases, 186–187
and bureaucracy, 280
career at IBM of, 640n32
and commercial computing, 161
and compatible computers, 212
and customers, 199–200
declining productivity of, 585
and electric typewriters, 87
and engineering team, 76
and government contracts, 159
during Great Depression, 96
at ITR, 14
and legal department, 349
and 100 Percent Club, 51
opposition to computer R&D within, 160
and PC technologies, 416–417
and process design, 67
and resistance to computers, 163, 176
strategies of, 243–249
and System 360, 217
training of, 51
and value proposition, 45
and Thomas J. Watson Sr., 36, 37, 43, 57
Sales practices
and IBM computer business, 197
and IBM’s early expansion, 45–55
of NCR, 37–38
and John Patterson, 11, 30–31
under Ginni Rometty, 590–591
of Thomas J. Watson Sr., 28–29, 34, 36
and Thomas J. Watson Sr., 64
and World War I, 42
Sales School, 37–38, 50–51, 54, 134, 186, 244, 431
Sams, Jack, 386–387
Sandorfi, Julius, 369
San Jose (California), 170–172, 263, 280, 354–355
SAP (software competitor), 519
Scalability, 208
Schein, Edgar H., 537
Schroeter, Martin, 547, 561–562, 592, 593
Science Research Associates (SRA), 276–277
Scientific applications, 83, 85, 127, 199, 215
Scientific calculators, 153
Scientific computing, 159–160
Scientific practices, 7
Scranton, Philip, 58, 59
Sculley, John, 478
SDS, 227
SEA (competitor in France), 196
Seagate Technology, 263
Sears, Roebuck and Company, 513
Seeber, Robert R. “Rex,” 153
SEI (competitor in West Germany), 196
Selected International Accounts (SIA), 247–248
Selected National Accounts (SNA), 247–248
September 11, 2001, 528–531
Service Bureau Corporation (SBC), 333–334
Service bureaus, 68–69, 226
Services, 504–505, 506, 508–517, 533, 566–567, 583–584
700 class computers. See IBM 700 series
Severance payments, 567
Shapiro, Irving, 465
SHARE, 179–181, 208, 229
Sherman Antitrust Act, 32, 104, 188, 329, 330–331, 341
Shugart, Alan F., 263
Shugart Associates, 263
Siemens, 196
Siemens-Halske, 139
Silicon Graphics, 375–376
Simmons, William W., 177
Skunk works, 393, 404, 485
Slogans, 47
Sobel, Robert, 5, 12, 15, 23, 43, 195
Social networking, 570, 571
Social Security, 67, 97, 99–102, 100f, 110, 119
Social Security Administration, 78, 199
SoftLayer, 571
Software
and antitrust cases, 351
bundled with hardware, 215
and bundling, 198, 259
for Cape Cod System, 168
and cloud computing, 583
and Ted Codd, 154
and compatibility, 211
development of in Hursley, England, 288
and Electronic Data Processing Machines, 162
under Louis Gerstner, 506
for IBM 1401, 175
and IBM business model, 409
IBM’s dabbling in, 265–266
IBM’s growing focus on after 1993, 516–527
and IBM users, 229
and layoffs, 566–567
maturing market for, 405–406
Microsoft domination of, 457
and networking, 383–384, 398
at odds with hardware, 309
under Sam Palmisano, 533
and PC development, 388, 390, 399
and PC Jr., 395
and PC market, 413
relative bugginess of, 406
revenue from, 1980–2015, 510
and RISC architecture, 403
for SAGE, 169
and Soviet computers, 365–366
and Soviet computing, 359–360
and System 360, 219, 220–221, 223–224
and U.S. v. IBM (1969–1982), 345
Software Group, 521
Solid Logic Technology (SLT), 210, 220–221, 259
Solid-state technologies, 173
Sorkin, Andrew Ross, 563–564
South Africa, 321
Soviet Union, 356–368, 375t, 376. See also Communist Europe
Space flight systems, 266
Spain, 116
Sperry Rand, 208, 225–227, 262, 271, 339, 626n11
SPREAD (Systems Programming, Research, Engineering, and Development), 211, 213
Spreadsheets, 383–384
Sputnik (Soviet satellite), 167
SSEC (Selective Sequence Electronic Calculator), 153
SS Race and Settlement Office, 142
Stafford, Ralph R., 369
Stagflation, 231, 295
Stalin, Josef, 116, 353
Standard Oil, 116
Standards, 414, 487, 505, 665n27
Stephenson, Robert “Bob,” 505
Stevens Institute of Technology, 76
Stevenson, Betsey, 570
Stimpson Computing Scale Company, 15
Stock buybacks, 554, 560, 565–566, 585, 670n27
Stockholders. See also Wall Street
and John Akers, 465
and business, 1998–2011, 545
and corporate failure, 422
as corporate priority, 9–10
and Louis V. Gerstner Jr., 483
IBM emphasis on, 588
IBM executives as, 94–95
IBM obsession with, 604–605
and IBM’s decline, 425–426, 455
and IBM’s Golden Age, 273–275
patience of, 592
and personnel practices, 249–250
and product transition, 152–153
and Ginni Rometty, 547
Stockman, David A., 563–564
Stock value
drop in, 1987–1993, 464
drop in, 2014, 563
and layoffs, 543
rise in, 2010, 533
Storage Technology Corporation, 263
Strategic planning, 160
Subsidiaries, 70
Sun, 404, 519
Systems Application Architecture (SAA), 398
Systems engineers (SEs), 223, 244–245, 259
Systems Research Institute (SRI), 267

Tabulating Machine Company, 15–23, 41, 43–44, 61, 68, 74
Tabulating machines, 16f, 191
Tabulating Machine Services Bureau, 68
Taft, William Howard, 29
Tandy, 383, 397, 414
Tax policies, 503, 560, 661n20
Teamwork, 47–48, 448
Technical standards, 268
Technological evolutions, 594–597
Technology cycle, 460, 599–601, 600t
Technology ecosystems, 360
Technology Products, 451
Technology services, 409
Tedlow, Richard S., 135, 183, 328, 348–349
Telecommunications, 398
Telephony, 126
Telex, 226, 270, 278, 280, 334–336, 342
THINK (IBM slogan), 72, 76, 89, 118, 589
Think magazine, 98, 184, 185, 255, 434
Thinkpad, 409
Thoman, G. Richard “Rick,” 506
Thomas, David M., 505
Thomas J. Watson Astronomical Computing Bureau, 85
Thompson, John, 506
Thompson, John M., 518–519
Time Inc., 182
Time magazine, 200, 394
Time Recording Division, 75
Time sharing, 226, 365, 512
Tivoli Systems, 520, 521, 523
Tone, Andrea, 53
Total quality management (TQM), 445, 601
Trademarks, 10, 332
Transistors, 162
Trempé, Roland, 441
Truman, Harry S., 160
Trusts, 7, 9, 15
Turner, Mary Lee, 482
Tymeshare, 226

Unbundling, 331–332, 351
Underwood, 87
Underwood Elliott Fisher, 67
Unions, 71, 253–254, 539, 540–541, 541
United States of America v. International Business Machines Corporation (1956), 185–189
United States Rubber Company, 10
United Technologies, 513
UNIVAC
and antitrust cases, 335
customers of, 182
developers of, 130, 154–155
and J. Presper Eckert, 339
as IBM competitor, 157–158, 161, 173, 177, 595
and manufacturing, 626n13
and Sperry Rand, 226–227, 626n11
and U.S. Census Bureau, 557
University of Pennsylvania, 130, 154–155
UNIX, 403
U.S. Air Force, 168, 266
U.S. Army Signal Corps, 126
U.S. Atomic Energy Commission, 159–160, 173
U.S. census
of 1880, 17
of 1890, 18, 20
of 1920, 67
U.S. Census Bureau, 18, 21, 155, 157, 625n23, 625n26
U.S. Department of Defense, 168, 291
U.S. Department of Justice
and antitrust cases, 104–105, 106
and Frank T. Cary, 325–326
and consent decree of 1956, 185–189
and cost of antitrust cases, 351
and IBM competitors, 306
and IBM’s dealings with Microsoft, 399
and U.S. v. IBM, 329
and U.S. v. IBM (1969–1982), 352
Üsdiken, Behlül, 326
User groups, 179–181
U.S. government
and antitrust cases, 327, 348
and Cold War–era computing, 369, 658n29
and enforcement of antitrust laws, 331–332
and Federal Systems Division, 491–492
and import/export laws, 374–376
and Moore School computing meeting, summer 1946, 155
and postwar computing R&D, 154
and Poughkeepsie plant modernization, 132–133
during World War II, 123, 124–125
U.S. Government Printing Office (GPO), 105
U.S. military
and cryptanalysis, 132
and IBM employees, 122
and IBM R&D, 167–168
and Dennie Welsh, 515–516
U.S. Navy, 159, 162, 168, 266
Usselman, Steven W.
on antitrust cases, 331, 350
on Endicott and Poughkeepsie, 198
on IBM CEOs, 615
on IBM’s entry into computers, 151, 178
on IBM’s humility, 199
on IBM’s return to customer service, 505
on personalities of business leaders, 183–184
on product compatibility, 209
on System 360, 226
on technology and bureaucracy, 175–176
US Steel, 326
U.S. Supreme Court, 106
U.S. Treasury Department, 119
U.S. v. IBM (1969–1982), 325–326, 338–348, 653n10
U.S. Weather Bureau, 162

Vacuum tube circuits, 128, 155, 162
Value proposition, 627n26
VAX systems, 368
Vertical integration, 279, 300, 309, 486, 490–491
VisiCalc, 383
Von Neumann, John, 155
Von Simson, Ernest, 308, 312, 468–469

Wall Street, 425–426, 459–460, 483. See also stockholders
Wall Street Journal
on John F. Akers’s restructuring, 452
calls for IBM layoffs by, 459
on C-T-R/IBM name change (1924), 62
on Louis V. Gerstner Jr., 480
on IBM incorporation, 61
on IBM’s financial performance, 447
and IBM’s Golden Age, 270–271
on David Kalis, 482
on rumored Saudi acquisition of IBM, 580
Wang, 264, 311, 396, 415
Ward, Stephen M. Jr., 409
Wartime manufacturing, 132–133
Washington Post, 498
Waterhouse, Buzz, 246
Waterman, Robert Jr., 244, 434
Watson (artificial intelligence), 517, 549, 571–577, 588, 606, 665n23
Watson, Arthur K. “Dick,” 137f, 287f
career decline of, 222–223
and competition, 286–287
and Marcial Digat, 295
and family disputes, 12–13, 133–134
on IBM dominance in Europe, 271–272
and Latin America, 296
and Mobile Machine Records Units (MRUs), 126
and nepotism, 283
resignation of, 302
roles held at IBM by, 136
and System 360, 220, 221
and World Trade, 189, 190–191, 193, 195–196
and World Trade’s rapid growth, 285
as World War II veteran, 138
Watson, Helene, 133
Watson, Jane, 133
Watson, Jeanette M. Kittredge, 32, 53, 54, 117–118, 129
Watson, Olive Cowley, 135
Watson, Thomas J. Jr.
and adaptation, 579
adventurous nature of, 626n8
and John Akers, 422
and antitrust cases, 185–189, 329, 337, 350
and author, 620
and Basic Beliefs, 236
and James Birkenstock, 145, 164
and board of directors, 611
on Frank T. Cary, 308
and chain of command, 630n17
and collegiality, 458
and computing, 127, 185
on corporate culture, 233–234
customers’ influence on, 182
death of, 527
and destruction of CDC case studies, 334
early IBM experiences of, 134–135
on ENIAC, 130
and family disputes, 12–13, 133–134, 625n30
family life of, 133
and fear of plateauing, 208–209
and Louis V. Gerstner Jr., 481
on global performance, 282, 283
and government contracts, 158–160
growth of IBM under, 230f, 276
on IBM 604, 131
and IBM 650 Magnetic Drum Calculator, 165
on IBM computing, 163
and IBM reorganization, 39, 190–194
on IBM’s dominance of computing, 172
and IBM’s turn to computing, 156
on IBM transition to computer business, 197
as imperial leader, 467
and Nikita Khrushchev, 354–355
and T. Vincent Learson, 162
management style of, 192
and personnel practices, 250
and Project Stretch, 173–174
resignation of, 302
retirement of, 229–231
and SAGE, 168
and sales culture, 626n11
and sales reports, 199–200
and System 360, 627n24
on technology versus sales and distribution, 177
and UNIVAC, 155
as U.S. ambassador, 368, 371–372
and U.S. v. IBM (1969–1982), 338, 347–348
and Arthur K. Watson, 220, 222–223
Watson, Thomas J. Sr., 22f
and adaptation, 579
and antitrust cases, 105, 106–107, 187–188, 329
and James Birkenstock, 145–146
and board of directors, 611
and business strategy, 58–59, 69–70, 73–74, 588
celebrity status of, 115, 118, 119–120
and chronology, 4
on computer equipment, 149
and computing, 127–128
and consent decree of 1956, 189
and corporate culture, 3, 236–237
and Crash of October 1929, 94–95
and C-T-R, 40, 42–44
on C-T-R/IBM name change (1924), 61–62
and C-T-R/IBM sales culture, 45–55
and data processing ecosystem, 89
and Dehomag, 114
and European expansion, 111
and family disputes, 12–13, 133–134, 625n30
family life of, 133–134
on German IBMers, 113
and global performance, 282–283
during Great Depression, 91–92, 96, 97–98, 102
hiring of, 26
and Adolf Hitler, 116
and Herman Hollerith, 5, 20–23
and IBM 700 series computers, 161
and IBM Day, 108–110
and IBM growth in the 1920s and 1930s, 66–67
on IBM influence, 84
and IBM policies, 71
and IBM’s aspirations, 605–606
on IBM’s purpose, 602
as IBM’s third founder, 30
and IBM ties with Columbia, 85
and IBM values, 37–38
and “IBM Way,” 267
as imperial leader, 467
legacy of, 182–185
managerial practices of, 28–29
and marketing, 87, 88
and Mark I, 129–130
and Nazi Germany, 140–141
and NCR, 31–32
and nepotism, 195
original C-T-R contract terms of, 36
and patents, 81–82
and John Patterson, 11, 31–33
performance tracking by, 35
and postwar demand generation, 152–153
as professional manager, 6
and Franklin D. Roosevelt, 103–104
and sales culture, 626n11
and sales strategies, 243–244
and SPREAD, 213
on stakeholder value, 585
and support of Allies, 124
temperament of, 33–34
and UNIVAC, 155
Watson Business Machine Company, 143
Watson Health, 672n72
Watson Scholarship, 250
Watson Scientific Computing Laboratory, 154
Weather forecasting, 160
Welch, Jack, 457, 478
Welfare capitalism, 53
WellPoint, 576
Welsh, Dennie M., 505, 515–517, 521, 522f, 527
Wernerfelt, Birger, 151
West Germany. See Germany
W. F. Simpson Company, 15
W. H. Bundy Time Card Printing Company, 13
Wheeler, Earl, 398, 399, 412, 415
Whirlwind project, 168–169
Wild ducks, 628n30
Wilkins, Mira, 63, 97
Williams, Albert L. “Al,” 159, 191, 192, 213, 222
Williamsburg reorganization (1956), 191–194, 197–198
Wilson, Woodrow, 32
Windows, 397, 402, 406
Wired Society, The (Martin), 268
Withington, Frederic G., 339
Wladawsky-Berger, Irving, 506
Word processors, 383–384
Wordstar, 383–384
Workforce rebalancing. See personnel practices
World’s Fair (New York City, 1939–1940), 107–109, 108f
World Trade
and Asian business practices, 292–294
and biculturalism, 319
and business strategy, 1949–1990, 320–324
and Frank T. Cary, 304
in Central Europe and Russia, 357, 369, 374–375
and Cold War–era computing, 357
and computer industry, 194–197
and concern over competition, 300
and corporate colonialism, 238
and customers, 302
divisions of, 285
and European expansion, 286–292
growth of, 1965–1980, 266
and headcount, 273–274
and India, 314–318
and Gilbert E. Jones, 338
and Latin America, 294–298
and Legal, 349
and Ed Lucente, 464
and Jacques Maisonrouge, 253
and management centralization, 450
net income, 1949–1990, 321t
revenue from, 1964, 201
and U.S. anticorruption laws, 331
and Arthur K. Watson, 136, 191, 193, 282, 608
and Watson family, 222–223, 284
and Thomas J. Watson Sr., 283
World War I, 121
World War II
and demand for data processing, 89
and employees, 238
first year of, 110
and Holocaust recordkeeping, 141–142
IBM growth during, 121–122
and IBM subsidiaries under Axis control, 138–139
and new uses for IBM equipment, 125–126
and political economy, 143–144
Thomas Watson Jr.’s experience of, 135
Arthur Watson’s experience of, 136–137
Wozniak, Stephen, 382–383

Y2K (year 2000 date problem), 507–508
Yale University, 136
Yang Yuanquing, 409
York, Jerome B. “Jerry,” 453, 481, 488, 489f, 490–491, 493, 498, 506
Yost, Jeffrey, 197
Young, John A., 478

Zaporski, Janusz, 369
Zeitlin, Jonathan, 58
Zimmerman, Edwin M., 340–341
Zolman, Steven, 558
Zunz, Olivier, 7
Zuse, 196
Zysman, John, 385