The Success Story of IBM: Part 2

In one of our previous articles, we told you about the creation and early stages of development of the globally renowned corporation IBM, which, half a century after its foundation, became a leader in producing technical innovations in the field of computer technologies and remains a global giant in this sphere. Today, we will delve into the individuals and events that contributed to the establishment of IBM and its rise to the top.

After the departure of the company's founder, Herman Hollerith, forty-year-old Thomas Watson took over as the leader of IBM. Thanks to his organizational talent, he brought in a host of innovations and elevated the corporation to a qualitatively new level. It's no secret that it was Watson Sr. who saved the company from decline during the Great Depression and World War II, times when many enterprises either ceased operations or tarnished their reputation through dishonest speculation amid the ongoing events.

Thomas Watson became an advocate of a radically new approach to business—putting the interests of the company's employees above all else. After all, the future success of the corporation wholly depends on the collective. Notably, at IBM, employees were constantly reminded that they were much smarter than the average Americans and were given the opportunity to freely communicate with the company's management, express their ideas, and discuss various issues. Such a company policy in the first half of the twentieth century was considered quite unusual compared to the traditional management system.

Furthermore, Watson Sr. made the bold decision to cease the operations of subsidiary divisions within the company, significantly increasing the corporation's overall profits. At the same time, IBM, then existing under the name CTR (Computing Tabulating Recording), began exporting goods to various countries worldwide, gaining increasing popularity.

A defining moment in the corporation's history was in 1935 when IBM won the tender for processing data on U.S. population employment. After the brilliant and relatively quick (less than two years) completion of this task, the company earned incredibly high authority and significantly expanded its client base.

In the 1940s, the famous IBM slogan "Think" was born, and around the same period, the company began producing typewriters. This event can already be considered the beginning of computerization for both enterprises and businesses in general.

In 1956, Thomas Watson Jr. became the president of the corporation, becoming a worthy successor to his father and taking IBM to a new, significantly higher level. During his tenure, the company developed most devices that marked a revolutionary step in the evolution of information technologies. For example, the hard disk drive or personal computer (remember that before this, personal computers were an unaffordable luxury). At a certain point, IBM produced 90% of all computers in the United States; later, the corporation slightly relinquished its position, allowing young and promising companies like Microsoft, Apple, Intel, and others to enter the market. Nevertheless, IBM remained an undisputed benchmark of quality and continued to progress.