Ibm Business ModelEssay Preview: Ibm Business ModelReport this essayBusiness model Value proposition Innovative and leading edge technology due to high R&D activities Create value by reducing a client’s operational cost or enabling new capabilities that generate revenue through business insight and IT solutions. Key activities Provide business insight, IT solutions, professional services, and application management services for the company’s clients. Manufacture and sell IT product Invest in financial assets, leverage with debt, and manage the risks for IBM and its client (Global Financing) Key partners Partnership and joint ventures IT product manufacturing companies DistributorsSuppliers Customer segmentations Companies with operation involving IT Government and institutional Individuals Revenue structure Professional services feesSale of software and license fees Sale of computing power, computer systems, and data storage products Revenue earned from financing servicesKey resources  Software and licenses such as Websphere, Tivoli, Lotus, Rational, and Business Analytic Business and IT solutions Computer system and IT products including data storage products BrandHigh skilled professionals and consultantsChannel For services, business-to-business consulting projects through personal relationship and various means of communication.For  IT products and software, local IT markets/shops, B2B consulting projectsCustomer relationship Reputation and quality Building personal relationship through personal contacts and various means of communication. Cost structure R&D expenses Professional salary and benefit payments IT infrastructure Raw materials Strength Global Intelligent utility NetworkStrong distribution channel Leadership position in the market Effective R&D activities WeaknessesReliance on the AmericasDependence on suppliers Risk explicitly identified by the company IP portfolio and IP protection No strategy to manage Recommendation: Operate its business in high IP protection law and enforcement Economic environment No strategy to manage Relationship with suppliers and distribution channelsNo strategy Increase number of suppliers/contract manufactures and distribution channels  Currency and interest rate fluctuation Hedging and derivatives Failure to innovation initiatives Loss of critical skilled personnel Substantial costs for environmental matters Risk not identified by the company
diversified research group of the Association of Business Research Groups Invest in revenue generated by products, services, or customers to gain profit and shareholder value