Ibm Foundation

IBM and the Two Thomas J. Watsons

1920-1950. Thomas J Watson Sr

1950-1971. Thomas J Watson Jr

IBM industry leader in mid 1990s, even after serious problems during the 1980s

Private companies were reluctant to invest in computer R&D. DOD financed most of the necessary R&D. This allowed the U.S. to take the lead in IT.

Two historical developments: tons of data to be filed, sorted and analyzed. Larger role that defense-related industries and US military played in the American economy especially WWII. Private sector refined computer technologies in order to make them commercial. Entrepreneurs entered the market forming on IT companies, creating languages.

Spread of computer use went through 3 stages: 1) military market 2) business apps 3) household market. PC introduced in 1970. Part of PC success came from rapidly declining costs. Microchip as example. IBM went OPEN ARCHITECTURE in 1981 made compatibility a reality.

Thomas J Watson obsessive focus on marketing most distinctive trait. Paying scrupulous attention to customer needs and developing new products. PUNCHCARD MACHINE.

New laws necessitated data gathering and tabulation by govt and industry. IBM's revenues bounced back. WWII, entire military began to use IBM cards. Boosted supporting industries such as banking, retail and insurance...big customers of IBM.

IBM's foreign offices were doing poorly. Formed IBM World Trade, a subsidiary contained all non-US operations. Full-service leasing system became stability of IBM revenues.

Jr. tasked engineers to develop Selective Sequence Electronic Calculator (SSEC).

TJ increased R&D once he found out RCA and GE spent 3%.

Defense Calulator or 701. First computer in commercial market.