IBM announces consolidations in sales, services divisions Restructuring

December 14, 1996|By BLOOMBERG BUSINESS NEWS

ARMONK, N.Y. -- International Business Machines Corp. said yesterday that it made executive and organizational changes in its sales and services divisions to focus on a single brand and avoid confusion among its customers.

The changes are part of an effort by Chairman Louis Gerstner to capitalize on the IBM name and eliminate turf battles between divisions.

"Clearly this will help -- because the old system did have so much friction," said industry analyst Bob Djurdjevic of Annex Research.

IBM will now operate all its global services under the IBM Global Services name, which it currently uses. IBM had dozens of non-IBM brand names and identities in that market because of its many subsidiaries and joint ventures.

That expanded unit will be run by Dennie Welsh, who had been general manager of IBM Global Services. Integrated Systems Solutions Corp., which offers outsourcing of computer operations, will now be under the Global Services unit.

The world's largest computer maker also will consolidate its direct marketing efforts worldwide, with Lucio Stanca as general manager of Global Marketing. He will be responsible for all direct marketing and world distribution.

Pub Date: 12/14/96

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