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"One aspect of IBM's malaise is the disconnect between the traditional public image of the company (basic research, advanced R&D, patents, patents, patents) and the fact that most of their revenue-generating businesses aren't about hardware or software products at all, but services. Why continue to spend all that money if you're mainly just a business/IT consulting company made up of IGS and Price Waterhouse? Why, indeed.

Here's what's happening with IBM. The heart of a company culture can be discovered if you look at the compensation system. IBM's major incentives right now are for signing business and cutting costs. In many IT firms, IBM included, billable hours are important. This results in a system where little is done to improve service efficiency, because doing so would lead to fewer hours and less revenue. Efficiency kills, so at today's IBM it is generally avoided.

Of course laws of both science and business continue to apply, something has to give, costs have to be driven down, so at today's IBM what gives is generally quality."

- Robert X. Cringely (e negrito meu)


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