We see compelling opportunities both in the “traditional” information technology industry and in new, previously unaddressed markets.
IBM has long been a leader in innovation — creating advanced technology and helping our clients apply it for competitive advantage. Because of fundamental changes in the way clients buy and apply technology, we believe our model of providing innovative and integrated solutions gives us a significant advantage over competitors who provide piece-part or commodity technology and services.
We are convinced that computing is fundamentally shifting to a new architecture based on open standards, a networked world, emergent technologies, and new ways of accessing and managing IT. Building on a strong base in enterprise hardware, software and core technologies, we are at the forefront of that shift.
We believe that buying decisions by enterprise clients are increasingly driven by the need for a combination of business expertise and technology, and that clients will increasingly turn to partners to transform and operate parts of their business operations. We have substantially upgraded our capabilities in consulting, and in industry and business-process expertise. We are investing heavily in our business transformation and process outsourcing businesses.
We have a strong bias for high-value segments of the industry. This provides our clients with technology, ideas and solution implementations that are truly differentiating for them, and it yields the revenue growth and margins necessary to fuel our business model based on innovation.
Our commitment to the high-value segments of our industry leads us continuously to reinvigorate our portfolio of products, services and businesses through multiple approaches. This creates a steady stream of new capabilities and mitigates risk.
Our ability to create intellectual capital in all its forms is a core differentiator for our company. This requires a workforce of experts in an expanding array of fields and disciplines, coupled with systems and a culture that continually upgrade skills and knowledge.
We manage the IBM company to maintain fidelity to our business model and our values, which enables us to produce double-digit earnings-per-share growth, consistently high return on invested capital and increased shareholder value.
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