In the early 1990s, IBM was a has-been. Fujitsu, Digital Equipment, and Com
paq were hammering down its hardware margins. EDS and Andersen Consulting w
ere stealing the hearts of ClOs. Intel and Microsoft were running away with
PC profits.
Today, Big Blue is back on top, a leader in e-business services. This is th
e story of how the company, which had lagged behind every computer trend si
nce the mainframe, caught the Internet wave. Much of the credit for the tur
naround goes to a small band of activists who built a bonfire under IBM's r
ather broad behind.
It started in February 1994, when a lone midlevel IBM programmer watched Su
n Microsystems pirate IBM's Winter Olympics data for its own rogue Web site
. Dave Grossman knew that IBM's muckety-mucks were clueless about the Web.
But he was convinced that if nothing changed Sun would eat Big Blue's lunch
.
Frustrated in his attempts to warn executives over the phone, he drove down
to Armonk, walked straight into headquarters with a UNIX workstation in hi
s arms, set it up in a closet, and demonstrated the future of computing to
a trio of IBM execs. One of them was John Patrick, head of marketing for th
e hugely successful ThinkPad, who quickly became his mentor. Together, buil
ding simultaneously from the top and the bottom of the organization through
an ever-widening grassroots coalition of technicians and executives, they
put IBM on the Web and morphed it into an e-business powerhouse. People who
want to foment similarly successful insurrections can learn a lot from the
ir example.