New Findings From IBM Global CEO Study, "The Enterprise of the Future"

ARMONK, NY -- (Marketwire) -- 09/04/08 -- IBM (NYSE: IBM) today announced the midmarket findings from the IBM Global CEO Study, the largest study of chief executives ever conducted. The study, titled "The Enterprise of the Future," which focuses on five core traits that define an enterprise of the future, shows that midsize(1) companies face significant challenges with change and report a sizable gap between their need for change and their past success in managing it. But the study also shows that midsize companies are optimistic about opportunities for growth, especially in developing economies, and are rapidly innovating their business models to become more competitive.

In the face of anticipated changes to external market factors, skill requirements, and regulatory compliance, the gap between the amount of change that CEOs anticipate and their company's past success with managing change is dramatic. More than eight out of ten -- or 86 percent -- of midsize businesses anticipate substantial change, yet just over half -- or 57 percent -- have had prior success in managing that change.

Despite the challenges posed by this gap, CEOs of midsize organizations are making a range of strategic investments to evolve their business to succeed in today's rapidly changing environment. The most frequently cited areas of planned new investment include growth through globalization, customer service for the new breed of more demanding and informed customers, and increased corporate social responsibility activities.

Going Global

The first opportunity for investment is the rising purchasing power of emerging economies, an area that midmarket CEOs are targeting for growth through a 20 percent increase in investment over the next three years.

To achieve global expansion, midsize organizations are focusing on new business designs -- in fact, three of every four CEOs of midsize organizations plan to change their business models to differentiate themselves over the next three years. They have identified three primary actions they must take to accomplish that goal: make deep changes to their mix of capabilities, knowledge and assets (60 percent), partner extensively (54 percent), and actively enter new markets (51 percent).

"In today's rapidly changing global marketplace, CEOs of midsize companies recognize that the most effective path to sustained business success is through innovation, skills and active partnering," said Marc Dupaquier, general manager, Global Midmarket, IBM General Business.