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Chapter II: 6.0 Process barriers

specifically on the topic: Blackout in vision had the most competitors of IBM, who tried to resist to the market power per process. They knew a lot, and much of what they knew was right. But lacked the capacity for belief.
Encouraged by the United States of America, which invest for decades with IBM, tried to smaller organizations such as telex, Memorex, Greyhound Leasing, Calcomp Itel and collect their profits on jursitischem way. So cheerful this began, it was sad at times, the course, as well as legal disputes were being addressed by the IBM marketing methods.
needs in daily business with the computers fight off the competition of a blue army of salesmen. At the bar Antitrust courts celebrates a man in black robes with Paragraph Power, the fascination of the multinationals.
So is the impotence of knowledge spread around. Neither judges nor prosecutors can assess what they have to judge later. The prosecution witnesses confused by De-part knowledge. IBM's plea is silence. This all led to pull-ups, the market for legal definitions to be subdivided. Since this market is not "friendly", to potentiate the problem.
This is like a miscarriage of justice on the basic laws of the industry. A process based on the events of the past. The marketplace is the future. The IBM is the market. So they implemented in their marketing strategies the possible process output. The formula: 70/30. - Resolution: When calculating the legal Göreme the info group process opportunities with 70:30 is practiced no restraint. Already at the 69:31 result of inactivity longer starts, which offer the respective applicant an opportunity to demonstrate leadership.

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Kaiptel II: 5.0 Process Engineering

said Professor Dr. Alexander Mitscherlich in Amsterdam. His audience: the Top-system specialists of IBM Germany. His topic: Ethics in the Age fortgescchrittener technology. His bias: a parable. Quote: "I was the life, dealing with people as a profession, not just a fundamental pessimists, but made such a heart. so successful in the natural science and technology involved group such as yours may I ask your indulgence. Even pessimists have a right to life. Let me start with the proof being a truly classic pessimist, with Cassandra. She was, as you recall, the daughter of Priam, king of Troy. Apollo had her first, to seduce them, given the force of prophecy. But as she was not willing to give him, he took a most impressive psychological operation against her. He left the future show, but it contained the force before the conviction. Without the latter the contents of the prophecy are meaningless. The events of the future speak to us not to stay, but it unreal, pale. You must admit, from the myth of Cassandra speaks vein startling psychological acumen. Knowing without being able to convince that is a situation which has been making Cassandra times again and again. .. It is the impotence of knowledge "
With this trip in the classical mythology tore the Star psychologist Mitscherlich a problem circle, from which the IBM daily consumed and against which the competition days blocked by day
In plain language: the combination of specialized knowledge and Marketing is what the Enlightenment Bacon with his phrase "knowledge is power" could see yet, but. said the "impotence of knowledge" is excluded from the IBM strategy. In terms of the Enlightenment exists for them only what is doable. This sense of reality is the power of persuasion.

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Chapter II: 4.0 Excursus

the beginning there was IBM. They dominated a market that did not exist there, a hundred percent. "Perpherie" was so "system" immanent, that separation seemed unimaginable. The sudden emergence of the IBM mixer showed that part of their complex services from simple data processing units existed. Stunned, the giant was faced with the daring act of the first mixer. Not the replica confused the IBM, but rather the willingness of customers to accept these duplicates.
4.1 Response
Embittered disappointed and produced all levels of the multinational counter-strategies, first on an emotional basis. Especially against renegade customers desire for revenge were growing. So, for example, within the IBM Germany played seriously with the idea to degrade mixed-hardware-users with users of second class. They should be isolated on the regular training seminars in order to carry the harmful thought any further. But not enough, the excommunication should also meet the daily use. IBM wanted to renounce the support system. The belief in their own superiority, however, prevented the outgrowth of an injured company. The self-esteem was a clever strategy restored.
4.2 Action
Benevolent punishment of mixed hardware and prospective customers through gentle uncertainty was the objective. Confusion the Mix bidder continuous changes in prices, contracts and product range was the other. This fully managed.
With this objective in the case were the VBs in the field.
Their mission: to explain the advantages and disadvantages of mixing by objective standards (which alone was IBM). The damages are ittstellenproblem risk creation and the maintenance of this strategy. Sting, however, was the touching appeal to reason the user to escape from long-term commitment to a mixer to the technological progress. Also attacked that argument, was offered to the IBM's own long-term contract. If no longer was any price cuts were threatened at some point, actually carried out. The
Miex hardware provider tricked at first from themselves by one another staged a relentless campaign. They neglected to observe the IBM strategies and fixed itself in direct competition comparison. The achievable prices fell below the cost. The consequences were severe financial turbulence, which provided the IBM VBs new conversation. The loss was considerable sympathy. IBM nostalgia prevailed.

the vitality of the mix bidder was underdeveloped in order to establish a great idea and into cash. Lack of price discipline, poor organization and lack of conviction against the customers have contributed much more to what has been not satisfactory status than the non-fair but legal counter-attacks of IBM.
covered in greatest need several mixers to court. Defendant: IBM. Indictment: Lack of tolerance against IBM over disability. Rating: wrong market behavior is not liable for damages.

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Chapter II: 3.0 mix understandings

Smart engineers Zubehörlieferers Memorex puts the cart before the business on the back. The Method: Reverse Engineering. In a small laboratory, they dismantled an IBM disk unit (2311) in its components, reconstructed the parts list, corrected some flaws and went with the production in series.
The result was striking: The customer accepted the large mix despite "parasites and parasite-cries" of IBM. Compatibility was in. Within a short time
shot mixed-hardware vendors such as mushrooms and occupied by the IBM product range all that was not nailed down and. Records, tapes and printers. But what began as a great battle, ended as a small war. The guerrillas tore each other, and the first highly offended IBM amused.
The inventors of the mixed-hardware strategy had clearly recognized that the BM steadily declining production costs for hardware design in their final price not properly acknowledged. In the periphery was enormous profit.
Example: The cost of playing for the IBM 2311-disk unit with six months' rent, the average installation time was four years ago. Similar rates, the ratio for tape units and printers.
, sent by IBM profit margin was so large that the first mixer, the cost could be ignored. Their sales strategy was simple and easy: with a random set off on the IBM price, they went into the market and collect orders. That was not good for a while because serious competition was created by the mixer from next door.

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Chapter II: 2.0 The Ford case

Henry II visited Thomas II After exchanging the usual pleasantries kanm Henry II to the point. After that IBM continued Ford. What had happened?
Henry II, king of the car had been thinking about his Preis-/Service-Verhältnis 1401-Armada, taking notes that the computing power have not been matched Manpower. The confirmation he received by a Honeywell offer to resolve the global exchange of its systems at half price and double the service.
The H-200-coup met fully on the point around which revolved the entire IBM-sale system: the primary principle of all selling is to bring the customers in a dependency from which it can be solved only with great loss. This belief can not be shaken, as long as the competitors rely solely on technological advances. The sales pitch innovation is what scares the customers, and drives him back again and again in the ideal world of IBM. Honeywell H 200 copied the technology and sales of market leader. Presented for discussion only was the price. This took place a reversal of the values on which IBM began. Suddenly, IBM was dependent on their customers.
Thomas of II, the mathematical geniuses was shocked. A brief interim report made him suddenly two things clear:
- First: Twenty percent of his customers brought eighty percent of its sales and its profits,
- Second, the tight hardware chain was broken. The first node was burst.
With the advance / 360 Announcement in April 1965, transferred all IBM problems. New measures of dependence was the software, which IBM now trusted more than the hardware.
good reason: The hardware prices slumped in the basement, in the computer business so far little-frequented market segment. The first moved in blender. What began in the basement ended, at the tank.

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Chapter II: 1.0 The 1401 and Honywell

The 1401, the standard work of solids was not untouchable: The first attack took place traditionally by the irrepressible Jim Rand with UNIVAC Solid State 80/90 II, which - as usual - more powerful and cheaper, and was correspondingly low sales figures achieved. In Europe, rumbled the French, motivated by de Gaulle, but funding is not sustainable, with the Bull-Gamma series, which achieved a real market penetration. At the height of the success curve Bull slumped into the red. Too rapid growth was clearly at the expense of the capital base and the losses increased to 100 million DM
The most serious competitor to the IBM came out of the control technology. Honeywell copied that made 1401, it quickly it sold 50 percent less than IBM's price and delivered with the "Calibrator" with the first compatible software. The Honeywell H 200 was the most successful non-IBM system. Reason: For the first time a competitor had been abandoned on technical innovation and market conforming to standards oriented.
The distribution was conducted on a short leash and catapulted around 2,000 H 200 on the world market. IBM responded to the scare just the right time and announced the / 360 prematurely. The control loop is closed again. The announcement effect, the IBM staged for the first time on a broad basis, the second generation pushed onto the sidelines. to beat
The Honeywell strategy, IBM at their own game was, though not an absolute hit, but he pointed the right direction. Through the announcement of the / 360 fell Honwell although temporarily in financial difficulties, as the H-200 series, contrary to expectations only in short-term contracts in the market remained. Nevertheless, this resulted in customer base, which is still brave will be defended and expanded.

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II competitors-Los

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3.18 The advent of transistors

But with a slight bang announced itself in 1955, the glorious river of the transistors: The experimental model Tradic the belonging to American Telephone and Telegraph Bell Laboratories, the first tentative step into the second generation. Three years later followed with the system Philco 2000-210, Autonetics, General Electric, NCR, and RCA. Univac, Bunker Ramo Corp.. and CDC also dashed with transistorized computers in the market before 1959 with the IBM 1620 and the 7090 slowly ventured to the new technological terrain.
Here, again, that technological advance is not a necessary condition for Market success. Only the 1960 data processing system installed IBM 1401 was the real sensation of the transistor time. The combination of punch-card systems, which are still populated the market, and the systematic replacement by the second generation decided the market in favor of IBM.
After she had burnt herself on the tubes fast fingers, the solid-state technology, the computer brought to work properly. It was the 1401 of the hit. Even today, seasoned IT professionals tears to the eyes when talking about the system. Nostalgia, which - as detractors claim - that's that 1401 was the last computer, which both IBM and users were still fully in control. French researchers IBM laboratory in Paris grabbed first the 1401 concept. They invented the logic that was implemented in Endicott in hardware.
sales made the system dfurch legs line with the market rent for equivalent power. In an international sales campaign, she took more and more from the tabulating machines. From 1401, more than 5000 systems have been installed. This seller brought IBM into such euphoria, from which she awoke with a swanky job "Stretech" with a big hangover.
The U.S. Atomic Energy Commission ordered the early sixties when a giant, IBM, the then largest available computer system 7030th With this customization, IBM came in stretch-induced stress. The delivery has not been met. The system reached only 70 percent of the announced performance. IBM had to adjust the price of the service and issue a Gutshcirft over 4.5 million dollars. Overall, they took the 7030-Stretech system a 20 million dollar loss. The profit was a small competitor, the IBM also brought in later calamities: the Control Data Corporation (CDC), which secured with a specialization in computer science an interesting market segment.
received Meanwhile, the 1401 increase. It formed a loose clan system: 1401 H, 1401 G, 1440, 1410, 1480th Promoted to precocious transistor, there was the 7000 series, used in the 1401-output systems as fast machines were.

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3:17 blockbuster

for the first blockbuster of projecting itself the IBM 650, which had a $ 4,800 monthly rent and Magnettromelspeicher was: According to the IBM of this system, more than 1,000 units were produced. In 1953, France turned into the more lucrative computer business becoming: BULL created the third gamma There followed an international tour of the computing organs in which IBM stated, as usual, the timing and the same time stressed the first tube.

Correction:
"One of the most widely used computer with magnetic drum was the IBM 650, of which about 1,800 units from 1954 were built. His drum had a capacity of 2000 words each ten points "

Hans Heger, Stuttgart 1990. The history of data processing, Volume I," IBM encyclopedia of information processing

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3:16 Jim edge chance

Too late came the tube pioneers Eckert Mauchly and also to Watson, the expected after the experience of scientists no longer Aiken too much. to have your offers, ENIAC IBM mature for mass production, Watson refused to link to from market research. For the second bite Bittgang Watson not. This was the chance for Jim Rand, the gap from the punch card era . Wipe out The project
UNIVAC I began. In 1951, the first commercial computer flickered on the picture tubes of the United States. Radio and television produced a true computer-to-noise and Watson put the biggest shock of his career. He had to watch as Jim Rand, his strongest rival in the punch-card time, media policy, celebrated in its purest form. But not only that: UNIVAC I secured for the second time a competitor the most well-oriented application rate of the census.
that it was Watson again, "despite a major bias that was ever in market analysis" (Datamation), the presented knowledge about the computing tubes catch was, at first, disobedience of his son, Thomas J. Watson Jr., secondly, to the inability Jim Rands, a technological lead of three decades put into commerce, third, on a crash program started quickly.
- At first: Because of market exploration, the old Watson prohibited any research in the field of large computer systems. But his son did this development continue to cook on low flame.
- to second, while Jim held the edge with its UNIVAC I a giant vortex, but people across the count, he forgot to think about the market and its opportunities. He made the crucial mistake, can tailor his suit to IBM-dimensions. He copied Watson's show business and forgot to put the Slow-business, the gradual introduction of new technologies.
- At third, the second major crash program that could provide only a company like IBM with its then already substantial cash reserves on the legs showed after twelve months, the first marketable result: the technical-scientific computer IBM 701, the 1953, the IBM computer business was 702nd
The installation numbers for the first time "in series" computers were built all round modest: the 701 was installed in April 1953 to the first and last time that it took 702 to eight installations worldwide. The UNIVAC I installations corresponded clearly not the spectacular TV preaching via: Despite careful research could only install speed (namely 23) erfmittelt which, however, includes the following system UNIVAC II. (Even in the Diebold-statistics, these systems appear no longer true.)

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3:15 Sensation ENIAC

One year on after the war's end revealed the inventor team Dr. J. Prosper Eckert (electrical engineering) and Dr. John W . Mauchly (physicist) the secret of computing tubes. It created of 18,000 vacuum tubes, the global sensation ENIAC (Electronic Numerical Integrator and Calculator). A sensation but only from today's perspective. At that time, in the first year after the war, ENIAC was a dud, because for the planned war effort, he struck a year too late.
After outdated wisdom that "war is the father of all things" is, in the postwar period were all the inventions on the reference date 8 Measured in May 1945. MARK I was slow and was right, ENIAC was two thousand times faster, and came too late.

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3:14 MARK I, the computing behemoth

Howard Aiken


Mark 1 was the second and final computer Tabellierzeitalters. In second place, he was not only historically but also in performance. The first computer from the zero generation had a German engineer in the early war years, without funding built in Berlin by Konrad Zuse. His electro-mechanical Z3 machine with internal program storage required for a multiplication of three seconds. But this world first came barely the size German borders. Even today, ignored by many American authors, the performance of the German perfect. Also, the Brock House knew nothing of long-term Zuse. In the 1957 edition of his name and his performance is missing. The more
caused a furore in the United States threatened MARK I. However, the announcement in 1944, excluding Watsons and IBM to take place, who had made the project more than a million dollars at all possible. Was taken to the core of IBM's senior, when he saw that the ambitious Creator of MARK I, Harvard Professor Howard H. Aiken, to surpass him of vanity was looking for. For six years, IBM engineers had drawn up the plans of math professor that several tons calculator. It was 15.5 meters long. 850 km wire. 175 000 1210 blades and ball bearings were hidden behind a stainless steel, tin and glass. Overall, there were 765 000 individual elements that kept the new logic in motion. Performance against Zuse's work was magic, however much to be desired: a multiplication employed the giant baby six seconds. Manpower and money, the investment of IBM ignored the generous computer genius "aikenen" Grace, the mathematician Aiken. In a press conference a day before the inauguration offuiziellen in Cambridge / Mass. Exulted Aiken to up his university and "his" computer. Too high for Watson, who sat pale with anger all the stops to get his company and "his" computer in the right Lich move back. For these Cambridge Memories of an ambivalent attitude resulted vanity Watson with scientists and their products.
Conclusion: The triumvirate Aiken, Watson, IBM set to "MARK I" up the rear behind the relay time. Wiegert Watson is narrow-minded from now on, the lights glimmer slowly infecting the electronic age.