With the Incis debacle in the past, now it's all 'e' for new IBM head

By Aimee McClinchy

Friday 28th July 2000

NICK LAMBERT: 'There has never been a more important time than now'

Technology giant IBM is having a shake-up as new New Zealand managing director Nick Lambert turns it into an e-business company.

In the last five weeks Mr Lambert has begun re-engineering the company, in what he calls a back to basics approach, in a bid to help IBM make a financial recovery back after a rocky 12 months.

Last year IBM New Zealand's profitability dipped and the debacle with the police's Incis computer damaged the iconic brand's standing among consumers.

But Mr Lambert, now in charge of over 900 staff, said the company's first half-year results were in good shape and would show a recovery as a result of his programme to return IBM to its former glory.

He has begun major management structure and business division changes and is also recruiting into the sales and consulting services arm.

E-business, consulting and a customer focus have become IBM's new mantra.

In June IBM was announced as the global consulting leader ahead of the Big Five accounting firms. IBM had 1999 consulting revenues of $US9.7 billion but has started facing competition from smaller technology consultancies.

Mr Lambert identified e-business consulting as a key plank for IBM's growth here, with that revenue stream standing out as a growth area in the half year results.

"People think we are a big, monolithic company that would take time to change- but that's not the case - the new 'blue' is more receptive to the customer," Mr Lambert said.

"Before, we lacked focus. We are going to become more focused now - we've got all the ingredients to make the right cake."

Mr Lambert, who came to the job from leading IBM Asia Pacific's web server group and seven years heading Sequent Asia Pacific, said IBM had begun working on major corporate e-projects.

IBM was working with financial information company Baycorp, taking its system into Asia. Other major projects included WestpacTrust's internet banking portal, Contact Energy's e-business platform and the online rebranding of the Public Trust.

It was also making major headway into selling iCMS, Telecom's former Petone-based billing system, into the global market.

IBM was also interested in working on local online exchanges and e-procurement platforms, the latest buzzwords in e-business.

Globally, IBM has alliances with Ariba, Microsoft and EDS and is behind the setting up of e2open, an exchange for the computer, electronics and mobile telecommunications industries.

IBM NZ would also soon look for its first investors from the global $US500 million Next Generation Fund, set up in February for IBM spin-offs with marketable products.

Mr Lambert also intends to follow Australia managing director David Thodey's lead and lobby the government to get e-commerce frameworks and education policies in place.

He said IBM had several initiatives under way in this area but would not comment yet.

Mr Lambert, a New Zealander, said he had chosen to come back because this country was at a time of change. "If we are to compete on a global basis New Zealand needs to be smarter and act smarter - there has never been a more important time than now. E-business will be pervasive."

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