It was a fully integrated international company. .
Evaluate the process by which IBM reached the 360 decisions.
The 360 decision has went through a long series of process before it IBM decides to launch the new computers. This decision was made after a series of new product launches which resulted the invention from some of the competitors. .
The series of new product that fails:.
1. The "stretch" computer, which has designed in a smaller size than the others, failed because 70 percentage of the promised specifications. And there were not many sold as it was highly priced at $13,500,000. There was a priced reduction to $8 mil to match the value of its performance, however, it was uneconomical for production. It was acknowledge that it was a flop and the "greatest mistake". The loss incurred was about $2 million. And there were two consequences arises from the failure. One IBM loss out in the giant computer field during the next two years allowing their competitors, Control Data a head start in the market. In the second consequences, it created a tremendous pressure on IBM to develop another new project. And this link to the next product failure. .
2. IBM develops an 8000 series, which suppose to replace 7000 series, it designed base on transistor technology, a second-generation computer, but it has more capability than any of IBM model. The model is thought would have minimized the confusion in the division's product line. However, this was rejected as it is "non-homogeneous" and it lacked sufficient compatibility within the line and would have compounded the proliferation problem. It was followed by a short-term extension of 7000 line, with a high and low end model. The 7044 has almost exactly the same capabilities as a computer called Scamp.
3. Scamp was a small scientific computer developed originally for the European market. And it works as well as the 7044 model, however, it makes no sense to run two similar product and hence, the production was stop.
