IBM - Cummins Inc. Partnership Turbocharges PC Savings

Global Manufacturer on Track for 30 Percent Cost Reduction

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COLUMBUS, IN - 26 May 2004: At a recent conference of international leaders from the Cummins Inc. services group, everyone carried an IBM ThinkPad notebook -- same model, same image and state-of-the-art capabilities. Notable? That would not have been the case less than a year ago.

But in a rapid deployment -- less than 17 weeks, to be exact -- IBM helped Cummins to install roughly 20,000 new machines in 24 countries and territories, 212 locations, and in 12 languages. Now, by offering standardized ThinkPad notebooks, ThinkCentre desktops, and IntelliStation workstations in a controlled global environment, this manufacturer of diesel engines and related technologies expects to reduce its annual computer costs by 30 percent.

"When we were looking for a company that could step up to the demands of our program," said Jane Kennedy, Director - Corporate Information Technology at Cummins, "IBM came out the clear winner. We needed a partner that could deliver more than just computers. From on-site project management to configuration, installation, asset tracking and disposal and, finally, celebration, IBM confirmed that we had made the right choice."

In addition to supplying quality hardware and global service, IBM created a custom image for Cummins machines that included Software Delivery Assistant (SDA), part of IBM's suite of ThinkVantage Technologies.

Together, the IBM Personal Computing Division, IBM Global Financing and IBM Global Services -- Integrated Technology Services procured and deployed an average of 1,100 machines per week. SDA was the tool that allowed teams to configure each machine with the Cummins custom image.

The program, called Power Sweep, grew out of a Six Sigma project that Kennedy led. Analysis of the existing computing environment demonstrated that Cummins could reduce its yearly costs significantly by eliminating variation in computer systems, software offerings, procurement processes, and support. Refreshing computers at regular intervals on a global basis would keep Cummins on a cost-effective desktop lifecycle.

"After about 12 months of planning," Kennedy explained, "we started the roll-out first with some key changes to our infrastructure. Then, from mid-May to mid-September of 2003, we rolled the machines and pushed out software electronically. We were certain of the cost savings, and now, eight months into the program, our experience is bearing that out. The best part, however, might just be the soft savings. Comments about ease of working, the power of the machines, and productivity improvements are still coming in. IBM was, and is, an essential part of this new environment."

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