Analysis of the bio- and nano-technological market of Germany to find market entry strategies for chosen IBM Research Developments

Contents

List of abbreviations

List of graphics

1. Introduction

2. About IBM Research
2.1 IBM’s efforts in biotechnology
2.2 Nanotechnology & nanoscience
2.3 DNA-sequencing and beyond
2.4 Computational biology research
2.5 Lab-on-a-chip

3. Germany’s attitude to bio- and nanotechnology
3.1 Biotechnology
3.2 Nanotechnology

4. Conclusion and recommendations for market entry strategies
4.1 Nanotechnology & nanoscience
4.2 DNA-sequencing and beyond
4.3 Computational biology research
4.4 Lab-on-a-chip

Biography

List of internet sources

List of abbreviations

illustration not visible in this excerpt

List of graphics

Graphic 1: Locations of IBM Research Global Labs

Graphic 2: 3D map of the earth created by IBM’s nanopattering technique

Graphic 3: IBM's labor-on-a-chip device

Graphic 4: Attitudes to Biotechnology throughout Europe

Graphic 5: Nanotech-landscape in Germany by types and size

1. Introduction

In this seminar paper I want to discuss about IBM’s efforts in the biotechnology and nanotechnology sector. As the lecture international management designated I will coin these efforts with strategies of market entry within Germany. I have chosen IBM, a US-based company, because it is highly involved in building future technologies. The Company is well known for its activities around the world and sees itself as a globally integrated enterprise^[1]. However, cultural attitudes of different countries still determine the success or failure of market entries. Germany is known as a technology-leading country. Also dealing with powerful NGO’s the success of new market entry with modern technology might seems less predictable^[2].

In the first part of this paper I give a brief description about IBM, its research fields related to the topic and outline four research examples. Followed by an introduction of Germany’s cultural attitude to bio- and nanotechnology I provide some strategic suggestions on how IBM could manage the expansion of its efforts within the targeted country.

Note: IBM Research Labs in Almaden and Zurich were not willing to give any interviews for this study due to high confidential content. Requested Spokesmen always referred me to the public websites and announcements.

2. About IBM Research

With nearly 400.000 employees and 99.87 billion US-Dollar revenue in 2010^[3], IBM is one of the world’s leading providers of information technologies such as hardware, software and services. The corporate headquarter is located in Amonk, US.^[4] IBM, sometimes nicknamed Big Blue^[5], is well known for its steady investments in Research. 8.0% of the annual revenue was reinvested in 2010^[6]. With more than 5,000 U.S. patents granted in 2010, the company held the number one position on the patent tally for 18 consecutive years.^[7] IBM’s eight Research Global Labs are located in USA, Switzerland, Israel, India, China and Japan. Graphic 1 illustrates the company’s scientific network.^[8] The research areas include chemistry, computer science & engineering, electrical engineering, materials science, mathematical sciences, physics, services science, management & engineering and systems.^[9]

illustration not visible in this excerpt

Graphic 1: Locations of IBM Research Global Labs^[10]

2.1 IBM’s efforts in biotechnology

First of all we need to discuss the term biotechnology. There exist several definitions. Simply defined, biotechnology means “the manipulation of natural bio-systems with multiple disciplines for human benefits”^[11]. Related research fields include nanotechnology^[12], chemistry, applied physics and material engineering.^[13] Looking to IBM efforts, subareas of its research activities are nanotechnology & nanoscience, including bionanotechnology^[14], electrically active organic materials^[15], organic chemistry^[16] and computational biology research^[17]. These studies are mainly driven at the Laboratories located in U.S., Switzerland^[18] and Israel.^[19] In the following chapters four concrete examples are given.

2.2 Nanotechnology & nanoscience

From IBM’s perspective, its nanotechnology research “aims to devise new atomic- and molecular-scale structures and devices for enhancing information technologies, as well as discover and understand their scientific foundations. Leading the development of nanotechnology, IBM's scientists have made numerous breakthroughs in the study of these nano-scale technologies. In particular, carbon nanotubes and scanning probes derived from the atomic force microscope - cousin of the scanning tunneling microscope - show particular promise in enabling dramatically improved circuits and data storage devices. Research on nanoparticles leads to applications in biomedicine as well as hard disk drive storage. Photonic bandgap materials -- on-chip nanoscale structures the size of a wavelength of light -- will manipulate light as optical waveguides, splitters and routers. Research into nanomechanical information storage, such as IBM's Millipede project, continues to increase the possibilities for increased areal storage density.”^[20] Another popular project introduces the racetrack memory. Bits of information are represented by tiny magnetized sections called domain walls along the length of a nanowire.^[21] The ability to move single atoms brought IBM the Nobel Prize in physics in 1986.^[22]

Another breakthrough is the nanopattering technique showed in graphic 2. In the year of 2010 IBM created a 3D map of the earth so small that 1,000 could fit on a grain of salt. In the relief, one thousand meters of altitude correspond to roughly eight nanometers (nm). A tiny, silicon tip with a sharp apex and 100,000 times smaller than a sharpened pencil can create nanosized objects at greatly reduced cost and complexity.

illustration not visible in this excerpt

Graphic 2: 3D map of the earth created by IBM’s nanopattering technique.^[23]

[...]

^[1] cf. Scase, R. (2007), pp. 27 sqq.

^[2] See Part 3 for details.

^[3] cf. Anon (2011 a): http://www.zacks.com/stock/news/46162/IBM+Beats+on+Strong+Revenues (date: 31.01.2011)

^[4] cf. Anon (publication date unknown a): http://www.ibm.com/ibm/us/en/ (date: 31.01.2011)

^[5] cf. Anon (publication date unknown b): http://www-03.ibm.com/ibm/history/reference/faq_0000000068.html (date: 31.01.2011)

^[6] cf. Anon (2011) http://www.zacks.com/stock/news/46162/IBM+Beats+on+Strong+Revenues (date: 31.01.2011)

^[7] cf. Anon (publication date unknown c): http://www.itjungle.com/tfh/tfh011711-story07.html (date: 31.01.2011)

^[8] cf. Anon (2009), pp. 36

^[9] cf. Anon (publication date unknown d): http://www.research.ibm.com/areas.shtml (date: 31.01.2011)

^[10] Fround in: Anon (2009), pp. 36

^[11] Kazuo, N.; Watanabe, E. P. (1997), pp. 228

^[12] cf. Bhushan, B. (2007), pp. 462

^[13] cf. Endo, I. (2010), pp. xi

^[14] cf. Anon (publication date unknown e): http://domino.research.ibm.com/comm/research.nsf/pages/r.nanotech.html (date: 31.01.2011)

^[15] cf. Anon (publication date unknown f): http://www.research.ibm.com/disciplines/materials_science.shtml (date: 31.01.2011)

^[16] cf. Anon (publication date unknown g): http://www.research.ibm.com/disciplines/chemistry.shtml (date: 31.01.2011)

^[17] cf. Potera, C. (2007): http://www.genengnews.com/gen-articles/company-update-blue-gene-tackles-disease-and-migration/2085/ (date: 31.01.2011)

^[18] cf. Anon (publication date unknown h): http://www.research.ibm.com/worldwide/index.shtml (date: 31.01.2011)

^[19] cf. Anon (publication date unknown i): http://www.research.ibm.com/haifa/info/201003_CGA.shtml (date: 31.01.2011)

^[20] Anon (publication date unknown e): http://domino.research.ibm.com/comm/research.nsf/pages/r.nanotech.html (date: 31.01.2011)

^[21] cf. Greene, K. (2011): http://www.technologyreview.com/computing/27020/page1/ (date: 31.01.2011)

^[22] cf. Parrish, A. (2010): http://nanopatentsandinnovations.blogspot.com/2010/04/ibm-breakthrough-nanopatterning.html (date: 31.01.2011)

^[23] Found in: Parrish, A. (2010): http://nanopatentsandinnovations.blogspot.com/2010/04/ibm-breakthrough-nanopatterning.html (date: 31.01.2011)