Brief

Bombardier hires IBM to launch digital transformation efforts

Dive Brief:

  • Bombardier Inc. signed a six-year, $700 million contract with IBM this week. The Canadian-based plane manufacturer plans to launch a digital transformation effort designed to help turn the company around, according to Financial Post and Computer Weekly.

  • According to Bombardier, this move is the backbone for a plan to increase productivity and reduce expenses.  

  • Under the deal, IBM will take charge of Bombardier's global IT infrastructure and operations and help the company transition to IBM Cloud.

Dive Insight:

Bombardier failed to evolve digitally, and now the 75-year-old company is playing catch up. In the past few years, Bombardier has been plagued with slow production and significant budget overruns that have damaged its bottom-line. The company cut more than 14,000 jobs last year. Now Bombardier is hoping IBM can help it move into the digital age, streamline operations and become profitable again.

Businesses old and new are increasingly finding digital transformation key to staying competitive, no matter which industry they are in. According to a Gartner study released last month, nearly 60% of respondents said digital platforms and ecosystems have already improved profits.

Filed Under: Cloud Computing
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