Early History of IBM
IBM History, IBM Corporate Profile
1890-1938: The early years
IBM was incorporated in the state of New York on June 15, 1911 as the Computing-Tabulating-Recording Company. But its origins can be traced back to 1890, during the height of the Industrial Revolution, when the United States was experiencing waves of immigration. The U.S. Census Bureau knew its traditional methods of counting would not be adequate for measuring the population, so it sponsored a contest to find a more efficient means of tabulating census data.
The winner was Herman Hollerith, a German immigrant and Census Bureau statistician, whose Punch Card Tabulating Machine used an electric current to sense holes in punch cards and keep a running total of data. Capitalizing on his success, Hollerith formed the Tabulating Machine Co. in 1896.
In 1911, Charles R. Flint, a noted trust organizer, engineered the merger of Hollerith's company with two others, Computing Scale Co. of America and International Time Recording Co. The combined Computing-Tabulating-Recording Co., or C-T-R, manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers and, of course, tabulators and punch cards. Based in New York City, the company had 1,300 employees and offices and plants in Endicott and Binghamton, N.Y.; Dayton, Ohio; Detroit, Mich.; Washington, D.C., and Toronto, Canada.
When the diversified businesses of C-T-R proved difficult to manage, Flint turned for help to the former No. 2 executive at the National Cash Register Co., Thomas J. Watson. In 1914, Watson, age 40, joined the company as general manager.
The son of Scottish immigrants, Watson had been a top salesman at NCR, but left after clashing with its autocratic leader, John Henry Patterson. However, Watson did adopt some of Patterson's more effective business tactics: generous sales incentives, an insistence on well-groomed, dark-suited salesmen and an evangelical fervor for instilling company pride and loyalty in every worker. Watson boosted company spirit with employee sports teams, family outings and a company band. He preached a positive outlook, and his favorite slogan, "THINK," became a mantra for C-T-R's employees.
Watson also stressed the importance of the customer, a lasting IBM tenet. He understood that the success of the client translated into the success of his company, a belief that, years later, manifested itself in the popular adage, "Nobody was ever fired for buying from IBM."
Within 11 months of joining C-T-R, Watson became its president. The company...