Echoes

Fall 1998

Al Shipp: Making IBM software number one in the world market

Standing in front of a class of Rose-Hulman computer science majors, Al Shipp asked them, “What’s the largest software company in the world?”

“Microsoft,” came a quick reply.

Shipp wasn’t surprised by the response. It’s an answer he often receives to the question.

“The answer is IBM,” Shipp noted.

Shipp should know. He’s vice president, IBM software sales for the Western Region. Shipp is responsible for managing the IBM software sales force in 19 states. The region accounts for sales of $1.5 billion.

Shipp assumed the post in May after directing a successful new venture that increased IBM software’s market share on Wall Street.

His comments to the students illustrated just how fast technology is changing.

“At IBM, we consider a Web year to be 90 days,” remarked Shipp, who received his electrical engineering degree in 1978.

He said concept, development and deployment of a new product now happens simultaneously.

“Methods to build and deploy applications like we’ve never seen before are under development,” Shipp told students in Professor Frank Young’s class.

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Shipp says the internet will have profound influence on how businesses reach customers, Shipp explained. “The Internet literally gives any business access to any customer in the world. As systems become easier and less expensive, this trend will only accelerate.”

“It’s impossible to keep up with all the technical advancements,” he stressed. “A manager has to keep focused on the big picture.”

He says that can be tough for engineers. “Engineers naturally worry about the details.

You can’t get bogged down. I believe today’s successful managers hire good people and delegate. A manager has to concentrate on a few, specific, key goals.”

The challenges he faced while competing to sell database products to Wall Street institutions proved to him the value of innovation and team work.

“You’ve got to get everyone on the same page. Your staff has to understand there are common objectives.

“We did some unconventional things. You can’t be afraid to try new approaches.”

His IBM experience includes product development and management, staff and sales support for large systems and software, and sales management. Prior to joining IBM, he was senior project engineer and a member of the Integrated Circuit Design Center in Delco Electronic’s Research and Development facility.

Shipp joined IBM at a period when the personal computer business was beginning to experience tremendous growth. He helped designed the first group of IBM PC printers.

“It was a chance to manage product development from design to putting the product into the market,” he explained.

The excellent reputation of the IBM sales force soon piqued Shipp’s interest to join that group. He moved into branch sales management, directed a business unit focused on government customers, and moved into software sales in 1995.

“Knowing the technical side of the business greatly enhances your ability in management and sales,” he noted.

“My Rose-Hulman education gave me the confidence that I could compete whether it be on Wall Street or in a research center,” he stated.

— by David Piker