THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700



January 20, 1995

03 00050 95012001




Mr. Dick Sullivan
Manager of Marketing
Work Group Solutions Marketing
International Business Machines Corp.
Mail Stop 1335, Route 100
Somers, NY 10589

Subject:   SDS Project

Dear Dick,

Ralph Pollock mentioned in a phone call on Jan 13, 1995, that you have decided not to follow through on POIMS and SDS, as planned when we met at COMDEX, on Nov 14, 1994. My letter to you on Nov 22, 1994 confirmed our planning for a meeting in Somers with your Steering Committee, and other steps. When we spoke on Dec 6, you had not seen the letter because your staff had lost it twice, but you planned on using it to guide IBM's efforts, since it demonstrates effective management, as the goal of our project.

Today, I spoke to John Prial, who initially reviewed POIMS. John was unaware of your thinking, but suggested I write to you as the executive responsible for advancing IBM's products for management productivity.

As you know, POIMS harnesses the Information Highway which otherwise portends a management imploding upon itself, spending more time fixing mistakes than on moving ahead. The pressures of this New World Order make it difficult for any organization to consider new ideas like SDS. Ralph said that no analysis has been made of what SDS does, why it is essential to improve your productivity and how IBM can make more money with SDS. Accordingly, please let me know your views on this. If you need help, call and tell me your concerns. I will develop the knowledge you need that supports a considered decision.

Sincerely,

THE WELCH COMPANY



Rod Welch


Post Script

The attached evaluation by PG&E shows how SDS can uniquely help IBM and its customers meet the challenge of the 21st century.