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Watson Jr.'s $5 Billion Bet on IBM's Electronic Computing Future
IBM's transformation from punched-card machines to electronic computing was a $5-billion gamble led by Thomas J. Watson Jr.
In the post-war period, IBM had grown significantly with its punched-card technology but faced challenges as the industry evolved towards electronic machines.
Watson Jr., who joined IBM in 1937 and became president in 1952 and CEO in 1956, oversaw this changeover.
The company invested roughly $5 billion over four years to develop the System/360 computer family, which would become a huge success.
The transition required changes beyond introducing new products, including organisational reforms and a significant increase in IBM's technical workforce.