IBM Corp is also reorganising what is one of its biggest problem children alongside personal computers, the $6,000m a year storage division in San Jose, which has been plagued by product delays, malfunctioning products and products whose performance failed to meet the requirements of the markets at which they were addressed. It is therefore changing the way the unit develops, manufactures and markets its products, but the reorganisation does not include any staff cuts. It is the first organisational change made by James Vanderslice, who took over the business in July, after Ed Zschau resigned. IBM said that one key element of its reorganisation is combining all its marketing efforts for various storage products into one worldwide marketing and sales organisation. It also created a worldwide fulfillment organisation for materials management, inventory and to guide manufacturing. Ray AbuZayyad, vice-president, high density drives, development and manufacturing, and 10 other storage executives at the company, now report directly to Vanderslice.
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