Growth in the Late 1970sNCR began m

Growth in the Late 1970s

NCR began making great strides in the computer field after naming Charles E. Exley, Jr., president in 1976. A 22-year veteran of Burroughs Corporation, Exley oversaw the introduction of a new series of computers and related equipment during the later part of the decade. NCR's 1976 announcement of the 8000 series was well received, and improvements were made throughout the remainder of the decade.

NCR's push into computers resulted in strong earnings, while the company began a series of smaller company acquisitions that boosted expertise in factory data systems, microcards, and IBM-compatible data systems. In fewer than five years NCR revamped its entire product line. During this time the company withdrew from the mainframe computer arena and moved closer to its traditional core industries such as banking and retailing. In 1979 the company passed the $3 billion revenue mark.

NCR came into the 1980s strong, posting its first double-digit increase in revenues in 1980, but growth stalled in 1981, and earnings dropped. Product lines besieged by bugs in the late 1970s resulted in user lawsuits being filed against NCR in the early 1980s. In 1980 a lawsuit was filed by Glovatorium, a small Oakland, California dry cleaning firm. Glovatorium, a first-time computer user, had purchased an NCR Spirit/8200 system to do routine accounting, but the system failed to work. NCR defended its case on the grounds that contracts with Glovatorium had contained limitations of liability and disclaimers. The California judge ruling in the case in 1981 said NCR had targeted first-time computer users and was under a special obligation to be fair in dealing with the user. Punitive damages totaling $2 million were awarded along with compensatory damages for breach of warranty and intentional misrepresentation. The following year NCR agreed to a $2.6 million settlement with Glovatorium.

In 1983 Exley was named chief executive officer, and in the following year he became board chairman. Under his leadership, NCR underwent a corporate restructuring process, made a push back into personal computers, began reemphasizing fiscal control, and started a long-term plan of repurchasing its own stock. The Tower family of microcomputers, which was introduced in 1982, became one of the keys to NCR's success in the mid-1980s. By 1986 the company was again posting double-digit increases, while most of the computer industry was suffering from a market recession.

NCR's revenues had grown to $6 billion by 1988, as the company developed customized products that generated significant indirect sales. Meanwhile NCR's microelectronics division became a leading producer of semiconductors, and the company surpassed IBM as the largest worldwide supplier of automatic teller machines (ATMs). Personal computers and the Tower microcomputers also saw significant sales gains in the emphasis switch from mainframes to distribution processing.

In 1988 Gilbert P. Williamson was promoted from executive vice-president to president, while Exley remained chairman and CEO. The following year overall sales began to dip, although foreign sales were rising. The company closed out the decade as the last thriving member of the BUNCH that had avoided a merger or sellout of interests.

NCR expected to keep its products on par with the computer industry's powerhouses. In late 1989 it announced that it was jumping into the market for microcomputers that were based on a powerful new microchip. The announcement helped NCR land an agreement with Businessland, Inc. to begin selling the new line in 1990.

According to Exley, NCR entered the 1990s with a goal to "reach all markets." The company had operations in nine countries, with products sold in more than 120 countries. NCR expected continued success in the ATM and semiconductor markets and expanded sales in technology and information processing markets. The company also expected indirect sales to increase, with a number of NCR-manufactured products being sold bearing other companies' labels.

NCR looked for benefits from the implementation of "concurrent engineering," to keep its operations on a par with Japanese competitors through a more timely and less costly manufacture of products. Concurrent engineering eliminated a number of independent steps of production, some of which had been contracted out, and replaced that system with one in which design engineers and manufacturing personnel collaborated in a closer working environment, thereby reducing the time needed to correct glitches. NCR had introduced concurrent engineering in 1987 in its new Atlanta, Georgia plant, and by the 1990s the concept was implemented to some degree in all of NCR's manufacturing facilities.

The 1990s started with great promise for NCR. As the result of an April agreement with California-based Teradata Corporation to develop parallel-processing computer technologies, NCR received 1.4 million shares of Teradata stock. In May the J.C. Penney retail chain announced that it would buy $45 million worth of workstation systems from NCR; two months later, NCR negotiated a $10 million contract to automate the branch offices of the Fleet Norstar Financial Group.