Ibm Case Study Summary

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Introduction This case study is about Sam Palmisano’s, IBM Chairman and CEO, vision to establish IBM as a Globally Integrated Enterprise (GIE) where “Global integration is the new game. Innovation is the way to win. We must be out there connecting across the world.” Therefore, the purpose of this paper is to summarize the key issues necessary to define and develop how GIE is relevant to IBM employees and business partners. Furthermore, provide insights on IBM transformation according to “The Art of Strategic Renewal” and “Drucker, Theory of the Business” articles. Finally, report on how IBM has adjusted since 2008 and has IBM been successful with endeavors.
Global Scope As IBM moved away from a computer manufacturer to a technology solutions company, the organization developed its businesses into four main divisions. Global Technology Services (GTS) focused on client IT infrastructure needs and had revenue of $36 billion while Global Business Services (GBS) handled consulting, system integration, and application management with revenue of $18 billion. Additionally, Global Financing had revenue of $2 billion by offering client financing. Consequently, as three of four divisions existed in the
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The following four tests can be applied to IBM situation. (1) Your profits are dominated by maturing businesses in which you see limited opportunities for growth. IBM mainframe business could fit this test. (2) There is a direct threat to your core source of profits. During the Personal Computer (PC) eras, multiple vendors competed directly to manufacture PCs. (3) The opportunity or threat is outside your core markets. Cloud computing and services enabled consumers to use email and word processing outside of the PC. (4) New ways of making money are a threat to your core capabilities. The Internet made the world smaller and allowed competitors to compete with IBM globally. (Binns, Harreld, O’Reilly III, & Tushman,

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