Ibm Case Study

900 Words 4 Pages
Register to read the introduction… First, revenue may be tied up in high fixed costs with large investments. Second, departments working separately, in some cases with overlapping functions, causes attention to be focused on individual departments not the company as a whole. Finally, the company is focused on the current products, customers and operations.
4) Evaluate IBM’s approach to leading mature, high growth, and emerging business opportunities. What are the organization design and leadership models required managing each type of business? How should a company like IBM manage the innovation process?
Realizing a deficiency in developing new businesses, IBM created a new approach to business development by categorizing IBM’s business’ as H1 (mature), H2 (rapidly growing) and H3 (emerging). H1 required people with
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However, by 2003, Mr. Palmisano was able to guide IBM to a revenue increase of 10% and net income increase from $3.6 billion to $7.6 billion. He did this through innovation/vision in purchasing PwC to help customers combine business and technology capabilities. This vision helped IBM revenues increase to $31.9 billion. IBM is an example of how innovation and efficient operation can coexist. Existing technology operations along with innovative consulting capabilities helped to increase IBM’s revenues. Thus, it is the suggestion of this group that IBM maintain these practices and continues to, “always look for the next big thing”. Proof for this direction comes from looking at the history of IBM, in that most of IBM’s successes occurred when being innovative and searching for the next big thing. Where this next big thing might come from include emerging geographies and information based

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