Ibm Decades of Transformation Essay
IBM’s success in the 1960’s and 1970’s was driven by the vision of CEO Thomas Watson Jr. as evidenced by IBM’s $5 billion development investment into the System/360, “the biggest privately financed commercial project ever”. The System/360, “transformed the industry”, along with IT innovations such as development of the FORTRAN, the hard disk, the floppy disk, IBM supermarket checkout station, and an early version of the automatic teller machine”. Mr. Watson’s vision and or innovation required acquiring talent by making IBM, “the best place to work”. The late 80’s and 90’s became riddled with problems as a result of a …show more content…
5) What challenges did Palmisano face as he assumed the control of IBM in March 2002? Can a company like IBM be organized for both innovation and efficient operation? What advice would you give Palmisano at the end of the case?
When Palmisano took the reigns of IBM the dot-com bubble burst, the economy was in a recession, and IBM revenues were down $5 billion and still declining. 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