CASE A

IBM's Decade of Transformation:

Turnaround to Growth

0253202 2013/10/24

IBM

Decision Maker CEO

Watson
Watson Jr.
Akers

Gerstner
Palmisano
Rometty

- CEO

Problem
1.4 Billions
New entrants(threats)
360 mainframe
EBO

Cause
Environment
Mgt
Innovation

Solution Alternative
Solve the Problem While Positioning the Company for Growth in the Future

Reorganize as One IBM and Creating the Foundation for Growth

Shifting to High Growth and the Search for The Next Big Thing
Creating Capabilities for Sustained Innovation and Return to Greatness

Solve the Problem While Positioning

the Company for Growth in the Future
Cost down , Layoff , Restructure
Communicate clearly and often (internal and external)
Bear hug key customers, partners, and employees.

Reorganize as One IBM and Creating the

Foundation for Growth
One IBM , Parter , Outsourcing

Shifting to High Growth and the Search

for The Next Big Thing
Next big things , E-business(EBOs)

Creating Capabilities for Sustained Innovation

and Return to Greatness
Return to Greatness

Another alternatives ()
Take apart , Sale , Seek for Safe

Outsourcing , but IBM

Symptoms(Measure)
ROCE
MS
IP
Learning