IBM Case
Contents
Executive Summary 1
Synopsis of the Situation 2
Key Issues: 3
Problem Statement: 3
Innovation Process: 3
Scanning: 4
Strategy Phase: 4
Resourcing: 4
Implementation: 4
Learning: 5
Transforming into Divisions 5
Emerging Business Opportunity at IBM 5
Organizational Evolution and Adaptation 7
Horizon 1: 7
Horizon 2: 7
Horizon 3: 8
Selection Criteria for Staff: 8
Porter 5 forces 9
Conclusion: 10
Bibliography 12
Exhibits 13
Process Of Innovation 13
POTER 5 Forces 14
Executive Summary:
The IBM cooperation was founded in the year of 1911 and for many years, it was the world’s leading computer company. Over all of these years, IBM grew constantly, but suddenly in 1991, the company stopped growing for the first time and revenues at IBM started declining enormously. To solve these issues, the corporation hired a new CEO, named Lou Gerstner, who initially focused on reducing expenses, and reorganizing the company’s structure, by applying new principles, and balancing and redirecting IBM’s core values.
In 1999, IBM adapted the changes introduced by Gerstner, the company was mostly on the virtuous financial situation, the company had still dealings with the powerful bureaucrats and highly hierarchs but they yet had not solved its growth issues. A big barrier in the path of growth of IBM was structured systems. This is the reason that Gerstner decided to restructure IBM as it needed a radical change in the structure, transforming the company’s structure into less bureaucratic and able to develop innovative products.
Gerstner changed the company’s structure by dividing it into divisions (H1-H2-H3) or in three horizons, relied on their stages of development. Horizon 1 or (H1) businesses were mature and well developed and accounted for the bulk of profits and cash flow. Horizon 2 or (H2) businesses were on the rise and were experiencing rapid, accelerating growth. Horizon 3 or (H3) businesses were still developing and emerging the seeds of the company’s future.
Executive Summary 1
Synopsis of the Situation 2
Key Issues: 3
Problem Statement: 3
Innovation Process: 3
Scanning: 4
Strategy Phase: 4
Resourcing: 4
Implementation: 4
Learning: 5
Transforming into Divisions 5
Emerging Business Opportunity at IBM 5
Organizational Evolution and Adaptation 7
Horizon 1: 7
Horizon 2: 7
Horizon 3: 8
Selection Criteria for Staff: 8
Porter 5 forces 9
Conclusion: 10
Bibliography 12
Exhibits 13
Process Of Innovation 13
POTER 5 Forces 14
Executive Summary:
The IBM cooperation was founded in the year of 1911 and for many years, it was the world’s leading computer company. Over all of these years, IBM grew constantly, but suddenly in 1991, the company stopped growing for the first time and revenues at IBM started declining enormously. To solve these issues, the corporation hired a new CEO, named Lou Gerstner, who initially focused on reducing expenses, and reorganizing the company’s structure, by applying new principles, and balancing and redirecting IBM’s core values.
In 1999, IBM adapted the changes introduced by Gerstner, the company was mostly on the virtuous financial situation, the company had still dealings with the powerful bureaucrats and highly hierarchs but they yet had not solved its growth issues. A big barrier in the path of growth of IBM was structured systems. This is the reason that Gerstner decided to restructure IBM as it needed a radical change in the structure, transforming the company’s structure into less bureaucratic and able to develop innovative products.
Gerstner changed the company’s structure by dividing it into divisions (H1-H2-H3) or in three horizons, relied on their stages of development. Horizon 1 or (H1) businesses were mature and well developed and accounted for the bulk of profits and cash flow. Horizon 2 or (H2) businesses were on the rise and were experiencing rapid, accelerating growth. Horizon 3 or (H3) businesses were still developing and emerging the seeds of the company’s future.