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IBM presentation

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IBM Organization Change - Transformation from Computer Giant to IT Consultant Leader

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IBM presentation

  1. 1. LOGOIBMIBMFrom ComputerDesignFrom ComputerDesignto IT Solutions & Customizationto IT Solutions & Customization
  2. 2. IntroductionIntroductionIBM is one of the most successful companies inthe world and the 2ndmost expensive brandbehind Coke. Leadership and culture have beena constant for IBM and the reason for theircontinued success. They have continuouslysought out innovation and have been a marketleader in several areas of technology. They haveshown an incredible resilience and havetransitioned at necessary moments in order tosurvive business competition to become one ofthe very best companies in the world.
  3. 3. ContentsContentsFoundation & ConclusionIBM TimeLine1960s – 2000sOrganization Culture ChangeTransition (Specialization)
  4. 4. IBMTimelineIBMTimelineJohn AkersThomasWatson Jr.Lou Gerstner Sam Palmisano1960s 1980s 1990s 2000s• EngineeringEmployees• TechnicalSales•Product: S/360• 5k Hardware•20k Software•Expansion• Deep Hierarchy•Launched IBM PC• Reorganized•“One IBM”•Leaner•Accountability• Outsourced PCs• IT Solutions &Customization• Acquired PWCIBM has been a market leader in technology and innovation. Theyserve businesses around the world and specialize in several areas.Leadership has steered the direction of IBM since Thomas J.Watson Sr. and continues to navigate the journey today.
  5. 5. IBMBusiness FocusIBMBusiness Focus1960s Mainframe1990s Reorganization1980s PCs2000s IT SolutionsTransformed IndustryPerceived as monopolyPrecursor for a series ofIT related innovationsMarket Leading IBM PCProduct ExpansionBureaucratic ControlOrganization Culture ChangeAccountabilityDownsizingIT Solutions & CustomizationClient FocusedGrowing new businessIBM
  6. 6. IBM1960sIBM1960s123CEO Thomas Watson Jr.Technology: Main Frame SpecializationIndustry Leader & Innovator
  7. 7. IBM1980sIBM1980s123CEO John AkersTechnology: IBM PCBureaucratic & Hierarchical
  8. 8. IBM1990sIBM1990s123CEO Lou GerstnerReorganization “One IBM”Client-Centered & Accountability
  9. 9. IBM2000sIBM2000s123CEO Sam PalmisanoIT Solutions & CustomizationAcquisitions & Transition
  10. 10. Organization CultureOrganization Culture2 Types ofCultureChangeStarting a New Business2.ContinuousChangeBusinesses needs to adapt to the externalenvironment and organizations need strongleadership to enact successful organization change.1.EpisodicChange
  11. 11. Business RelationsBusiness RelationsExternalEnvironmentClientsSocial &BusinessCapitalLeadership& CultureUniversal RelationshipCompetitionTechnologyIntellectualKnowledgeProductInnovationFactors IBMImpactProcess
  12. 12. IBMTransitionIBMTransitionBefore After“THINK”-Thomas J. Watson, IBM CEO1914-19561. Engineering Employees2. Technology focused3. Bureaucratic Control4. Deep Hierarchy5. Technical Complexity6. Product Expansion1. Knowledge Consultants2. IT Solutions & Customization3. Human Resources4. Collaboration5. Knowledge (Human Complexity)6. Lean Strategy“Whenever an individual or a businessdecides that success has been attained,progress stops."-Thomas J. Watson, IBM CEO 1914-1956IBM
  13. 13. Fueling IBMCultureFueling IBMCultureIBM Business Strengths1. Leadership&Management2. Innovation&Knowledge3. ProductsBrandHistoryIBM
  14. 14. Conclusion: Conclusion: IBM transitioned from a technology-based company to aknowledge-based companyIBM reacted to the external environment and successfullychanged their cultureIBM went through episodic change during their transitionIBM benefitted from great leadership and an innovative cultureIBM built a brand of trust & excellence that supported theirtransitionIBM leverages IT tools for increased communication,collaboration, and knowledge sharing to once again become theleader in their field
  15. 15. ReferencesReferencesApplegate, L., Austin, R. O. B. E. R. T., & Collins, E. L. I. Z. A. B. E. T. H. (2005). IBM’s decade oftransformation: Turnaround to growth. Harvard Business School Case 805, 130.Daft, R. L. (2009). Organization theory and design. South-Western Pub.IBM Highlights 1970-1984Retrieved on April 19th: http://www-03.ibm.com/ibm/history/documents/IBM Highlights 1985-1989Retrieved on April 19th: http://www-03.ibm.com/ibm/history/documents/IBM Highlights 1990-1995Retrieved on April 19th: http://www-03.ibm.com/ibm/history/documents/IBM Highlights 1996-1999Retrieved on April 19th: http://www-03.ibm.com/ibm/history/documents/IBM Highlights 2000-2006Retrieved on April 19th: http://www-03.ibm.com/ibm/history/documents/

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