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The New IBM in 2004

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTA107 Electronic Format: Rs. 300;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

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Case Length : 14 Pages
Period : 1993 - 2004
Organization : IBM (International Business Machines Corporation)
Pub Date : 2004
Teaching Note : Not Available
Countries : Global, USA
Industry : Information Technology

Abstract:

When CEO Sam Palmisano took charge of IBM (International Business Machines Corporation) in 2002, revenues were down by $5 billion and IBM was facing the worst tech downturn in its recent history. The case discusses Palmisano's turnaround strategy and his initiatives to generate growth at a time when most technology companies have been struggling. Palmisano has laid off 15,000 people, sold the loss-making disk-drive business, and written off the value of some unproductive chip technology. He has spent more than $6 billion on acquisitions, including the purchase of Pricewaterhouse Coopers Consulting and Rational Software and opened a $3 billion state-of-the-art chip plant.

Palmisano is also leveraging IBM's research capabilities, expanding the business by pushing IT users towards radically different business models and partnering with once-rival software vendors. To keep IBM ahead, Palmisano is exploring the possibility of delivering different types of software as a kind of utility, which customers can use when and where they need. IBM is also engineering computers to manage 'themselves', cutting the amount of human intervention.

Contents:

  Page No.
Introduction 1
Background Note 1
Leveraging Research Capabilities 2
From Software to Problem Solving 5
Acquisitions & Alliances 7
The Road Ahead 7
Exhibits 10

Keywords:

IBM (International Business Machines Corporation), Information technology, Semiconductors, Sam Palmisano, Pricewaterhouse Coopers Consulting, Lou Gerstner, LAM Research, Software, Problem solving, Forecaster, IBM researchers,Mayo Clinic, DB2, IBM Business Consultancy Services

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