Ibm Case Study

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What competences has IBM had to invest in arising from its transformation from a ‘product centric’ to a ‘service centric’ organization? Company competency is about what activities that a company can perform well. To transform from a ‘product-centric’ to a ‘service-centric’, IBM had to invest in some competences. First, customer-oriented. Before, IBM was focusing more in internally process-driven enterprise than the market-driven. It made IBM very close to death because it did not pay attention to the market requirement and demand. It lost touch with the customers which are the most important thing that a company should pay attention to be successful. This competence can give result to drive the company from the point of view of the customer. Second, flexibility. IBM was near to death also because it did not have flexibility in responding the changes in the market. Under Gerstner’s leadership, he drove IBM to be more responsive with the changes by emphasizing IBM on business services. It was done by evaluating the firm’s core capabilities (exiting network hardware business, storage, and personal computer and to enter services and software) and transforming the competitive strategy that based on focus, speed, customers, teamwork, and execution; through standardizing the global core processes, centralizing the company, etc. Third, focus. IBM now is only focusing its resources and capabilities on providing solution to large enterprises and already exit the consumer market which required very different skill from IBM’s focus.IBM positions itself as a provider with integrated solutions for customers (a company that can bundle and customizes solutions of hardware, software, and services). How would you describe Louis Gerstner’s implementation style of IBM’s competitive strategy in the early 1990s? Louis Gerstner brought radical change in the work culture of IBM. The

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