Ibm Case Study

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1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service centric organisation? * The transition of IBM began as IBM hired Louis V. Gerstner as its new CEO. Hence IBM started to invest heavily in Research and Development that reached 6 billions by 1992, thus the objective is moved to create a complex reposition to integrate their existing product to create unique offering in terms of services including consulting, custom programming, system operation and business innovation service known as Integrated System Solution Corporation (ISSC). “IBM employed an inter-disciplinary research approach that includes a detailed archival assessment of the organizations’ experience in integrating services into their product offering as well as interviews” (Eisenhardt, 1989; Yin, 1984, quoted in Bettley, 49). In terms of promotions, IBM is structuring their marketing system by having one marketing agency to bring solid message’ redefinition about the company. Be able to take opportunities from potential market, IBM decided to move its low margin industries whereby investing in high margin business opportunities. As to increase the company visibility in terms of service, IBM invest in several acquisition such as Pricewaterhouse cooper which later expand its service channels in 52 countries. Adapted well, the development of internet in global market took IBM to create their e-commerce business whereby able them to interact across the borders in low cost. The expanded channels is followed by restructuring the company’ HRM as well as service standardized, this includes fixing the core businesses, redesigning their metrics and employees reward system (IBM 2012). To conclude, transformation from product oriented to service oriented cost the objectives changed in research development, management system, company cultural
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