IBM now has a new unclear vision under the leaders...

2005-11-26T23:13:00.000-05:00

IBM now has a new unclear vision under the leadership of the new CEO, Sameul J. Palmisano. The newly appointed CEO is attempting to shake off the company’s dependence on the $1.2 trillion dollar industry with a growth rate of 6% annually, and join the business process outsourcing industry. Palmisano further hopes that this move of his will pull IBM out of trenches where they're competing with companies such as
Oracle, Microsoft, Dell, ect. for commodity dollars. Instead, he wants to place IBN in
a position where it can oversee the entire computing industry and all businesses
that decide to hand over their marketing and finance operations to IBM. This “business transformation” does not mean that IBM will resign from the computer supplying industry. After all, the company still has a huge stake and reaps a lot of profit from its hardware and computer services. “To pull of his strategy, Palmisano must win a torturous trifecta: He must manage wrenching change inside IBM while, as a pitchman, convincing corporate customers worldwide to hand over their operations.” I believe that IBM can be and will be successful in this venture of success. However, it has a long way to go; a really long one too, I must add. After all, I believe that riskier ideas attract higher profits. At the current moment, IBM is on its way towards a very “risky adventure.” Eventhough “Palmosano’s strategy promises a neat escape,” we have to bear in mind that IBM is entering a completely different industry where many worldwide companies have already established their names. For example, their most deadly rival, “Accenture Ltd., the $15.6 billion services giant has been dipping a big toe into business process outsourcing.” Other international companies such as, “Tata Consultancy Servies Ltd.” and “Wipro” are well established companies in that industry. However, these companies lack the technical breadth, and the brand name (chpt 13) that IBM posses. The main question still exists: “Will services go the same way hardware has?” After reading the article a few times, I have mixed opinions about that question. I feel that at the current moment in time IBM is not capable, or should I say not ready for this business transformation just yet. Not until the company has a clear vision of how far and where they want to go, and a clear understanding of what it will take to succeed in their mission. However, I believe that eventually IBM will succeed in accomplishing its mission.
~Akshat = akshat48@aol.com~

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IBM now has a new unclear vision under the leaders...