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Essay / Research Paper Abstract
This 7 page paper looks at the changes that were started in 2005 at IBM by Samuel J. Palmisano with the move to become a business solutions provider. The change is examined using the Tushman – O’Reilly Congruence Model. The bibliography cites 3 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEbeyondblue.doc
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Unformatted sample text from the term paper:
the company forward. The P&G CEO had speculated that he could reduce the 100,000 staff by up to 75% if they could outsource many of the internal functions to specialised
service companies (Hamm and Ante, 2005). It was at this point Palmisano had a vision of a potential future, where IBM transformed from a computer company to a solutions provider.
This was a market that was already served by a number of specialised companies, but IBM had the benefit of the technology that could support the service systems (Hamm and
Ante, 2005). This offered a great deal of potential as the computer industry was only growing at a rate of 6% per annum, the services sector had a much higher
growth potential (Hamm and Ante, 2005). Palmisano had a history of helping to transform IBM, in the 1990s when the firm was stagnating he was instrumental in helping turn the
firm around under the then CEO Louis V. Gerstner Jr. (Hamm and Ante, 2005). At the time he helps to build the services division from a modest basis into a
$40 million business unit. By comparison the envisaged change significantly further reaching and could also be seen as highly risky. Palmisanos preparation and change can be looked at in
the context of a planned change, taking two years to assess and develop a strategy from the initial concepts. The changes that he began to implement can be considered using
the Tushman - OReilly Congruence Model (Tushman and OReilly, 2002). The first stage is to assess the existing situation within the organization; it is this that leads to the
need for change at IMB. The firm had faced difficulties in the past; this can be seen as reflective of the general environment in the industry in which IBM operated.
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