IBM shifted its focus towards selling optimized solutions rather than just products alone. This stands in contrast to the current system where customer representatives are responsible for acquiring enough domain knowledge on anything to sell it to their client, and nobody is responsible for process management.
Gerstner addressed to resolve these problems by fostering more collaboration among teams and employees. Before Gerstner joined, IBM had a tendency to use data and indices subjective product milestones and customer satisfaction numbersbut Gerstner changed all these processes of measurements.
The threat of new entrants had obviously increased especially as these companies were now introducing user friendly interfaces and were encouraging other entrants from coming into the market to enjoy the new era of emerging technology.
He had laid a vision on what should be the focus areas for the company in the future. Gerstner viewed the dress code at work as a severe cultural problem that the IBM employee faced.
When Gerstner came on board, the conventional advice and wisdom, from both IBM followers and industry experts as well as most of the IBM executives, was that the only way IBM could be saved from eventual bankruptcy and massive disaster was to break IBM apart into smaller companies.
Gerstner basis for building IBM Global services was that an integrator, acting in a service role, and this integrator controls every other major industry. Gerstner was instrumental in shifting the mental model of employees from self-centric to customer-centric. John Akers and his executive team planned a recovery for the company, involving a breakup into 16 child corporations.Another of the Gerstner insight was that every big industry is built around open standards. Change the fundamental economic model — This strategy started by comparing expense-to-revenue of IBM with its competitors. Gerstner immediately confronted him and made him aware that employees were not his personal property, they belonged to IBM. Gerstner addressed to resolve these problems by fostering more collaboration among teams and employees. And whether he breaks up IBM or keeps it whole, Gerstner must decide which employees to keep and which to fire, and how to do it. The management was planning to break the organization into individual businesses. Re-engineer how business was done — Gerstner saw that the IBM processes were cumbersome, highly expensive as well as redundant. Please place the order on the website to order your own originally done case solution. Lou Gerstner initiated the on-demand concept or solution offering. The threat of new entrants had obviously increased especially as these companies were now introducing user friendly interfaces and were encouraging other entrants from coming into the market to enjoy the new era of emerging technology. Gerstner recommended a price-reduction plan for its customer, which he thought was most essential way to remain competitive in the mainframe market. He tried to fix IBM without actively firing a man, and maintained management traditions focused around committees and agreement.