07/11/14 The pressure is building for IBM to find a way to transform itself - but has it left it too late?
Yesterday it scrapped its 2015 forecast and projected that earnings will decline this year, the first drop since 2002. The shares plunged to a three-year low. Many fear that this is the start of a continual downward trajectory.
Whilst this 103-year-old tech giant has managed to reinvent itself in prior generations there are strong arguments that it should have started to act a long time ago. Although it appears to be betting on cloud computing - progress in this area has been very slow. This still only accounts for 3% of revenue.
The concept that a business needs to continually reinvent itself for the future can be diagrammatically represented by using a diagram called the sigmoid curve. The sigmoid curve something we examine in Videos 3.4 and 3.6 of our online MBA course and our MBA app: https://itunes.apple.com/gb/app/bite-size-mba-full-version/id828537312?mt=8
Where would you plot IBM on the sigmoid curve?
Where would you plot your own business?
Business Education for Professionals More info