About IBM

IBM was founded as a manufacturing and selling hardware and software company. They never
thought that they would became a knowledge outsourcing firm. IBM now also provide assistance
for OD interventions for many other companies.
They also faced OD interventions, which rise from their strategy not from a problem. Their
strategy is based on their values-, which is integration and innovation.
They did it by merger, acquisition, and increasing in technology.

Reason for OD Intervention
In a report, with two out of five CEOs saying their next competitive threat will come from
organizations outside their industry. Online competitors, Telco by new mobile and broadband
competitors, and financial services by new regulatory requirements, for example, threaten
retailers. The challenges include rethinking workforce practices and priorities, and attracting and
retaining the best people.

Solution -
IBM Kenexa Predictive Hiring combines a cloud-based platform with consulting. IBM
workforce scientists model high-impact roles such as sales associates in retail. Modelling spots
the skills that make all the difference in these roles. IBM Kenexa then tests for those skills by
creating assessments that are embedded into the cloud-based recruitment platform.
This service assesses the skills that organizations have in place and then predicts the crucial job
families required for a customer-driven organization geared to emerging market conditions.

OD Process -
The process, which IBM followed for its OD intervention, was by Merger and acquisition.
Why? IBM did this because there growth strategy includes-
1. acquiring high-value
2. solutions and exiting
3. commoditizing businesses

What? IBM did
1. Over past 5 years, IBM invested nearly $16B in acquiring more than 70 companies
2. Acquired new technology AND complementary business models and channels to create
new revenue.

Impact of OD intervention:-
1. It resulted into 39 acquisitions between 2002 and 2005,
2. IBMs average acquisition doubled its direct revenue within two years