SCQ Tree Diagram and

Hypothesis
IBM Case Study
DWIKA WIDYANTAMA | 2006492420
 SCQ
- From 1980-1990 IBM is known as the
Complication
Situation
most successful computer company
In 1990, IBM is the 2nd most profitable
company worldwide
In 1991 – 1993 IBM undergoes
organizational reform led by Lou Gerstner,
manages to save IBM’s decline
Between 1994-1999 Gerstner made
enormous investments in Internet
products and services, leading to record
growth in the sale of Internet-related
services and associated hardware and
software, in 2000, IBM reported record
sales ($85.1 billion) and profits ($8.1
billion).
By September 1999, IBM had achieved
financial stability with steady revenue
growth
The IT & Computing technology industry is How can IBM maintain to be a sustainable
Questions
an ever changing business landscape industry leader and grow in the ever-
changing technology industry?
IBM struggles to balances between
growth and sustainability for new business
IBM struggles to manage the internal
issues due to sheer organization size and
keeping integrated visions from across
company as “One IBM”
After the disastrous 1990s crisis and
manage to grow and recover 2000, IBM
facing downturn in 2001 and 2002, but
bounced back on 2003, leaving the future
uncertain for continuous growth
Issue Tree
Decreasing Market for mainframe
computers
What are the necessary strategy to
maintain revenue growth and
profitability?
How can IBM leverage their global
capability to boost product sales
across entire product lineup?

How can IBM solve the siloed

organization issue?

How can IBM sustain

their market leading How can IBM resolve organizational
How can IBM resolve the
conflicts and gaps within the
position and grow as a company?
competition between divisions?
company?
What is the right vision for IBM in
order to grow in the future with
current challenges?

What products IBM need to focus

on deploying to the current and
future market?

What is the optimum new business

What services IBM need to fous and
development strategy need to be
deploy for the market
implemented by IBM?

What technology to invest as

emerging business opportunities
Hypothesis
IBM can leverage their sales
IBM can sell their products as
infrastructure to sell all their
a solution
IBM can focus on product lineups
organizational strategy to
sustain and boost growth in IBM can implement work
innovation for future standards across their
businesses opportunity IBM can restructure and organization
streamline their organization
continuously IBM can create a single
objective measurement for
IBM can invest more on entire organizations
development of emerging
technology
 Working Solution Hypothesis
Managing inovations
Maintain commonality of business process
across organizations as well as leaving room
for flexibility for innovation
Invest heavily on new business and product
development ventures
Establish strong partnerships with startups
and smaller companies that shows
promising future technology and market
value
Standardizing the process of building and
selection of new business ventures, and
integrating mature innovations with IBM
global capability
Streamlining operational costs
Improve organizational management
Performing continuous review on
operational cost across division to ensure
optimum efficiency and maintaining lean
cost structure Streamlining and maintaining lean
organizational structure
Closing / Refocusing underperformed
business units / activities and new business Maintain a strong vision of unity across
ventures organization
Continuously improving internal business Increasing transparency across divisions
process and outsource any business Centralizing leadership within divisions and
activities outside the scope of core activities business units