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BUS503Mod2Case RiveraJ

BUS503Mod2Case RiveraJ - TOURO UNIVERSITY INTERNATIONAL...

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TOURO UNIVERSITY INTERNATIONAL JAVIER E. RIVERA CAMACHO BUS 503 MODULED 2 CASE ASSIGNMENT
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Introduction IBM, a leader in computer system has been losing its foothold to other industry companies, like Dell, which have developed better cost savings processes. IBM was not in a position to compete with such processes (Hamm 2005). In order to escape from the computer industry dead end before it’s too late, CEO Samuel J. Palmisano refocused IBM’s resources to a new direction. This direction was the business service industry: consulting and outsourcing. In order to accomplish this highly ambitious agenda Mr. Palmisano focused on certain issues related to this transformation. These issues involved the organization departmental integration, human resources capabilities, available and potential opportunities, and promote his strategy. Although IBM did not leave the computer industry as a whole it certainly went through a radical change, which might still continue, on its historical business model and operations. Tushman-O’Reilly Congruence Model To analyze the changes implemented by Palmisano, the Tushman-O’Reilly Congruence Model will be the method utilized. It is simple and identifies important factors, based on four building blocks related to an organizational change (critical factors, culture, formal organizations, and people).
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