For IBM, A Lesson on Transformation
On Monday, markets began this week with a shock to the system: IBM's results were out, and they had a dismal quarter. Revenue and earnings were significantly lower than analysts expected, and CEO Ginni Rometty acknowledged that the company needed another significant transformation.
In an article posted on LinkedIn yesterday, Marty Wolf suggests that IBM, itself long the archetype of corporate transformation, could learn from its business partner and transaction counterpart: Synnex.
When Synnex acquired IBM's Customer Care BPO services business one year ago, it was making a $505 million bet that it, not IBM, was the best owner of the asset. And its bet has paid off-since one week before the acquisition was announced, its shares have risen 30 percent (compared with 12 percent and 7.6 percent respectively for competitors Tech Data and Ingram Micro).
The takeaway? IT Solution providers - as with all IT companies - have strong opportunities to differentiate themselves by adapting to changing market conditions and expanding beyond their traditional roles. And whether they seize these opportunities can have a substantial impact on whether they create value or leave it on the table.
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