DIGITIZATION IN BUSINESS AN ANALYSIS OF IBM ASSIGNMENT SAMPLE
Introduction
The process through which an organization adopts new and innovative techniques that are purely based upon technological accelerations is known as digital transformation. The main motive behind a digital transformation by any organization is to bring a fundamental diversification by making proper use of digital tools to enhance their operational processes.
This assessment consists of three main aspects which are “The Case for Change”, “Capture Insights” and “Make fast decisions”. The assessment will help in generating a “case for change” which will help to calculate how a company has been able to transform digitally.
The study’s point of convergence will also be on the threats faced by the selected company and objectives they want to achieve. The digital transformation in IBM will be discussed in the given study.
A proper evaluation will also be done on the techniques that can be used by the selected company to recognize the changes in the operating market. Lastly, approaches which the selected company can use to make sudden decisions will also be stated. In the end, the whole assessment will be concluded in the form of a paragraph.
Task 1: The Case for Change
In 1911, a Computing-Tabulating-Recording Company was incorporated in an amalgamation of three different smaller companies that mainly focused on manufacturing punch-card tabulators and other office commodities.
It is one of the leading American machines corporations having its dominant share of the market both in the United States of America and abroad (Macrotrends.net, 2021).
The headquarters of IBM is located in Armonk, New York. In 2019, IBM has experienced a prominent rise in their employee turnover rate which went up to 13% (Statista.com, 2021). In the early 2021, the company managed to gain a revenue of $8.205 dollars which is 3.56% more from the last year.
Digital Transformation in IBM
IBM has gone through a constant digital transformation ever since their business was incorporated. The digital transformation of IBM mainly focuses on a customer driven approach.
The company has included a digital-first approach to all departments of their business which incorporates business models, software processes and operation management (Magistrettiet al. 2019).
Artificial Intelligence, automation, hybrid cloud and other digital technologies are used by IBM in order to leverage their data system and to accelerate intelligent workflows in their organization. These digital transformations helped the company to make faster and smarter decisions and to provide real-time feedback to the market interruptions.
Threats faced by IBM in their digital transformation
There are many barriers and hindrances that IBM needs to face in its journey of digital transformation. Cloud risks and artificial intelligence risks were the most prominent challenges that IBM needed to face. Being a digital-driven company, IBM requires a lot of dedicated IT skills employees which is problematic in practical terms.
Cybersecurity, technical engineers and advanced data analytics are some of the areas where the company was facing challenges in exercising (Khachaturyan, 2020). Change in organizational management was also lacking in IBM. The company was also having problems in managing an effective data management system.
Objectives which IBM wants to achieve by their digital transformation
The main objective of IBM behind its digital transformation is to provide their organization with the most advanced information technologies which will help them to create, develop and manufacture new ideas and innovations (Ibm.com, 2021). These advanced technologies include computer systems, software, networking systems, devices for storage and microelectronics.
Through the professional solutions, IBM wants to translate these advanced technologies into appraisal for their potential clients. Another main objective of IBM is to create services and business solutions throughout the world using new digital techniques and innovations.
Task 2: Capture Insights
Techniques used to recognize changes in the market
Keep an eye out for changes in business environment
In order to recognize the changes in the market, IBM needs to keep updated information about the changes in the market scenario. IBM should be having proper knowledge about the controllable as well as uncontrollable environment that can influence the behaviour of their potential clients
In this way, IBM can gain an edge in competitive advantage with the help of technological flexibility. IBM can implement the macro-environmental analysis frameworks such as PESTLE, STEEPLE in order to be well acquainted with its business environment.
Improving the internal process of their organization
The point of convergence of IBM should be on improving their internal processes (Tanveer et al. 2020). The external system of IBM would also not function properly if the internal processes of their company is not functioning effectively.
IBM should build scenarios into their strategic plans
With the help of scenario planning, IBM can provide multiple chances and opportunities to counterbalance multiple variables and can plan various financial conditions. IBM can have two financial scenarios which include pessimistic and optimistic scenarios.
Apprehend insights about its competitors, macro-economic trends and partners
In order to have insights about its competitors, IBM can adopt many strategies and techniques. IBM should be uncovering the keywords that their competitors are targeting and they should also analyse their competitors ranking against the keywords that have been uncovered. IBM can also use the Competitive Force Model to get the accurate impression of the industry in which they are operating. On the other hand, PEST Analysis can be used by IBM to get proper insights about the changing macroeconomic trends and the external environment.
Task 3: Make Fast Decisions
Flex frameworks
IBM can use flex frameworks when there is an extensive decision-making protocol. A sense of trade-offs of their choice can be simplified as they help them to make faster decisions regarding their organization.
Autocratic decision-making approach
Autocratic decision-making approach would be most appropriate for IBM when they face situations of having low impact and they are logically small decisions (Ilina and Sinitsyn, 2017). But at the same time the company gets larger as the importance goes up. Autocratic decision-making will help the organization to have command and full control over such urgent situations.
Participatory decision-making approach
Participatory decision-making approach would be most beneficial for IBM in situations where they have high urgency and need to take a proper decision as soon as possible. The impact of such situations will be for a long-term and the risk involved will be a lot more.
Conclusion
Digital transformation’s pros are undeniable in nature. In such a short span of time, IBM has grown immensely with a proper utilization of digital transformation in their organization. With the help of the latest digital tools, IBM has been able to optimize their internal processes and external systems. The customer services of IBM have also been enhanced by making proper use of digital transformation in their organization.
References List
Ibm.com (2021), Fuel your journey to AI with data science, Available at https://www.ibm.com/in-en [Accessed on 21.06.2021]
Ilina, E.P. and Sinitsyn, I.P., (2017). Models and Methods for Automated Analytic Support of the organization decisions field. PROBLEMS IN PROGRAMMING, (3), pp.113-127.
Khachaturyan, A.A., (2020). Digitalization of the economy: social threats. Market economy problems, (3), pp.124-134.
Macrotrends.net (2021), IBM Gross Profit 2006-2021 | IBM, Available at https://www.macrotrends.net/stocks/charts/IBM/ibm/gross-profit#:~:text=IBM%20annual%20 gross%20 profit%20for%202018%20was%20%2436.937B%2C,2016.%20 IBM%20is%20an%20 information%20technology%20%28IT%29%20com [Accessed on 19.06.2021]
Magistretti, S., Dell’Era, C. and Petruzzelli, A.M., (2019). How intelligent is Watson? Enabling digital transformation through artificial intelligence. Business Horizons, 62(6), pp.819-829.
Statista.com (2021), IBM number of employees worldwide from 2000 to 2020, Available at https://www.statista.com/statistics/265007/number-of-employees-at-ibm-since-2000/#:~:text=Since%20early%202019%2C%20IBM%20is%20facing%20a%20class,for%20a%20high%20turnover%20rate%20of%2013%20percent [Accessed on 22.06.2021]
Tanveer, M., Hassan, S. and Bhaumik, A., (2020). Covid-19 Quarantine And Consumer Behavior That Change The Trends Of Business Sustainability & Development. Academy of Strategic Management Journal, 19(4).
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