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IBM’s Decade of Transformation


The following is a discussion concerning why main business companies do not have new business venture and why they do not have such ventures. Here, we shall explore why reputable business organizations are scared of having new ventures. The first part will deal with the reasons why big corporations do not invest. The second part will deal with the reasons and what the business should do to incorporate technology and success in their innovations in order to be successful. It will further explain how business can build models which will incorporate their existing business and the new businesses.

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Part one

Large established companies, like IBM find it difficult to build successful and sustainable new business for a number of reasons. The first reason is that they do not innovate, having been in business for quite some time makes the companies feel comfortable thereby slowing down their levels of innovation. They say that good enough is the enemy of the best; therefore, the past innovations of many of these companies steal their innovations that could lead to a further expansion and greatness.(Simmons, 2010). According to this, major companies simply do not innovate because they feel that the innovation will be a disruption of their routine.

Apart from their obvious failure of not innovating these companies are also crippled by bureaucracy. Bureaucracy is a set rules and procedures, which govern how an organization moderates. As companies grow older and mature, they are riddled with rules and regulations, which make decision making harder. At the start of every company the decisions are usually at the hand of one individual person. However as a company grows, the decisions to be made increase as well as the number of people involved in the decision making process. This make as it hard for the company to engage in new ventures because longer time is taken to make any worthwhile decision (Christensen, 2008).

These mature companies are also of the view that a new business venture will be disruptive change. This is because a new business will mean that they have to channel the profits towards building a new product or service, which are not received very well. This is because; it could hurt their normal business expenses. The mature business like AT&T and IBM are usually risk averse. They hate risking maybe because they do not want to loose their shareholders money. Starting a new business is a risk on ones money and capital because of the uncertainty on how the market will respond to the new product or service. This means that if the risk is not well managed the new venture is likely to be a failure. This is a major reason why major businesses evade risk because; the risk could mean job losses and loss of investor confidence (Applegate, 2010).

Another major reason why these businesses dislike starting new business venture is probably they are not in tandem with the market needs. Most of these bigger corporations are usually product oriented rather than market oriented. The major companies therefore have an attitude that they know better than their customer and once they have a product they are sure to market it whether people want it or not. This makes it hard for such corporations to succeed in new ventures especially of they come up with a product which is not in line with the customers needs.

Finally, these major companies have been focusing on expansion rather than on innovation and creation of new ventures. In this era of globalization, many companies are looking for ways of having a global presence whereby they are seeking to ensure that their product or services are in each country rather than have different products. This has really kept the major companies from coming up with new businesses because their major aim is to have a global presence not to bring into the market new products.

Part 2

The second part of this discussion will be dealing with the discussion on what the reputable firms should do to incorporate innovations despite the myriad reasons they have against innovations. This is because; they feel that the innovations are uncomfortable and if they are not well controlled, could sink under a thriving company. However, a good management should be a position to balance the newer needs of the market by bringing into place new products and services, and without doing this the companies are likely to loose ground within a given period of time.

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The following are ways in which the company can maintain a healthy growth while coming up with new business ventures. Recognized companies often come within reach of advancement and distraction much differently. They have worked extra hard to bring into line the strategy and business to support the current business.

They develop channel apparition, encouraging workers, clientele, suppliers, and associates to work jointly to convey business results. When unsettling opportunities are recognized, the strongly aligned organizations, production models, and business relationships make it hard to react quickly and efficiently. Thus, executives of the well-known companies consider disturbance to be a danger that treats their business. When they see changes happening, they work to preserve their open industry mold.

Undeniably, discovery of excellent ideas is the foremost step in the improvement course of action. Booming businesspeople and companies can foresee the patterns before some chance occurs. They look for ideas at the crossroads of markets, industry, and up-and-coming technologies as well as disruptors that will unsettle a steady industry and the companies that struggle within them. Moreover, such entrepreneurs seek for production models that benefit the market, and will be modified and implied in any other area.

They are aware of the fact that they should take into account the attitude and views of the consumers. However, in some cases, it is necessary to change their point of view introducing the new technologies and other innovations. Businesspeople and companies should be ready to come up with new approaches and ideas that will foresee the future demands at the market. They then give priority to the several ideas they produce into a latent occasion that addresses a persuasive difficulty for clientele who are able and enthusiastic to compensate them.

The second way of managing innovation or having innovation in an organization is by accepting that the innovation is an important part of any business and without the business innovating it will soon be rendered obsolete. With kind of awareness, every organization will have its leaders and shareholders committed towards the development of new business ventures and growth.

The third way is to pay attention to gaining knowledge of the marketplace in order to find out the sources of the most burning issues where the contemporary goods and techniques are not enough to deal with them. That is why, first. it is necessary to consider the matter itself, and then think about the possible way out. You should pay equal attention to helping your existing as well as new customers. The last may suffer from the narrow-mindedness concerning the innovations and everything new as result of a great attachment to the things they have used to. Thus, they may hinder you to implement new technologies and promote your business.

The fourth one is having a strategy on how to deal with innovation by setting aside a portion of every week for broadening your perspective. Try to figure out the crucial reasons that can give a hint concerning the future changes in the customer’s attitude towards the production. Search for innovative business approaches and models that can significantly change the goods, marketplace, economy as well as yardstick within and without your industry. It is necessary to compare the level of modification in value as well as in time. Consider and discuss the new approaches and other innovations in your company as well as industry as a whole.

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The fifth way of ensuring that a major company is on the track of innovation is by planning your business strategy beforehand and understanding a promising opportunity to emphasize both the long-term and short-term chances. first, describe the product-market relationships as well as the opportunities and necessary resources. Regarding everything that was mentioned above, it is necessary to figure out the future strategy of the company benefiting from the long-term value potential.

Finally, implement the strategy to diminish risk and handle hesitation. Booming entrepreneurs are not gamblers, they have learnt to manage risk by spotting key reservations in their business plan and then enacting assurance on execution to lessen uncertainty even as they build a sustainable company. Reputable firms must adopt a parallel loom to threat management when venturing into unexplored territories. The same approach cannot be used to promote your company at the market and business.

Numerous firms make new enterprise groups in charge of leading radical business modernization and upsetting change (Tucker, 2002). Others uphold a faster association with conventional commerce groups to assist in future integration of new businesses into the well-known businesses. The solution is to grow to be skilled at the industrial innovation development as you look for ideas in the face of disturbance, turn ideas into opportunities, decide opportunities to pursue, productively open novel businesses, cultivate and develop them to produce sustainable proprietary benefit.

Managers about the globe have exhausted the past decades redesigning processes and reforming their organizations to face the difficulties of operating in a vibrant, over competitive earth. Nevertheless, a lot have been needed to face the dismal certainty that the decades in front will command even more change that is essential. If old technologies, ineffective business approaches, rigid environment, and society threaten the companies, market, industry and economy, managers begin searching for the ways to improve the situation through implementing something new.


To conclude, companies like IBM, AT& T need to readjust their global expansion and align it with innovation. This is because; global development alone without the support of creative technologies will not be sustainable for a long period. This development must be fostered by reputable organizations coming up with new models of business, which incorporate the new business and the new ideas.

This is because the larger companies will certainly find it hard to stop their current operations and jumpstart into newer ones. However, the risk is managed by starting the new innovations with a model which will allow the business to continue with the previous operations. In twenty first century the organizations which will thrive in the marketplace are businesses which will incorporate coming up with new products as part of their major assignment (Applegate, 2010).


Applegate, L. (2010). Jumpstarting innovation: Using disruption to your advantage. Boston: Harvard Business School Publishing.

Christensen, C. (2008). The inventors’ dilemma: The revolutionary book that will change the way you do business (Collins Essential). New York: Paperback.

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Simmons, J. (2010). New venture creation. Massachusetts: Harvard University Press.

Tucker, R. (2002). Driving growth through innovation. Massachusetts: Harvard University Press.

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StudyCorgi. (2020, October 20). IBM’s Decade of Transformation. Retrieved from


StudyCorgi. (2020, October 20). IBM’s Decade of Transformation.

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