Publications
Publications
- January 2017 (Revised March 2017)
- HBS Case Collection
IBM Transforming, 2012–2016: Ginni Rometty Steers Watson
By: Rosabeth Moss Kanter and Jonathan Cohen
Abstract
To transform IBM for the next technology wave, Ginni Rometty, who became CEO in 2012, led divestment of declining businesses, made acquisitions in digital innovation and cloud computing, formed partnerships with former competitors such as Apple and tech startups, and invested in internally developed cognitive computing/AI platform Watson, a big bet directed at applications for healthcare, education, and cybersecurity. Revenues declined, criticism grew, and challenges of change remained. Watson businesses were new, unproven, and required change in nearly every aspect of legacy operations and culture. To increase speed and agility, Rometty used methods such as online Think Academy, design thinking, and startup contests. In mid-2016, questions remained about the pace and magnitude of change, the scale-up and profitability of Watson, and Rometty’s leadership of change. What was left to do?
Keywords
Digital; Technological Change; Artificial Intelligence; Data; IBM; Watson; Internet Of Things; Innovation and Invention; Management; Sales; Information Technology; Technological Innovation; Transformation; AI and Machine Learning
Citation
Kanter, Rosabeth Moss, and Jonathan Cohen. "IBM Transforming, 2012–2016: Ginni Rometty Steers Watson." Harvard Business School Case 317-046, January 2017. (Revised March 2017.)