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Challenges Facing Virginia Rometty And Ibm

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Challenges facing Virginia Rometty and IBM One major challenge is maintaining a competitive advantage. With advances in technology, other companies have been able to offer solutions that are much more affordable. The introduction of cloud-based software solutions has caused major disruptions to the client’s core business. Instead of investing in hardware with follow-up support, businesses are now able to utilize the same services through the cloud at a lower cost. The client must focus on emerging markets, as they are ripe for technological growth. Attracting the best talent to help sustain the competitive advantage has also become a challenge to overcome. During the Watson Era, IBM transformed from a medium sized technology company to…show more content…
Additionally, the speed in which IBM’s advancements and transformations are taking place, and the speed in which the core business has declined, has caused more challenges. While Rometty has made some very valuable accomplishments and changes, they are not effective enough to combat the decline of the business. The client has to work quickly and efficiently to put all new procedures into place, to test and execute. Furthermore, the clients will spend additional time training the staff on these new processes and procedures. While the laying-off of thousands of employees - only to hire new employees with updated skill sets - may be a huge advancement in one regard, it can pose as a minor setback as it ties into the training and developing of the new employees to these new standards. Now, with a multitude of employees and systems to manage, the client must ensure that the company is operating to the best of its ability. Time plays a factoring role into the company’s advancement and planning to fix existing challenges, simultaneously, as other areas of the company are hitting setbacks. Stakeholders’ Roles The client’s primary internal stakeholders include the Board of Directors (BOD), Management, and Stockholders. The Board of Directors work in the interests of the Company, bringing with them skills and expertise. The board has shown faith in Rometty’s ability to turn the company around and meet its obligation to the owners.
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