Several potential solutions or business strategies to solving these organizational issues at IBM? 

Include a minimum of three alternatives with multiple advantages/disadvantages of each and applying the strengths and weaknesses within the company (Alternative 1, Alternative 2... using bullet points is fine).

 

Perceived problems:

Declining revenues: IBM's revenues have been declining for several years, leading to concerns about the company's long-term viability. In 2020, IBM's revenue was $73.6 billion, a decline from the previous year's $77.1 billion. This decline has been attributed to the company's struggles to keep up with rapidly changing technology trends, increased competition, and a decline in demand for traditional IT services.

Difficulty adapting to changing technology: IBM has traditionally been a leader in technology innovation, but in recent years, the company has struggled to keep up with changing technology trends. The company has been slow to adopt cloud computing and artificial intelligence, two technologies that are increasingly important in the modern business landscape. This has put IBM at a disadvantage compared to companies like Amazon, Google, and Microsoft.

Declining market share: IBM's market share has been declining in recent years, particularly in the cloud computing market. In 2020, IBM had a 2.6% share of the cloud infrastructure services market, compared to Amazon's 31.4% and Microsoft's 20.3%. This decline in market share has been attributed to IBM's difficulty in adapting to changing technology and increased competition from other companies.

Underlying problems:

Legacy systems: IBM has a large number of legacy systems that are difficult to maintain and update. These systems are often expensive to maintain and can be vulnerable to cyberattacks. Legacy systems can also make it difficult for IBM to adopt new technologies and keep up with competitors.

Complex organizational structure: IBM has a complex organizational structure that can make decision-making slow and inefficient. The company is divided into several business units, each with its own management team and priorities. This can make it difficult for IBM to respond quickly to changing market conditions and customer needs.

Dependence on large clients: IBM has historically relied on large clients for a significant portion of its revenue. While this has been a successful strategy in the past, it can be risky as large clients can switch to competitors or reduce their spending on IT services. This dependence on a few large clients can also make it difficult for IBM to focus on smaller, more innovative projects.

Potential long-term effects:

Reduced market share: IBM's declining market share could have long-term effects on the company's financial performance. As more companies adopt cloud computing and artificial intelligence, IBM's lack of competitiveness in these areas could result in a further decline in market share.

Decreased revenue: IBM's declining revenues could also have long-term effects on the company's financial performance. If the company is unable to reverse its revenue decline, it may be forced to cut costs, which could lead to layoffs and a reduction in research and development spending.

Reduced innovation: IBM's dependence on large clients and legacy systems could also lead to a reduction in innovation. If the company is focused on maintaining legacy systems and meeting the needs of large clients, it may have less time and resources to devote to innovative projects.

Reputation damage: IBM's declining market share and revenue could also damage the company's reputation. If clients perceive IBM as a company in decline, they may be less likely to do business with the company in the future.

IBM is facing several perceived and underlying problems that could have long-term effects on the company. These problems include declining revenues, difficulty adapting to changing technology, declining market share, legacy systems, complex organizational structure, and dependence on large clients. The potential long-term effects of these problems include reduced market share, decreased revenue, reduced innovation, and reputation damage. To address these problems, IBM will need to focus on innovation and agility, prioritize research and development, and streamline its organizational structure. The company will also need to be more proactive in adopting new technologies and expanding its presence in growing markets such as cloud computing and artificial intelligence. By taking these steps, IBM can position itself for long-term success in a rapidly changing technology landscape.