Sam Palmisano, former President and CEO of IBM, summarises the critical challenge he faced taking the company in a new direction [product to service shift and adoption of Smarter Planet] at a time of strong financial performance (via Wharton School of Business):
"I really believed in the beginning that I had to keep the business going, [and] at the same time start the transformation of the business model. I didn't think the business model as it was at that point in time was going to sustain itself over the next 10 or 15 years...There were people, phenomenally successful in the PC era, who were wedded to a business model...[They thought] 'I'm making so much money in this business, do I really want to take the risk of transformation?'"
More proof that the short-termism of financial markets stunts innovation.
And speaking in a personal capacity, but one entirely relevant to that challenge, he nails the #1 reason most companies never get there:
"To get prepared for the future, you need to really put yourself in an uncomfortable space."
"I really believed in the beginning that I had to keep the business going, [and] at the same time start the transformation of the business model. I didn't think the business model as it was at that point in time was going to sustain itself over the next 10 or 15 years...There were people, phenomenally successful in the PC era, who were wedded to a business model...[They thought] 'I'm making so much money in this business, do I really want to take the risk of transformation?'"
More proof that the short-termism of financial markets stunts innovation.
And speaking in a personal capacity, but one entirely relevant to that challenge, he nails the #1 reason most companies never get there:
"To get prepared for the future, you need to really put yourself in an uncomfortable space."
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