Disruption Rarely Announces Its Arrival Ask Curtis Stevens – the gentleman who was knocked on his posterior by Gennady Golovkin in our header image – if he saw the punches coming. Ask former Microsoft CEO Steve Ballmer if back in the early 2000’s he knew SaaS/cloud-based service delivery models would dominate the software landscape. Ask…
Recently we posited that IBM could easily fix its habitually declining revenue woes with a systematic acquisition strategy focused on Information Services companies. The benefit to IBM in targeting the Information Services sector goes beyond the obvious immediate-term revenue relief and operating margin accretion.
The key strategic benefit is that the Info Services companies are rich with data and information that could serve as grist for the mill with respect to IBM’s advanced analytics initiative – Watson.
Here is the Information Services M&A shopping list which we previously published some weeks ago: Info Services M&A Shopping List
Further, here is our recent podcast covering the subject: Ep.6: How to Fix IBM: M&A and More M&A
Finally – our podcast show notes presentation may be found here: Show Notes Preso
The Three “I”s for Selecting Board Members:
1.) Intellectual Curiosity
2.) Industry Experience
IBM lacks Board members that have Software industry experience other than CEO Ginni Rometty. We recommend that IBM turn over its Board and replace BoD members with new members who have significant Software industry experience given that Software – particularly a strategic M&A plan focused on Software/SaaS/AI/ML/Info Services acquisitions – is likely what will lead IBM out of its malaise. If IBM does not address its BoD and Executive shortcomings proactively it is probable that an Activist investor will make changes for IBM – with or without the latter’s consent. Click HERE for our CEORater Podcast episode concerning the 3 “I”s.