10 Things Incoming IBM CEO Rometty to Keep IBM Successful
1. Continue the Cloud PushOne of the most important aspects of IBM’s business over the years has been the cloud. And it would be a huge mistake for Rometty to simply turn her back on that. It’s clear now that future of IBM’s business in the clouds, and Rometty would be right to continue that push.
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2. International Expansion Is KeyThe world is a big place with a slew of revenue-generating opportunities for IBM. As important as the U.S. might be, in order to fully take down competitors, like HP and Oracle, IBM must corner international markets.
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3. Make Smart Cash InvestmentsIBM is flush with cash with had over $11 billion on hand and receivables tallying nearly $25 billion. Rometty should consider her options and invest the cash wisely. Smart investments could have a profoundly positive impact on IBM’s business.
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4. Acquire Strong Cloud SolutionsThe nice thing about having all that cash is IBM can acquire just about any major company that it wants. And if Rometty would like to do so, the smart move would be to invest in cloud providers.
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5. Consider A Social Networking BuyIt might sound odd, but IBM might want to consider investing in a social-networking company. Giving some cash to Facebook might help it raise more cash next year to invest in other aspects of its business. Moreover, acquiring business-focused social networks, like Yammer and others, might improve IBM’s products with the integration. Social networks aren’t just for consumer-focused companies any longer.
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6. Keep the Enterprise Central to PlansThe biggest mistake Rometty could make at IBM is to try and focus her company too much on consumers. The fact is, IBM is an enterprise-focused provider of appealing software and solutions, and she shouldn’t try to change that. The past, present, and future of IBM’s business is in the corporate world, and Rometty must respect that.
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7. Double Down On the Smarter Planet ConceptOne of the more interesting projects going on at IBM right now is its Smarter Planet concept. The basic idea is to find ways in which technology can improve “the world’s systems.” Rometty should double down on these initiatives on as IBM’s CEO.
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8. Drown HPLooking at the competitive landscape, HP appears to be one of its biggest threats to IBM. However, HP is in the middle of a tumultuous period that could see the company continue to decline as it tries to find its footing with Meg Whitman at the helm. As IBM CEO, Rometty should capitalize on that and do everything it can now to drown HP. Now is the time.
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9. Don’t Lose Sight of SoftwareAlthough much of the talk surrounding IBM revolves around the cloud, the company’s software solutions are also successful. Software is one of the more profitable aspects of IBM’s business. Realizing that, Rometty can’t allow the cloud to blind her from seeing the value of software. As important as the cloud might be in the future, software is still an integral component in IBM.
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10. Keep It SafeIf IBM CEO Sam Palmisano can teach Rometty anything, it’s that continuing on the path he set for his successor might be a good idea. Under Palmisano, IBM enjoyed immense success, and is currently on a path to even greater heights. First and foremost, Rometty must not make any drastic moves. As the old saying goes, you shouldn’t try and fix what isn’t broken. And IBM is far from broken.