IBM’s revenues down for 19th quarter in a row…

As you know the focus of this blog is on operations, so I do not often comment on a company’s financial performance. But this headline about an iconic firm was so striking that I thought I would look into it more.  What emerges from this Bloomberg article is how IBM is still going through a transformation started nearly five years ago.  Of particular operations interest to us, is that it is actively engaging in ‘servitisation’ i.e. “trying to sell more products as services”.  And that one consequence of this is that profit margins on services are not as high as on products.  We talk about the differences between products and services on pages 16-17 of the book.

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