Case Analysis on DAKSH and IBM: Business Process Transformation in India
Case synopsis
The analysis of the case involves an in depth understanding of the strategic management decisions and consequences of IBM’s acquisition of Daksh. The case deals with the IBM’s agenda of why they opt for an acquisition, the strategies involved and business environment that prompts for the acquisition. IBM stood tall with its software and hardware integration solutions but the changing IT scenario in mid 2004 paved way for IBM to realign its business strategies. Going the cost efficient way on a global scale and investing in the BRIC countries gave IBM a competitive edge over its rivals like Accenture and EDS. While this strategy could be easy imitated, IBM stood differentiated in the length and depth of its offerings. IBM’s India operations in 2003 led by CEO Samuel Palmisano generate a tremendous upsurge in its operations and revenue. IBM reestablishes itself as the big giant in the service industry but not without key concerns in its core operations. The integration issues and changing nature of technology sends a wave of anxiety about IBM’s future growth and direction.
Business Analysis
Background of the case
In mid 2004, the global software industry was transforming into a new phase that involved high use of Internets open standards and networks. There was a fundamental shift to open source and cloud. In the midst of this IBM wanted to strategically re align its business efforts to strengthen its global position. They wanted to make a mark in technology such as
Service Oriented Architecture
On demand Business process services
Open modular systems
The clients wanted services that would help them define and assist their business process. IBM's strategic initiative was to offer “on demand mode of operation” that would give customers an innovative service that combines process, people and technology into a network and this