IBM(US:IBM) Di Yi Cai Jing Zi Xun·2025-12-29 06:42Core Insights - Lou Gerstner, former CEO of IBM, passed away at the age of 83, having transformed the company from near bankruptcy to a thriving IT services provider during his tenure from 1993 to 2002, with stock prices increasing by approximately 800% and market capitalization rising from $29 billion to over $100 billion [2][3]. Group 1: Leadership and Transformation - Gerstner took over IBM at a time when the company was facing unprecedented crises, including a total loss of $16.8 billion over three years and a record loss of $8.1 billion in 1993 alone [2][3]. - He implemented five priority tasks within his first 90 days, focusing on freezing cash flow, ensuring profitability in 1994, gaining customer trust, streamlining operations, and developing a mid-term business strategy [3][4]. - Gerstner emphasized a customer-centric approach, stating that IBM had lost sight of understanding customer needs and delivering value, which led to the "embrace change" initiative [3][4]. Group 2: Strategic Decisions and Impact - Under Gerstner's leadership, IBM achieved its first profit in the 1990s by the end of 1994, amounting to $3 billion, and made a significant acquisition of Lotus Software for $3.5 billion in 1995, marking a pivotal shift towards services [4]. - His influence extended beyond IBM, impacting other companies such as Huawei, whose founder Ren Zhengfei sought to learn from IBM's management practices, recognizing the value of the lessons learned from IBM's experiences [5][6]. - Gerstner's legacy includes not only financial improvements but also a fundamental change in IBM's operational DNA, transitioning the company from a hardware manufacturer to an IT services leader [6].