IBM(US:IBM) Sou Hu Cai Jing·2026-01-01 00:43Core Viewpoint - The article highlights the legacy of Louis Gerstner, the former CEO of IBM, who passed away at the age of 83. He is credited with transforming IBM from a struggling company into a successful enterprise during his tenure from 1993 to 2002, earning the title "savior of the blue giant" [2][10]. Group 1: Gerstner's Background and Challenges - Louis Gerstner took over IBM in 1993 when the company was facing severe financial difficulties, with its stock price plummeting to $13, only 28% of its peak value in 1987, and suffering losses of $50 billion in 1992 and $81 billion in 1993 [9][10]. - Despite having no prior experience in the technology sector, Gerstner's management skills were honed through his previous roles at McKinsey and American Express, where he significantly increased customer numbers [6][7]. Group 2: Strategic Decisions and Transformations - Gerstner made a bold decision to drastically reduce the prices of IBM's mainframe products, cutting prices by up to 96%, which led to a remarkable recovery in sales and a return to profitability in 1994 with $3 billion in earnings [13][14]. - He initiated a strategic shift towards "network-centric computing" in 1995, recognizing the impending changes brought by the internet, and made key acquisitions to support this transition [15][16]. Group 3: Organizational Reforms - Gerstner implemented significant organizational changes to combat bureaucratic inefficiencies, consolidating various business units and streamlining operations, which resulted in a reduction of product development cycles from four years to 16 months [19][20]. - He also sold off underperforming assets and divisions, including the personal computer business, which had been a financial drain, thereby improving the company's overall financial health [20]. Group 4: Management Philosophy and Influence - Gerstner's management philosophy emphasized customer-centricity and agility within large organizations, demonstrating that size could coexist with responsiveness and innovation [25][21]. - His approach has influenced other companies, notably Huawei, which adopted IBM's management practices under Gerstner's guidance, highlighting the broader impact of his leadership style [20][21]. Group 5: Legacy and Insights - Gerstner's legacy is characterized by his ability to balance the strengths of a large organization with the agility of a smaller one, emphasizing the importance of execution over mere vision [25][36]. - His management principles, including the need for transparency and rapid decision-making, continue to resonate in the business world, providing valuable lessons for future leaders [26][37].