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Krishna believes a more nimble delivery of IBM’s prowess in computing, particularly AI, will set it apart in the intensely competitive cloud services business. “The data available through the cloud far outstrips humans’ ability to use it,” says Dave Padmos, Head of Technology, Media and Entertainment and Telecommunications Services for EY Americas. “Having IBM’s AI solutions running on its own platform is intended to give customers more value.”
Such transformative change can succeed only to the extent that the CEO can cultivate faith throughout the organization in the company’s offerings and strategy. Krishna’s expansive outlook grounds him in the perspectives of both IBM’s salespeople and its vaunted and influential engineers—all of whom are essential as the company splits in two. “In the end, you have to motivate people,” Krishna says. “A lot of engineers are motivated to get the technologies they’re inventing out to millions and millions of users. And people in sales get excited when they can bring a lot of value to their clients.”
Such change also requires a partner to help manage the complexity. “As IBM’s journey partner, EY brings to bear its deep understanding of how spinoffs and mergers work and how to manage all the triggering events,” Sharma says. “We excel at managing the convergence of many triggers.”
Despite the operational and technological complexity inherent in mapping IBM’s transformation, Krishna advises CEOs not to get bogged down in technology, but to keep the focus on value. “Don’t just be the smart person; don’t just be the person who can apply technology for technology’s sake,” Krishna advises. “You’ve got to understand what the value is and why somebody might be interested in making a commercial offering out of it.”