Watsonx: Can IBM Become a Leader in the Enterprise AI Market in its Second Outing?

Watsonx: Can IBM Become a Leader in the Enterprise AI Market in its Second Outing?
Case Code: ITSY141
Case Length: 11 Pages
Period: 2010-2023
Pub Date: 2024
Teaching Note: Available
 Price: Rs.400
Organization: IBM
Industry: Technology & Communications
Countries: United States
Themes: Artificial Intelligence, New Product Development, Competitive Strategy,B2B Marketing
Watsonx: Can IBM Become a Leader in the Enterprise AI Market in its Second Outing?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

IBM's journey in the Generative AI market has been filled with innovation, challenges, and evolving strategy. This case study is a critical resource for business students and managers seeking to understand the evolving AI market and IBM's strategy within it. It offers valuable insights for courses in Emerging Technologies for Effective Managers, Information Systems for Managers, and Business Strategy.

The case examines IBM's early success, from its tabulating machines in the 1920s to computers in the 1950s, and its strategic shift to big data and information management in the 1980s. In the early 2000s, IBM launched Watson, an AI-based product aimed at healthcare professionals. However, Watson Health faced setbacks due to its technology's inability to offer accurate treatment plans, leading to a credibility gap and lost market momentum.

In May 2023, IBM announced Watsonx, a generative AI platform with components like Watsonx.ai, Watsonx.data, and Watsonx.Governance. The case explores how this new platform could help IBM regain its footing in the competitive Generative AI landscape, where rivals like OpenAI's ChatGPT, Amazon's Bedrock, and Google's Bard are also making waves.

Key learning objectives include understanding the Generative AI landscape, identifying its benefits for enterprises, examining IBM's competitive strategy for Watsonx, and assessing the underlying opportunities and challenges.

Issues

The case is structured to achieve the following teaching objectives:

  • Describe the Generative AI Landscape in the US.
  • Identify the benefits of enterprise applications like Generative AI for large organizations.
  • Examine IBM’s competitive strategy for Watsonx.
  • Assess the underlying opportunities and challenges for Watsonx.

Contents

Keywords

New Product Development; Competitive Strategy; Growth Strategy; First Mover Advantage; Enterprise applications, Business strategy; Generative AI; Natural Language Processing; Machine learning; Enterprise AI Market; Emerging Technologies;

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