How organizations thrive through transformation: Lessons for the AI era and beyond
The Philippines is among the most digitally engaged nations globally, yet we stand at a critical inflection point. With technologies like artificial intelligence (AI) reshaping businesses more drastically than previous waves, understanding past lessons becomes essential. Our insights from decades of collaborating with businesses through transformation reveal what enables organizations to thrive during periods of profound change.
The eras of transformation
The Era of Recording
IBM’s digital journey began in the early 20th century with tabulating machines, expanding to mainframe computers by the ’60s. However, the past four decades marked how technology shifted from an operational tool to a competitive imperative reshaping almost every industry. Each era grew shorter than the last, a pattern of acceleration that continues today.
The Era of Computing
During this period, the fundamental challenge was digitization. Government agencies like the Bureau of Lands and institutions like University of the Philippines adopted IBM mainframes in the ’60s.
By the ’80s, organizations like Ayala Corporation and Asian Development Bank embraced personal computers (PCs) for operations. BPI became the first to deploy IBM’s online ATMs, fundamentally changing how Filipinos accessed financial services. The power of computing had moved from distant data centers into the hands of individuals through PCs and ATMs, democratizing access to technology and financial services.
The Era of Programming
The challenge shifted to connectivity—reaching customers continuously through new channels. The emergence of the internet marked a new era, though widespread adoption in the country would take years.
This era brought sobering lessons to IBM: the PC boom threatened the mainframe business model, what was aptly called the IBM “near-death” experience. Yet, it foresaw the internet enabling “e-business,” operating 24/7 and serving customers globally. This drove a dramatic pivot from primarily selling mainframes to delivering integrated solutions, systems, software and services for an always-on world.
The telco industry expanded infrastructure and introduced prepaid SMS services. Transformed networks gave rise to ICT-enabled services including a new IT-BPM sector, now a vital economic pillar.
The Era of Cloud & Cognitive
The rise of smartphones and cloud computing enabled flexibility and scale. These were among essential technologies that enabled financial inclusion and hybrid work.
This era also gave rise to advanced technologies with early versions of artificial intelligence. The Department of Science and Technology deployed IBM Blue Gene supercomputer for R&D projects, including Project NOAH for improved weather prediction and disaster response.
Fast forward to today, practically every industry is enabled by technology and with increasing adoption of AI. The pandemic accelerated our departure from traditional approaches, with technology enabling not only healthcare and public services but transforming how we work. This era has enabled further inclusion by democratizing success to big and small businesses. It poses both risks and opportunities. The bigger imperative is a fundamental mindset shift. True success lies in how we harness the value of both old and new, co-create with ecosystems, tap the power of all generations, and enable people and technology to coexist.
As technology further advances, we must heighten our adoption of technology underpinned by cybersecurity and hybrid cloud. Quantum technology will be even more relevant to propel us safely to the future to tackle real problems.
What are the lessons we learned?
Restless reinvention is the name of the game
We had our own experience of near-death. But as a company, we remained focused on taking bold, informed decisions early enough to chart the future.
Embrace change but challenge the norm
The past taught us many great lessons but now, the way forward will be the art of the possible and the scale of our imagination. New experts will emerge, but they may be humans with bots, not bots alone.
Culture is key
If culture can be bought, it will be out of stock by now. No matter how good the company may be at strategy and innovation through the years, a culture anchored on values, innovation that matters to the world, and trust in all relationships becomes absolutely essential.
IBM is truly grateful to its clients, external stakeholders and the big IBM family. Together we have shaped the past eras of transformation, but together we must also be excited to be a catalyst in making the world be a better place for generations to come. As we look ahead, we are reminded that organizations don’t navigate change alone, but by collaborating with partners who share the same commitment to endless reinvention and enduring values.
The Inquirer’s 40-year journey reflects this shared experience. Like us, you have continuously reinvented while staying anchored to embracing change and building trust. Congratulations on four decades of fearless journalism and bold transformation. Here’s to the next wave—one we’ll navigate together.
(The author is Country General Manager of IBM Philippines)
