Takes an unprecedented insight into 1997-2000 ABB transformation Gvran Lindahl, CEO of the second electrical powerhouse of Percy Barnevik during the end of 1996 succeeded. After a very successful first decade of existence under Barnevik (1988-1996), ABB took place in the middle of a crisis by the end of 1997, after the combined effects of global deregulation, radical technological innovations and an unpredictable but sweeping financial crisis in most emerging … Read more »

Takes an unprecedented insight into 1997-2000 ABB transformation Gvran Lindahl, CEO of the second electrical powerhouse of Percy Barnevik during the end of 1996 succeeded. After a very successful first decade of existence under Barnevik (1988-1996), ABB took place in the middle of a crisis by the end of 1997, after the combined effects of global deregulation, radical technological innovations and an unpredictable but sweeping financial crisis in most developing countries . ABB’s response was to move its strategy radically to favor knowledge-and service-based offerings in all of its businesses. The company is the implementation of such a strategy was in two bold steps. The first consisted of a large global restructuring of ABB, as a result of which the company sold as electricity generation and transport of mature manufacturing companies and has been a world leader in areas such as industrial process automation and electrical distribution solutions. The second step was the ABB to transform in a fast-growing high-tech companies, from old to new Internet-based business services and solutions. The box contains two mini-cases in ABB sales solutions and ABB global information systems group – two instances, the first-hand the pain quickly changing a great show unfolds manufacturing concerns in an Internet solutions and based powerhouse like the New Millennium.
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from
Piero Morosini
Source: IMD
11 pages.
Release Date: 1 January 2000. Prod #: IMD128-PDF-ENG
ABB in the New Millennium: New Leadership, New Strategy, New Organization HBR case solution