What was basically wrong with IBM in the way it developed products and innovations?

(briefly)
Despite having a world class research facility and talented research teams, IBMs track record
for commercializing its inventions in the 1970s and 1980s was poor. The company failed to take
advantage of the work done at its laboratories and consequently lost out on a number of
opportunities. Many smaller companies such as Oracle and EMC that were set up around IBMs
neglected inventions during that period went on to become market leaders. In later years, when
IBM eventually realized the potential of the products it invented and began commercializing
them; it found it difficult to catch up with its competitors.
Porter maintained that the strategic combination of cost leadership and differentiation would be
impossible to maintain in the long term, and that organizations that attempted it would end up
stuck in the middle and lose any competitive advantage they previously had. Singapore Airlines
(SIA) has achieved consistent profitability, has become the most awarded airline in the world,
and is the only airline other than Southwest to be listed in Fortunes list of most admired
companies (Fortune, 2013).
SIA has become one of the highest performing and respected airlines in the world through its
ability to accomplish a dual strategy of cost leadership combined with differentiation. Such a
strategy requires the development of two-handed capabilities reflected in four contradictory
competencies: cost effective service excellence, simultaneous decentralized and centralized
innovation, being simultaneously a follower and a leader in service development, and
accomplishing standardization as well as personalization in customer interactions.
Achieving Cost Effective Service Excellence: Anything that comes to the customer has to go
through SIA quality and be consistent with its premium service positioning; embedded as a
cultural value of customer orientation. Anything below the line of visibility is subjected to
rigorous cost management. Cost leadership - being cost effective and differentiation - through
service excellence
Simultaneous Centralized and Decentralized Innovation: SIA has a reputation of being a serial
innovator, having introduced many firsts in the airline industry over the years, and having
sustained this innovative orientation over decades in the face of intense cost pressures, industry
crises, and push towards commoditization. SIAs approach to innovation involves the seamless
combination of, on the one hand, hard structured, rigorous, and centralized innovation, and on
the other hand, soft, emergent, distributed, but equally significant decentralized innovation. Cost
leadership - through simultaneous decentralized innovation and differentiation - through
centralized innovation.
Being a Leader and a Follower at the Same Time: The choice of where to lead and where to
follow, depends on what areas are important for the customer experience. SIA is a leader,
engaging in substantial innovation in all processes that the customer experiences, but
simultaneously a conservative follower, engaging in incremental improvements using tried and
tested technology in back-office functions that customers do not directly experience. Cost
leadership - being a follower and differentiation - being a leader in service development.
Achieving Simultaneous Personalization and Standardization: Standardization supports
customer satisfaction and consistent delivery of the high quality SIA experience, personalization
makes passengers feel special and individual because it is unexpected and not routine from the
passengers perspective. Cost leadership through standardization and differentiation through
personalization in customer interactions.
All these factors together lead to a dual culture in SIA i.e. co-existence of cost leadership and
differentiation strategies in a firm.