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Does Enterprise IT need a M&A Strategy?

In the past I’ve written about the classic challenge within Enterprise IT, and specifically within the Data Center, that 70-80% of the resources are allocated to “legacy” activities. This obviously leaves very little time to work on new technology-centric innovations to drive the business. Or to put a different way, “IT only does innovation on Friday”.

The McKinsey Quarterly recently had an interesting article about reshaping IT management, where they introduce the concepts “Factory IT” and “Enabling IT”. The premise being that the focus of the Factory IT (70% of the activities) groups should be about cost-reduction, scale, standardization and simplification. The Enabling IT (30%, hopefully growing) should be focused on innovative ways to enable the business to grow. And the management of those groups doesn’t necessarily have to the same, since they’d have different objectives. Read More »

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