1. Why did Merrill Lynch need to update its IT infrastructure?
Merrill Lynch needed to update its IT infrastructure in order to remain competitive in the financial market. Its last five years of success was largely due to its information technology infrastructure. Merrill Lynch's IT infrastructure was one of its key competitive advantages. The key in remaining successful in business is sustaining a competitive advantage over time. So, it had to continue to modernize its technology infrastructure to sustain this competitive advantage.
4. Do you think that Merrill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or Why not?
No, I don't think that selling its successful technology initiatives was a good idea. This IT technology helps them sustain its competitive advantage. Part of the deal was for Jim Crew, then head of database infrastructure for Merrill Lynch, and three other key members of the X4mL to shift their employment to the buyer, SOA Software. These four people are to continue to enhance the tool for SOA software. I realize that Merrill Lynch has sold internally developed technology before and it greatly helped its IT budget, but I still don't agree with the decision. Merrill Lynch should have protected that technology, to sustain its competitive advantage. At the very least, it could have sold the technology to customers for $125,000 per customer. That revenue could go towards its IT budget. Finally, I think that the biggest lost was of the four key employees. These employees were a great asset to the company as human capital. They could have continued to develop and enhance programs to sustain Merrill Lynch's competitive advantage.
Merrill Lynch needed to update its IT infrastructure in order to remain competitive in the financial market. Its last five years of success was largely due to its information technology infrastructure. Merrill Lynch's IT infrastructure was one of its key competitive advantages. The key in remaining successful in business is sustaining a competitive advantage over time. So, it had to continue to modernize its technology infrastructure to sustain this competitive advantage.
4. Do you think that Merrill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or Why not?
No, I don't think that selling its successful technology initiatives was a good idea. This IT technology helps them sustain its competitive advantage. Part of the deal was for Jim Crew, then head of database infrastructure for Merrill Lynch, and three other key members of the X4mL to shift their employment to the buyer, SOA Software. These four people are to continue to enhance the tool for SOA software. I realize that Merrill Lynch has sold internally developed technology before and it greatly helped its IT budget, but I still don't agree with the decision. Merrill Lynch should have protected that technology, to sustain its competitive advantage. At the very least, it could have sold the technology to customers for $125,000 per customer. That revenue could go towards its IT budget. Finally, I think that the biggest lost was of the four key employees. These employees were a great asset to the company as human capital. They could have continued to develop and enhance programs to sustain Merrill Lynch's competitive advantage.
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