Lockheed Unit Re-Arms To Battle Microsoft, IBM

Caught between the slowing economy and increased competition for government contracts, Lockheed Martin Corp.'s Management & Data Systems division earlier this year realized the future would be anything but business as usual. As with many companies straddling both the good old days and a brave, new world, the unit looked outside its organization for a fresh perspective on how it could streamline operations while increasing its contracts.

MDS says it's working with Cambridge Technology Partners Inc. to develop a strategy that will leverage existing IT resources and intellectual capital to curb overhead and operating costs. When nontraditional competitors such as IBM Global Services, Oracle, and Microsoft began creeping into the company's backyard, says Sondra Barbour, manager of eTransformation for the unit, execs realized they had to revamp their business processes.

Barbour says Cambridge suggested that the $1.7 billion unit standardize on a common technology platform--in this case, Microsoft. Whereas most MDS apps ran on Microsoft, the company had used tools from Epicentric Inc. to develop an intranet where employees could get a personalized view of benefits and payroll information. With Cambridge's help, MDS in August will roll out a new, more flexible intranet built using Microsoft's SharePoint portal server.

Cambridge also recommended that MDS shift from selling primarily customized IT services for its clients and begin prepackaging apps and services.

Cambridge's work with MDS is more a symbol of the consulting firm's past than its future, however. Novell's acquisition of Cambridge for $266 million in stock will be finalized in mid-July. Tom Rodenhauser, lead analyst with Consulting Information Services, says he doesn't expect Cambridge to continue offering digital business strategy once Novell absorbs it. Although former Cambridge president and CEO Jack Messman has taken over as Novell's chief executive, Rodenhauser says it's more likely that Cambridge will assume the role of providing supporting services for Novell's networking products.