Lenovo’s DCG and Purpose-Driven Innovation

Mergers and acquisitions in the tech industry tend to follow a common script with most of the focus of reporters, analysts and other interested bystanders attuned to the acquiring company, not the one being purchased. That makes a lot of sense in most cases but not all, and ’s 2014 acquisition of ’s System x group is one of the outliers.

Why is that the case? Because just as it did with its purchase of IBM’s PC organization and assets in 2006, Lenovo intended the System x deal to fundamentally transform its business and market focus. Prior to 2006, Lenovo was a minor, if well-regarded, China-based PC vendor. Buying IBM’s PC group, which included the Thinkpad and other well-established business product lines, allowed the company to step fully into the big leagues and, eventually, into the global PC sales leadership position it occupies today.

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NOTE: This column was originally published in the .

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