The article, “Managing Risks: Post-Merger Integration of Information Systems” in the January/February issue of IT Pro, discusses a framework to help Information Systems (IS) managers navigate mergers and acquisitions (M&As).
Why is such a framework necessary? Because, according to the article, less than 50 percent of M&As achieve their business goals – and IS integration is frequently a major issue. As the article notes, IS problems could come about for a variety of reasons:
- IS personnel may lack planning time prior to the M&A
- IS due diligence may not be as thorough as it should be
- With all the varying IS systems, it may be difficult to exploit synergies
- There may be competition as to which IS should continue to be used over the others
This can lead to project delays, frustrated end users, legal issues and the loss of clients. In short, IS integration is a key challenge that should be properly dealt with in order to proactively mitigate risks and bring about success.
While the framework proposed in the article is a good start, DCG can provide additional support for a smoother transition. We recently supported a client through the acquisition of part of another business. I led the IT team in planning the transition and investigating IT options, while balancing the effectiveness of the systems with total cost of ownership and the business case implications for CAPEX and OPEX. We have a case study presentation of the engagement here.
If you have any questions, please leave a comment below – I’m happy to answer them!