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Merging and Acquisition

Essay by   •  April 28, 2012  •  Essay  •  695 Words (3 Pages)  •  1,478 Views

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Merging organizations as a result of business mergers requires improvement and integration of the IT/IS element. An organized, methodical and prioritized approach is required to manage organizational modification on the IT/IS infrastructure. Below is the proposed action plan that might be used by the company:

1. Due Diligent

CIO and his teams conduct the thorough technology assessment. By doing this, they will get a complete inventory of all the technology components, including the number of data centers and where that data resides. Additionally, they may focus on:

* Enterprise systems - The firm's existing enterprise resource planning (ERP) system will cause the least disruption during the migration process, which is familiar to most of the employees and has already processed the highest volume of data.

* Software and hardware - In choosing ERP systems, hardware and software items that can standardize in a new organization have the least disruption. Additionally, factor in maintenance costs or vendor agreements before making your choices. Don't forget that your new, larger company may be in a stronger position to negotiate a better deal on both

* Data retention - Since the firm's data migration plans has adequately addressed the industry's data retention requirements system, thus upon deleting or destroying company information may invite grave legal consequences.

All information collected helps them to determine which model is the most appropriate. Basically, there are four models in which company need to select one of them to manage the integration of the IT/IS elements, which are:

* Consolidation: Conversion of the IT/IS element of the acquired company to the IT/IS element of acquiring company.

* Combination: Selecting the most effective processes, structures and systems from each company to form an efficient operating model for the new entity

* Transformation: Entails synthesizing disparate organizational and technology pieces into a new whole.

* Preservation: Each company retains their IT/IS element.

Selection of the model should address the following questions:

* What are the main objectives of the merger or acquisition? Is it for growth, market positioning, or cost savings?

* What key benefits are expected from the transaction?

* What approach to business integration is required to realize these benefits?

* What approach to IT integration is required to realize these benefits?

* In what ways can IT help the business realize its goals for the transaction?

* What

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