Mergers and acquisitions (M&A) are more and more becoming a strategic tool for growth with many companies. This creates both a challenge and opportunity for Information Technology (IT) organizations supporting the business. The challenge is that the business needs to consolidate and/or integrate systems and perform in a fashion that does not disrupt the business. The opportunity is that this M&A allows end users and IT to select the better system; therefore enhancing end user services and overall IT strategy.
Most organizations will either integrate redundant systems or consolidate. Integration has less risk to the business but is costlier to perform and maintain. Consolidation has more risk, is more disruptive to the end users and increases the likelihood of data/functionality loss. To further complicate things, these choices are rationalized system by system and driven by the appetite of risk vs. cost further complicating user and IT processes.
Data Compatibility methods are an enabler that gives IT a third option which will lower risk, reduce cost and maintain functionality and data for the end users. If I were reading this until this point, I would say “This can’t be true!”. Having lived through numerous M&As, I wish that I had this third option.
When IT embarks on the M&A journey, one needs to ask the question, “What does the business need first?”. If you step back, the business needs to operate as one company with little or no risk from system changes. With Data Compatibility, one can create consolidated reporting without changing the systems. This is non-invasive and can be accomplished in weeks instead of months or years.
Now that risk to the business has been adverted, the next challenge is to drive down cost. With the effort done for consolidated reporting leveraging Data Compatibility methods as an enabler, the stage is set for driving down cost through consolidation or less complex integration. With Data Compatibility methods, IT now has options to consolidate or integrate systems on a case by case basis where the decision is driven by cost.
In short, Data Compatibility methods provide a simple and elegant solution that enables IT to provide world class solutions for companies traveling the M&A journey. Find out how Maxxphase’s unique approach can streamline and simplify your merger and acquisition business objectives.