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IT integration during a merger : Things to watch out for.
I chanced on this podcast where Tom Casey, Booz Allen Hamilton vice president lays out his thoughts on IT integration and on why so many companies get it wrong. I could not find a transcript of the cast, so here is a summary for you:
Senior management's perfunctory attitude to IT integration is a major cause for poor integration.
Poor IT integration not just prevents the merger from realizing benefits but also adds costs due to duplication of systems and customer interfaces.
The fact that IT integration investments happen post merger dampens enthusiasm for them as the "mood" is against spending.
40% of synergy capture depends on IT
IT decisions can be delayed (and so end up getting postponed) and the team evaluating the merger does not typically consider IT ramifications in depth.
Top three errors in IT integration according to Mr.Casey:
"Band aid" approach with a focus on interim solutions.
Adopting the dominant partner systems instead of doing an objective analysis.
Underestimation of complexity in middle and back office integration especially in IT intensive industries like financial services. IT Integration IT strategy
Senior management's perfunctory attitude to IT integration is a major cause for poor integration.
Poor IT integration not just prevents the merger from realizing benefits but also adds costs due to duplication of systems and customer interfaces.
The fact that IT integration investments happen post merger dampens enthusiasm for them as the "mood" is against spending.
40% of synergy capture depends on IT
IT decisions can be delayed (and so end up getting postponed) and the team evaluating the merger does not typically consider IT ramifications in depth.
Top three errors in IT integration according to Mr.Casey:
"Band aid" approach with a focus on interim solutions.
Adopting the dominant partner systems instead of doing an objective analysis.
Underestimation of complexity in middle and back office integration especially in IT intensive industries like financial services. IT Integration IT strategy
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