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Mergers and takeovers: how do you successfully integrate the IT?
Commerzbank takes over Dresdner Bank. Deutsche Bank acquires shares in Postbank. Bank of America buys Merrill Lynch. Just three instances of a very common occurrence at the close of last year. Of all the mergers and takeovers that took place around the world in 2008, over 50 per cent of them were in the financial sector.
Ultimately, the aims here are to achieve economies of scale and sharpen competitive advantages. But what really happens? We’ve witnessed how difficult it is to merge large and complex organisations and to align systems, cultures and, of course, IT infrastructures and processes, with one another. As a rule, existing systems are incredibly intricate, so a raft of technologies and architectures will further hamper integration. Although rapid implementation would be critical to success, we have to remember that finding the best solution is no easy task. Experienced IT service providers, such as GFT, support companies with well-designed methods and systems – not just during integration, but before and after as well.
Approach the issue systematically
Corporate mergers and takeovers are often viewed as an event, not a process. That explains why these major undertakings frequently lack a structured approach to efficient implementation over the long term.
When tackling this kind of project, GFT works systematically, moving stage by stage. This strategy helps to minimise the costs and risks tied to integration:
Planning – Defining a process that takes the long view of IT integration boosts the chances of success by more than 50 per cent.
Adapting to the road ahead – Identifying the best way to ‘equalise’ the structures, cultures, systems and processes within differing organisations ensures that integration will stand the test of time.
Effective change – Successful companies use a merger to drive change. Integrations that drag on risk demotivating employees, limiting the success of the programme through unmet objectives and postponed priorities.
Rely on professional support
Without a carefully planned integration process that can anticipate what’s on the horizon, companies are setting up their IT integration to fail. The outcomes: diminished system performance, employee attrition, higher operating costs; an unnecessarily complicated infrastructure.
Armed with our extensive experience, GFT has supported numerous companies – primarily in the financial sector – in overcoming the IT challenges that mergers and takeovers bring. At every stage of an IT integration, our professional input and assistance are what safeguards success.
Due diligence: evaluate the IT infrastructure prior to the merger
Assessment: examine requirements and specify objectives
Integration strategy: define the best way to proceed
Integration roadmap: carry out dependence and sequence analyses
Launch of integration: commence with ‘flagship projects’ to see improvements as quickly as possible
Thanks to our expertise, our solid command of methods and detailed track record, we are ideally positioned to help companies fully leverage the economies of scale and competitive differentiators that mergers can create.
Ultimately, the aims here are to achieve economies of scale and sharpen competitive advantages. But what really happens? We’ve witnessed how difficult it is to merge large and complex organisations and to align systems, cultures and, of course, IT infrastructures and processes, with one another. As a rule, existing systems are incredibly intricate, so a raft of technologies and architectures will further hamper integration. Although rapid implementation would be critical to success, we have to remember that finding the best solution is no easy task. Experienced IT service providers, such as GFT, support companies with well-designed methods and systems – not just during integration, but before and after as well.
Approach the issue systematically
Corporate mergers and takeovers are often viewed as an event, not a process. That explains why these major undertakings frequently lack a structured approach to efficient implementation over the long term.
When tackling this kind of project, GFT works systematically, moving stage by stage. This strategy helps to minimise the costs and risks tied to integration:
Planning – Defining a process that takes the long view of IT integration boosts the chances of success by more than 50 per cent.
Adapting to the road ahead – Identifying the best way to ‘equalise’ the structures, cultures, systems and processes within differing organisations ensures that integration will stand the test of time.
Effective change – Successful companies use a merger to drive change. Integrations that drag on risk demotivating employees, limiting the success of the programme through unmet objectives and postponed priorities.
Rely on professional support
Without a carefully planned integration process that can anticipate what’s on the horizon, companies are setting up their IT integration to fail. The outcomes: diminished system performance, employee attrition, higher operating costs; an unnecessarily complicated infrastructure.
Armed with our extensive experience, GFT has supported numerous companies – primarily in the financial sector – in overcoming the IT challenges that mergers and takeovers bring. At every stage of an IT integration, our professional input and assistance are what safeguards success.
Due diligence: evaluate the IT infrastructure prior to the merger
Assessment: examine requirements and specify objectives
Integration strategy: define the best way to proceed
Integration roadmap: carry out dependence and sequence analyses
Launch of integration: commence with ‘flagship projects’ to see improvements as quickly as possible
Thanks to our expertise, our solid command of methods and detailed track record, we are ideally positioned to help companies fully leverage the economies of scale and competitive differentiators that mergers can create.
© GFT AG