Research shows that on average, organizations will spend approximately 30 percent of their IT budgets dealing with the integration of disparate systems. Why? Because after a merger or acquisition, organizations begin to feel pressure to solve immediate issues and deal with problems.
As a result, organizations start acquiring new technologies; an action that complicates the integration process and deepens the impact to the IT budgets.
In light of the information above, the goal of most organizations is to limit the time and cost spent on integrating IT systems, while at the same time achieving the data consolidation that is required to improve the organization’s performance. The problem is that typically, after a merger or acquisition, organizations need to gather, analyze and report on information that may be coming from a number of disparate and complex systems. The need to maintain the integrity of transactional data in financial, customer and other operational systems is extremely vital. There is also a necessity to improve reporting systems to provide information at a broader, more consolidated level. More efficient communication among application systems is important, in order to provide management with the data they need, and the ability to produce the information required to make more informed and timely decisions.
During a system integration project, it is important to ensure that all the areas of IT are worked upon for smooth integration. A sample checklist is provided below:
Before Starting:
- Has the IT roadmap and strategy been determined?
- Based on the IT strategy, is the consolidation plan for the IT systems established?
- Does a consolidation plan have adequate time and resources for integration?
- Have test plans been developed?
- Based on the IT strategy is there a contingency plan on hand?
- Are all systems elements included in the consolidation plan?
- Has the plan for IT procurement, physical location and resources been determined?
- Is all the documentation being obtained from the merging parties?
- Are the productive IT integration team formed with efficient leadership and team members?
- Is there a risk management plan in in place?
During Integration:
Are the following particulars of the IT environment addressed?
- Network Connectivity
- IT Leadership team
- IT Integration of work culture
- Mainframe infrastructure
- Business application and architecture
- Data or call center facilities
- IT Processes
- IT products and services
- Licensing of products
- Office applications
- Desktop/laptop systems
- Machine setups
Post Integration:
- After the consolidation, is ample testing performed on integrated systems to ensure the success of integration and seamless functioning of integrated applications?
- Are the timelines and milestones being considered?
- Is the whole integration process documented, updated in a timely manner and properly maintained?
- Is the integration report and plan made available organization-wide?
Proper systems integration can help an organization achieve anticipated synergies by consolidating the key data and transactions that enable effective decision making. The challenge is integrating the merged organization’s different technologies systems, and processes while protecting the organizations’ investments in each of these areas.
The Litcom Approach
Litcom’s PMI methodology provides a structured approach for rapid integration of IT Services & Technologies to deliver optimum value to the new organization. Within our PMI process, we focus on our client’s key needs and issues including retention of people, reduction of costs and maintaining market confidence.
When a company decides to merge with or to acquire another company, a major question is to what extent to integrate the information technologies and the organization.
At Litcom, our post-merger integration team provides strategic due diligence, communication planning, implementation planning and change management in order to meet your post-merger IT needs. Our goal is to provide a cost-effective way to ensure that your new company merges all of its IT operations as seamlessly as possible. Our strength is our extensive experience in information technology and project management. With these skills, we can create concrete goals and executable projects that ensure your merger will be as productive as possible. To learn more about Litcom’s PMI methodology, please contact us at: info@litcom.ca