Escape

18/02/08 - Making IT work during your Merger

IT skills shortageBy Mike Smith, Sales Manager, Escape Business Technologies
When two companies merge, the IT systems need to merge too. It can be tempting to choose one company's system over the others', but rapid standardisation is usually impossible.  Mike Smith, sales manager at Escape, discusses the issues involved in merging two IT systems into one and gives advice on how to approach it.
When integrating IT systems the first place people tend to start is at the due diligence stage – in terms of IT, this is where professional advisors would identify exactly what each party has in terms of their system. From here you would tend to select the 'best of breeds' between the organisations. The first question you would ask is ‘how do both businesses work?’  You need to make the ‘new company’ work in a uniform fashion and ensure you have a united front for both clients and staff.   The working methodology for the new business should be determined and the following issues should then be addressed: 

Features - What do the different systems have feature-wise?
Suitability - Are any of the systems fit for purpose for the combined/new company?
Scalability - Which system can best support the combined/new company?
Integration possibilities - Can two systems work together to give better combined features?
Ownership - Is it owned, leased, built in house?
Exposure - Who supports the system/software, who built it? (bespoke, software house, off the shelf)

After considering these issues, you would then want to consider the issues for integrating the information:

Is it possible?  
Can the data be integrated or should there be a closure period where you stop in-putting data to the old system and start using the new one.

How?
How do we integrate the information? All at once, bit by bit, not at all.

When?
When, or if at all, should we start using the old system for reference purposes, in-putting data into the new system only. 

If you consider all of the above, it is hoped that the ‘new company’ should be ready to go live with the 'new' system.  However, an M&A isn’t the only time changes will take place that will impact your business.  It is an excellent opportunity to ensure all systems and processes are capable of coping with growth in the future.  A solution that provides adaptability to future market changes is crucial and will save time and money in the future.

 

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