- Many organizations forget the essential role IT plays during M&A integration. IT is often unaware of a merger or acquisition until the deal is announced, making it very difficult to adequately interpret business goals and appropriately assess the target organization.
- IT-related integration activities are amongst the largest cost items in an M&A, yet these costs are often overlooked or underestimated during due diligence.
- IT is expected to use the M&A team’s IT due diligence report and estimated IT integration budget, which may not have been generated appropriately.
- IT involvement in integration is critical to providing a better view of risks, improving the ease of integration, and optimizing synergies.
- Anticipate that you are going to be under pressure. Fulfill short-term, tactical operational imperatives while simultaneously conducting discovery and designing the technology end-state.
- To migrate risks and guide discovery, select a high-level IT integration posture that aligns with business objectives.
Impact and Result
- Once a deal has been announced, use this blueprint to set out immediately to understand business M&A goals and expected synergies.
- Assemble an IT Integration Program to conduct discovery and begin designing the technology end-state, while simultaneously identifying and delivering operational imperatives and quick-wins as soon as possible.
- Following discovery, use this blueprint to build initiatives and put together an IT integration budget. The IT Integration Program has an obligation to explain the IT cost implications of the M&A to the business.
- Once you have a clear understanding of the cost of your IT integration, use this blueprint to build a long-term action plan to achieve the planned technology end-state that best supports the business capabilities of the organization.
Start here – read the Executive Brief
Read our concise Executive Brief to find out why you should follow Info-Tech’s M&A IT integration methodology and understand the four ways we can support you in completing this project.
1. Launch the project
Define the business’s M&A goals, assemble an IT Integration Program, and select an IT integration posture that aligns with business M&A strategy.
2. Conduct discovery and design the technology end-state
Refine the current state of each IT domain in both organizations, and then design the end-state of each domain.
3. Initiate operational imperatives and quick-wins
Generate tactical operational imperatives and quick-wins, and then develop an interim action plan to maintain business function and capture synergies.
4. Develop an integration roadmap
Generate initiatives and put together a long-term action plan to achieve the planned technology end-state.
This guided implementation is a ten call advisory process.
Guided Implementation #1 - Launch the project
Call #1 - Introduce project steps and assess member fit
Call #2 - Interpret business M&A objectives
Call #3 - Select an aligned integration posture to guide the IT integration
Guided Implementation #2 - Conduct discovery and design the technology end-state
Call #1 - Determine the current state of each IT domain in the target organization
Call #2 - Determine current state of each IT domain in your own organization
Call #3 - Design the technology end-state of each IT domain
Guided Implementation #3 - Initiate operational imperatives and quick-wins
Call #1 - Highlight tactical focus areas to consider during discovery
Call #2 - Build an action plan to deliver operational imperatives and quick-wins
Guided Implementation #4 - Develop an integration roadmap
Call #1 - Build initiatives to close gaps and redundancies between the end-state and current state
Call #2 - Execute on roadmap
Book Your Workshop
Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Launch the Project
- Identification of staffing and skill set needed to manage the IT integration.
- Generation of an integration communication plan to highlight communication schedule during major integration events.
- Identification of business goals and objectives to select an IT Integration Posture that aligns with business strategy.
Key Benefits Achieved
- Defined IT integration roles & responsibilities.
- Structured communication plan for key IT integration milestones.
- Creation of the IT Integration Program.
- Generation of an IT Integration Posture.
Define IT Integration Program responsibilities.
- Define IT Integration Program responsibilities and goals
Build an integration communication plan.
- Structured communication plan
Host interviews with senior management.
- Customized interview guide for each major stakeholder
Select a technology end-state and IT integration posture.
- Selected technology end-state and IT integration posture
Module 2: Conduct Discovery and Design the Technology End-State
- Identification of information sources to begin conducting discovery.
- Definition of scope of information that must be collected about target organization.
- Definition of scope of information that must be collected about your own organization.
- Refinement of the technology end-state for each IT domain of the new entity.
Key Benefits Achieved
- A collection of necessary information to design the technology end-state of each IT domain.
- Adequate information to make accurate cost estimates.
- A designed end-state for each IT domain.
- A collection of necessary, available information to make accurate cost estimates.
Define discovery scope.
- Tone set for discovery
Review the data room and conduct onsite discovery.
- Key information collected for each IT domain
Design the technology end-state for each IT domain.
- Refined end-state for each IT domain
Select the integration strategy for each IT domain.
- Refined integration strategy for each IT domain
Module 3: Initiate Tactical Initiatives and Develop an Integration Roadmap
- Generation of tactical initiatives that are operationally imperative and will help build business credibility.
- Prioritization and execution of tactical initiatives.
- Confirmation of integration strategy for each IT domain and generation of initiatives to achieve technology end-states.
- Prioritization and execution of integration roadmap.
Key Benefits Achieved
- Tactical initiatives generated and executed.
- Confirmed integration posture for each IT domain.
- Initiatives generated and executed upon to achieve the technology end-state of each IT domain.
Build quick-win and operational imperatives.
- Tactical roadmap to fulfill short-term M&A objectives and synergies
Build a tactical action plan and execute.
- Confirmed IT integration strategies
Build initiatives to close gaps and redundancies.
Finalize your roadmap and kick-start integration.
- Finalized integration roadmap