When it comes to mergers & acquisitions (M&As), early and thorough planning of all aspects of business recombination helps to create immediate post-transaction value. Organizations that prepare early and prioritize smooth integration of teams will enjoy more frictionless operations post-merger and a better chance of immediate success.
However, one factor that’s overlooked all too often is smoothly integrating and merging the IT infrastructure. Failing to build an IT strategy that efficiently integrates IT systems post-merger can increase cost and decrease ROI down the line, putting your organization’s long-term success at risk.
Mergers & Acquisitions: 3 critical IT considerations
With 44% of executives considering restructuring over the next 12 months, M&A and deal-making activity will continue to act as an essential tool for businesses as they navigate an increasingly unpredictable economic landscape. As a rapid IT transformation can prove challenging for any organization to manage, here are three critical considerations your team must keep in mind so that this IT consolidation runs smoothly:
1. Evaluate current systems
Before moving forward with any plan of action, gain a complete and thorough understanding of the other company’s IT operations. Even if your own organization completes proper cyber due diligence, you may only have a surface-level understanding of the other company’s digital portfolio. Post-transaction, you will need to initiate a deeper dive into both organizations’ IT infrastructures to understand and properly align both companies’ data volume, licensing needs, and key workloads.
[ Also read Beyond innovation: Cross-functional skills for IT leaders. ]
When evaluating each system, consider which tenants to keep. What workloads are employees currently using at both companies, and does the destination tenant have the same tools and proper licenses?
2. Take stock of content
Successfully merging the IT operations of multiple organizations also involves carefully assessing and organizing owned content across both parties. Consider these questions:
- Which content will deliver value to our teams post-merger?
- Which materials can be archived or discarded as they may be outdated or not in use?
- How should access to different content be categorized and controlled across teams?
Meticulous organization of all assets, not only content, will help to guarantee a smooth transition. Users, content, and even permissions must be properly organized in your collaboration destination to avoid any confusion or chaos.
3. Establish an effective migration strategy
Ensuring that teams can collaborate properly and maintain productivity during this rapid transition is also essential. Both parties involved likely have their own legacy systems, cloud computing software, and collaboration platforms. Establishing standardized tools and software for teamwork is essential, as everyday work is still occurring during this process. Lingering redundancies or indecision can create confusion and extra costs, undermining a team’s productivity and success during and after the transition.To avoid excess and avoidable pressure on your organization during this process, staying organized and being decisive early on is pivotal in ensuring success and reducing time to value after the transaction. With the average number of cybersecurity attacks experienced per company increasing by 31% from 2020 to 2021, your organization should have a smooth process in place to merge IT infrastructures, not only to aid in onboarding teams but to protect and securely transfer critical data.
Investing in a comprehensive and meticulous IT strategy from the jump has the power to not only establish immediate success and value, but also preserve productivity, security, and even overall employee satisfaction.
[ Discover how priorities are changing. Get the Harvard Business Review Analytic Services report: Maintaining momentum on digital transformation. ]
