IT integration after an acquisition or a merger : how corporations could enhance their IT acquisition integration processes
Mehta, Riku (2009)
Mehta, Riku
Lahden ammattikorkeakoulu
2009
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-200912047010
https://urn.fi/URN:NBN:fi:amk-200912047010
Tiivistelmä
This study is investigating corporations dealing with their IT integration after an acquisition or a merger. Organisations seem to be struggling with the aforementioned process due to several reasons. Firstly, user resistance often becomes evident when information systems are being changed. Integration processes are often not standardised or documented, which makes the future integration processes more difficult. In addition, organisation must focus on right solutions for outsourcing
and information system deployment.The topic is not discussed significantly, even though big banking institutions have lost tens of thousands of customers, purely due to poor post acquisition IT integration process.
My thesis will try to find out how a transport corporation in Finland should integrate their information systems, when undertaking acquisitions and mergers. The investigation is concentrating on a big transport company in Finland, Alfa Corporation, which has undertaken several acquisitions recently. The aim is to find right options for outsourcing and insourcing in the acquisition IT integration process, as well as solutions to avoid unnecessary user resistance. In addition, one of the tasks is to find a suitable approach to the integration, whether it would be proactive or reactive. This study includes interviews with the corporation’s top management, managers of the acquired companies, members of the IT department, technical staff as well as with the users of the system. The scope of the thesis is limited to documentation, standardised processes, user resistance and outsourcing. Technical problems are mainly excluded.
The results show that having a more standardised IT acquisition integration process will enhance documentation, which is essential for the future acquisitions. Information systems should not be running parallel more than needed, as the resistance is likely to increase during this period. Involving users in the planning, as well as finding external vendors with centralised management is important in the process. By concentrating on these factors, Alfa Corporation is more likely to have an effective IT acquisition integration process next time an acquisition takes place.
and information system deployment.The topic is not discussed significantly, even though big banking institutions have lost tens of thousands of customers, purely due to poor post acquisition IT integration process.
My thesis will try to find out how a transport corporation in Finland should integrate their information systems, when undertaking acquisitions and mergers. The investigation is concentrating on a big transport company in Finland, Alfa Corporation, which has undertaken several acquisitions recently. The aim is to find right options for outsourcing and insourcing in the acquisition IT integration process, as well as solutions to avoid unnecessary user resistance. In addition, one of the tasks is to find a suitable approach to the integration, whether it would be proactive or reactive. This study includes interviews with the corporation’s top management, managers of the acquired companies, members of the IT department, technical staff as well as with the users of the system. The scope of the thesis is limited to documentation, standardised processes, user resistance and outsourcing. Technical problems are mainly excluded.
The results show that having a more standardised IT acquisition integration process will enhance documentation, which is essential for the future acquisitions. Information systems should not be running parallel more than needed, as the resistance is likely to increase during this period. Involving users in the planning, as well as finding external vendors with centralised management is important in the process. By concentrating on these factors, Alfa Corporation is more likely to have an effective IT acquisition integration process next time an acquisition takes place.