| When your company did it's most recent acquisition, or | | | | When they don't, a substantial amount of work can be |
| when it was acquired by another company, what role | | | | needed to achieve commonality. That commonality is |
| did your Chief Information Officer play? Chances are, | | | | the thing that enables asset leveraging actions such as |
| your CIO could have contributed more to the | | | | larger purchase volumes and shared services. Some |
| company's success. It's no secret that mergers and | | | | companies are satisfied with saying "we have a |
| acquisitions (MA First, get your IT experts involved in | | | | master schedule and they have a master schedule, so |
| systems evaluation during due diligence phase of the | | | | we're a match there". They aren't digging deep enough. |
| transaction. Specifically, get them to focus on these | | | | If one company schedules order start dates and the |
| elements of the acquisition target: | | | | other schedules completion dates, a lot of things can |
| Nature of Systems - what they do, whether they are | | | | drive them out of synch. Especially when one |
| internally developed or commercial-off-the-shelf | | | | company will be a feeder to another, that level of |
| (COTS) packages, and how effective they are. | | | | synchronization is important. In companies like telecom |
| Ineffective systems cost a fortune in terms of | | | | companies, coordinating things like carrier service |
| efficiency, and load and additional burden on the | | | | agreements and inventory redeployment also require |
| company in license fees, and / or maintenance costs. | | | | some detailed review and coordination. Depending on |
| Functionality / Capability - Is what they do available in | | | | what lies in the details, a lot of money can be captured |
| your existing systems platform? Is the functionality of | | | | - or lost. Require an IT plan and estimate. Be sure your |
| these systems so unique and important that they | | | | company's information technology leader knows that |
| would have to be retained and supported following the | | | | his or her career will be impacted - for good or ill - by |
| acquisition? Is it additional capability that would be of | | | | the quality of that plan. Next year's IT budget will be a |
| value to the rest of your company following the | | | | function of what is contained in that plan along with |
| acquisition? | | | | normal expenses. That way, the people performing the |
| Scalability - Assuming that the capability of a system is | | | | estimate will be motivated to make sure it's thorough. |
| important; can it grow enough to support the user | | | | Fourth, look for a succinct listing of the major systems |
| base of your entire company without substantial | | | | that will be mothballed, what will replace them, and |
| upgrades and rework? | | | | what kind of effort will be required to make that |
| Migration Path - Is the system supported by an outside | | | | transition happen. |
| company that will keep it current with the latest | | | | Then look at timing to see whether it lines up with the |
| technology and business practices? | | | | projected business case for the acquisition. Will it break |
| Compatibility - Will the systems of the company being | | | | even in time? Finally, look at whether your company |
| acquired work well with the balance of the systems in | | | | has the skills needed to perform the transition work. If |
| the acquiring company? Will they run on your existing | | | | not, will you be able to hire people and bring them up to |
| hardware? If they were internally developed, are they | | | | speed quickly enough, or do you plan to bring in outside |
| written in a language that your IT organization can | | | | experts? Make sure the associated costs are in your |
| support? | | | | business case. Fifth and finally, look for low-hanging |
| Strategic Fit - Do the systems required to operate the | | | | fruit. Will the new IT capabilities acquired as a part of |
| acquisition target fit well with the overall IT strategy of | | | | the new business provide new efficiencies? Are there |
| your company? For example, if your company has | | | | opportunities to migrate the balance of your |
| decided to move to a few tightly integrated | | | | company's systems to a newly acquired platform that |
| commercial software application sets, acquiring a | | | | is more efficient? Does the combination of the old and |
| company that requires extensive internally developed | | | | the new technology (or data) provide management |
| systems is a poor choice. | | | | with new insight, new competitive intelligence, or new |
| Second, push for adequate detail to understand the | | | | service offerings? What level of effort and investment |
| real costs involved. Your IT experts can help you | | | | would be required to make those opportunities into |
| determine whether basic data elements such as part | | | | reality? Again, request any cost and benefit data that |
| numbers and units of measure mean the same thing. | | | | is pertinent to the acquisition's business case. |