Information Technology in Mergers and Acquisitions Essay

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Focus of companies undergoing a merger

Customers expect that the company will be able to function as it is, without AWOL and other problems, in the case when it undergoes a merger or acquisition. Customers do not want to wait until the organization will be able to function appropriately again after the merger and do not have a desire to notice the consequences of this affair on their purchases. To help customers feel comfortable while merging or acquisition, it is important to apply IT technologies which may help use data that changes.

The creation of data center infrastructure saves time and allows the company function in the conditions of change, integration, and adoption “an acquired company’s IT systems and operations” (O’Brien, O’Brien and Marakas 171).

Furthermore, the creation of the configuration management database and assert management tool may be helpful to renew the IT work as soon as possible after the merger and help track the elements put into the data centers. These tools may be helpful to govern the process of merger and the IT services aimed at continuing the work and do not allow the customers to refuse from the service e which is unavailable for some time. The possession of good documentation and the structured working process is one more thing that may be helpful while merger as it allows the acquiring company to get to know a merger better and adjust its processes to itself.

Visualization is one more thing that may help make the merger process smoother and do not bother customers with inner problems. Visualization is extremely important for those who want “to test application and infrastructure integration before they put their merged or acquired assets into production” (O’Brien, O’Brien and Marakas 171). Such implementation of IT may also help keep customers satisfied.

Tribal knowledge in an acquired organization

Tribal knowledge is a characteristic of the problem when the company holds knowledge in the data centers in which employees are let go after the merge. In other words, the data centers and the information there is concentrated in the hands of some specific employees.

The tribal knowledge problem is the one when employees who possessed all the information are dismissed after a merger. It is really important to avoid this problem as the possession of the information and teaching new employees to handle it is a complicated and time-consuming process. Furthermore, the acquiring of the information may take a long time and in some cases, it may be even impossible to have the information previous employees possessed.

To help the companies avoid such a problem, it is possible to recommend a head manager to lead documentation. It is important to note the information on each employee’s processes and the processes he/she performs. Mann says, “You have to document the knowledge from those people and figure out how to make the process work with only a handful of employees” (O’Brien, O’Brien and Marakas 171). Workflow charts may be helpful, as they outline all the necessary information.

Thus, it should be stressed that structured and perfectly documented information always helps companies organize the working process and fill the gaps after the dismissing of the employees while merging. The mentioned strategy guarantees that it will be easy to understand which data center requires employees and which data is missing. Structured working process, performed responsibilities strictly by the administrative duties and the proper documentation are the guarantees of success and avoidance of missing tribal knowledge as a result of dismissing while acquisitions.

Data management and governance issues in merging companies

HR management, data management, and governance issues are to be the main options the company must pay attention to while merge process. Hardware and software IT issues are important and it is impossible to handle without them in the present situation if innovative technologies. Nevertheless, these issues are not central as human resources remain central in leading successful issues. High attention to human resources at the beginning of the working process may help the company function successfully as the employees know what to do and how to organize their working process.

Data management is one more essential process in leading a business. This importance comes from the significance of HR management as when the information and different types of data are structured, can be easily reached and accessed, it is securely stored, the personnel can work with high effectiveness. When the data of two merge companies are followed accordingly, it can be easily accessed and understood by those who have the rights to see it, the merge process is going to be provided smoother and with higher efficiency. In this case, the professionals from two companies will understand the data faster and will be able to apply it and make necessary changes without many attempts, with high accuracy and spending less afford.

Governance guidelines are important as well. The merger of two companies is also a complicated and painful process as if some important information is leaked due to improper governmental process, it may lead to catastrophe, like the loss of clients, problems with partners, bad image, etc. The merge of the companies will follow faster if the governance is proper and adequate.

Works Cited

O’Brien, James, O’Brien, James A., and George Marakas. “Cogent communications, Intel, and others: Mergers go more smoothly when your data are ready.” Management Information Systems. Eds. James O’Brien, James A. O’Brien, and George Marakas. New York: McGraw-Hill Companies,Inc., 2010. Print.

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IvyPanda. 2021. "Information Technology in Mergers and Acquisitions." February 1, 2021. https://ivypanda.com/essays/information-technology-in-mergers-and-acquisitions/.

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