IT's ability to handle back-end integration during mergers and acquisitions can be critical to the success of these deals; it can also be key to whether the CIO is seen as a stumbling block or a savvy business leader who identifies acquisition opportunities, according to a recent McKinsey Quarterly article.
That may not exactly surprise you-in fact, it's something of a reoccurring topic on IT Business Edge.
But this article actually provides a lot of insight about how you shift from the fall guy for bad M&As to a key player in successful acquisitions.
The report lists three key back-end integration issues typically addressed by IT departments in companies with successful merger and acquisition records:
The article includes a slew of other valuable tips and information-including why Day 100 is so critical and how CIOs can become a key player in identifying potential acquisition targets as their M&A skills improve. For instance, the article notes that in companies with a flexible, streamline approached to IT, it's easier to ascertain which deals are a good beat and which are not. The article states:
Conceivably, acquirers might even be able to bid higher, since they are better prepared to capture the 10 to 15 percent cost savings that successful IT integrations deliver.
As an added bonus, the article is available to read for free with registration-but McKinsey sometimes locks content, so you might want to check it out sooner rather than later.