Mergers and acquisitions: Using data to smooth the transition

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Mergers and acquisitions (M&A) are a big business, and even at the center of the global epidemic, those big business deals have not slowed down much. In fact, M&A megadials – at least $ 5 billion in transactions – are on the rise as MGM was acquired by Amazon in a 8.45 billion deal and Google acquires Mandiant at 5.4 billion. With the rise of M&A, companies are often pressured to accelerate the transition And Compensation stakeholders want an organization that works effectively and efficiently from day one, but is that possible?

That is with technology

When two companies come together – with their own data, their own application, their own processes, their own people – things can get complicated. Cloud computing, Artificial Intelligence (AI), machine learning (ML) and low-code tools – just to name a few – have transitioned from two units. A Much more transparent. These tools and applications have made it easier for companies to adapt and overcome today’s labor shortage issues, which can hamper the M&A process. Tools like low-code that do not require significant human capital are essential.

The use of these tools and resources is important when you consider that each company has its own application, datasets and data criteria. Criteria for data may include relevance, objectivity, scalability, and completeness, and may vary from Company A to Company B. Merging that data without the use of technology is a long, tedious process, especially when it comes to tracking progress and coordinating activities. Acquirer and Acquirer.

The top hurdle is merging different applications and data into any M&A, where each company has different mission-critical applications and legacy systems. Before deciding what to integrate, it is important to know what data exists, where it resides, who uses it, and whether personally identifiable information (PII) is secure.

Companies need to securely maintain sensitive customer data and provide friction-free customer experiences throughout the merger and acquisition process, while at the same time avoiding penalties associated with missing transition service contract deadlines and outage / downtime due to potential service delays. The latter can trigger customer churn, lose revenue and potentially damage the brand as a whole.

Initially, the people involved in the M&A deal need to create a plan, and that plan needs to be driven by speed.

Merger and Acquisition: Momentum is everything

Many leaders are well aware that the moment an object gets stuck in reaching a goal or objective, it is very difficult to move it forward again. That’s why the key to a successful M&A is speed, and data drives that momentum.

One of the first steps of M&A is to access the data of the acquirer, identify the objectives for the data and decide what data types and definitions should be used going forward. Data integration, data transformation and reporting should all use those agreed definitions so that everyone is on the same page and has a general understanding of what is happening and what opportunities and risks need to be addressed. This ultimately ensures the accuracy and consistency of the data across multiple applications and stakeholder groups.

The previous two independent systems (and companies for that matter) must work together, and speed can create or break the success of mergers and acquisitions. Without a flexible IT infrastructure, this seems like an impossible task.

Collaborative integration

Integration does not mean merging all systems into one; The technology available to teams to share and access data works the same way, if not better. The sales teams of the two new joint ventures should be able to collaborate and market together; They need to look at all the data – including products, customers, employees and partners – so they can cross-sell and ensure a consistent customer experience. This can be done in a central cloud location.

Taking advantage of the cloud application is a great way for a newly merged company to work faster and deliver the data it needs to people. Cloud applications can be set up almost instantly, configured easily, and data can be transferred relatively quickly. Modern integration platforms make this strategy easier to implement as they provide standard connectors to the popular cloud application, dramatically reducing the time and effort required with an alternative approach.

Companies take on additional responsibilities when merging or acquiring with another company. Not knowing where all their data is and not protecting PII poses major regulatory risks associated with information security. Cloud platforms can work wonders in these situations. Within weeks or days, it is possible to select and configure the cloud application, integrate it with other systems and make it available to authorized users throughout the new organization.

While the goal in any merger and acquisition is to move the company forward and run quickly and efficiently, data integration, data access and data protection are key components for smooth transition. Keep in mind that M & As is Changes For multiple organizations.

And, the way to go through any kind of transformation is to show momentum towards the objectives set out as part of the initial investment – in this case, the data. The use of tools such as AI, ML and low-code can help achieve these objectives.

As part of the integration plan, organizations should map out the type of visibility that stakeholders want and identify the necessary data sources. They should also ensure that they have the necessary momentum and integration and conversion technology to build connections that will meet and ultimately exceed customer expectations.

Chris Port is the COO of Boomi.


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