A check-list that you can throw at your (IT) due-diligence team. It considers 5 patters, the forms these patterns may present themselves in and 6 risk strategies to deal with each pattern, Examining the IT landscapes of M&A parties following these patterns and strategies, you will be armed with a clear vision of your IT integration patterns, its risks and its expected results.This presentation has been given at 6 November 2020 during Thought Leader Global's 12th annual M&A Merger Integration Forum.
4. DEGOEDEDIGITAL
1. Situation: and representing the biggest cost
Image:Roehl-Anderson, Janice M, M&A Information Technology Best Practices, Wiley (2013)
5 dirt-easy patterns 6 November 2020
5. DEGOEDEDIGITAL
1. Situation: Enter Covid, Market Valuation of Sectors in 2020
Image: McKinsey Covid-tracker, column width = market cap
5 dirt-easy patterns 6 November 2020
6. DEGOEDEDIGITAL
1. Situation: effect on IT software spend
Image: Bain B2B Covid IT Software survey
5 dirt-easy patterns 6 November 2020
How has the current environment caused immediate changes to your company’s maintenance / subscription spend on IT software?
10. DEGOEDEDIGITAL
2. and Strategies
5 dirt-easy patterns 6 November 2020
• Ignore, the ostrich ‘see-no-evil-hear-no-evil’ tactic;
• Accept, the potential impact of some risks may be deemed acceptable to your organization;
• Reduce, e.g. the potential impact or probability of occurrence of a risk, like the banking app;
• Transfer, use insurance or subcontracting to transfer potential consequences of risk;
• Avoid , not entering the type of business that may incur potential risk impact deemed too high;
• Exploit, risk is also an opportunity and high risk investments may yield high returns.
11. DEGOEDEDIGITAL
2. Mud
Image: SuperATV
5 dirt-easy patterns 6 November 2020
Complex IT
Old Systems
Delayed IT PMI
Technical Debt
IT picks ALL battles
North Korean IT
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
12. DEGOEDEDIGITAL
2. Mud: Complex IT
Image: Sogeti
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
13. DEGOEDEDIGITAL
2. Mud: Old systems
Don’t spend time on items you can phase-out
quote: PMI professional
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
14. DEGOEDEDIGITAL
2. Mud: Delayed IT PMI
Image: BCG
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
15. DEGOEDEDIGITAL
2. Mud: Technical Debt
Image: Scott Andrew for Medium
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
16. DEGOEDEDIGITAL
2. Mud: IT picks ALL battles
Image: Michael Porter, Plos One
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
17. DEGOEDEDIGITAL
2. Mud: North Korean IT
Image: Newsmax / KCNA / Reuters
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
18. DEGOEDEDIGITAL
3. Elephant
Image: SuperATV
5 dirt-easy patterns 6 November 2020
Nonvalue Complexity
Complex IT
Duplicate IT
Non-necessary IT
Low capability IT
Waste
Harvest
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
26. DEGOEDEDIGITAL
4. Functionality and Time
Don’t spend energy on situations that time will take care of
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
27. DEGOEDEDIGITAL
4. Functionality and Time: Supplier’s Roadmaps
Image: IBM
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
28. DEGOEDEDIGITAL
4. Functionality and Time: business change & obsolescence
Image: PSFK / Microsoft
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
29. DEGOEDEDIGITAL
5. Pick a Battle: Revenu recovery comes first?
Image: McKinsey Covid-tracker, column width = market cap
5 dirt-easy patterns 6 November 2020
•Exploit
30. DEGOEDEDIGITAL
5. Pick a Battle: Use what is already there
5 dirt-easy patterns 6 November 2020
• Ignore
• Accept
• Reduce
• Transfer
• Avoid
• Exploit
Images: Google, Yole, National Instruments