KEYS TO SUCCESSFUL MERGER & ACQUISITION TECHNOLOGY INTEGRATION
Effective technology integration is a vital aspect of any merger or acquisition.
It involves combining two or more technology networks into a seamless, high-performing system that delivers maximum value from the accumulated capabilities.
In this article, we explore the keys to a successful M&A technology integration.
One of the most important components of any successful merger or acquisition (M&A) is the timely integration of two separate technology networks. Combining them into a highly functional networked technology infrastructure keeps the new business entity operating as seamlessly as possible, all while creating additional value from the combined capabilities.
Every major business activity, including employee email, payroll, sales, and production, depends on efficient, reliable technology infrastructure that is free from friction, downtime, and other disruptions.
Integrating diverse technology stacks can be challenging or straightforward, depending on several factors such as the technologies, software, and locations of the merged organizations.
Obstacles to consider
For large organisations merging together, unifying networks and technologies may take years. But for SMBs (small and medium-sized businesses) utilising more traditional technologies such as VPNs, integrations may be accomplished more quickly and with less friction. In scenarios where both the acquiring company and the company being acquired utilise more sophisticated SD-WAN networks, these technologies tend to be closed and proprietary in nature. Therefore, if both companies utilise the same vendor, integration can be managed more easily. On the other hand, if the vendors differ, it is not going to interlink with other networks as easily and needs a more careful step-by-step network transformation plan.
Taking these challenges into account, the acquiring company could devise a strategy to let any existing network contracts expire, but in the long-term scope of spending, this is going to prove to be more expensive than to be proactive about merging technologies in the beginning of the acquisition.
Keep an eye on your apps
One of the Keys to successful technology merger is to truly understand where your applications are going. For example, if two New York companies are joining forces, with most of the data and applications residing in the US East Coast, it wouldn’t make sense to interconnect networks in San Francisco. Along with this, it is important to make sure your regional networks are strong, even within your global network. In terms of where you are sending your traffic and data, it’s important to be as efficient as possible.
In the case that the acquiring company is absorbing a more technologically advanced company, it could be beneficial to take a step back and see what can be learned from those who have already experienced the transition to more sophisticated systems and networks. This is especially worth considering where the company acquired is smaller in size, and therefore likely to have made cost-conscious decisions when building out their network without added complexity.
On the opposite side, for modern companies that are acquiring more traditional organisations, it could be beneficial to examine the applications you intend to keep to ensure they will continue to work properly within a more modernised network. While it might sound counter-intuitive, there is always “that one legacy server” in the basement that is running an archaic network configuration.
Keys to success
To ensure that technology integration efforts are successful, there are five key tips that can help guide companies through the often challenging steps involved in merging one company’s network with another, while keeping both businesses running until the single technology stack is functional.
- Focusing on end results
- Creating plan
- Effective Communication
- Allocating Sufficient Time
- Considering expert advice and partnering with specialized companies like DART Technology to offload significant portions of the WAN restructuring work and free up IT staff for everyday duties and projects.
Your already-busy IT staff will be asked to take on additional duties and projects during a technology integration project. Partnering with us can help by offloading sizable portions of the WAN restructuring work while keeping your IT staff available for everyday duties and projects. Technology integration projects can be overwhelming, but experience shows the work is more manageable and more successful if companies plan ahead and assemble the right teams, tools, and partners to move the project to completion. Put simply, there’s a fast way to manage technology integration, and there’s a right way, with DART Technology.
