July 25, 2005

Data management in mergers and acquisitions

Whenever a M & A happens, there is a coming together of resources in terms of manpower, technology, and other physical assets. However, the integration of data during a M & A is often overlooked. The data represents useful information about a company's customers, their opinions, data on the products and services of the acquired company, etc. The data is very useful in mapping the path for the new merged entity in terms of the external direction to be taken and internal business processes for marketing, sales and the IT departments. A new organizational structure can be created depending on the requirements. If the data is not made use of, the merger may actually slow down the growth process, lower employee morale, and cause losses. Even if the merged businesses have common business ideologies, they may operate in different manners and treat data differently. Businessintelligence reports:

Without a solid data quality solution, managing the data between the parent company and the subsidiary would prove dangerous. The organization would have a difficult time identifying mutual customers and that confusion would threaten the very relationships they had worked so hard to develop.

Read More: More Than What You Paid For: How to Avoid Cannibalizing Your Long Term M&A Plan

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