CIOs must embrace business change

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Chief executives should embrace rather than fear mergers, acquisitions and divestments (MA&Ds) or they might hinder the ultimate success of the deal, warns analyst Gartner.

By adopting the former approach, business decision makers can use the time of change as an opportunity to improve resources, processes and systems, according to the analyst's report 'Timing Is Everything in Mergers, Acquisitions and Divestments'.

In order to ensure they position themselves for competitive advantage, the research claims that MA&D-savvy chief executives will ensure their businesses are ready for change before it's even on the horizon.

Those in the top spot also need to ensure that they liaise with their opposite number in the acquiring or to-be-acquired company, as well as ensuring that people and relationships remain top of the agenda, according to Gartner.

"Integrating the IT systems of two or more enterprises is a vast, complex and potentially costly process and it is a major challenge for the IS organisation," said Dave Aron, vice president and research director at Gartner Executive Programmes.

"However, if the process is handled in the right way, it can provide the opportunity to upgrade and update existing systems for overall business benefit. Proactive CIO involvement in the MA&D process can also play a significant role in identifying and reducing information and process-based risks that span multiple business areas, as well as spotting opportunities related to that information."

In addition to adopting a more positive, upbeat attitude towards mergers and acquisitions, chief executives need to remember that timing is critical, advises Aron.

He added: "Practiced CIOs are more likely to engage, prepare and execute on the process earlier than a classic MA&D timetable would suggest, with a strong bias towards fast, clear decision making and people issues."

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