Read the
Real World Case 3, Cogent Communications, Intel, and Others: Mergers Go
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More Smoothly When Your Data Are Ready (pp. 213-214). Place yourself in the role of a manager at a company
undergoing a merger or acquisition. Explain your customer’s expectations during
the merger with at least three examples and describe what role IT would play in
meeting those expectations.
In the process of managing an M&A, two
or more companies join together to form one company
(O’Brien & Marakas, 2011). Generally, when a merger or acquisition takes place, the
new company that is developed develops a new name as well. Mergers are often perceived as
a bad experience for our customers because in the process of a merger minor changes may
occur in the process of operations (Moeller, 2009). Actually, it has been identified
that over half of all mergers fail to deliver the improvements that they
initially intended to.
To this company, these changes may be small, however, customers might erceive
these changes to be big. For example, changes in IT software or changes to a ompany
website may result in a difficulty to effectively understand how to maneuver through the
site altogether.
In the process of a merger, companies
should focus mainly on keeping the customer first. New
features might misdirect existing customers. Like a cellphone company website, for example,
new menu options, formats, and even a new policy might be difficult for customers to
understand. IT like gmail.com could help customers to communicate this issue to the
company. Text messages and images could be sent to and from other firms.
Another issue might involve the closing of
a company store in a certain location. For example, a
M&A could result in the company closing its physical branch in one state
and only
offering its products and services through its online website. As a result,
customers might have
to travel to another state just to speak with the company's representatives in person which
could be a great inconvenience for customers. Traveling expenses might be looked upon
as meaningless to customers who have to travel miles away from their hometown to
experience certain services or to purchase specific products. IT like video chat
software could help the company to communicate visually with the use of a webcam. The
camera can help to operate meetings that are held over the internet. Also, internet
services could also help companies to provide door to door deliveries within particular
routes to better satisfy potential customers.
Changes in operations or changes in
performances might be confusing to customers or consumers as
well (Moeller, 2009). For example, in the process of the merger, products and services
might not be offered at the company's highest quality. As a result, customers might
decline in their levels of satisfaction. For example, the admission process
might be quicker
compared to what it used to be, although the information might need to be updated or
validated. This could mean long admission time frames. Overall, mergers can operate
smoothly with a data center that is well prepared.
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Focus on what Andi Mann in the case calls “tribal
knowledge.” Explain what you think is meant by that, and why it is important to
the process. Provide at least one strategy you would suggest for companies that
are faced with the extensive presence of this issue in an acquired
organization.
Tribal knowledge is any information that
is not commonly known. Tribal knowledge is known as
information that is not documented and is unwritten. This type of information can be
translated from older employees to new employees of an organization. However, there are
both advantages and disadvantages to utilizing tribal knowledge. For example,
it has been
stated in the text that tribal knowledge can be a disadvantage to a company as well.
Whenever one company references information others need to know in order to produce a
product or a service, the term tribal knowledge can be identified. This
particular type of
information is not commonly known by the other individuals within that company.
Tribal
knowledge could be a list of the company's rules or a set of the company's information
is generally known by a specific group of employers within the company. This particular
group then makes significant contributions to the quality of performances, products,
services and eventually financial strengths. In my opinion, tribal knowledge should be
top secret and confidential within a company at all times if possible.
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Most of the discussion on the case focused on hardware and
software issues. However, these are essentially enablers for underlying
business processes developed by each of the companies involved. Analyze the
different alternatives that companies have for merging their business
processes, and discuss the role IT would play in supporting those activities.
Be sure to address data management and governance issues.
Even though some business owners may want
to make merging their last opportunity, there are a
number of alternatives to making the decision to merge with another existing company.
Many say that companies should resist merging altogether. Mergers can also mislead
executives within their business operations. The level of expected uncertainty
is rather high
as well. Therefore, merging could be seen as a last resort. For example, rebase
is one
alternative. Organic in-house growth provides full control to companies because
it can be a lot
easier to integrate. As a result, there are lower levels of disruption.
Although organic growth has been known to
be insufficient. Most companies want a balanced
level of internal growth and external partnerships. Purchasing a firm can help
to balance out
interna. Having the right social context and innovation, however, can still onflict
with the status quo of a company as well. Your company might choose to build
its capacity
through internal R&D. Another option is borrowing the resources you need through
strategic partner shipping, another merging alternative.
Cultivating strategic partnerships can be
a great way to obtain knowledge from that partner.
However, depending too much on the partner and not your company can threaten secracy in
the knowledge of your own company. As a result of this, the company could reach a
level of growth where your partnering won't be necessary and they might not
need you anymore.
This is said because, in the process, some of your best, highly skilled professionals
would be transferred to and from the other corporation on a routine basis as they help to
manage the alliance and to transfer tribal knowledge back to their headquarters. However, tribal knowledge is documented and only exists within the
minds of certain people. Strategies could also be identified to kill or to
remove tribal
knowledge as well. In the process of an M&A, two or more companies join
together to form one
company.
