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Scott Kay
Delivery Partner, Consulting, TCS
Guanjue Wang
Business Consultant, Consulting, TCS
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In the fast-paced world of mergers, acquisitions and divestitures (MA&D), speed and efficiency are paramount.
IT plays a critical role in enabling these elements, ensuring transactions close on schedule and that both system readiness and partner integration are seamless. Three tips (Figure 1) can ensure timely completion of, and smooth integration in, IT-enabled MA&D: 1) Using the right tool, 2) Maintaining data linkages, 3) Putting in place a flexible IT structure.
A graphic showing the three key aspects in an IT-enabled MA&D transaction. The three aspects are the use of right tool; flexible IT structure; and maintaining data linkages. The right tools make data transformation, migration, integration, masking, and encryption easier. A flexible IT structure consisting of modular systems and scalable solutions can grow with the organization and support future integrations. Proper linkages help maintain data consistency and accuracy.
Choosing the appropriate tools for data separation is critical in ensuring the integrity and security of data during MA&D transactions.
Data transformation, migration, and integration tools like SNP, SAP Data Management and Landscape Transformation (DMLT) services, or Informatica can facilitate data segregation while maintaining clear boundaries between the buyer’s and seller’s information. However, it is crucial to select tools based on the specific data sets and use cases involved. Furthermore, implementing robust data management solutions that facilitate the segregation of data by maintaining clear boundaries between the information of the buyer and the seller ensures that data is accurately migrated and protected. Tools like data masking and encryption are essential for protecting sensitive information during this separation process.
Maintaining linkages between associated data elements is vital to preserve the context and relationships within the data.
Effective data integration strategies involve using advanced data mapping and linkage tools that ensure related data points remain connected throughout the migration process. This helps in maintaining data consistency and accuracy crucial for operational continuity and decision-making post integration. Preserving these linkages can become difficult when modifying complex company code structures and maintaining transaction-aligned mapping of profit and cost centers.
A flexible IT setup can adapt to the changing needs of the business during and after the MA&D process.
This includes using modular systems and scalable solutions that can grow with the organization and support future integrations. Cloud infrastructure enables fast environment setup, an established security framework, and, ultimately, the ability to seamlessly transition and integrate systems. This can save significant time, effort, and cost. Application process integrations (APIs) can also be leveraged to bridge associated applications, which also makes for an environment that is more easily supportable under transition service agreement (TSA) by third-party vendors. This is typically needed as we have now built an entirely separate parallel operating platform.
While getting these elements right may not guarantee a perfectly smooth transition, it will significantly increase the probability of success.
By using the right tool for data separation, maintaining linkages between associated data elements, and building a flexible IT architecture, companies can enhance their chances of achieving timely completion and seamless integration in their MA&D.