Untangling Enterprise Systems

Here is a very, very interesting discussion of one of my favorite topics - acquisitions and divestitures. I've been through both of them a few times from both sides of the transaction. Integrating IT systems post-merger or separating systems post-divestment is one of the tougher things IT managers have to do.

This is almost always complicated by the necessary speed of the transaction. Mergers are often predicted weeks or even months ahead so system inventories can be gathered and plans made (usually in secret, by the way). Divestitures are almost always kept secret by the selling unit to prevent the soon-to-be-discarded from freaking out. (I was once divested - it would be more accurate to say my division was divested - and I was lucky enough to have a friend in the corporate office who tipped me off a couple of months in advance. It helped immensely as I readied my parachute for the jump.)

Both situations provide their own challenges but I've found divestitures to be tougher. How exactly do you plan for slicing off a significant business unit without tipping-off the unit's IT staff? Very carefully.

Add to this the perceived need for speed from executives and the general lack of understanding in the board room of the intricacies and interweavings of systems and the problem becomes even more intractable. The time of a divestiture announcement to the time of actual sale can be measured in days or weeks. Good luck getting that clean separation.

Your best defense is to always be aware that mergers and divestitures are pretty much continuous activities of businesses and try to be prepared. Follow the link for some ideas on how to stay ahead of the situation.