After the organization has stabilized, often a business will launch projects to achieve the synergies that drove the M&A activity. Typical business projects include:
- Cost Reduction – Head count reduction, economies of scale, best practice implementations, outsourcing and insourcing.
- Adding Value – Entering new markets, selling new products / services, additional cross selling /upselling.
- Asset Optimization – Get more out of existing assets. Projects include cash management, increased asset utilization and supply chain integration.
- Procurement – New contracts and supplier rationalization.
Time to Integrate
During this phase, IT organizations will launch their own efforts to achieve synergies and integrate the new IT organization. Projects typically include:
- Application Rationalization
- IT Process Improvement
- Infrastructure Rationalization & Simplification