Reply To: Integration during internal transformation


Lisa Fawns

My organization are in this situation right now, we are on a multi year transformation journey to implement a new ERP, change our processes, culture and organizational structure. Our approach for the M&A activity was to look at the business case to either leave them as is, integrate some functions or force them through the transformation journey at the same time as us. We have opted, so far, to integrate some functions but not to impact their ERP. The cost to undertake partial integration vs. the benefits that can be achieved is well worth the time and effort for both organizations; however, the risk to business continuity if we attempt to implement a new ERP while we are still trying to figure out structure, processes, the actual tools to be used, is too high since they will add 33% more users and risk operational loss. Our activity is through a Joint Venture who will continue to operate independent but we will consolidate some functions so this scenario also plays into the decision; long term they will move to our ERP so we are not operating two systems (IT is a function to be consolidated) but we will avoid changing their culture.

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