Role of identity management in merger and acquisition scenarios

Role of
Identity Management
in
Merger and Acquisition
Scenarios

Agenda
• Introduction to Identity Management
• Introduction to Mergers and Acquisition
• Role of IDM in Mergers and Acquisitions
• Challenges
http://www.ifour-consultancy.com Offshore software development company India

Introduction
• Identity Management
• Mergers and Acquisitions
• Process:
• Compile a target list
• Contact the targets
• Send/receive a teaser (Executive Summary)
• Sign a confidentiality agreement
• Send/review the Confidential Information Memorandum (CIM)
• Submit/solicit an Indication of Interest (IOI)
• Conduct management meetings
• Ask for or submit a Letter of Intent (LOI)
• Conduct due diligence
• Write the purchase agreement
• Close the deal
• Handle any post-closing adjustments and integration

Identity Management
• In computing, identity management (IdM) describes the
management of individual principals, their authentication,
authorization, and privileges within or across system and enterprise
boundaries with the goal of increasing security and productivity while
decreasing cost, downtime and repetitive tasks

Technologies, services and terms related to
identity management
• Active Directory
• Service Providers
• Identity Providers
• Web Services and Access control
• Digital Identities
• Password Managers and Single Sign-on
• Security Token Services (STS),
• Workflows
• OpenID
• WS-Security, WS-Trust
• SAML 2.0, OAuth and RBAC

Merger and Acquisition
• Organization's Identity
• Employee’s Identity

Challenges
• 1. More resource intensive; new users new systems
• 2. legacy systems
• 3. Integration of more distributed
• 4. plan and implement a unified strategy
• 5. migration or updation of current IDM infrastructure
• 6. Establishment of trust

The Four Approaches to Organization's Identity
Management

For Acquisition
• Assimilation
• Occurs when the identity of an acquired company is deliberately dissolved
into the identity of the new parent.
• Eg. Cisco Acquiring Cerent
Acquirer
Acquired

For Merger
• Metamorphosis
• Confederation
• Federation

Metamorphosis
• Metamorphosis is the process by which the identities of merged
companies are dissolved and fused into a completely new identity.
• Eg. Bank of Calcutta + Bank of Bombay + Bank of Madras = Imperial
Bank

Confederation
• Merged organizations preserve their historical identities and are not
expected to meld in order to create a new one.
• Eg. Boeing + Rolls Royce

Federation
• Develop a new layer of identity and identification on top of the
existing layer.
• Eg. LVMH + Tag Heuer; P&G + Gillette, Ariel, Tide

Employee’s Identity Management
• During mergers and acquisitions, there is a transition when an
employee joins or an object is added to an organization -
• He/She/It is assigned a role, OR
• He/She/It acts the assigned “temporary” role, OR
• People/Systems change roles or leave

Sections of Employee Behaviour
• Different sections of employees show different patterns of initial
reactions
• A section of the employees is entrenched: they are typically unsettled or
disturbed by the change, often exhibiting anxiety or anger, and focus on riding
out the change.
• Another section of employees tends to feel overwhelmed, depressed and
powerless, withdrawing from what is going on around them.
• Another section tend to be oblivious of the changes going on around them:
they express a high level of confidence, though they are actually unprepared
for change.
• Final section of employees are optimistic of the changes, and they take a
learning approach towards merger: they look for opportunities in transition

Identity Crisis
• During mergers/acquisitions or in transition, identity is destabilized.
• Respondents connected their identity in their organizations with their
performance.
• Formation of new in-groups against the out-groups of the acquiring
company

AmerIndia's Identity Management solutions
making a difference in Merger and Acquisitions
space
• At AmerIndia, customized solutions based on the needs of
merging or newly acquired businesses.
• As much as possible, they automate the access management
processes for security, cost-effectiveness and efficiency.

AmerIndia's IDM solutions: The Integration
Challenge
• A recent case in point is a leading hospital's acquisition of another hospital.
• Each hospital had its own hospital identities, business processes and
systems.
• AmerIndia's IT consulting services took on the integration challenge,
ensuring that identities from the acquired hospital were brought under a
single identity and access management system.
• They flushed out details about user profile attributes, such as user ID,
location and access to various systems.
• The result was a time-saving, scalable system that was accessible, secure,
reduced company costs and operated smoothly throughout the expanded
hospital.

Conclusion
• Employees are an organization's most important asset
• Companies no longer have to separately manage users or identities
that are not under their control, thus helping reduce identity lifecycle
management costs.
• Can deliver simplified and trusted user experience with single
registration and single sign-on
• Because users can navigate easily between Web sites with a single
identity and explicitly control release of their personal data.

References
• Symbiosis students
• Rugved Mehta
• Sudeeksha Verma
• Shivendra Rawat
• Elizabeth Thomas

THANK YOU!

Role of identity management in merger and acquisition scenarios

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