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1+  a strategy for the post merger network

1+ a strategy for the post merger network



Guidelines on what should be considered when your company acquires another and you're responsible for bring the two networks together.

Guidelines on what should be considered when your company acquires another and you're responsible for bring the two networks together.



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    1+  a strategy for the post merger network 1+ a strategy for the post merger network Presentation Transcript

    • 1+a strategy for the post- merger Network Guide to the operational and financial implications that compliments technical objectives.
    • In your inbox today:Your company just announced a major acquisition –
    • the good news:Acquisitions take 90-120 days to complete.
    • The Bad news:Operational and transitional demands will conflict
    • Assumption #1: A technical plan will be developed in parallel.The 1 + Network Assumption #2: The final network will go through changes as it gets revised and Definition: consolidated. The new network for a Assumption #3:changed environment - with All network services andnew users, a new scope and infrastructure will be included. the accompanying Assumption #4:modifications that come after This will be a repeated event atthe acquisition of a separate some point in the future. enterprise.
    • Key Points:1. Assume liabilities will span operational, technical, cultural, legal and financial considerations.2. Expect the unexpected data integrity issues to surface within both acquired/acquiring organizations.3. Prepare for conflicts in vendor ownership, contracts, technical levels and other broken links.4. Plan for automation issues when attempting to utilize existing asset inventory systems.5. Perform a Before and After Study to ensure outcome is verified and processes are validated.
    • stakeholders:whose got what?
    • Stakeholders Merging networks extends beyond IT Operations (Sales, Admin, etc) Financial HRManagement Management IT Managemen t (Dir, Techs) ITLeadership Vendors (CIO)
    • Transitional StrategiesIt’s a lot more than just where the wires go.
    • • The 4 Corners – Get the Managing the whole picture. process from a • Inventories – Strongfinancial impact data sets add more perspective – visibility. • Documentation – Formalize the process and add controls.
    • 4 Corners Strategy : Account for everything Public Physical All numbers with All locations/sites or public access. offices. Paper Internal All non-public All services, accounts connections and and invoices. links.
    • Inventories• Standardization – Merging data from different organizations will require numerous conversions; existing, interim and final.• Linkage – Create a thread to link facilities to locations to invoices.• Granularity & Due Diligence – Avoid reliance on anecdotal information; importing data will hide important trends and behaviors.
    • Documentation• Planning • Strategic Plans, Scope/ Requirements Documents • Due Diligence (contracts, conditions) • Inventories (initial)• Implementation • Project Management Documents • Meetings, Calls and Records Documents • Inventories (interim) • Change Logs, Checklists• Compliance • Bill Validation • Inventories (final) • Contract Compliance • Monitoring/Management Tools and/or Processes
    • The Hump: The Financial Impact of Conversion Costs Monthly Cost Contract Penalty Network 1 Network 2 Final NetworkBudget for overlap: 2.5 months of multiple network costs; calculate potential contract penalties.
    • 7 Things Companies Do Wrong1. Quality Data; Insufficient to describe actual conditions and needs2. Financial Performance; Lack means to accurately measure and forecast3. Estimates; Rely on too much for decisions, strategic initiatives4. Leave unresolved issues; Move on too quickly5. Resources; Under invest in those devoted to monitor/manage cost6. Plans & Process; Underestimate the disparity between the two7. Build Fat Networks; Overbuild based on unsubstantiated estimates
    • Your next stepsKeep it in-house or bring in some help?
    • Numbers Number of enterprises that don’t68% proactively manage their network costs. Ratio of improved financial performance3:1 of companies with expense management process vs ad hoc effort.$36 Total impact per dollar over contract life.
    • Value Proposition• Low Cost/High Yield – A&I ROI averages 5:1 or more through sustainable savings• Productivity – A&I enables client resources to focus on more critical efforts• Value – A&I helps change the culture through awareness• Transparency – A&I provides insight into key trends, patterns and behaviors in your business• Answers – A&I is a partner in the decision process
    • technology made simpler Call us at 412 221-4228 Robert SmithEmail: rsmith@auditsandinvestigations.com