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 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.
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: firstname.lastname@example.org