• Stakeholder Buy-In : Ensuring stakeholder buy-in and managing resistance to change can also influence the decision on the technology integration approach .
Ultimately , the technology integration strategy should align with the overall business objectives of the newly consolidated company . Doing so will ensure a seamless transition that maximizes efficiency , fosters growth , and enhances the competitive advantage .
CLDA Mag : What are the biggest technology-related mistakes companies that are consolidating make ?
Kravtiz : Often , we find the purchasing parties in our industry make many technology-related mistakes which lead to inefficiencies , disruptions , enormous transition costs , and even failure to merge the companies .
Here are a few of the most common mistakes we see :
1 . Doing Poor Due Diligence and Insufficient Planning : The most common problem we see is that an acquiring party needs to do more due diligence before making an offer . A lot of the time , we are brought in after the deal has been completed . Failing to conduct thorough discovery before making a purchase offer leads to unforeseen costs , challenges , and delays . In addition , we see a need for a clear strategy with well-defined objectives , timelines , and responsibilities for all involved parties . The easiest way to avoid this is for companies or investors to bring us in before they decide to consolidate .
2 . Ignoring IT Cultural Differences : Neglecting to address IT strategy differences between companies creates conflicts and hampers employee collaboration . This can then compound delays and develop change management conflicts .
3 . Underestimating Data Integration Complexity : Data integration is often more complex and time-consuming than anticipated . Underestimating the challenges of merging data from different systems can result in data integrity issues and decision-making problems .
4 . Rushing the Integration Process : Trying to complete the merger too quickly without proper evaluation and planning almost always results in hurried decisions , overlooked issues , and suboptimal outcomes .
5 . Lacking a Comprehensive Testing Strategy : Insufficient testing and validation of integrated systems can result in errors and disruptions once the consolidated entity is in operation .
6 . Neglecting Cybersecurity : In a time of transition , cybersecurity is usually overlooked , leaving the acquired entity vulnerable to cyber threats and data breaches . 7 . Overlooking Legacy Systems and Technical Debt : Failing to address legacy systems and technical debt always hinders progress , slows operations , and incurs higher costs .
8 . Ignoring Customer Impact : Overlooking the technical impact of consolidation on customers always results in decreased satisfaction and leads to customer attrition .
9 . Mismanaging Vendor and Contracts : This can lead to service disruptions and higher expenses .
10 . Overestimating Synergy Benefits : Overestimating the anticipated synergies and cost savings from the consolidation lead to unrealistic expectations and disappointments in the post-merger phase .
CLDA Mag : How can these be avoided ?
Kravtiz : Here are a few strategies that you suggest for our clients :
• Set Realistic Synergy Expectations : Have realistic expectations for synergy benefits and cost-savings based on thorough analysis and a practical assessment of the integration process .
• Maintain Communication Transparency : Keep open and transparent communication with all stakeholders , including employees , customers , vendors , and investors . Clearly communicate the consolidation strategy , objectives , and timelines to manage expectations and reduce uncertainty .
• Assess the Impact on Customers : Consider the impact of consolidation on customers and develop strategies to ensure that you maintain a high level of service and satisfaction .
42 customized logistics & delivery Magazine I summer 2023