Business/IT alignment during a post merger integration

Abstract

Alignment between an Information Technology (IT) function and the organisation it serves is the process that drives successful investments in the effective and efficient use of IT to reduce internal and external business costs, and to create a competitive edge. Mergers and Acquisitions (M&A) have a high impact on the organisations involved and the stressful post-merger integration process often includes anxiety, restructuring, and a new corporate identity, all of which create a high degree of uncertainty for those involved. This research project considers the subject of Business/IT alignment within the time-frame of a post-merger IT integration. Within this period of great change the IT function needs to plan and execute a complex project that joins together the Information Systems (IS), IT infrastructure, and IT staff of two companies, while balancing the needs of the Business to take advantage of the positives, and avoid the negatives of its new position. Specifically this study examines the key factors relating to Business/IT alignment at a tactical level that contribute to a successful IT integration, using a case study of a single manufacturing business unit, adding to the knowledge of the IT governance subject. i A key alignment criterion and two individual alignment factors\were identified from the case study as supporting Business and IT strategies during a post-merger IT integration.