Mergers, acquisitions and divestitures are on the increase, and with each comes a major project: the transformation of information systems. In this context, carve-out and carve-in become a balancing act: transforming existing systems without compromising continuity, synergies and cost control. For CIOs, one decisive question remains: how will information systems be transformed to guarantee continuity, synergies and cost control?
There are many solutions, both in terms of applications and infrastructure services. To move forward, we need to define a plan to develop a strategy, validating a certain number of objectives, constraints and working principles. It is this framework that will guide decisions and the definition of the roadmap.
We deliberately focus on the data dimension of the information system (IS, IT and organization), leaving aside the other components (functional, infrastructure).
Two universes to align: business and IT
To quickly draw up a separation or integration plan, we reason in terms of two groups of data components:
Business components group
- Reference data: key, stable, low-variation data.
- Data models: business semantics, structures and analysis axes.
- Data use cases: portfolio of uses exploiting data.
- Data organization: governance, security, compliance, business responsibility.
IS-IT components group
- Data sources: applications feeding or using data.
- Data architecture: services, tools and programs supporting data.
- Data delivery model: teams and procedures for delivering datasets to use cases.
For each group, the CIO must define a strategy adapted to the strategic and operational objectives and constraints identified.
6 strategic objectives to serve as a "compass
- Ensure continuity of operations, management and control.
- Optimize or reduce TSA (Transfer Service Agreement) costs, which are often high if the transition is slow.
- Converge on business and IS-IT targets wherever possible.
- Evaluate the transformations or improvements to be made, and determine their cost-effectiveness.
- Define, structure and plan the final target and its implementation.
- Ensure synergies are achieved.
The "best balance" between four levels of performance will be sought when drawing up the target and the action plan for its implementation:
This balance can be adjusted over time: a simplification project carried out earlier than planned could result in the disappearance of a future harmonization project, which would no longer be necessary.
Integration often starts... with customer data
Master data is a highly critical business component: a customer repository, for example, directly conditions the exploitation of commercial synergies.
When two customer data models coexist - that of the acquiring company and that of the acquired company - with several non-standardized, non-quality-compliant repositories, the work involved is considerable.
Strategically, the priority is clear: sales reorganization will only be effective if customers are harmonized and mutualized. This is the prerequisite for rapidly creating value. Achieving this result has therefore been given top priority.
Technologically, the simplest solution is to implement a Master Data Management (MDM) tool, possibly on a transitional basis.
It becomes the " point of truth ", to which existing applications will subscribe, thus avoiding heavy and immediate transformations of their data models.
What remains is to achieve the goal of harmonization while limiting the transformation effort.
Opting for the broadest model, integrating all existing attributes, may lack business coherence and bring neither clarity nor simplification. Conversely, limiting ourselves to the lowest common denominator - the only attributes present in all databases - would impoverish the business value.
Start with uses, not systems
But these two tactics would not generate sufficient business value for the synergy effort involved. The best tactic would be to :
- Precisely define the business processes and requirements that will mobilize customer data.
- Structure the data model according to these uses.
- Build migration programs to upgrade the MDM with a target base.
- Subscribe all consuming applications to this consolidated repository.
- Launch the new sales organization, now based on harmonized data.
The profile of our action plan will therefore be as follows:
A simplification phase - streamlining certain high-consumption applications - may come later.
It appears to be less of a priority: the most important thing is that, thanks to the transformation of the customer repository, sales synergies are rapidly activated.
The customer repository is just one example. The same logic must apply to all data components. Beyond technology, the challenge for the CIO is to build a common data vision, capable of withstanding organizational changes and sustainably supporting performance.
Jean-Bernard Guidt
Partner - Change & Data Strategy
Micropole, a Talan company
