The 5 levels of M&A technology integration: an introduction

Adobe Stock

In this Spend Matters PRO series, we’ll define, introduce, and explore the five levels of M&A technology integration that vendors need to go through when bringing together different companies and platforms.

We hope this will allow everyone in the market – customers in particular – to plan and assess different levels of supplier integration and ultimately help align the value created over an extended time horizon for technology buyers and shareholders.

This is important because while mergers and acquisitions (M&A) often generate value for shareholders, they don’t always do so for clients – or at least not at the level where they are “sold”. Such a strategy can create obfuscation for users and result in solution components that don’t “talk to each other” or “work together,” as a PowerPoint or demo might suggest.

And since all of the suite providers in the source-to-pay market (except Zycus) have gotten to where they are at least in part – and sometimes as a primary strategy – by acquiring other providers, it’s a particularly important subject. It’s worth noting that Zycus doesn’t get a free pass here either: it has had its own issues getting different platforms and internally developed codebases to communicate with each other, reflecting the integration challenges. mergers and acquisitions. *

Today we introduce and define the five levels of M&A technology integration, where step 0 is no integration. And we’ll explain why the five steps are important, starting with establishing a frame of reference for clients, suppliers, consultants and investors first.

* This topic also applies beyond mergers and acquisitions, in cases of re-platform of internal supplier solutions, integrating different platforms developed internally and customer migration (for example, a transition from a enterprise software or early SaaS or modern cloud architecture).

Now let’s take a look at the details of solution integrations.

For full access to this PRO content:
Source link

About Shirley L. Kreger

Check Also

InsuraGuest and CENTERED Wellness Complete Technology Integration and Launch Commissioning to Offer Travel Insurance to U.S. Customers

Enter Wall Street with Street Insider Premium. Claim your 1-week free trial here. VANCOUVER, BC …

Leave a Reply

Your email address will not be published. Required fields are marked *