There has never been a more exciting time to be a promising start-up in the source-to-pay tech space. Consolidation has been driving the market for several years, with companies acquiring new, fast-growing companies to complement their core products and investors quickly adding complementary companies to their portfolios. In both of these scenarios, the consequence is that post-merger technology integration strategies must be defined, executed and monitored to achieve ultimate value realization.
Successful technological integration, however, requires much more than choosing an innovative or leading solution and allowing the company that developed that solution to dictate the integration strategy. In addition, the real effort of technological integration is preceded by a real effort to determine the strategy to be followed and, above all, who should lead the effort. Ideally, this strategy and this person should take proactive steps to avoid unpleasant surprises and potholes that can derail even the best-planned projects.
Unfortunately, this is an effort that takes a lot more thought and analysis than most companies give. That’s why, in this Spend Matters PRO series, we outline the most common potholes and hidden potholes that tech vendors encounter in post-acquisition technology integration. Because without prior knowledge, acquisition dreams quickly turn into maintenance nightmares from which suppliers may never wake up. And we want you to have a chance to get it right.
Specifically, there is one mistake that outshines all the others – one that will produce recurring nightmares that will haunt your customers for years to come. This latest set of briefs examines what we call “the biggest no-no of all: believing that you should maintain two solutions that do essentially the same thing.”
For vendors new to the post-merger integration strategy, be sure to check out our previous briefs, where we defined five specific stages of post-merger technology integration, as well as our follow-up brief on perhaps the most important initial integration planning question (maintain or grade to maintain?). See: