Print Email Facebook Twitter Merger integration performance measurement from a business and IT perspective. Title Merger integration performance measurement from a business and IT perspective. Author Van Valkenburg, E.A. Contributor Bouwman, H. (mentor) Tan, Y.H. (mentor) Scholten, V. (mentor) Schonewille, J. (mentor) Faculty Technology, Policy and Management Department Infrastructure Systems & Services Programme Informatie en Communicatie Technologie Date 2011-12-20 Abstract Companies do a lot of mergers and acquisitions as part of their corporate strategy. This has been a trend for some time now. Another important trend is that companies use increasing amounts of IT in their business to accomplish different things. The complexity of integrating IT systems during an M&A is something that is often forgotten when engaging in M&A activities. Research into this complexity has so far not yielded much evidence as to the exact role that IT plays within M&As. One of the difficulties for researchers is that measuring the outcome of M&As is not done consistently and is therefore hard to compare to other M&As. The goal of this research is to fill this gap. The main question is: What should a Business-IT merger performance measurement system look like? The system that was designed in response to the question consists of the following factors: transaction costs, information costs, business process consolidation, enterprise system consolidation, customer satisfaction, user satisfaction, business opportunities, and IT opportunities. The first two factors are the financial benefits, transaction costs are about the boundaries of the firm and a merger should yield a more efficient organization-al form this is measured by transaction costs. Information costs is the costs of retrieving information from IT systems, the more complex the systems the higher these costs. Therefore the information costs should rise initially because getting information from two different systems and combining them should be more difficult than after the integration when the systems have become one. The business processes and the accompanying enterprise systems are measured based on their consolidation. The level of integration and the ambitions for the new company drive these measures. A company cannot survive without customers and their satisfaction will be measured. On the IT side the users of the systems are the customers and their satisfaction will be measured. Together these last two factors are part of the service-profit chain. The final two factors are busi-ness and IT opportunities. These are aimed at the benefits of the merger that were not or cannot be specified beforehand. A survey was conducted to explore the validity of this system. The response was very low but given these respondents the factors were all deemed appropriate, except for IT opportunities. Further research into the validity, especially in case studies and other “real” situations is necessary. The proposed performance measurement system further specifies to measure the performance of each of these factors starting one year before the merger and for five years after the merger. Most factors are meas-ured using indexes that allow for comparison of different M&As both within one company and between com-panies. Subject merger & acquisitionenterprise integrationperformance measurementsuccessfailure To reference this document use: http://resolver.tudelft.nl/uuid:adc1d1e1-dd2d-43d6-8213-07b649d9739e Access restriction Campus only Part of collection Student theses Document type master thesis Rights (c) 2011 Van Valkenburg, E.A.