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Volume 8 Issue 3 December 2005

Evaluating Success in Post-merger IS Integration: A Case Study
Maria Alaranta
Turku School of Economics and Business Administration, Finland

   

The importance of post-merger integration is derived from the fact that value creation can only begin when the organisations begin to work towards the purpose of the acquisition. Furthermore, since information systems (IS) are of the utmost importance in the operation of (large) business, a merger or acquisition may not succeed if information systems planning is inappropriate. In addition, potential counter-synergies can be concealed in information systems.

Success in information systems is an ambiguous, multi-faceted phenomenon that can be addressed with various measures. In fact, no generally acceptable measures quantitatively and objectively to assess an information systems’ success exist, and, therefore, surrogate measures based on subjective evaluation approaches have been developed. In practice, there are nearly as many measures as there are studies. Inevitably, success in post-merger IS integration bears these characteristics as well.

The references to post-merger IS integration success are frequently implicit or non-existent in the post-merger IS integration literature. Furthermore, the more explicit attempts to address success in post-merger IS integration fail to draw on the vast body of literature available on IS evaluation.

This paper attempts to synthesise the often implicit or vague definitions of post-merger IS integration success with those provided in the vast body of literature on IS evaluation. As a result, four categories of success issues for post-merger IS integration are proposed: User satisfaction with the integrated software’s system and information quality as well as its use; Efficient and effective IS integration management; Efficient IS staff integration; and IS ability to support the underlying motives of the merger.

This paper also uses a case study to illustrate how these more general ways of addressing the post-merger IS integration success presented in theory may be operationalized .

Keywords: IS integration, mergers, acquisitions, M&A, success, IS evaluation

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ISSN 1566-6379