Abstract
This study aims to identify key issues in the information technology (IT) integration in mergers and acquisitions (M&A) in banking and propose an approach to increase the efficiency of such integration. The study produces a first cut IT integration framework based on the literature review into the key factors in IT integration in banking and selected popular IT governance models, such as Control Objectives for Information and related Technology (COBIT), and then refines it with the help of IT practitioners based on their involvement in a number of high-profile banking M&A cases. The proposed framework is thus underpinned by the latest theoretical thinking in the relevant subject field and builds on relevant practical experience. Senior level IT practitioners in banking organisations can employ the framework to inform and guide the execution and post-mortem review of their M&A integration projects.
Highlights
Some of the results of the study were published in another work, Kovela and Skok (2012), which among other things confirmed that information technology (IT) is a critical resource and enabler in the business model of modern banking and a clear link between the business strategy driving the merger and the priority of the IT integration tasks which are key for the efficiency of mergers and acquisitions (M&A) transactions
In our attempts to identify a suitable candidate, we focused on those generic and broad enough to fulfil the IT governance needs of the enterprise, yet provide enough detail to allow for practical implementation of the IT integration process
It is worth noting that version 4.1 Domains of Control Objectives for Information and related Technology (COBIT) would be the authors’ preferred option to be used in constructing such a plan, as the definitions used there are both robust enough for our IT integration process structuring needs and are quite straightforward to use, whilst the version 5 COBIT Generic Enablers have wider scope and are more difficult to apply whilst adding no extra value to addressing the issue at hand
Summary
The study aims to expand the knowledge base on the IT integration best practices as applied to the M&A practice in banking. Some of the results of the study were published in another work, Kovela and Skok (2012), which among other things confirmed that IT is a critical resource and enabler in the business model of modern banking and a clear link between the business strategy driving the merger and the priority of the IT integration tasks which are key for the efficiency of M&A transactions. The objectives here are: To establish whether the adoption of an IT integration framework is necessary for efficient integration in M&A in banking. To create a M&A IT integration framework and benchmark and adjust it against the practice-based summative profile of the banking M&A IT integration process. The final deliverable of this work will be a theory-based and informed-by-practice IT integration framework for banking M&A
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