A Framework for IT Governance in Post Merger Integration (PMI)

This paper proposes an IT Governance Framework that specifies decision rights and accountability in post merger integration of the IT function.

Abstract

As today’s Information Technology (IT) penetrates the business of almost any company, the IT integration of two companies is regarded as one of the most challenging tasks in mergers and acquisitions (M&A). This integration mainly takes place during the post-merger integration (PMI) phase of an M&A endeavor. In this phase, well-defined IT governance is critical to success since it specifies the decision rights and an accountability framework to encourage a desirable course of the IT integration. It harmonizes IT-related integration issues with desired behaviors and business objectives.

In this paper, we provide a framework for IT Governance in the PMI phase (ITGoPMI). The ITGoPMI framework can serve as a blueprint for the specification of organizational units and their decision fields when the IT functions of two companies become one. We are developing the framework according to the principles of design science research in an iterative manner. Preliminary versions of the framework were evaluated through expert interviews. They approved that the here presented version of our ITGoPMI framework already has the potential to serve as a beneficial guideline for post-merger IT integration in practice. Nevertheless, we will continue our research process with further evaluation and improvement of the framework.

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Posted on 09/06/2010 by


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