Incorporating MDM in the M&A Blueprint
Implementing a companywide MDM strategy is not a simple undertaking even during normal times. Add in an M&A transaction and the work gets trickier. Fortunately, the benefits — particularly the multiplying effect it will have on the M&A deal’s ROI — make it worth the effort.
Over the past couple of weeks, we have glanced at the challenges of various M&A scenarios and the plusses of folding in MDM as early as possible. Doing so can streamline everything that comes after, from the combining of large systems and processes to the demanding compliance requirements the newly formed entity will face. To close this mini-blog series, we’re providing some pointers for incorporating an MDM strategy into a larger M&A project.
The key is to plan for the time and effort involved and to build a comprehensive plan. Be sure to do the following as the work begins:
• Know what the new merged system will look like – Before you do anything else, you should have an idea of what to expect from the new and integrated system. Your task will be a lot easier if the combined company plans to work off a completely new system. But, more likely, if you’ll be merging the systems of the two entities into one, you’ll have some evaluating to do. How will it work? What does it need? You need the answers so that you can get the data ready in the proper format—and save everyone some heartache on the other side.
• Get to know the new data – You know your own data, of course, but what about the data that is coming in? It might have a different format and a different taxonomy. As early as possible, figure out what the state of the data you will be getting and prepare for it.
• Realize the cost of corrupt data – It is critical for you, as the handler of the data to understand the cost of corrupt data. You can avoid hard-dollar losses and waste by gaining full visibility into the data you’re taking on during the integration. Use this as a motivator to keep the team on track and aware of potential issues.
• Implement MDM as early as possible – For those of us who are heavily involved with data, this is an obvious point. But the other business leaders involved might not realize MDM should have a high priority. Ensure that you make your case for putting it high on the agenda.
Gaining the full value from an M&A transaction can be a challenge—unless you have an MDM strategy in play. We hope this set of blog posts will help you drive greater value from your M&A efforts.
Let us know what has worked well for you. We would love to learn about your experiences and any ideas you have. Please share your thoughts in the comments section below.
Further Reading –
Blog – M&A Challenges – An MDM Perspective
White Paper – Managing Material Master Data For Enhancing Procurement Efficiency
Case Study – Fortune 200 Forest Products Company
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