September 13, 2016

Overcoming software compatibility issues for a smoother merger

Integrating software could be a key part of merger consistency.

Compatibility can be a driving focus for many company mergers, but there are several ways to define that concept. Companies can be both compatible in the sense of being good matches for each other and also manage software systems that make it easy to join as one. Part of this may be because of the increased presence of software in different aspects of the enterprise.

Consider the ways businesses can rely on software for everyday processes, from logistics to inventory management. The Wall Street Journal recently noted the business trend of upgrading software for the best, fastest transition possible. Time spent during a deal can make a financial impact for companies, so making the best use of it has an obvious advantage.

As part of this, companies could even invest in their IT options with possible mergers in mind ahead of time, thinking of how much it would cost to integrate their IT with another system. Last year, a Tech Republic article advised companies to think carefully about the systems they would and wouldn't continue as part of a merger. This can include communicating with vendors and even ending a relationship with one of them if their product is no longer relevant to their business.

Another thing to remember during this process, though, is the need for security. Ensuring system compatibility can be another way to develop coherent secure solutions. The source stressed this on two fronts: securing the systems themselves and protecting against possible sabotage later on. As with a technology acquisition, this points to the need for both companies in a merger to be on the same page.