What is the CIOs role in a merger or acquisition?
Kennedy and Spellacy, Boston Consulting Group: Since IT is both an enabler of every acquisition and a significant source of savings, the CIO is critical. In typical integrations, 20 percent to 25 percent of the synergies are IT synergies and another 25 percent to 30 percent are IT-enabled (e.g., back-office operations, customer service, finance, risk management, etc.). Thus, one half or more of all synergies are related to IT. The CIO should be involved in all aspects of due diligence and with specific accountabilities for integration. Unfortunately, the CIO often enters the process too late, and IT synergy targets are set too high, misaligned or unrealistic, while integration budgets and time lines are set too low. Klein, Oracle: The CIO and executive team are critical in building the value proposition behind the proposed merger or acquisition. A key part of the due diligence process is a thorough evaluation of the IT systems of both organizations involved in the deal. The IT team mus
