Mitigating Redundancy and Reducing IT Spend from Mergers
We see this all time: Companies spend millions of dollars on IT software management tools and technology, but the organization doesn’t even know what or where its IT tools are and what a particular IT tool is used for. Various departments have their own budgets and purchase a tool to use for a specific reason, system or application.
Chances are, IT departments don’t realize the capabilities of all the IT tools and don’t check with other departments for redundancy. Now, imagine when a company gets acquired, the redundancy, confusion, and unnecessary spending of a multitude of IT tools with similar functionality and capabilities.
Corporate Mergers Will Create Redundant Tools
Over the past decade, these large corporate mergers were completed with our help:
- Time Warner Cable and Bright House Networks, now Charter Communications
- Qwest and CenturyLink, now CenturyLink
- Sprint and Nextel, now SprintNextel
All of them are/were our customers.
These are big corporate mergers. The combined companies had double the IT software management tools and personnel, yet each division and department had zero visibility into how each other use the same tool. Some IT tools vary due to global localization but consider all the repetitive buys and waste. The tool redundancy is overwhelming yet solvable.
The better way to approach mergers is to ask these questions:
- Why upgrade tools?
- What other tools do you use?
- What other organizations will this impact?
- Is this tool the best solution?
- Is this the best use of your tools and personnel?
- Do you know what tools you have across your enterprise and how they are used?
There is no easy fix or instant gratification. Huge mergers will not run more smoothly with multiple departments asking for easy fixes and quick upgrades.
Reconciling the Large Tool Portfolio after a Merger & Acquisition
IT departments, consultants and vendors need to ask a more profound question that looks at the big picture and the future. Solutions don’t come from fixing problems seen today. Today’s small problem could lead to larger problems tomorrow. Is your request really the answer or might that solution just create other issues?
When you are the decision maker investing in expensive purchases, it’s difficult to admit what you don’t know and clearly see the redundancy in IT tools. The long-term investment to manage and monitor your IT tools will be expensive and difficult to manage within budget.
To figure out the appropriate path with the appropriate tools, RedMonocle can help to assess systems and tools as part of due diligence, delivering a real-time analytics dashboard of your merged IT tool portfolio to identify coverage gaps and redundancies, optimize tool utilization and performance, and consolidate IT tools to reduce costs.