[Continuation of 4 Key Areas to Consider During a Merger or Aquisition]
Assuming that one of the organizations, the acquirer or acquired, will be merged into EBS, there are some key considerations to take into account upfront in order to determine the size, scope and complexity of the effort:
1. What is the current applications footprint of the system(s) being replaced? To understand this, you will have to obtain the applications architecture and footprint documentation, determine what applications are currently being used for business functions, and perform a high-level mapping into the existing EBS environment. Ultimately, you will also need to determine what, if any, new Oracle modules will be needed.
2. What is the state of software license agreements? How long before support agreements need to be extended and/or renegotiated. When are the next support payments due and for what period? If there are any SaaS solutions, what are the subscription termination terms? It’s important to plan the end of legacy support/subscriptions with the ultimate go-live of bringing the organization into the new system.
3. Obtain understanding of new integration points. What third-party systems cannot be replaced with Oracle EBS
functionality? What new interfaces would need to be built and what is the relative complexity of these interfaces?
4. Understand data volumes to understand the magnitude of the data conversion effort. Key data objects include:
- GL Balances
- Active Vendors
- Active Customers
- Active Items
- Open Projects
- Open Sales Orders
- Open Purchasing Orders
- Open Payables invoices
- Open Receivables invoices
- Active Employees
5. How many new EBS users will there be? How many new EBS licenses will be required?
6. Determine the technical architecture by obtaining a technical architecture diagram and ascertaining their hardware, operating systems, databases, networks, and related licenses. This will help in evaluating compatibility with IT networks & databases.
7. Obtain security and Disaster Recovery process documentation.
8. Determine if the organization has any in-process or planned IT initiatives underway.
Once basic fact-finding is completed, you should be able to move forward in understanding the scope and complexities of the effort involved. When consolidating into an EBS system, be sure to measure the following complexity factors:
1. Extensive automated data conversion requirements add complexity and increase level of effort for the integration
2. Additional external interfaces to/from EBS adds to the level of effort for the integration
3. Adding new Oracle modules significantly increases the integration effort
4. If only parts of a business are being acquired, getting data for conversion purposes can be difficult
5. Similarly, if any of the target systems are SaaS systems, getting data for conversion purposes can be difficult
6. Significant data or apps footprint additions could require database performance tuning, additional memory, additional disk space, and even new hardware requirements.
As with any other business or IT effort, complexity drives time, cost and risk into the effort to merge an organization into EBS. So reducing complexity wherever possible will speed up the process, cost less, and improve the likelihood of a successful merging of systems and processes.