Managing IT in a Business Unit Divestiture

Item Type Journal paper
Abstract The divestiture of a business unit-also known as a "carve-out"-is a common strategy used by multi-business organizations to adjust their business portfolios in response to a change in business strategy, and legal or regulatory pressures. In a typical divestiture, systems that were integrated in the past to deliver seamless and efficient IT operations must be pulled apart under demanding time and regulatory compliance constraints. Yet, as with many merger and acquisition projects, CIOs involved in carve-out projects that include critical dependencies on IT systems may be excluded from the due-diligence process. This article presents a case study of a carve-out project to divest a business unit within a global multi-business company. In addition to the lessons learned about unique aspects of managing IT for a business unit divestiture, this case sheds light on how CIOs can create divestiture-ready IT environments and thus better prepare their organizations for IT carve-out projects.
Authors Leimeister, Jan Marco; Böhm, Markus & Yetton, Philip
Research Team iw6-init
Journal or Publication Title MIS Quarterly Executive
Language English
Keywords Managing IT in a Business Unit Divestiture.
Subjects information management
HSG Classification not classified
Refereed Yes
Date January 2012
Publisher Kelley School of Business
Place of Publication Bloomington, Ind.
Volume 11
Number 1
Page Range 37-48
Number of Pages 12
ISSN 1540-1960
ISSN-Digital 1540-1979
Official URL
Depositing User Michael Kunz
Date Deposited 23 Jan 2013 09:35
Last Modified 20 Jul 2022 17:15



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Leimeister, Jan Marco; Böhm, Markus & Yetton, Philip (2012) Managing IT in a Business Unit Divestiture. MIS Quarterly Executive, 11 (1). 37-48. ISSN 1540-1960

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