IT Challenges in M&A Transactions - The IT Carve-Out View on Divestments
ISBN
978-0-615-41898-8
Type
conference paper
Date Issued
2010-06-01
Author(s)
Editor(s)
Sabherwal, Rajiv
Sumner, Mary
Research Team
iw6-init
Abstract
Carve-outs belong to the most disruptive events companies – especially IT departments – are subject to. Yet the impact of these events on the IT alignment of the involved business units is largely unknown. This paper utilizes an alignment model to analyze specific IT-related challenges of divesting a strategic business unit (SBU). Hereby it focuses on the functional alignment between business strategy and IT at SBU level as well as on the organizational alignment between corporate and SBU. Based on five in-depth case studies of carve-outs taken place between 2004 and 2008, IT related challenges could be identified due to interdependent SBU information systems, a lack of IT governance, changing strategic scopes and the inability to preserve competencies. Dynamic capabilities were discovered as possible determinants for carve-out success. Carve-out management teams can utilize the analytical framework to make a SBU carveout ready, to guide IT due diligence and to prioritize IT issues.
Language
English
Keywords
Business-IT Alignment
IT Carve-Out
Divestitures
IT strategy
Capabilities
Case study/studies
HSG Classification
not classified
Refereed
Yes
Book title
Proceedings of the International Conference on Information Systems, ICIS 2010
Publisher
Association for Information Systems
Publisher place
AIS Electronic Library (AISeL)
Event Title
31st International Conference on Information Systems (ICIS 2010)
Event Location
Saint Louis, MO
Event Date
12.-15.12.2010
Official URL
Subject(s)
Division(s)
Eprints ID
220662
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Size
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Format
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