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Problems with Merger of Corporation

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When a company acquires another company, when divisions merge, or when corporations merge, what are some of the potential problems will they encounter with the management and integration of their respective technology and data processing systems?

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The solution discusses some potential problems that can be encountered with the management and integration of technology and data processing systems when companies merge with or acquire another company. References are included.

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In 1980's, many companies have ventured into mergers and acquisitions with the hope of uniting their resources and in effect, improve the standing of their companies. However, these mergers and acquisitions have led to systems incompatibility between the merged companies. The following are some of the problems associated with the integration of the companies' technology and data processing systems in a merger or acquisition:
? Downsizing. When companies merge, they move applications from their mainframes to networks. It takes time and effort and should be done in a rapid pace. Oftentimes, the network runs the strategic applications, front-ending the mainframe computer and this would mean that it can be a data storage area. Business managers will have to deal with more computing at this time. It is only when the strategy is integrated with technology that managers can move on to improving their technology needs more and do it without considering the technical limitations that have been encountered in the past.
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