The dominant solution over the past few years of IT system “rip and replace” during M&As and other partnerships is costing organizations more than just money. In fact, a typical rip-and-replace approach results in 74% over schedule, 59% over budget, and 56% less value than predicted. 1,2
A Better Strategy: Integrate Your Data
Data has a profound impact on healthcare organizations’ pre- and post-merger activities yet is easily and often overlooked. Historically technology and talent were the primary assets used to weigh the value of M&A activity, but data is an equal pillar—a strategic asset that can help accelerate and drive value in new alliances and traditional M&As.
1. Standish Group. (2013). Chaos manifesto 2013: Think big, act small. Retrieved from https://people.eecs.ku.edu/~hossein/811/Papers/standish-2013-report.pdf
2. Block, M., Blumberg, S., & Laartz, J. (2012). Delivering large-scale IT projects on time, on budget, and on value. McKinsey & Company, Digital McKinsey. Retrieved from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/delivering-large-scale-it-projects-on-time-on-budget-and-on-value