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The Critical Role of Information System Integration in a Horizontal Merger

Andre de la Harpe (Cape Peninsula University of Technology, Cape Town, South Africa) and Thomas Wolfgang Thurner (Cape Peninsula University of Technology, Cape Town, South Africa)

EISBN13: 9781799818243|DOI: 10.4018/JCIT.2019100101

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Abstract

This article reports on a horizontal merger of two insurance companies and their failure to properly integrate their information systems. The task that was supported by both well-founded market research and external consultants proved more challenging than thought due to the complexity and interconnectedness of related business processes. The main difficulties arose in the area of skill development, skill retention, and management buy-in. Thereby, this article adds valuable insights to the stream of case studies of merger and acquisition activities through providing deeper insights into IS integration, which is by most contributions treated as a black box.

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The Critical Role of Information System Integration in a Horizontal Merger

Abstract