How to Accelerate Merger and Acquisition Synergies MERGER AND ACQUISITION CHALLENGES Mergers and acquisitions (M&A) occur frequently in today s business environment; $3 trillion in 2017 alone. 1 M&A enables companies to expand their businesses, reduce costs, and derive numerous other operational synergies. Achieving these benefits requires successful integration of the two IT environments. Merging multiple IT environments is an extensive exercise. Key areas that must be addressed include: Business Intelligence (BI) & Analytics To gain a unified view of business performance across the combined businesses. Master Data Management To open the door to cross selling while also cutting sales and marketing costs. Business Process Automation To align and optimize overlapping applications. Desktop IT To ensure productivity in the combined work forces. IT Operations To achieve reliability, availability, and scalability service level agreements, and cost savings. In this paper, you will learn how data virtualization can help address several of the key BI and analytics, master data, and application integration challenges that arise when you merge two companies. 1 Tennant, Fraser. Global M&A broke $3 trillion barrier in 2017 despite geopolitical uncertainty says new report. Financier Worldwide. January 9, 2018. https://www.financierworldwide.com/fwnews/2018/1/9/global-ma-broke-3-trillion-barrier-in-2017-despite-geopolitical-uncertainty-saysnew-report
SOLUTION BRIEF 2 INTRODUCTION TO DATA VIRTUALIZATION Data virtualization is a data integration method that simplifies data access, transformation, and delivery. Unlike traditional approaches such as data consolidation via data warehouses and ETL, or data replication via ESBs and FTP, data virtualization obtains data from diverse sources directly without requiring extra copies. This streamlined approach lets businesses derive greater value faster from growing volumes of data and with far fewer resources. WHY USE DATA VIRTUALIZATION? What would it mean if your business users could go to one place to get all the data they want, the way they want it, any time they want it? And if the information wasn t there, they could easily get it in just a few days? The impact would be huge! Profits would rise. Risks would lessen. And your people would be energized to do even more. Is This Even Possible? It is both possible and a reality today at hundreds of companies all of which use data virtualization to significantly improve business outcomes while saving millions per year. While enterprise data virtualization (EDV) has been around for more than a decade, it has recently been gaining momentum. Many enterprise architects see the opportunity in data virtualization and are not standing idly by 56% of global technology decisionmakers in our 2017 survey tell us they have already implemented, are implementing, or are expanding or upgrading their implementations of DV technology, up from 45% in 2016. The Forrester Wave: Enterprise Data Virtualization, Q4 2017: The 13 Vendors That Matter Most and How They Stack Up. Noel Yuhanna, Gene Leganza, Robert Perdoni. November 15, 2017. With data virtualization, you can simplify your data access and achieve similar business outcomes. What Are the Benefits of Data Virtualization? With data virtualization, you benefit in several important ways. Better Business Decisions. Gain more complete business insights by using all your data. Empower your people with instant access to all the data they want, the way they want it, anytime. Greater Agility. Respond faster to ever-changing analytics data requirements. Data virtualization can provide 5 to 10 times faster time to solution than ETL and warehouse data integration. Reduced Costs. Save 50 to 70 percent by eliminating unnecessary data replication as you increase utilization of existing server and storage investments. Data virtualization s simplified approach also reduces complexity and saves money. Improved IT Effectiveness. TIBCO Data Virtualization easy-to-use tools help your data engineers productively build and manage the datasets your business requires.
SOLUTION BRIEF 3 According to Gartner Inc.: By 2018, organizations with data virtualization capabilities will spend 40% less on building and managing data integration processes for connecting distributed data assets. Gartner Market Guide on Data Virtualization. Ehtisham Zaidi, Mark A. Beyer, Ankush Jain. August 7, 2017. USING DATA VIRTUALIZATION TO FACILITATE INTEGRATED BI & ANALYTICS Successful BI & Analytics is a fundamental requirement today, with data virtualization a key enabler. When merging two companies, the data required to support integrated BI & Analytics is tougher because not only do you have to maintain individual company insights, you also need to provide integrated insights from the combined businesses. TIBCO enables companies to quickly build common denominator data services that virtually combine data to provide BI & analytic applications with federated views across both companies original sources, even when the sources are not exact matches. Further, because TIBCO Data Virtualization does not require the source data to be a consolidated in a common repository with a completely common schema, this approach significantly reduces the time required to provide the combined data and the needed visibility across two newly merged companies. In example 1 below, data virtualization combines the sales data from company A and company B, forming a virtual data mart of merged sales data that can be easily analyzed by one or both companies, as required. TIBCO Spotfire TIBCO Statistica Merged Sales Virtual Mart Sales Sales Figure 1. Integrating BI across merged companies And once the initial integration is complete, TIBCO Data Virtualization can easily extend the data delivered as new sources or analytic needs arise.
SOLUTION BRIEF 4 USING DATA VIRTUALIZATION TO FACILITATE INTEGRATED MASTER DATA While master data management is a well-understood requirement in IT today, its importance rises when merging two disparate sets of master data. This is especially critical when cross selling each other s existing customers in a merger. Until you can identify the customer overlap, you won t know who to target. TIBCO Data Virtualization helps with customer master data integration in two immediate, high impact ways. Using discovery, you can easily find and understand both your master data hubs and their relationships in just a few days. Second, with this deeper understanding in hand, you can use TIBCO Data Virtualization to build data services that rationalize your combined master data, in effect creating a virtual MDM hub across the merged companies. Instead of having to move master data from various systems into a new combined physical repository or migrate all the customer master data from s hub to s, TIBCO Data Virtualization lets you connect to the two source systems as is. The applications within each company or the combined company can then point to the new virtual hub for complete customer master data. (See Figure 2.) Combined A & B Merged Virtual Customer Data Hub Customer Master Customer Master Figure 2. Integrating customer master data across merged companies Over the long run, the master data will need more complete rationalization, and perhaps even physical consolidation in a centralized hub. However, with the virtual data layer in place, business can continue at pace Further, the customer master data approach described above can also be applied to other classes of master data such as products, vendors, and charts of accounts.
SOLUTION BRIEF 5 USING DATA VIRTUALIZATION TO RATIONALIZE DUPLICATE APPLICATIONS In the long term, the combined company must determine its rationalization strategy for similar applications. Once these decisions are made, TIBCO Data Virtualization simplifies and removes execution risk in a number of ways. Where there are multiple similar or duplicate systems that you plan to rationalize over time, you can accomplish this in a two-step process. In Step 1, you can use TIBCO Data Virtualization to decouple your source and consumer applications, replacing direct feeds with virtual data services that federate the data from all three source applications. When the time is right to retire one of these duplicate systems in Step 2, TIBCO Data Virtualization provides an essential transitioning tool and point of stabilization. Simply reconfigure the data services used to access data from the new consolidated application source. After migration of data from the retired system to the ongoing system is completed, the retired system can be unplugged without impacting the consuming applications. This fast, painless, low-risk approach can be used over and over until all redundant systems are retired. (See Figure 3.) Original State Silos Step 1 Federate and Decouple Step 2 Retire and Transition TIBCO Data Virtualization TIBCO Data Virtualization Application 1 Application 2 Application 3 Application 1 Application 2 Application 3 Consolidated Application Figure 3. Using data virtualization to transition and retire duplicate systems In situations where systems are similar, but cannot be rationalized for a number of reasons, such as one system serves a specific geography or customer segment not covered by other systems, then federation of the data alone (rather than federation and decoupling as identified above) is the value you gain from TIBCO Data Virtualization. This approach will allow disparate underlying systems to operate indefinitely in an integrated fashion. CONCLUSION In this paper, you learned how TIBCO Data Virtualization can help address BI, analytics, master data, and application integration challenges faster, and with less cost, risk, and disruption. With data virtualization, you can accelerate M&A synergies to expand revenue, reduce costs, and derive numerous other operational benefits faster and more cost-effectively. Global Headquarters 3307 Hillview Avenue Palo Alto, CA 94304 +1 650-846-1000 TEL +1 800-420-8450 +1 650-846-1005 FAX www.tibco.com TIBCO fuels digital business by enabling better decisions and faster, smarter actions through the TIBCO Connected Intelligence Cloud. From APIs and systems to devices and people, we interconnect everything, capture data in real time wherever it is, and augment the intelligence of your business through analytical insights. Thousands of customers around the globe rely on us to build compelling experiences, energize operations, and propel innovation. Learn how TIBCO makes digital smarter at www.tibco.com. 2018, TIBCO Software Inc. All rights reserved. TIBCO, the TIBCO logo, Spotfire, and Statistica are trademarks or registered trademarks of TIBCO Software Inc. or its subsidiaries in the United States and/or other countries. All other product and company names and marks in this document are the property of their respective owners and mentioned for identification purposes only. 06/12/18