Obtaining

Technology:
Implementation
D E V E LO P E D B Y

GROUP 6
Managing
Technology and
Innovation
Group 6

Jazak Yus Afriansyah

Ricardo Tumorro

Rully Aulia Rizalda

 Contents:
• The people and the central role they
play in the integration effort
• The potential pitfalls that limit the
effort to integrate and utilize the new
technology
• The need for a clear vision and
understanding in the implementation
process
• The importance of executing the
implementation process quickly
• The importance of communication in
the alignment process
Key Implementation Issues in
Obtaining Technology
The issues that need to be addressed:

1. How will the external effort to obtain innovation

capability or technology affect customers?
2. How does the organization keep short-term
commitments to customers while the internal
chaos of blending takes place?
3. How do organizational priorities change
following the externally focused activity?
The issues that need to be addressed:

4. Where should the primary focus of the organization be

during the external effort to obtain innovation or
technology?

5. Too often, firms and managers get caught up in the

nitty-gritty of the acquisition process and forget to focus
on what needs to be done.

6. Now and later to make the acquisition of technology

successful.
The Requirements for Key Activities

1. The amount of knowledge

transfer required
2. The degree of integration needed
3. The speed of integration
necessary
What and to Whom to Delegate

1. The best managers/leaders need to be

incorporated from both the purchased and
purchasing organizations into the new combined
organization.

2. The resulting combined firm should use the best

systems from either firm for those tasks that require
the support of any systems.
The reality is that organizations often fall into one of several
potential traps rather than choosing best people or systems

1. The trap of compromise: Choosing one technology, one person,

or one operation from each side. The goal is to get the best
from each organization not compromise.

2. The trap of misplaced beliefs: Keeping focused on the true

purpose of the external effort to obtain technology is critical.

3. The trap of system superiority: Objectivity in the evaluation of

systems and how they mesh is another key.

4. The trap of not blending: Sometimes individuals in a

merger/acquisition or alliance may believe that keeping things
separate will work and help everyone feel comfortable.
The Key Elements

Leadership

1. Integration
Integration 2. Leadership
3. Execution
Execution 4. Alignment

Alignment
Most critical item for the successful acquisition
of technology

1. Blending or creating fit within an organization,

whether it is an alliance, joint venture, or merger/
acquisition

2. Developing shared norms, capturing competencies

from both organizations

3. Creating compatible systems and structures, and

integrating teams and functions
1. Integration

Strong due diligence prior to acquisition identifies all potential issues

and problems as well as critical differences in the acquired firm.
1. One-third of top management from the acquired firm fills slots in
the new unit.
2. A buddy system matches key employees of the acquired firm with
key employees in Cisco.
3. Customization of each integration effort matches the unique
needs of the firm.
4. Conversion of existing systems, such as computers, to Cisco
systems takes advantage of economies of scale.
5. Ninety days are allocated to complete integration of the acquired
firm into Cisco.
Integration Factors

Due Diligence(Emphasize due diligence)

Share Lessons Learned(Knowledge
shared)
Blend Structures and Cultures
(1) The type of external activity
(2) The exiting structures and cultures
The blended firm culture
◦ Separate cultures
◦ Dominant cultures
◦ New cultures
◦ Multiple cultures
Characteristics of Types of Acquisitions
Integrate policies and procedures
1. Ability to learn from the other firm
2. Ability to meet performance goals
3. Ability to build trust

Develop a strategy for critical activities

1. People/relationship issues communications barriers, organizational
cultural differences, uncertainty over roles and responsibilities.
2. Operations issues lack of understanding, underestimating, lack of
supporting documentation, incompatibility technology.
3. Strategic agenda issues concerning the goals and objectives of the
alliance. define> measure> analyze> improve> control
Ensure that these activities occur in a timely manner: Speed
Speed
3. Execution

Execution refers to the people-related

issues, to obtain the complete effort of
the employees, the firm should do:
1. Training and development
2. Blending individuals
3. Developing synergies
3. Execution
Training and development
When an organization change, the members of the firm
may be panic and refuse to change.

Therefore, by training the members, it will help the

organization continuous development and also help the
staff to understand the activities of an organization.

Blending individuals
In the integration need of organization, not only
personnel but also the integration of new
communication channels.

Because in the merger process, the conflict cannot be

avoided.
Sources of Conflict and Suggested Solutions
3. Execution
Developing synergies
To execute such a plan for the acquisition of technology,
the managers must keep in mind several issues:
1. Implementing an effort to acquire technology
externally is a process that is challenging.
2. There are no conquering heroes in implementing an
acquisition strategy.
3. There are new roles to be learned and polished.
4. Remember, individuals need to understand the new
processes, the new logistics, the new
communications expectations, the new culture, and
the new goals.
4. Alignment

Establish Tie
Common Rewards to
Policies Integration

Look to Build Fit

4. Alignment

Tie Rewards to Integration

If the organization's goal is to develop new
technologies through acquisition, then the
organization's reward systems should reward
individuals and groups that help the organization
achieve that goal.
The willingness to reach out across the different
groups and help move the organization to one
system needs to be rewarded and encouraged.
Individuals may voice support for change if those
rewards are not present, but their support may be
superficial or short-lived.
 4. Alignment

Establish Common Policies

The alignment within the organization after a
merger/acquisition is through common policies and
procedures.
As much as possible, the common policies should be the best
practices of either organization, not on what the largest firm is
doing.
The policies and procedures of the new firm may require a
change in the structural form of the resulting firm after a
merger or acquisition.
 4. Alignment

Look to Build Fit

Failure in building fit:
people issues, operational problems, and strategic actions.
People issues in building fit include the following:
1. Talent is lost or mismanaged.
2. Power and politics become the driving forces.
3. Defensive actions and motivations take over because
of fear.
4. Culture clashes go unchecked.
5. There is a failure to send a consistent message.
Positive and Negative Effects of Politics
on Merger Outcomes
Effects of Politics on Merger Outcomes

The operational problems arise because of the

following failures:
1. Transition costs are underestimated.
2. Impossible levels of synergy are expected.
Strategic actions that can lead to failure include:
1. Expectations are unrealistic.
2. Strategy is hastily constructed or poorly
implemented.
3. Focus of top management is distracted from the
purpose of the organization.
Summary

1. This chapter has examined the

implementation of an effort to obtain
technology.

2. It has highlighted the fact that most mergers

and acquisitions fail as the result of the
inability to successfully implement the
acquisition.

3. Analysis three questions for key elements for

key elements of the integration effort and four
key actions potential to be successful.
Integration is a process of doing operations of two or more firms together. It is a kind
of blending the activities of two or more firms. It is a difficult process as it involves lots
of time and efforts. It is a result of merger/acquisitions.

Whenever two or more firms form any kind of alliance then they have to integrate their
activities/operations. In the solution, a case study of Company H and Company C have
been discussed with the advice that could have been used to make it better.

The Company H and C were involved in similar kind of business but with different
strategies at same place. This different strategy was the systems they used that were
the pricing systems of both the companies. Country specific Pricing system that was
being used by company C and while company H was using a global Pricing System.

This difference in systems was the reason there for difference in the thoughts of their
customers because pricing leads to customers’ perception. Both the companies were
doing business in country A but with different systems of pricing. At first the merger
was not a success in first 18 months but after an interval of 4 years the results started
to come as positive.
In the given problem, company H and company C have integrated their operations.
Following are
the advices for their integration:
1. Integration of working Style: Before integration they must have integrated their
style of working. As company C uses country specific system criteria but on the
opposite side country H —used global system criteria to sell their products.
If they are going to get integrated then they should firstly integrate their style of
working because
integration is a blend of the processes of two different firms in to one. That is the
biggest reason of their failure. So, they first need to integrate fully then start their
operations.

2. Analysis of the Working Environment: Both the companies must have analyzed
the place they are working in. The reason to do so is, their customers have got
different thoughts in their minds for each company so the companies must put the
point of integration in their customers’ minds.
There is a list in the chapter of CEO activities for speedy
integration (page 248). Based on the information given
about Merck Serono what integration activities were
addressed and what activities were ignored?

Management is to get the work done by others.

Their main task is to plan and organize all the
activities and lead the team and control them to
gets desired objectives. Management has
different levels, CEO is a part of the top level of
management.
Several integration activities and their relationship with the activity
of the CEO of organization M are described below:

1.First integration activity is to establish a better communication system which will

make sure of the implementation which will be nitty-gritty. CEO of organization M
developed a better communication system to interact with the employees by using
webcasts, newsletters and several other tools like a meeting which made sure that
employees get familiar with the working culture and different measuring system. So,
it can be said that the CEO has addressed this activity.

2.Second integration activity is to define the difference between managing talents.
CEO of the organization M organized a number of workshops and harmonized the
management system related to performance and different incentive plans were well
explained.
It made sure that employees of the organization S understand the management
system of organization M in a better way. So, it can be said that the CEO has
addressed this activity.
3. Third integration activity is to the implementation of different targets. It is
mentioned in the case that the CEO had set 211 different targets which will make
sure successful implementation of the integration plan.
As discussed in the last para of the case, the well-specified goal helped employees
of both organizations to understand the merger of the business. So, it can be said
that the CEO addressed this activity.
4. Fourth integration activity is related to the establishment of a better
organizatonal structure and process of management. In the given case it is
mentioned that the structure was established by selecting the best practices
from both the organization. So, it can be said that the CEO addressed this
activity.
5. Fifth integration activity is to considering and developing a new reward
system. In the given case it is well explained that new incentive plan was
explained to all the employees which were different from the older one. So, it
can be said that the CEO addressed this activity.
6. Sixth integration activity is related to the establishment of the position of key
executives in the firm which going to become a partner. There is no discussion
about any management post in the case. So, it can be said that the CEO did
not address this activity.
IBM/PwC Acquisition
Integration means a process in which two or more firms coming together, blend their operations with all other
systems. It involves lots of efforts but it faces so many issues like, employees’ acceptance to new systems,
changes in management leads to changes in management’s strategies and planning and risk of new alliance and
customers’ acceptance.

Primary issues faced by New Acquired units of Company | and Company P are as follows:
1. Both the companies were dealing with their customers in different ways. On one hand, company | was a
typical manufacturing Corporation; company P was dealing with its clients as a consultancy services provider.
2. Both firms had different cultures and goals.
3. Both companies were dealing with totally different kind of operations and processes.
 The company addressed the issues as follows:
To address and to solve the new acquired company, both the company | and Company P's took
some decisions like:

1. Divided the acquisition process in three stages:

Stage 1: In this stage, the deal was closed and the president was decided from company I.
Stage 2: The operating models were developed and teams were made for analyzing the key areas.
Stage 3: The ultimate integration took place as the IT systems of both the firms were also integrated.
2. Company | also laid off 5,000 Employees for better efficiency.
3. Laid offs of personnel, from company P were very few so they become more confident and
convinced to work with the new venture.

To take an informed decision, the company will have to carefully decide what to do next.
The company should make milestones to achieve in the future. Company | is best at selling IT
products and company P is best at consultancy services so company P can help company | in
handling customer complaints and making the quality better as well as to know what the
customers want.

Integration means totally different two firms working and blending together. The main issue is
coordination of employees and their acceptance. But it is not impossible to do integration. The
main point here is the strategy of integration must be made with proper planning, prior taking this
decision.
Management is to get the work done by others. Their main task is to
plan and organize all the activities and lead the team and control them
to gets desired objectives.
It is discussed in the case that organization | and organization P is
going to be merged. It is expected that it will increase the business
area of the organization | in a different sector and it will make sure
organization | am present in different sectors or markets which will
increase the revenue.
This kind of the expectation will have an effect on management of the
unit. As the workload may vary which will encourage the manager to
take some decision. The manager may decide to hire new employees
or put an extra burden on current on current employees if the workload
is increasing or the manager may have to fire some employees if the
work is going to be reduced.
It may change the working environment of the unit. If manager will be
able to convince the employees that a greater opportunity will be there
for all then it may increase motivation level of the employees and if the
manager is not able to convince them then they may panic and their
performance level will decrease.
There may be some problems that will be emerging because of
this kind of expectation. If the employees will fear that job will be
in danger or their responsibility and authority will decrease they
will not be able to work efficiently and effectively. It may create
panic in the environment related to workload. If the feeling of an
overload of work will be more then employees may decide to
abandon the organization that will create a crisis related to
human resources in the organization.
It may be possible that manager will be able to make employees
feel that there will be better growth opportunity and the role of
every employee will be important. It will increase the morale of
the employees. it may create some new job opportunity or will
increase the authority and responsibility of current employees.
Thank You
Jazak | Ricardo | Rully