Unity Bank Integration Case Study Essay

2113 Words 9 Pages
The merger and acquisition of Delta by Unity Bank forces the integration of two companies with different core competencies, Information Systems and organizational structures and cultures. The CIO of operations, Stuart Irving must decide on the best strategy that would maximize the benefits of the merger by leveraging synergies against the potential costs and risks. Following the recommendation of the IT Governance Institute, newly merged company should establish effective duopoly IT governance with special focus on strategic alignment. Executive and department level steering committees consisting of members of both companies should be granted decision rights with respect to strategic direction, resource allocation, and prioritization. …show more content…
Decision Rationale

Our decision is based on the recommendation of the IT Governance Institute that stresses the importance of IT governance in creating alignment between two companies as well as identifies the IT governance focus areas to be stakeholder value drivers, strategic alignment, value delivery, resource management, risk management, and performance management.

According to the IT Governance Institute, Board Briefing on IT Governance, 2nd ed., “IT governance is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategy and objectives.”1

Alternatives

Alternative 1: IT Strategic Alignment Focus of IT Governance

This is the preferred alternative. Our recommendation is to first define the stakeholder value drivers and then use them to create strategic alignment with IT. As depicted by the above diagram, strategic alignment will maximize the use of time and resources in order to create a solution that will best achieve the goals of the newly merged company. Clearly defined IS strategy will be created by steering committees and will include core competencies of both companies in order to provide value to stakeholders.

The suggested priorities of the integration focus:

1. Strategic alignment, 2. Risk management, 3. IT value delivery, 4.

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