Industry Comment
Consolidating IT -
Managing the Risk
Last Updated: 31st October, 2008
AppLabs.com
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Industry Comment
© 2008 AppLabs
Introduction
The current global economic situation is driving business
change. No longer are organizations resting on their laurels
but are instead being proactive in achieving success which
is currently remaining operational and profitable. There are
daily announcements of companies failing to maintain their
stability and as a result, there are regular news stories of
mergers and acquisitions.
Few companies have totally resisted the effects of the
current slowdown and those that are being savvy have
begun to look at ways to reduce operational costs without
compromising quality. Indeed, many are putting change
programs in place to ward off further problems and maintain
competitive advantage by streamlining expenditure.
Both the merger and acquisition activity and the need to
reduce costs have necessitated the same course of action
– consolidation of IT. There are various ways to consolidate,
all of which pose risk to the organization. This document
will look at two of the options available and will give advice
on how to ensure quality is maintained or even improved
when IT is consolidated.
Expanding an Existing System
Expanding an existing system to increase functionality
often seems the most attractive solution. This is due to
many factors, including the fact that there may already be
employees with extensive knowledge of it in terms of both
technical support and usability.
The system will require modification by perhaps adding
new modules and business processes to meet the needs of
the integrated businesses. This increases risk significantly
and every additional element or change will need rigorous
testing, both in terms of functionality and usability. The
integration of any new modules with the existing system
must also be executed effectively to minimize problems
and ensure the quality o