It Challenges in M&A Transactions – The IT Carve-Out View on Divestments

International Conference on Information Systems, 2010

20 Pages Posted: 8 Feb 2012

See all articles by Markus Böhm

Markus Böhm

Technische Universität München (TUM)

Bastian Nominacher

affiliation not provided to SSRN

Jens Fähling

Technische Universität München (TUM) - Information Systems

J. M. Leimeister

University of St. Gallen; University of Kassel - Information Systems

Phillip Yetton

University of New South Wales (UNSW)

Helmut Krcmar

Technische Universität München (TUM)

Date Written: January 14, 2010

Abstract

Carve-outs belong to the most disruptive events companies – especially IT departments – are subject to. Yet the impact of these events on the IT alignment of the involved business units is largely unknown. This paper utilizes an alignment model to analyze specific IT-related challenges of divesting a strategic business unit (SBU). Hereby it focuses on the functional alignment between business strategy and IT at SBU level as well as on the organizational alignment between corporate and SBU. Based on five in-depth case studies of carve-outs taken place between 2004 and 2008, IT related challenges could be identified due to interdependent SBU information systems, a lack of IT governance, changing strategic scopes and the inability to preserve competencies. Dynamic capabilities were discovered as possible determinants for carve-out success. Carve-out management teams can utilize the analytical framework to make a SBU carveout ready, to guide IT due diligence and to prioritize IT issues.

Keywords: Business IT Alignment, IT Carve-Out, Divestiture, IT Strategy, Case Study

Suggested Citation

Böhm, Markus and Nominacher, Bastian and Fähling, Jens and Leimeister, Jan Marco and Yetton, Phillip and Krcmar, Helmut, It Challenges in M&A Transactions – The IT Carve-Out View on Divestments (January 14, 2010). International Conference on Information Systems, 2010, Available at SSRN: https://ssrn.com/abstract=1740463

Markus Böhm (Contact Author)

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

Bastian Nominacher

affiliation not provided to SSRN ( email )

Jens Fähling

Technische Universität München (TUM) - Information Systems ( email )

Boltzmannstr. 3
Garching b. Munich, 85748
Germany

Jan Marco Leimeister

University of St. Gallen ( email )

Varnbuelstr. 14
Saint Gallen, St. Gallen CH-9000
Switzerland

University of Kassel - Information Systems ( email )

Pfannkuchstraße 1
Kassel, 34121
Germany

Phillip Yetton

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Helmut Krcmar

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

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