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Today’s discussion… Background of Company Company IT Overview Cause for Action IT Strategy Approach Application Architecture Technical Architecture Establish the IT Program Office Organizational Effectiveness and IT Alignment Summary Background of company Company A announced their intended merger with Company B in 1999 The focus of the integration was to quickly achieve operational synergies while combining the organizations to support top line revenue growth While the potential source of the synergies were somewhat clear, smooth and timely integration of the two companies was less assured After an accelerated integration program, the merger was deemed a success by the CEO as well as the analyst community “By the end of 3Q, the new company had achieved cost reductions of $100MM on an annualized basis, three months ahead of schedule.” — Morgan Stanley Dean Witter “Already, the company has achieved a $100MM annual run rate in cost savings ahead of schedule…” — Janney Montgomery Scott “The integration process is running smoothly and in fact better than expected achieving a $100 MM lower run rate…” — J.P. Morgan Securities “The integration efforts continue to track ahead of plan…” — Deutsche Banc Alex Brown “Considering the steep increase in raw material costs, the new company was able to meet expectations with its rapid integration of the acquired company’s operations…” — Brown Brothers Harriman Following the integration, the CEO’s Agenda is to double the rate of growth while maintaining high levels of profitability NewCo’s business strategy will place additional demands on the entire organization Company IT Overview Current transactional systems are complex, reside on multiple platforms and are integrated through a network of interfaces Intrinsic manual processes result in a high cost effort that cannot support the speed of today’s e-business environment Roughly 72% of the IT budget is spent on maintaining current service levels and infrastructure A futur
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