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Unity Bank Merger Case

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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…

Disadvantages • Increases difficulty in reaching a compromise agreement as representatives from both organizations are present in each committee, • Increases possibility of conflict of interests between the members of committees with regards to policy, technology, and staffing of both companies, • Might result in delay of cost savings.

Alternative 2: Risk Management Focus of IT Governance

This is our second recommendation that focuses on risk and liability reduction and regulatory compliance. The risks associated with the merger of the two companies were identified as financial and resulted in Unity’s Board of Director’s mandate to save $6M in 3 years, operational stemming from disturbance in operations resulting from merger of IT systems, and organizational resulting from differences in corporate structure, culture,

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