CDI – Critical Path to Trading Community Dynamics
Mergers and Acquisitions activity is getting increasingly common and challenging in current business environment. These dynamics in the trading community (Customers, Suppliers...etc) of an enterprise needs to be effectively managed. Any inflexibility in administering the dynamics would increase the risk exposure, loss of opportunity, lack of insight into customers, and revenue leakage. In cases where an enterprise is part of Merger or acquisition activity, lack of proper CDI strategy for any of the participant enterprises would make realization of intended ROI difficult. Read through this blog for more information.
M&A has become the invaluable business strategies for industries implementing Master Data Management (MDM for Customers, products, suppliers etc).
When a company sees an opportunity to acquire another company, it basically looks at improving the customer base and to increase its own products and services. The result of these acquisitions is the impact on customer model. Once acquired, there should be synergy in the customer bases between the acquired company and acquiring company.
For any company, acquisitions are challenging but are necessary for companies to improve their planning process, to provide a customer-focused experience to their customer leading to everlasting customer loyalty, trust, reaping the benefits of M&As. What is important for companies after they acquire new business is to retain their customers, their staff and also ensure they are motivated and positive.
The same is the case when a company is merged with another company, the two customer models get merged and a decision is taken which customer model survives during the merge process and which ones will be retired after the merge process. Again, there will be lot more pressing problems during merging as well. These acquisitions and merging should be timed well enough, consolidation of disparate systems should be done but it shouldn’t disrupt the existing business processes that are critical to revenue generation.
Most Communication service provider industries fall a victim to M&A activities. These industries are moving from LOB-centric product view to Customer View. What it means is –It is quite common these days, when businesses (like the communication industries) merge together, they keep adding more products to their shelf, by doing so they need to provide support for sales and service of the product. This further leads to maintaining their customer information in one central repository and their inability to provide a single global view to the external world.
In order to provide a single blended view to the external world, enterprises need to adopt the best practices leveraging on Oracle CDH which is an effective CDI tool to manage trading community dynamics that would help them in realizing success.