Question 7-1. Acquisition strategy statements are important documents for gaining and maintaining executive support for programs and projects. What in your view are the one or two biggest challenges in developing an acquisition strategy? Give your reasons and any suggestions you have for addressing the challenge(s).
Question 7-2. How should an organization decide on how “cutting edge” it should be in its IT acquisition strategy? Acquiring cutting edge IT might give it a competitive advantage, but at greater risk because the IT is cutting edge. On the other hand, the use of well-tested, mature IT that is also being used by many others reduces the risk, but it also may eliminate competitive advantage possibilities. How can the organization decide where along the continuum of very mature to cutting edge technology it belongs in its IT acquisition strategy?
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Acquisition Strategy
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Institution
Acquisition Strategy
Acquisition is the process that involves transactions in which the business ownership is transferred or put together to form a single unit by other entities. The greatest challenge facing this is the acquisition process. This process requires different kinds of specialists and analysts. They have different expertise and normally have independent goals which result in multiple fragmented views of the agreements. Due to lack of expertise in the in-house managers, they may find it difficult to integrate these perspectives. This can be solved by developing a team that is not only made up of expertise but also internal working teams made up of representatives from each department. Cohesive thinking and constant communication within the team members will help enlighten them leading to a successful process. Someone should be appointed as CEO who defines the responsibilities and authority of each team member this will help fasten the process (Siapartners, 2017).
Mature IT is when a company has learned to respond appropriately to the changing digital environment. In this stage, the business has a steady cash flow point, at times sales and profit level off. They defend their market position or may acquire new territory by the use of their brand recognition. The income flow is steady and predictable. The business process is dependable and consistent. Cutting edge IT involves the techniques or devices that utilize the most recent high-level IT developments. It involves fully developed IT features. When the company is leading and innovative, such that the top level support use technology for data analysis and timely delivery of information. In this stage, the combination of the quality product and the targeted marketing result in high volume sale. With these factors a company can determine whether it’s in mature or cutting edge category (Grossman, 2018).
Reference
Convercent team. (2016, February 4). 5 Success Factors in Cutting-Edge Compliance. Retrieved from https://www.convercent.com/blog/5-success-factors-in-cutting-edge-compliance
Grossman, J. (2018, November 2). The Four Stages Of Digital Maturity: How Does Your Organization Rank? Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/11/02/the-four-stages-of-digital-maturity-how-does-your-organization-rank/#572565c94fab
Siapartners. (2017, January 19). The four main challenges of a merger or acquisition. Retrieved from http://energy.sia-partners.com/20170119/four-main-challenges-merger-or-acquisition
Steffens, G. (2019, June 4). Business Strategies. Retrieved from http://www.gaebler.com/Common-Problems-with-Acquisitions.htm
