Mergers Drive Problems Before they Deliver Benefits (cont'd)

If We Could Turn Back Time
The consensus on whether operations mergers would be done differently if one could turn back the clock is a resounding “yes.” At the top of the list of what to do differently was retaining the in-depth systems and process knowledge from those operations centers that were closed down. When layoffs occur, years of knowledge can walk out the door that is irreplaceable. Many homegrown systems are poorly documented and it is difficult to train staff if no one really knows how the old systems processed data. With the pressure to cut costs immediately after a merger, this specific problem doesn’t pop up until there is some type of crisis that one knows how fix. Methods to capture that knowledge must be devised.

A second area of concern is asset management. Anytime a merger occurs, network assets grow. The ability to track these new assets in a systematic way would be very valuable to a service provider. This ability would enable a company to know what new assets are being acquired. By tying this into the revenue accounting system, the company would know what assets are being used for what service, what those assets are costing the company, and how much revenue they generate. It would provide a cost model for their business and they would know what each service cost and the margins the service provided.

Ultimately, there are myriad issues for operations when an acquisition or merger occurs, and the major wireless carriers are suffering these same pains today. With a pragmatic, systematic process to merge the two entities, the impossible can become possible. But time will tell whether wireless operators have learned from the mistakes of their landline brethren and manage to realize the true economic benefits massive mergers intend. In the meantime, there's a lot of talent and knowledge getting ready to walk – or be sent – out the door.

«Prev    |   1   |   2   |   3   |   Subscribe

Send Comment

© 2005, All information contained herein is the sole property of Pipeline Publishing, LLC. Pipeline Publishing LLC reserves all rights and privileges regarding the use of this information. Any unauthorized use, such as copying, modifying, or reprinting, will be prosecuted under the fullest extent under the governing law.