What are the best practices for integrating dealer systems and processes after a merger or acquisition?

1 Assess the current state

Before you start making any changes, you need to assess the current state of both parties' systems and processes. This involves mapping out the existing IT infrastructure, software, data, and security protocols, as well as the operational procedures, policies, and standards. You also need to identify the pain points, gaps, and risks that may affect the integration. By conducting a thorough assessment, you can establish a baseline, prioritize the areas of improvement, and set realistic goals and expectations.

2 Align the vision and strategy

The next step is to align the vision and strategy for the integration of dealer systems and processes. This means defining the desired future state, the benefits and value proposition, and the key performance indicators (KPIs) for measuring the success of the integration. You also need to align the culture and values of both parties, and communicate the vision and strategy to all stakeholders, including employees, customers, suppliers, and partners. By creating a shared vision and strategy, you can foster a sense of ownership, commitment, and collaboration among the involved parties.

3 Choose the best approach

When integrating dealer systems and processes, the level of complexity, compatibility, and customization required should be taken into account. Consolidation involves migrating one party's systems and processes to the other party's platform, or adopting a new platform that replaces both parties' systems and processes. This can reduce costs, complexity, and duplication, but may require significant changes, training, and data conversion. Alternatively, coexistence maintains both parties' systems and processes with interfaces and integrations that allow them to communicate and exchange data. This approach can preserve existing functionality, flexibility, and familiarity; however, it may also increase costs, complexity, and maintenance. Hybrid combines elements of both consolidation and coexistence by migrating some systems and processes to a common platform while keeping others separate but integrated. This can balance the trade-offs between costs, benefits, and risks; however, it may also require more planning, coordination, and testing. Ultimately, you need to select the best approach for your specific situation based on your assessment, vision, strategy, budget, timeline, and resources.

4 Implement the changes

Once you have chosen the best approach for integrating dealer systems and processes, you need to implement the changes according to a detailed plan. This involves designing, developing, testing, and deploying the new or modified systems and processes, as well as migrating or converting the data. You also need to provide training and support to the users, and monitor and troubleshoot any issues that may arise. You should follow the best practices of project management, change management, and quality assurance, and use the appropriate tools and methodologies for each stage of the implementation.

5 Evaluate the results

The final step is to evaluate the results of the integration of dealer systems and processes. This involves measuring and analyzing the performance, outcomes, and impacts of the integration, based on the predefined KPIs and metrics. You also need to solicit and incorporate feedback from the users, customers, suppliers, and partners, and identify the lessons learned, best practices, and areas of improvement. By evaluating the results, you can determine the effectiveness, efficiency, and satisfaction of the integration, and make adjustments or enhancements as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?