Standardize or Integrate? Managing Data Across 19 Acquisitions

Dear Uncle Bill,

I’m the COO of Acme Chemical, a private equity-backed company that has rapidly expanded through 19 acquisitions of chemical manufacturers across different industry segments. Each of the acquired entities operates autonomously, and as a result, we now have 19 different ERPs that need to roll up into a consolidated financial ledger.

The big question: Do we need to standardize chart of accounts (COAs), item structures, and other key financial and operational data across all entities? Or is there a better, faster way to achieve the data insights we need to manage the enterprise effectively?

Debra?‘Drowning in Data Disparity’ Johnson

Dear Drowning in Data Disparity,

First off, congrats (I think?) on your 19 acquisitions. That’s a heck of a growth story - but now comes the real challenge: making sense of all the moving pieces before the weight of fragmentation starts dragging you under.

You’re facing the classic post-merger systems dilemma: Do you force every division onto a standardized system, or do you find a way to integrate what you’ve got? The answer depends on your business objectives, but let’s get real - standardizing 19 different ERPs across 19 entities is a multi-year, high-disruption endeavor. Unless you’ve got unlimited time, money, and patience (hint: you don’t), a rip-and-replace approach isn’t your best first move.

The Faster Path to Enterprise-Wide Insights

Rather than forcing uniformity upfront, focus on building an enterprise data integration layer that consolidates key financial and operational insights without disrupting day-to-day business. Here’s how:

1. Implement a Financial Data Hub: Instead of making each entity conform to a single COA, use a data lake or enterprise data warehouse to ingest financials from all 19 ERPs and map them to a standardized reporting framework. This allows for enterprise-wide visibility while letting each division maintain its autonomy.
2. Leverage Middleware & APIs: Modern integration platforms can pull data from disparate ERPs in near real-time, translating different COAs, item hierarchies, and cost structures into a unified view without requiring a full system overhaul.
3. Prioritize Analytics Over Uniformity: Business intelligence (BI) tools like Power BI, Tableau, or embedded analytics within an ERP-agnostic reporting engine can give leadership the insights they need without waiting years for system consolidation.
4. Standardize Where It Matters: Some level of commonality is beneficial, particularly for financial roll-ups, procurement, and regulatory compliance. Identify the critical elements that need standardization (e.g., GL structure, revenue recognition policies) and apply targeted harmonization instead of forcing a one-size-fits-all model.

When (and If) to Standardize ERPs

Long term, there may be strategic value in consolidating onto fewer ERP platforms - especially if inefficiencies, compliance risks, or excessive IT costs start outweighing the benefits of autonomy. But that’s a phase-two decision, not a day-one necessity.

For now, your best bet is to integrate, not dictate. Get the data insights you need first, then make informed choices about standardization down the road.

Stay savvy,

Uncle Bill