Case Study for Im Tecent and Horizon Merger

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Case Study for IM Tecent and Horizon Merger
Abrar Almjally
I-school Syracuse University

Case Study for IM Tecent and Horizon Merger

This paper will discuss a merger between Tecent and Horizon from IM’s perspective and apply a recommendation for a way in which the new chief information officer (CIO) might successfully approach the chief executive officer’s (CEO’s) objectives, which are to reduce costs and increase revenues. Indeed, this paper will examine several points. First, the information system’s (IS’s) main components in both companies, before and after the merger, will be defined and analyzed. Second, it will identify the current issues that the new company, which is Tecent and Horizon after the merger, will face. Third, a list of recommendations will be provided for consideration prior to taking any kind of action. Next, the course of action will be planned and the solution will be addressed. Finally, the paper will propose an implementation methodology.

Component of the IS within Tecent and Horizon
The four components of Tecent’s and Horizon’s IS are process, strategy, technology, and people. To begin, the processes the two companies had used that before and after the merger and the issues that the current company faces will be addressed. Prior to the merger, Tecent’s main business process supported large manufacturing volumes and never provided services, such as installing or maintaining their computers’ ore servers. Instead, Tecent supported its channel partners, who dealt with the customers; to further illustrate, it does not have any kind of direct customer support for its customers. In contrast, Horizon supported direct sales and smaller numbers of personal computers (PCs) and customized mini and mainframe systems for its end-users. The issue is that, after the merger, the enterprise systems were still separate. If there was an order, the company had to place and process two orders: one for relocating hardware orders from Tecent and the other for service orders from Horizon. The system worked as if the unified entity were still two companies. The CEO wants to develop one system, in which the order is created in one entry and arrives at the customer’s location all at once. Both Tecent and Horizon follow dissimilar strategies to manage their business. Tecent and Horizon had differing management structures. Tecent took a highly centralized approach in which the procedures were accomplished faster and the IT spending was much lower than the industry average. Horizon used a highly decentralized model in which each department had its own CIO. These CIOs usually made independent decisions for the other CIOs. However, while operating under this model, Horizon spent more on IT, but it gave the manufacturing and services business more personal attention. People, both as individuals and in groups, are involved in the information systems of both Tecent and Horizon. After Tecent bought Horizon, Horizon faced a headcount reduction. Horizon had hundreds of employees who worked from home but, after the merger, the company wanted to either bring them into a Tecent office or lay them off. The accommodations of these employees have been considered an issue that the new company must resolve. Finally, the last element of the information system is the technology, or the electronic resources that both Tecent and Horizon use. Prior to the merger, Tecent operated its global supply-chain planning on a customized system. Tecent uses SAP software, which is an enterprise-wide information system designed to coordinate all of the resources, information, and activities that are required to complete business processes. SAP is the largest software vendor that offers enterprise system solutions according to the Software Top 100 organizational Web site (2012). Horizon, however, only operated a midrange business. As a result, the IM committee decided to adopt Tecent’s SAP rapid implementation approach. However, the committee...
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