ibm’s m&a service offering - dbguide.net · the ibm proposition supports delivery of deal...

IBM Global Business Services

© Copyright IBM Corporation 2007

IBM’s M&A Service Offering

November 8, 2007

IBM Global Business Service – M&A practice

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IBM can deliver the “full equation” from consulting to strategic outsourcing

Strategic Outsourcing & IT Hardware, Software & Services

Application Management

BusinessTransformation Outsourcing

Global Business Services & Project-based Systems Integration

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IBM’s unique position is due to unrivalled breadth of capability

Over 1,000 successful M&A engagementsOver 400 focused professionals, with 2000experienced consultantsOver 150 internal IBM acquisition projects

Leading M&A Practice

Proven M&A Methodology

Cost Reduction / Optimization

Deep IT Capability

Largest / Broadest Global Consultancy

Extensive Industry Expertise

Leading Outsourcing Capability

IBM M&A Accelerator (Valchemy)

Patented Process & ToolsPlaybook and checklistsRisk assessment processTargeted value focus

Over 2,000 recent projectsSG&A, Sales force, Supply Chain, Procurement, R&D, IT Comprehensive Frameworks/Tools

#1 ERP Integrator(SAP, PS, Oracle)Integrated Technology Services

Hardware migrationIT Portals & SoftwareIT resource augmentation

Leading application for M&AUsed by top acquirersCaptures learnings

Creates repeatable processGuides the deal team through the process

Information TechnologyBusiness ProcessesIT Development & Support (AMS)Over $30B in IT & Processoutsourcing contracts

Global reach and capabilityKnowledge of customers/competitorsKey issues and trends

Strategy & OperationsHuman Capital ManagementSystems integration - ERP,CRM, SCM

Financial ManagementTechnology Management

ValueCreation

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The IBM proposition supports delivery of deal value from strategy through to implementation

M&A Proposition M&A Services IBM Differentiators

Integration Support• Integration Strategy• Pre completion planning• Day 1 actions• Programme Management Office• Functional support

Integration Support• Integration Strategy• Pre completion planning• Day 1 actions• Programme Management Office• Functional support

Synergies and Value Delivery• Value targets• Performance Improvement• Identification and delivery

Synergies and Value Delivery• Value targets• Performance Improvement• Identification and delivery

Operating Model• Organisation and Physical• Processes

Operating Model• Organisation and Physical• Processes

Technology• Due diligence• Transformation and integration• Data Migration

Technology• Due diligence• Transformation and integration• Data Migration

People Change• People Migration • Change Management

People Change• People Migration • Change Management

Global capability and Delivery centersGlobal capability and Delivery centers

Patented M&A Accelerator toolPatented M&A Accelerator tool

Direct experience from IBM acquisitionsDirect experience from IBM acquisitions

Business Metrics competency centerBusiness Metrics competency center

Deep functional and industry expertiseDeep functional and industry expertise

Leading Global location advisory service offeringLeading Global location advisory service offering

Leading outsource provider of IT and back office servicesLeading outsource provider of IT and back office services

IBM IT brand IBM IT brand

Leading data migration solution offeringLeading data migration solution offering

Global Talent Management CapabilityGlobal Talent Management Capability

Cultural IP (i.e. books, papers, etc)Cultural IP (i.e. books, papers, etc)

More money

Faster

Lower risk

Strategy

Implementation

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Integration Blueprint:- Strategy, approach &

principles- Workstream structure- Migration paths- Initial Operating Model

Integration Planning- First 100 day plan - Program Management Office- Governance and team

mobilisation

Value-driven priority setting

Interdependencies and contingencies

Day 1 readiness: - Actions & Organization

Implementation management and monitoring framework

People and Change:- People Retention Strategy- Communications Plan

Implement:- Day 1 actions- First 100 Days plan

Post-close business review

Organizational structure / roles and responsibilities

Synergy program:- Prioritisation- Quick wins- Detailed business

cases and plans

Operating Model design

Delivery of integration program

Reporting “Dashboard”

Resource allocation

Benefit realization

Strategy realization

Continuous improvement

Operating Model:- Transformation

roadmap- Implementation

Implementation management and monitoring framework

Valuation & Business case

Due diligence

Regulatory process support

Synergy evaluation

Risk & Issues

Strategic Rationale for the deal

Outline Integration Blueprint

Operating model guidelines

Appoint Integration Director

Corporate and business strategy- Asset portfolio

strategy- Role of M&A - Regulatory

strategy

Transaction strategy- Funding- Structures

Target identification, screening, and selection

Implementation & Monitoring

StrategyDevelopment

TransactionSupport

IntegrationPlanning Transition

CompletionDoing the right deal? Doing the deal right?

IBM Consulting supports the entire M&A lifecycle

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Our integration principles are designed to deliver value from the merger quickly and with lower risk

Strategicrationale

Strategicrationale

Valueworkstreams

Valueworkstreams

BusinessOperating

model

BusinessOperating

model

Integrationexecution

Integrationexecution GovernanceGovernance

BusinesscontinuityBusinesscontinuity

Strategic rationaleDetermines measurable revenue and

cost value drivers

Value DriversDetermine the value drivers needed to

deliver quantified benefits. If it isn’t measurable then it isn’t a value driver

Value workstreamsOrganise to deliver the value drivers.

Business as usual is a value workstream

Business Operating modelDetermines business alignment based

on customer needs and value workstreams

Integration execution and governance

Ensures that the deal value is delivered on time

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Supported by a state of the art execution frameworkIBM has a comprehensive suite of tools and techniques readily available for use, including:

Day 1 Action Tracking Risk & Issue Management Reporting

Stakeholder Analysis

Impa

ct o

fch

ange

Reaction to change

High

Medium

Low

Opponents Followers Enthusiats

Professionals-Group 2

Professional-Group 1 Management

Admin

Work Council

SeniorManagement

= High responsibility and influence

= Medium responsibility and influence= Low responsibility and influence

= High responsibility and influence

= Medium responsibility and influence= Low responsibility and influence

Stakeholder Analysis

TOP DOWNANALYSIS

BOTTOM UPANALYSIS

ISSUE RESOLUTION

Market DriversStrategic RationaleSponsors

OperationsExternal

BaseLine Panel Business

Cases Panel 20/80BaseLine Panel Business

Cases Panel 20/80

CONTROLCONTROL

PROCESSES

OPERATIONS

FUNCTIONS

FAST TRACK

SYNERGY GENERATION TRACKING

Transition Teams

VALUETARGET

Radical Prioritisation Use of Valchemy M&A™ software – a capability unique to IBM

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We support our clients with a comprehensive toolkitWe combine best-in-class methods and tools and apply them to specific client situations to deliver successful M&A Integration.

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We have supported many of the world’s leading transactions

GEC ALSTHOM

National Grid Transco

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What our clients say about us (1)

David Lowden, Chief Operating Officer“With IBM we were able to identify far greater level of

synergies than the ones that we communicated to the City, but also greater than our own expectations… But I believe that the probability of realising those synergies is also far

greater than what we originally anticipated had we not used IBM”.

Stuart Smith, NUI – Integration Director

“NUI appointed IBM because of its proven track record and positive relationships. This led to great confidence and trust in the team…What has been achieved is incredible and we

now need to build upon that success”

Jon Hargraves, CEO“We could not have achieved this without the

consulting team. They added huge value”

Howard Higgins – CEO

“The team brought a rigour to planning and an explicit focus on value creation that would not have been possible with

our core team… The consulting team were able to rapidly react to unexpected problems along the way and did not let

us fail ”

“That was overwhelming was the personal desire to do the business and the commitment to get work done – that willingness by the consulting team was by far the most important factor”.

Matthew McKenna, SVP Finance

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What our clients say about us (2)

Rob Corran, Integration Director“We were so impressed by their methodology that we borrowed it lock, stock and barrel. I haven’t felt that other consultants had a methodology which

delivered like PwC’s”

Michael Major, Managing Director

“..cut through a lot of the problems and focused us on key issues – the chemistry

with the combined AAH/PwC team was excellent”

Giovanni Soccodato, Integration Director“We found people with which we could establish a very good

relationship and really get down to the point quickly”

Ian King, CEO“I think that we succeeded because we broke the process down into

‘bite size’ chunks that people could get their minds around - the Urgent Actions, the Quick Wins and the Business Cases - rather than saying ‘we have a two year plan and we can only tell you

whether we’ve got there at the end’. That worked and we still use that process today.”

Mike Donovan, Managing Director“The biggest initial value from PwC was making us think more broadly about the whole issue of integration across a wide

range of work streams much earlier in the process than we would otherwise have

done.”Please note that in October 2002 PwC Consulting was acquired by IBM and is now known as IBM Global Business Services

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Stephen Hickford

IBM operate a global M&A networkGLOBAL

AG LeaderUS LeaderGlobal M&A Accelerator LeaderC&P LeaderIT Integration LeaderBusiness DevelopmentData Migration LeaderSCM LeaderHCM LeaderFM LeaderSolution Development Internal Communication LeaderExternal Communication Leader

John CalaRon Hofmeister Eric FleischmanDavid NarramorePat MuiaKevin HutchinsChris CommonsMichael LaRocheMichelle Page RiveraDan SundwellJeff BeardSanjay NagraniAngus Barnett

Americas

David WilliamsLisa DhananiRoxane RomeroSimon Mackenzie

Didzis Ozols

UKISA

Jonathan Christopher Peachey

Pharma R&D

Kate Lobban – Global L&K for Bus StratRagna Bell – Global Bus Strat Operations Manager

Global M&A Operations

Dr. Torsten StuskaDr Rolf Porsche

Germany

Stephen Hickford

EMEA

Overall AP LeaderKorea LeaderChina LeaferJapan LeaderAZ Leader

Steven DavidsonSungjin ParkGordan Xu Hiroshi H MaruyamaMatt English

Asia Pacific

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Key Contacts for M&A service in Korea

Strategy & Change Service - Korea

김창대 (Changdae Kim)- Global Partner김창대김창대 ((ChangdaeChangdae Kim)Kim)- Global Partner S&C Service LeaderS&C Service Leader +82-2-11-898-4713

[email protected][email protected]

Name Role Contact

염승섭 (Seungseop Ryum)- Associate Partner염승섭염승섭 ((SeungseopSeungseop RyumRyum))- Associate Partner Business StrategyBusiness Strategy +82-2-11-898-4709


박성진 (Sungjin Park)- Associate Partner박성진박성진 ((SungjinSungjin Park)Park)- Associate Partner Operation Strategy (1)Operation Strategy (1) +82-2-11-898-4642


허관회 (Kwanhoe Hur)- Sr. Managing Consultant허관회허관회 ((KwanhoeKwanhoe HurHur))- Sr. Managing Consultant Operation Strategy (2)Operation Strategy (2) +82-2-11-898-4529


정성일 (Sungil Chung)- Sr. Managing Consultant정성일정성일 ((SungilSungil Chung)Chung)- Sr. Managing Consultant Technology StrategyTechnology Strategy +82-2-11-898-4955


이정욱 (Jeungwook Lee)- Sr. Managing Consultant이정욱이정욱 ((JeungwookJeungwook Lee)Lee)- Sr. Managing Consultant

Organization & Change StrategyOrganization & Change Strategy


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