Combining Asda’s and Sainsbury’s businesses can have massive risks from a technology perspective - but it is also a key area where savings can be made.
The news of their merger made for a dramatic weekend for the retail business. An investigative journalist - from Sky News I believe - managed to uncover advanced discussions between Sainsbury’s and Walmart regarding combining Asda and Sainsbury’s businesses.
At the time of writing there are many more questions than answers - who will own whom? What happens to employees, head offices, brands? What about competition authorities’ feelings? What will the competition think/do? What will the ownership structure look like? The list goes on...
All of these questions - or risks - were discussed in some shape or form by the media over the weekend. The one question the media seem to have missed is the potential risks and impact from a technology perspective. (This is in spite of the fact that the media has a heightened sense of the potential impact of technology issues due to the recent problems at TSB Bank. )
Merging businesses can have massive risks from a technology perspective - but it is also a key area where savings can be made. Every business invests in technology capabilities needed to run their business. Sometimes not all the capabilities the business needs are covered. However, redundancy often exists - where capabilities needed are duplicated and exist in multiple places. When you combine two businesses, the potential for duplication is unimaginably huge - leading to multiple systems with the same capabilities being maintained – and thus adding to cost.
Understanding what exists within the business, or across the two combined businesses, and being able to map it to what is needed based on business process is key to this. Identifying what can be eliminated, switched off or kept has the potential to reveal enormous cost savings.
Software AG’s Business and IT Transformation tools have a critical part to play in that - something that many of the world’s largest companies can testify to one that can play a huge part when retailers merge. In a recent conversation with one such retailer, the company revealed that already the equivalent of several million Euros had been saved already thanks to this approach - with it well on the way to saving tens of millions.
To find out more about how Software AG help align business strategy to the IT portfolio click below.