Applying enterprise architecting to the business acquisition process

Background: Since the 1980s, the pace and dollar value of acquisitions in the US have grown at an astounding rate (Hitt, Sirower). The benefits from many of these acquisitions are elusive, with 60% of recent acquisitions showing negative return for the acquiring company (Hitt et. all, 5). Expected synergies are not realized despite the valiant efforts of the integration team who struggle with implementing the plans developed prior to deal close. Correlations can be drawn to the field of systems engineering, where specific processes and tools are employed to understand the interactions of various functional areas and avoid such implementation difficulties. Enterprise Architecting (EA) is one such framework that has shown promise in analyzing complex enterprises. Results: The thesis shows that all currently analyzed aspects of a potential acquisition are evaluated if the EA framework is used. It also shows that enough information is available prior to closing to use the EA framework to understand the potential enterprise. Further, it shows that the EA framework is flexible enough to accommodate the unique aspects of an acquisition analysis. Finally, the thesis shows a definite qualitative benefit from applying the EA framework.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• Porter, Christopher Vernon

Advisor dc:contributor.advisor

• Deborah Nightingale and Jan Klein.

• Sloan School of Management.
• Engineering Systems Division.
• Leaders for Manufacturing Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/39679

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/39679