Flevy Management Insights Q&A
How can BDP be adapted to support the integration of newly acquired companies?
     David Tang    |    BDP


This article provides a detailed response to: How can BDP be adapted to support the integration of newly acquired companies? For a comprehensive understanding of BDP, we also include relevant case studies for further reading and links to BDP best practice resources.

TLDR Adapting BDP for newly acquired company integration involves Strategic Alignment, optimizing Data Quality and Governance, and leveraging data for Value Creation, ensuring successful merger outcomes and operational efficiency.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Strategic Alignment mean?
What does Data Integration mean?
What does Change Management mean?
What does Data Quality Management mean?


Business Data Platform (BDP) adaptation is crucial for supporting the integration of newly acquired companies. This process ensures that the merged entities can share, analyze, and act upon data in a unified manner. By leveraging BDP effectively, organizations can streamline integration, foster innovation, and ultimately drive value from their acquisitions.

Strategic Alignment and Data Integration

The first step in adapting BDP for the integration of newly acquired companies is ensuring strategic alignment. This involves aligning the data architecture and governance of both entities with the overarching strategic goals of the merged organization. A report by McKinsey emphasizes the importance of a clear data strategy that supports business objectives, suggesting that companies with well-integrated data strategies see a 30% increase in their operational efficiency. To achieve this, organizations must assess the current state of their BDP, identify gaps in data architecture, governance, and capabilities, and develop a roadmap for integration that aligns with strategic objectives.

Effective data integration requires a comprehensive understanding of both the acquiring and acquired companies' data landscapes. This involves mapping out data sources, storage, and flows, and identifying key data entities and their relationships. The goal is to create a unified data model that supports seamless data integration and accessibility. Organizations can leverage tools and technologies such as data virtualization, middleware, and ETL (extract, transform, load) processes to facilitate this integration. Moreover, adopting common data standards and protocols ensures consistency and reliability of data across the merged entity.

Change Management is also a critical component of strategic alignment and data integration. It involves managing the human aspect of integration, ensuring that all stakeholders are on board with the changes, and understand the benefits of a unified BDP. Training and communication play a vital role in this process, helping to mitigate resistance and foster a culture of data-driven decision-making. Additionally, establishing a dedicated integration team with representatives from both companies can facilitate smoother integration, ensuring that both technical and cultural aspects are addressed.

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Optimizing Data Quality and Governance

Ensuring high data quality is paramount in the integration process. Inaccurate, incomplete, or inconsistent data can lead to poor decision-making and operational inefficiencies. Organizations should implement robust data quality management practices, including data profiling, cleansing, and enrichment, to ensure that the data within the BDP is accurate and reliable. According to a study by Gartner, organizations believe poor data quality to be responsible for an average of $15 million per year in losses. This underscores the importance of investing in data quality initiatives as part of the integration process.

Data governance is another critical area that needs adaptation when integrating newly acquired companies. Effective data governance ensures that data across the merged entity is managed according to consistent policies and procedures. This includes aspects such as data ownership, privacy, security, and compliance. Organizations should establish a data governance framework that is flexible enough to accommodate the complexities of the merged entity while ensuring strict adherence to data standards and regulatory requirements. Implementing data stewardship programs can also help in maintaining the integrity and quality of data over time.

Technology plays a crucial role in optimizing data quality and governance. Leveraging advanced analytics, AI, and machine learning can help in automating data quality management and governance processes. These technologies can identify patterns, anomalies, and inconsistencies in data, facilitating proactive management of data quality issues. Additionally, data governance platforms can provide a centralized view of data policies, standards, and practices, making it easier to manage and enforce governance across the organization.

Leveraging BDP for Value Creation

The ultimate goal of adapting BDP for the integration of newly acquired companies is to create value. This involves leveraging the unified data platform to drive insights, innovation, and competitive advantage. By having a comprehensive view of the merged entity's data, organizations can identify opportunities for cross-selling, upselling, and new product development. For instance, Amazon's acquisition of Whole Foods leveraged data analytics to optimize inventory management, personalize marketing efforts, and enhance customer experiences, leading to increased sales and market share.

Operational efficiency is another area where BDP can drive value. By integrating and streamlining data processes, organizations can reduce redundancies, automate workflows, and improve decision-making. This not only leads to cost savings but also enhances agility and responsiveness. For example, Cisco's acquisition strategy includes a strong focus on integrating IT and data systems to achieve operational synergies, resulting in significant cost savings and efficiency gains.

Innovation is a key benefit of a well-integrated BDP. By combining data from different sources and leveraging advanced analytics, organizations can foster a culture of innovation. This can lead to the development of new products, services, and business models that drive growth and differentiation. Google's acquisitions, such as YouTube and Waze, have been seamlessly integrated into its BDP, enabling the company to leverage data for innovation and to strengthen its market position.

In conclusion, adapting BDP to support the integration of newly acquired companies is a complex but essential process. By focusing on strategic alignment, data quality and governance, and leveraging data for value creation, organizations can ensure a successful integration that maximizes the value of their acquisitions.

Best Practices in BDP

Here are best practices relevant to BDP from the Flevy Marketplace. View all our BDP materials here.

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BDP Case Studies

For a practical understanding of BDP, take a look at these case studies.

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Scenario: The organization is a mid-sized chemical producer specializing in polymers and faced with stagnating market share due to outdated operational practices.

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Scenario: A mid-sized e-commerce firm specializing in health and wellness products is facing operational challenges in managing its Best Demonstrated Practices.

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Growth Strategy Enhancement for Cosmetic Firm in Luxury Segment

Scenario: The organization in question operates within the luxury cosmetics industry and has been grappling with maintaining consistency and quality across its global brand portfolio.

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Inventory Management Enhancement in Aerospace

Scenario: The organization is a mid-sized aerospace components supplier grappling with inventory inefficiencies that have led to increased carrying costs and missed delivery timelines.

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Source: Executive Q&A: BDP Questions, Flevy Management Insights, 2024


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