Fiat Chrysler-Peugeot £38 billion merger might fail on poor tech

Mike Kiersey, Principal Technologist at Boomi – a Dell Technologies business – has warned that, unless applications and data are adequately integrated, Fiat Chrysler-Peugeot £38 billion merger might be set to fail:

While the Fiat Chrysler-Peugeot merger points to the birth of a titan of the automotive industry, but this cannot happen unless integration is made a priority. This should be carried out immediately in order to reduce cost, make sure productivity does not falter during the process, and ensure shareholders keep seeing a profit, Kiersey said.

This merger will be complex with a myriad of systems, applications, complex processes and data flows, coupled with the complexity of disparate supply chains. Harmonising theses will be problematic and costly, he said

A key priority of this deal, however, is to implement swift, manageable integration, with application and data integration for all employee, partner and customer services, if Fiat Chrysler-Peugeot is to create a solid foundation. An integrated system will allow data points to become clear and accessible via master data management, enabling it to cross geographical and departmental borders with agility and control. Careful planning and analysis will be required to help isolate and reduce the technical debt from both organisations, harmonisation of the application stack, interconnecting fabric, infrastructure, cloud services etc to ensure business intends are achieved, Kiersey said,

“This merger is doomed to fail unless it can ensure the organisation runs safely and efficiently, and with the correct data governance. Ideally, it will be able to access raw data from a single platform in order to decide on the best approach to serve the expectations of its shareholders, customers, partners, and employees”, Kiersey said,