Mergers and acquisitions (M&A)have been sweeping across the wine and spirits industry, forcing a rapid consolidation of the market space. At least 70 deals emerged for suppliers in 2022 alone, with 46 being spirits and another 24 in wine, according to a market report from Park Street.
While mergers and acquisitions can often be exciting and lucrative opportunities, they also present a host of challenges, especially in IT. Different companies often use wildly different data ecosystems, with methodologies, formats, and definitions varying from one infrastructure to the next.
Not only does this pose a challenge for IT in and of itself, but it also prevents other departments from accessing the data they need and making timely decisions.
But not all is lost. Comprehensive data solutions like Dimensional Insight’s Diver Platform can consolidate and standardize data from multiple disparate sources into a single, usable format. From there, pre-built measures and applications allow businesses to start generating immediate value from their data.
Consolidating disparate data sources
Different wine and spirits companies typically use different sources, systems, and formats within their data infrastructures. Data may be stored in various databases, spreadsheets, or legacy systems, making it difficult to consolidate and integrate the data seamlessly.
These different formats present a major headache to IT teams looking to create a cohesive system within their organization, especially when one organization may be using less-sophisticated data governance solutions and methodologies.
The key here is a data solution that can consolidate these feeds into one central library and standardize it to ensure that different users (from both companies) are looking at the same data in their decision-making.
A dedicated enterprise solution also has the added benefit of addressing inconsistencies and gaps in data quality. Data quality issues, such as missing, incomplete, or duplicated data, can significantly impact the reliability of integrated data and lead to erroneous conclusions. A comprehensive data solution can help alleviate these pitfalls by flagging them early on as well as eliminating the risk of human error that comes with manual input.
Faster time to value
Mergers and acqusitions often involve large volumes of data. Integrating and processing massive data sets within a limited time frame can strain existing IT infrastructure and hinder the scalability of data integration processes. Likewise, sales, operations, and upper management teams can be left without access to the information and context they need for decision-making.
Unfortunately, most wine and spirits businesses can’t afford major disruptions in their operations. To maintain momentum and reach their yearly goals, distributors and suppliers need to be able to accelerate their time to impact. This means implementing a solution that can quickly transform all these data feeds into actionable insights and meaningful results.
The longer data remains trapped in an unusable form, the longer it’ll be before businesses are able to see any serious ROI (if any at all). Data solutions with pre-built measures and reporting options allow these businesses to start using their new data from the get-go, and in turn, allow them to transform their data into revenue-driving insights.
Establishing permissions and role-based access
Merging organizations often have different data cultures, management practices, and established methodologies. Overcoming these cultural differences and ensuring the smooth adoption of new data management processes is essential for a successful merger or acquisition.
Part of this is navigating differences in user roles and data permissions. Which data sets individual users have access to can have long-reaching implications for both operational efficiency and security. However, trying to find the middle ground that allows employees to succeed in their positions without compromising established protocol can be a balancing act.
Thankfully, comprehensive data solutions can help align data access privileges and establish consistent user roles across the merged business. Pre-established system permissions help ensure that users still have access to the data they need in their role without all the administrative headaches.
Where can I learn more?
Curious about how a world-class data solution can help you with your next merger or acquisition? Check out our solutions page or schedule a quick demo to learn more.
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