Management -- Managing It in Research Paper

Viewing IT as such a critical aspect of firm value, along with brand name cache and more traditional assets is not at present part of corporate culture, although it must become so in ensuing decades

Q3. On the Web, explore the IT/IS integration issues raised by Kellogg-Keebler

In the 1990s, the once-venerable brand of Kellogg cereals was facing intense competition from its rivals both in the market for cereals as well as for other snack foods. Keebler was the second largest cookie-and-cracker manufacturer in the United States. Kellogg was attracted by Keebler's direct-store-delivery (DSD) system which involved daily, fresh deliveries to stores. While analysts feared that the merger would dilute earnings per share calculations, the acquisition of Keebler would give Kellogg a system conveying a critical edge over its competition in the snack food industry (Case example, 2010, Mastering the Merger).

The unusual aspect of the Keebler-Kellogg merger, and one of the reasons for its success, was that Kellogg took an active interest in Keebler's IT infrastructure and systems when contemplating acquiring the firm. In fact, Keebler's DSD was the primary reason for Kellogg's interest. Kellogg showed an astute understanding of intellectual capital and value and immediately used Keebler's systems to market its own products. This was why the merger was called a 'reverse merger' by industry analysts. The larger firm used the adaptability of the smaller firm, rather than tried to make the smaller acquisition conform to the larger firm's standard operating procedures. While there was an initial culture clash between Kellogg's more corporate and standardized approach to human resource management, the use of innovative technology was strong enough to ensure that the merger was a success (Case example, 2010, Mastering the Merger).

References

Case example: The Kellogg Company and Keebler. (2010). Mastering the Merger. Retrieved August 9, 2010 at http://www.masteringthemerger.com/masteringthemerger/case_example_kellogg.asp