PRI Leads Integration for a Major Aerospace Merger
Client Background
A leading aerospace manufacturer, renowned for producing critical components for both commercial and defense aircraft, recently expanded its market reach by acquiring key assets from a prominent aerospace company specializing in aerostructures and aftermarket services. This acquisition aimed to strengthen the company’s supply chain and boost its competitive advantage. However, integrating the newly acquired company’s systems, data, and business processes presented a significant challenge.
PRI was brought on board to lead the integration, tasked with unifying IT systems, consolidating data, and streamlining processes while ensuring minimal disruption to ongoing operations.
Objectives
PRI’s primary objectives were:
- Integrate IT Systems: Unify both companies’ IT infrastructures for cross-compatibility with minimal operational disruption.
- Consolidate and Govern Data: Merge and standardize data to enhance reporting and decision-making.
- Harmonize Business Processes: Optimize and align workflows across various departments.
- Modernize Technology: Upgrade the acquired company’s technology to match the acquirer’s cloud-based approach.
- Ensure Stability: Maintain business continuity and mitigate operational risks during the integration.
PRI Global's Approach
1. Discovery and Assessment
To ensure a smooth transition, PRI first undertook a thorough discovery and assessment phase:
System Audits and Due Diligence: PRI conducted detailed audits of the acquired company’s key systems, including ERP, supply chain management, and product lifecycle management (PLM). This audit helped identify system dependencies, potential compatibility issues, and opportunities for integration.
Data Mapping and Governance: PRI mapped data flows between the two organizations, paying special attention to data security and compliance standards. A governance framework was created to ensure the integrity of the data throughout the process.
Business Process Analysis: Key processes—such as engineering, procurement, and aftermarket services—were analyzed to align workflows and identify opportunities for operational efficiency.
2. Technology Integration
Once the assessment was complete, PRI moved into the technology integration phase:
Cloud Migration: PRI led the migration of critical applications and data from the acquired company’s legacy systems to a modern cloud infrastructure. This hybrid model ensured operations remained uninterrupted during the transition.
ERP System Unification: One of the biggest challenges was integrating the ERP systems of both companies. Middleware solutions facilitated smooth data exchange, while a full transition to the acquiring company’s ERP system was completed.
Supply Chain and PLM Systems Integration: PRI unified the two companies’ supply chain and PLM systems, enabling real-time collaboration in product design and supplier management.
API and Middleware Solutions: API-based solutions were deployed to bridge technological gaps and allow real-time data flow between the different systems.
3. Data Integration and Analytics
With systems integration underway, PRI turned its focus to data consolidation:
Data Cleansing and Migration: PRI established ETL (extract, transform, load) pipelines to cleanse, migrate, and validate the data, ensuring its accuracy and integrity. The acquired company’s historical data was also integrated for future analytics.
Data Lake Creation: A centralized data lake was created to store both structured and unstructured data, enabling efficient analytics and reporting.
Advanced Analytics Tools: PRI deployed advanced analytics platforms, providing insights into production efficiency, supply chain optimization, and operational performance.
4. Process Harmonization
Harmonizing business processes across both companies was critical to achieving operational efficiency:
Standardizing Workflows: PRI standardized key processes across departments, creating a unified operational framework from engineering to procurement.
Automation and Optimization: Automation solutions, such as robotic process automation (RPA), were implemented to streamline procurement and supply chain operations.
Supply Chain Integration: PRI consolidated suppliers from both organizations into a single procurement platform, improving supplier performance tracking, inventory management, and lead times.
5. Change Management and Training
PRI recognized the importance of managing the human element during the integration:
Change Management Strategy: A structured change management program was developed to guide the transition. This included leadership engagement, regular communication, and cross-functional workshops.
Employee Training: Comprehensive training sessions were held to familiarize employees with the new technologies and processes, while knowledge transfer sessions helped IT staff manage the post-integration environment.
6. Security and Compliance
Given the sensitive nature of the aerospace industry, ensuring security and compliance was paramount:
Data Security Enhancements: Multi-layered security protocols were implemented to protect critical data, ensuring compliance with international regulations.
Regulatory Compliance: PRI ensured that all data migration and system integration activities complied with industry-specific regulations, mitigating legal and operational risks.
Results
PRI delivered several key results:
- Seamless IT Integration: The acquired company’s systems were integrated without major disruptions, allowing business operations to continue smoothly.
- Data Consolidation and Insights: The creation of a centralized data lake, combined with advanced analytics tools, enabled more informed decisions on production, supply chain management, and customer service. Predictive analytics helped reduce operational downtime by 25%.
- Process Standardization: The standardization of workflows and introduction of automation solutions improved production efficiency by 15%, reducing bottlenecks and optimizing resource management.
- Supply Chain Optimization: Supply chain systems integration enhanced visibility, reduced material shortages, and cut lead times by 10%.
- Scalable Technology Infrastructure: By modernizing the acquired company’s technology stack, PRI enabled the client to scale operations more effectively and manage future acquisitions with greater flexibility.
Final Outcomes and Strategic Impact
PRI’s successful collaboration ensured a seamless integration following the acquisition. By addressing the technical challenges of unifying systems, data, and processes, PRI played a pivotal role in enhancing operational efficiency and ensuring business continuity. This case study highlights the critical importance of strategic IT consulting in mergers and acquisitions, particularly in industries where precision, security, and compliance are non-negotiable.
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