Acquirers often squander value in mergers by treating integration of business functions as a mechanical, cost-saving exercise – overlooking valuable revenue synergies and value generating activities. By thinking more laterally and approaching PMI as an opportunity to rethink how functions can enhance value, acquirers can secure superior long-term growth. This Focus Report, second in our series on PMI, describes how this approach can be applied to five core functions: information technology; research and development; procurement; production networks; and sales and marketing.

Why does IT integration often hinder a smooth corporate merger process? Among the reasons are that defining a well-structured approach can slip far down the priority list, and companies can get bogged down deciding which applications should be kept or discarded by the combined entity. BCG research and case work have identified six key IT integration lessons from banking mergers that can benefit companies in any sector. A principal learning is that the best design for a merging IT landscape often involves choosing "clusters" of applications from each entity, rather than assembling a diverse collection of single applications, or picking the entire landscape of one merger partner.