How to Derive a Target Application Landscape in a PMI: A Comprehensive Guide to Shaping Your Application Ecosystem

Deriving a target application landscape is a critical task during a Post-Merger Integration (PMI), as it ensures that the newly formed organization’s technology ecosystem is aligned, efficient, and able to support business goals. The process involves assessing existing systems, identifying redundancies, and designing a future-state map that maximizes business value with minimal risk and disruption.

Step 1: Inventory Existing Applications

Begin by cataloging every software application in use across the merging organizations. Document their purpose, technical architecture, user base, support requirements, and integration points. This comprehensive inventory is the foundation for understanding overlaps and critical differences.

Step 2: Assess Business and Technical Value

Evaluate each application for its business importance, user adoption, technical health, scalability, and cost. This assessment will highlight mission-critical tools and those suitable for rationalization or replacement.

Step 3: Engage Stakeholders

Bring together business leaders, IT, operations, and end-users from both organizations. Gather feedback on pain points, requirements, and future aspirations. This step ensures alignment with strategic business objectives and user needs.

Step 4: Map Redundancies and Integration Requirements

Identify duplicate or overlapping applications. Flag systems handling similar functions (e.g., two CRMs or ERP systems) and analyze which best fits the combined organization's goals. Also, consider integration complexity—how easily can different systems “talk” to each other?

Step 5: Design the Target Application Landscape

Based on your findings, create a high-level diagram of the desired future-state architecture. This should show which systems will be retained, consolidated, or retired. Also, plan for necessary migration paths and interim integrations, ensuring the landscape supports scalability, compliance, and business growth.

As a designer, I approach this complex mapping as I would a home designer developing a cohesive space from two distinct aesthetics. The goal isn’t just to fit systems together, but to blend strengths, eliminate inefficiencies, and create a seamless workflow that elevates the merged organization’s potential.

Tips 1:

Use visual mapping tools to sketch the application landscape—just like floor plans in interior design, diagrams bring clarity, reveal overlaps, and spotlight critical pathways for integration.

FAQ

Q: What is an application landscape in PMI?

A: It’s the holistic overview of all software applications and systems used in the merged entity, including their relationships and integrations.

Q: Why is it important to derive a target application landscape?

A: It helps eliminate redundancies, supports business strategies, reduces costs, and integrates processes between merging companies.

Q: How long does it take to derive a target application landscape?

A: Timelines vary based on organization size and complexity, but initial assessments can take weeks, with a full target-state design often spanning several months.

Q: What’s the biggest challenge in rationalizing applications during PMI?

A: Balancing business needs with technical feasibility—some legacy systems may be hard to replace due to customizations or user resistance.

Q: What tools can assist in designing a target application landscape?

A: Application portfolio management tools, architecture diagramming software, and stakeholder workshops are all crucial in visualizing and optimizing the landscape.