Value Creation Of Resource Orchestration In Continuous Mergers And Acquisitions

Under the background of fully implementing the 13 th five year plan in China,the software and information technology industry has ushered in a new development opportunity.IT technology has entered various industries and fields to play a positive role in promoting the development of information technology.In the market environment of coexistence of competition and opportunity,the development of China's software industry also exposes some disadvantages and deficiencies,such as the large number of software enterprises but relatively scattered,especially the lack of leading enterprises,limited to selling software equipment with low technology content,single profit model and insufficient market competitiveness.In order to gain competitive advantage and expand the market scale,some large software companies in China begin to expand and develop.They hope to integrate the advantages of market resources,human resources and technical resources by means of continuous M & A,gather the strength of the whole industry,innovate the development mode,improve the profitability and consolidate the core competitiveness.This paper takes the emerging M & a model of software industry as the research object,discusses how to optimize the resource arrangement in the continuous M & A,in order to create value and achieve the expected development goals,and offer value advice for the development of information service industry.According to the research findings of present documents,this paper focuses on the topic of "how to achieve value creation through resource allocation in continuous M & a",proposes a process evolution model for continuous mergers and acquisitions of software companies,and explores the paths through which resource orchestration creates value at each stage.This article through Donghua Software's exploratory case study finds that with the continuous mergers and acquisitions of enterprises,the difficulty of knowledge transfer brought about by resource structuring gradually decreases,the breadth and depth of resource reorganization gradually rises,and the complexity of resource leveraging gradually increases.The path of resource orchestration to create value for the enterprise is also diversified.Specifically: First,In the case of resource shortage,enterprises realize resource structure through continuous M & A.the specific evolution path is: horizontal resource structure,vertical resource structure or horizontal and vertical circular resource structure.Second,the company keeps accumulating resources in the process of continuous M & A,the reorganization strategy gradually transitions from stable reorganization to enrichment reorganization and finally to pioneering reorganization.Third,In the process of M & A,there are three ways to realize resource crowding: business crowding,environment crowding and platform crowding.These findings break through the implicit assumption of each M & A as an independent event and thus contribute to the literature of continuous M & A,and have some implications for continuous M & A.