Week 5 - Final Paper Strategic Information Technology Plan

Instructor: Armon Kanooni

June 10, 2019

Plans for Technology Acquisition: The Federal Home Loan Bank of Atlanta

Mergers and acquisition remain one of the most popular strategies used by companies to keep pace with technological innovations. Technology mergers and acquisition helps companies to create a competitive edge, which is an essential element for survival in any industry. Many companies, however, fail to realize the primary objective of merger or acquisition because they fail to consider key elements during acquisition or merger planning. Some of the key concerns that must be considered during technology acquisition planning include the business climate and human resources policies.

The Federal Home Loan Bank of Atlanta is one of the eleven Federal Home Loan Banks (FHLBanks) sponsored by the U.S. government. The Federal Home Loan Bank of Atlanta targets community development and provides credit mainly for residential mortgages. According to Bloomberg (2019), the bank provides various types of credit products, including daily rate credit, adjustable credit, hybrid advances, and affordable housing program. On June 3, 2019, FHLBank Atlanta opened its 2019 Affordable Housing Program (AHP) competitive application process (Globenewswire.com, 2019). The process which involves over $30 million in funding is in-line with the institution’s plans to reach community lending goals and to finance the acquisition in the future.

As the organization plans for technology acquisition for its Affordable Housing Program, it should put the business climate in consideration to ensure successful post-acquisition incorporation. The business climate is an important factor in any business, and companies undergoing acquisition must critically analyze it to ensure. Business climate refers to the general economic environment of the business, including business activities, labor unions, and the business outlook. During technology acquisition, FHLBank Atlanta must consider different economic factors surrounding the technology or company to be acquired. These factors include wages paid to the existing workforce in the company, taxes, output of the company, the government attitude towards the technology company, and the competition Neumark & Muz, 2016). In addition, the bank should be concerned with other elements of business climate such as marketing and inbound and outbound logistics.

Secondly, FHLBank Atlanta should consider the impact of technology acquisition on human resources and related policies. Human resources are the most valuable assets of the company and must be treated carefully during business changes such as technology acquisition. Human resources are responsible for the output of the company. Therefore, the technology being acquired by the company should support the workforce to work efficiently. Also, technology acquisition may affect human resources policies in the company; hence influencing their productivity. When planning for technology acquisition, FHLBank Atlanta should address pertinent issues such as employee incentives, work-life conditions, the experience of the workforce and laws governing the technology that will be acquired (Astan, 2015). Other concerns that should be addressed during technology acquisition planning include the alignment of the technology with the company core values and culture, the impact of the technology on human resources morale and productivity. These factors are critical in ensuring that the organization develops appropriate preparations before technology acquisition. Addressing human resources concerns helps in ironing friction that any resistance from the workforce that would compromise smooth incorporation of the new technology in the organization.

References

Astan, G., (2015). Factors affecting technology acquisition decisions in national defense projects. Journal of Defense Resources Management (JoDRM), 6(1), 97-102.