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Geert Kruiter VP Continental Europe The role and impact of M&A on innovation. IBT @ DMSEXPO. M&A. Perceived as controversial Significant impact on operations. Traditional M&A. Growth Improved efficiencies Creating synergies Risk reduction Increasing market share Regional expansion - PowerPoint PPT Presentation
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IBT@DMSEXPO
Geert KruiterGeert KruiterVP Continental Europe VP Continental Europe
The role and The role and impact of M&A impact of M&A on innovationon innovation
M&A
Perceived as controversial
Significant impact on operations
Traditional M&A
GrowthImproved efficiencies
Creating synergiesRisk reduction
Increasing market shareRegional expansion
Access to new customersWar game
Undervalued motive for M&A
Driver for increased innovation
-Greater value creation-Patents-Faster introduction of Innov. post-merger
- Registration of patents- Positive announcements- Long term stock performance
IT SW industry
Database industry - 3 major vendors dominating market ERP industry - Major consolidation during last 10 yrs
stabilized, top20 active globallyremaining; niche vendors
ECM/BPM - Highly fragmentedNo clear leadership roleMany local hero/vendorsOnly few globally active
Dynamics
Move to Cloud based solutionsMobile
Multi – Everything (channel-Integr.-Functions)Lower cost of ownership
Faster implementation and operationalFast ROI
- Risk free purchase- Future proof- Easy integration- One party to deal with- Speed, price, Flexibility
- INNOVATION COMES FROM SMALL TECH COMPANIES
User requirements
Inadequate to articulate the benefits of their innovations
Only of interest for “Innovators” Unable to “cross the chasm”Targeting the wrong buyers
Small and innovative tech firms
Be aware of the background and type of project you undertake
Q – Can we gain competitive advantage by deploying latest and new innovations?
- High risk, Green field, use tech innovatorsQ - Business critical infrastructure
Can’t afford risk, continuity – Est. vendors
Users/buyers of technology
Buyers behaviour can stimulate innovation
Be aware of the impact you as buyer has on the impact of the ECM/BPM sector where the pace of innovation will only
increase