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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
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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 GrowthImproved efficienciesCreating synergiesRisk reductionIncreasing market shareRegional expansion Access to new customers War 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 globally remaining; niche vendors ECM/BPM - Highly fragmented No clear leadership role Many local hero/vendors Only few globally active
Dynamics Move to Cloud based solutions Mobile Multi – Everything (channel-Integr.-Functions) Lower cost of ownership Faster implementation and operational Fast ROI
User requirements Risk free purchase Future proof Easy integration One party to deal with Speed, price, Flexibility INNOVATION COMES FROM SMALL TECH COMPANIES
Small and innovative tech firms Inadequate to articulate the benefits of their innovations Only of interest for “Innovators” Unable to “cross the chasm” Targeting the wrong buyers
Users/buyers of technology 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 innovators Q - Business critical infrastructure Can’t afford risk, continuity – Est. vendors
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