Geert Kruiter VP Continental Europe The role and impact of M&A on innovation

Document Boss M&A Advisory services for the ECM/BPM and Document Processing services industry M&A and Innovation Geert Kruiter VP Europe

M&A Perceived as controversial Significant impact on operations

Traditional M&A Growth Improved efficiencies Creating synergies Risk reduction Increasing market share Regional 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

-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 innovators Q -Business critical infrastructure Cant 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