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

2. Perceived as controversial Significant impact on operations
M&A
Perceived as controversial
Significant impact on operations

3. Access to new customers
Traditional M&A
Growth Improved efficiencies Creating synergies Risk reduction Increasing market share Regional expansion
Access to new customers
War game

4. 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

5. 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

6. Dynamics Move to Cloud based solutions Mobile
Multi – Everything (channel-Integr.-Functions)
Lower cost of ownership
Faster implementation and operational
Fast ROI

7. User requirements Risk free purchase Future proof Easy integration
One party to deal with
Speed, price, Flexibility
INNOVATION COMES FROM SMALL TECH COMPANIES

8. 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

9. Be aware of the background and type of project you undertake
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

10. 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