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