The Insider's Guide to Innovation by M&A S12 Ep36
There is an explosion in companies who are securing innovation by M&A (mergers and acquisitions). In the last 36 months, 57% of M&A deals were based on innovation.
When companies find themselves behind the market, "innovating by acquisition" becomes a quick way to catch-up through the work of others. At the same time, if an orgnization is not careful, they can put their own R&D and innovation efforts at risk.
In this weeks show, I shared my experiences in managing innovation by M&A. Topics covered include:
- Is innovation by M&A the "easiest way" to catch-up?
- Isn't this approach a way to hide a corporate culture where failure is not tolerated?
- Are the M&A teams within an organization ready for this shift?
- Do these teams need to change their tools, methods and decision criteria to be successful?
- Does innovation by M&A have an impact on R&D/innovation activities within an organization?
- How do competitors respond?
- What are the six elements/steps to having a market leading innovation by M&A capability?
- Define your M&A/Innovation strategy
- Think through your options
- Develop a new approach to deal evaluation that accommodates "innovation value"
- Negotiate and close the deal with innovation value in mind
- Integration is harder than it sounds
- Implementation doesn't stop on 'Day 1'
- What are the most effective strategies for innovation by acquisition?
- Having a clear road-map
- Clarity of objectives
- Defined product road map that is flexible to accept innovations from accusation
- Go-to-market that flexible to accommodate new innovations from the outside
- Strategic Integration
- Team retention and integrations with a strong consideration for culture
- Aligning the innovation by acquisition with long term strategic visions
- Ownership by sponsors
- High degree of involvement by the deal sponsors can greatly improve the success of the deal
- Having a clear road-map
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