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

 

Additional Resources:

* Innovation By Acquisition (July 2011)

* Here Is The Metric That Can Predict Future Innovation Value