Summary: 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.<br> 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.<br> In this weeks show, I shared my experiences in managing innovation by M&A. Topics covered include:<br> <br> * Is innovation by M&A the “easiest way” to catch-up?<br> * Isn't this approach a way to hide a corporate culture where failure is not tolerated?<br> * Are the M&A teams within an organization ready for this shift?<br> * Do these teams need to change their tools, methods and decision criteria to be successful?<br> * Does <a href="http://killerinnovations.com/innovation-from-mergers-and-acquisitions/" target="_blank">innovation by M&A</a> have an impact on R&D/innovation activities within an organization?<br> * How do competitors respond?<br> * What are the six elements/steps to having a market leading innovation by M&A capability?<br> <br> * Define your M&A/Innovation strategy<br> * Think through your options<br> * Develop a new approach to deal evaluation that accommodates “<a href="http://philmckinney.com/rd-productivity/" target="_blank">innovation value</a>“<br> * Negotiate and close the deal with innovation value in mind<br> * Integration is harder than it sounds<br> * Implementation doesn't stop on ‘Day 1'<br> <br> <br> * What are the most effective strategies for innovation by acquisition?<br> <br> * Having a clear road-map<br> <br> * Clarity of objectives<br> * Defined product road map that is flexible to accept innovations from accusation<br> * Go-to-market that flexible to accommodate new innovations from the outside<br> <br> <br> * Strategic Integration<br> <br> * Team retention and integrations with a strong consideration for culture<br> * Aligning the innovation by acquisition with long term strategic visions<br> <br> <br> * Ownership by sponsors<br> <br> * High degree of involvement by the deal sponsors can greatly improve the success of the deal<br> <br> <br> <br> <br> <br> <br> Additional Resources:<br> <br> * <a href="http://killerinnovations.com/innovation-from-mergers-and-acquisitions/" target="_blank">Innovation By Acquisition (July 2011)</a><br> * <a href="http://philmckinney.com/rd-productivity/" target="_blank">Here Is The Metric That Can Predict Future Innovation Value</a><br> <br>
