Acquisition or Investment – Desperation or Innovation

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ACQUISITION OR INVESTMENT – DESPERATION OR INNOVATION September 18, 2017

FACEBOOK bought OZLO

GE bought SERVICEMAX

IBM bought TRUVEN

SAP bought CONCUR

ORACLE bought MOAT

MICROSOFT bought LINKEDIN


Why is it happening in the world of Software/Technology? This is called Capability ARMAMENT,if you can’t develop – BUY it. But the majority of these acquisitions have killed the original ground breaking ideas and the bought over companies are devastated under the power of Buyer’s strength. Do you remember Siebel – a great CRM product – it got converted into another CRM product after the purchase but lost in the crowd, Didn’t work well. Synergy, Compatibility, Leverage, Consolidation, Horizontalization, Cost Reduction, Products Portfolio development, Bucket sale – these are the prime goals for acquisitions but execution fails in merging the companies effectively. The biggest reasons are PEOPLE. Its not about merging companies its about merging people of 2 different cultures and just by default you have to make few hard decisions and upset 70% of the crowd so productivity slides down hill and it takes very long to become one unit. We have 100’s of such failed acquisitions. Why do we do again and again? I guess we imagine we can WIN more if we reduce competition by buying them. Its absurd. The better idea is to let it continue the same way you can just invest in the IDEA and make it big. And there are 100’s of such examples as well – FLIPKART, AMAZON, GOOGLE, FACEBOOK, APPLE. Become Digital. Think Digital. Invest do not Own. Become a Brand – Do not focus on buying a BRAND to become a BRAND. We can help devise business process management, digital marketing, data science solutions and other consulting assignments.


We at DigiSciFi Technologies deliver services in following areas – •

Digital Marketing and Web Development

Data Science and Analytics

Software Development and Testing

Performance Engineering

CRM Consulting

We take projects and also fulfill outsourcing needs for our customers across the world. Pls reach out to us at info@digiscifi.com www.digiscifi.com





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