We’ve seen a large number of acquisitions amongst the major technology companies. Companies such as Oracle, SAP and IBM have long been buying up any rising software companies to fill out their suite of offerings.
Google, Microsoft, Facebook and Amazon have also been on buying sprees to buy aspiring Social or AI companies that may give them an advantage or are a possible threat.
People are also talking about Apple looking at acquisitions- as though this is a new event – forgetting that a lot of the technology in the iPods and iPhones was originally acquired.
Certainly it looks attractive for these majors given their high stock valuations and the incredibly low interest rates.
What do all these acquisitions say about innovation?
It certainly says that not all great ideas are generated within a company.
External innovation or acquiring innovation (acquivate as I call it) has become a smart thing to do – very often adding to internal innovations to create a portfolio that sustains a company.
Organisations that look at innovation as a portfolio – keeping an open mind to and encouraging both internal and external innovation are likely to be the longer term winners.