Gartner Research

Techquisitions: An Uncommon Approach Some CEOs Use for Digital Business Acceleration

Published: 27 October 2015

ID: G00292866

Analyst(s): Mark Raskino

Summary

Many companies struggle to quickly develop internal digital business and future algorithmic business capabilities. Acquisition of tech companies — techquisition — is an option some executives of companies in traditional industries are trying, in order to close the gap faster.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Years of treating IT as a commodity has left many companies in traditional industries without a technology core competency
    • Actions for CEOs
  • Internally incubating a modern digital and IT core capability can be slow for companies in traditional industries, creating the risk that "born digital" competitors will race ahead
    • Actions for CEOs and Boards of Directors
  • A tech company acquisition might offer part of the needed capability, but if leaders fail to integrate it, the waste of financial and intellectual capital and time will damage their credibility — and the company's opportunity
    • Actions for CIOs

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