This article seems to be for companies in the higher echelons of the industry, who are still able to use acquisition as a means to improve their business. What about the companies struggling to maintain their own business - and not end up as an acquisition if they really are looking to remain independent? Any examples come to mind to any of you out there?
Marlene
Previously appeared on December 2nd, 2008
Posted by Larry Dignan
http://blogs.zdnet.com/BTL/?p=11032&tag=nl.e019
Technology CEOs worth their paychecks are going to use this economic downturn to revamp business models and position for the so-called post recession era. It sounds rather obvious, but why don’t all CEOs follow this playbook?
We’ve heard the mantra repeatedly: Reload in a downturn. And a report from Forrester the latest to repeat the downturn playbook. Forrester Research analyst Navi Radjou argues that technology CEOs need to implement a five-point innovation program in 2009. Some CEOs–IBM’s Sam Palmisano and Cisco’s John Chambers–get it, but most are too mired in restructuring efforts to notice the opportunities. Radjou notes that Palmisano acquired PriceWaterhouseCoopers in 2002 to bet big on services. The bet has paid off.
Radjou writes:
For tech CEOs, the coming 2009 to 2011 period is going to be repeat of the recessionary 2000 to 2002 years. Constrained by shareholders’ short-term demands, tactically minded tech CEOs will focus on cutting costs or driving incremental product and service innovations. But forward thinking, bold tech CEOs will emulate what IBM’s Sam Palmisano did in 2002: They will choose to invest in their firms’ long-term success. By 2012, when the global economy fully recovers from the prolonged recession, these visionary CEOs will dine out on their success, as their firms are handsomely rewarded by both Wall Street and their customers, leaving competitors in the dust.
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