What is internal technology acquisition? This is a question that many executives have pondered at one time or another, especially when they are looking to grow their company. What is Acquiry internal technology acquisition? The acquisition of certain internal technological systems or processes, which are developed internally, but then used and/or exploited by a third party for the benefit of the company.
For example, an Internal Technology Acquisition Company (IT acquisition company) acquires software development technologies, e-commerce systems, Internet commerce technologies, digital imaging systems, and other technologies that are developed internally. Then these systems are used and exploited by a third party company that is an outside competitor. What is more, what is even worse is that the outside company uses the same technologies as your own company and thereby causes significant competitive harm to your company. How’s that for “inverted cost”? You pay money for a technology that enhances internal functions, but you lose money when that technology is used by a competing company.
Many companies view internal technology acquisition as a necessary evil; however, I believe that it can be a wonderful thing if done properly. Why? Because the key to internal technology acquisition is to determine what technologies are absolutely necessary for the success of the company, the goal of the company, and/or the employees of the company.
For example, what is internal technology for a small company is the use of e-commerce capabilities to enhance the functionality of the company’s website. What is internal technology for a large corporation, is the outsourcing of proprietary software technologies to a company that specializes in those technologies. What is internal technology for a government agency is the use of technologies developed for the United States military. What is internal technology for a small college is the purchase of certain proprietary technologies from a company that supplies those technologies to various colleges and universities throughout the country.
Often internal technology acquisition projects fail because those in charge of implementing the projects lack the proper strategic planning. The problem often begins with a misunderstanding of the purpose of the acquisition. It is not always obvious what the purpose of an acquisition is. Sometimes the acquisition process is started because the technology is thought to be necessary for the customer application, but the customer applications are never going to be what is needed. Other times the acquisition effort is started because the technology was thought to be essential for increasing the company’s competitive advantage, but again, that advantage will never be realized.
What is internal technology acquisition? Internal technology acquisition is the process of acquiring technologies that have either been developed internally or that have been acquired from a third party. Often internal technology acquisition is started by a company that develops technologies internally. But internal technology acquisition projects are not always successful.