Many management teams find themselves tempted by big-bang solutions: dramatic, transformative mergers or aggressive leaps into sexy new markets. But seemingly bold moves like these rarely pay off. The success rate for major, life-changing mergers is only about one in 10. It is less than one in seven for moves into a hot new market far from a company's core.
A better answer for most companies usually lies closer to home. Research shows that nine out of 10 companies that successfully renewed themselves found the solution in mining hidden assets--assets they already possessed but that were previously undervalued, underutilized or simply unrecognized. These hidden assets were not central to the strategy of the past, but they held the key to the future. The study suggests that the most valuable hidden assets are camouflaged as hidden business platforms, untapped customer insights, and underused capabilities.
Source: CIO Insight, http://www.cioinsight.com