Now handling the really different cultures is going to be the biggest problem. It will need all the creative juices and the full buy in of the eventual change that can take place in shifting the innovation focus to blend it, but it is possible. It needs a real focus, commitment careful handling and belief. The outcome of changing the innovation offering remains the goal and improved value to the clients.

I equally doubt independence will last long, it simply can’t and should not. The very nature of the combined need means a clear “fusion” to take place, yet it can remain an independent brand as this evolves. It is the combined solutions, creative and analytical processes that are needed. Fahrenheit can fill out a number of innovation needs, apply some really different creative thinking into the technology, digital and change related issues that Capgemini clients are demanding. Can they simply depends on the intellectual grasp of the intent of the Applied Innovation Exchange as part of this equation.

Sheer difference in outlook, understanding, approaches might ruin this but the ‘intent’ still has some real value but it will not be easy one, that is for sure.

The acquisition is not ‘material’ to one, Capgemini but ‘highly material’ to the other if F212 really wants to emerge out of this in a different form, as suggested. Yet although the purchase might not be material to Capgemini in expense, the reputation, their abilities to offer innovation solutions becomes the really important material need. So we come back to vested interests might actually be mutual.

Through this purchase and the AIE platforms they, Capgemini, have become significantly visible in the innovation space and no consulting company can afford in today’s world to ‘mess’ innovation up, in such a competitive market without a material impact with their clients. For Fahrenheit 212 they will really need to show they have the innovation “chops” to deliver into this digital, technology related world where product, service, ultimate business model design all mash together, often in highly radical ways, not just in new product design. That is tough work

So there might be more ‘glue’ than you think.

Can’t disagree the market for “craft type” innovation consultants (cottage industry to small consulting) is going through the death of a thousand cuts. It is not just measurable results but the very nature of what this post was suggesting, that the market is changing, and changing rapidly and Fahrenheit felt these ‘winds of change’ and if they want to compete they had to think differently and Capgemini need some more innovation understanding to compliment their offerings. It suited both I think.

Not too long ago there were literally hundreds of firms (Fahrenheit212, WhatIf, Huge, Jump Associates, Inzenka, Clear, Cloverleaf, Futurethink, Doblin Group, Happen, PreHype, GravityTank, Innosight, Highnote Foundry, Kalypso, Innovaro, Market Gravity, Undercurrent, SY Partners, Vivaldi Partners, Sylvian Labs) – that’s just the few that I can think of. Many have either contracted, sold out, or have closed. Many others are in serious trouble. This is not because the firms do bad work or are badly managed.

The market has changed. Clients no longer want “idea firms” who are creative nor do they want pure strategy shops that create great PowerPoints. They want results. Sadly most of the innovations these firms have produced created great press and hype, but have not delivered measurable financial results. The demand for these services has dried up. Getting acquired by a large firm with a stable roster of big clients is the only path forward.

I predict you will see more acquisition news very soon.