Who's who

3 Houston innovators to know this week

From oil and gas to space technology, these leaders are pushing forward innovation in Houston. Courtesy photos

One thing this week's movers and shakers in the Houston innovation ecosystem have in common is their intention to disrupt an industry using technology. Here are this week's innovators you need to know in Houston.

Francois Laborie, general manager of Cognite North Americas

Courtesy of Cognite

When it comes to data, most energy companies are squandering valuable information by not properly using their data. Cognite, which has its US headquarters in Texas, has solutions, says general manager of the company, Francois Laborie.

"Standardizing APIs across the oil and gas industry would open the door to a community of developers, which could create custom applications and connect existing market solutions," he writes in a guest column for InnovationMap. "Then more new and exciting applications and services would reach the market faster."

Click here to read Laborie's article on the importance of APIs and data management.

Steven Gonzalez, technology transfer strategist at NASA

Courtesy of NASA

Houston is the Space City — present tense. While the city has a rich history as a major player in aerospace exploration and engineering, Houston is far from done, Steven Gonzales, NASA technology transfer strategist, tells InnovationMap.

We've always been the Space City, but for a while there, it was taken for granted. It's part of our history, but it's nice to see it brought back into the foreground to realize that it's not just history, it's who we are today.

Click here to read our Space City Month feature on Gonzalez in which he explains Houston's future in space and how NASA wants to work with startups.

Christine Galib, program director of The Ion Smart Cities Accelerator

Courtesy of Station Houston

Christine Galib has a new gig in town. The former Rice University and St. Thomas University educator is now the program director of the Ion Smart Cities Accelerator, a program that will find and grow startups with solutions to Houston's biggest problems.

"When we look at The Ion being created as a center for entrepreneurship and innovation in Houston, there's no other city in the world has this type of level of collaboration and transparency of major players in the innovation space coming together to create, not only the physical space, but also the programming and mindset and the environment and the culture to sustain it," she tells InnovationMap.

Click here to read more about Galib and what she's excited to bring to town.

Elizabeth Gerbel, CEO and founder of Houston-based E.A.G. Services Inc., shares how to navigate M&A activity for both startups and large companies. Pexels

Nervous about an upcoming merger or acquisition? You're not alone. Last year, there were nearly 15,000 mergers and acquisitions in the U.S., according to the Institute for Mergers, Acquisitions and Alliances. These transactions, although executed with optimistic intentions, don't always work out. What is it that separates those that deliver from those whose results simply fall flat?

While you won the legal battle, the real culprit to a failed merger or acquisition transaction lies in post-deal activities such as integrating the divesting company's assets into the acquiring company's existing systems, processes, and organizational structure. If executed poorly, companies could face several hurdles, including:

  • Increased acquisition costs
  • Loss in previously efficient business processes
  • Reduced data quality in current and acquired assets
  • Extended TSA timeline

With the stakes being high, it is critical for each step of a merger or acquisition to be rock solid before moving on to the next stage. In fact, when executed successfully, an M&A transaction can significantly benefit both companies — from startups to well-established corporations.

A strategy for M&A data integration

In order to facilitate efficient and effective merger or acquisition, the critical success factors focus on these driving goals: Minimizing organizational disruption and Maximizing ROI. To achieve these goals, we execute three main stages for every merger and acquisition.

  1. Planning
  2. Analysis
  3. Execution

We start with thorough planning, think of planning as the foundation for a successful merger or acquisition. Without a good plan, the company will be vulnerable to all sorts of structural weaknesses. To prevent key elements from falling through the cracks, companies must define objectives and data requirements, maintain strong communications, and develop both short-term and long-term expectations.

The next step – analysis – since data is absolutely essential in mergers and acquisitions. There is a lot to watch out for: What's the best way to extract and convert the acquired data? Will IT or business support need to be permanently added? What system configuration changes are required? What are the impacts to current business processes and internal audit controls? Will additional training be required? The answers to these questions are highly individualized to each merger and acquisition, and they'll impact how seamless the transition will be. Many people gloss over this stage but then realize the criticality not only in the case of a merger or acquisition but also in the case of a future divestiture.

Finally, the last stage: Execution. This stage is one of the main reasons why some mergers and acquisitions may fall short of expectations. To avoid common issues stemming from poor execution – including disruption of previously effective business processes, impaired customer service, and increase in the cost of the merger or acquisition – we coordinate roles and responsibilities, ensuring that all key tasks are executed. From day one to full integration, we continually monitor to ensure the company is on track to meet its initially defined objectives.

The risks and benefits of a merger or acquisition

I'll be candid: Without a solid foundation through adequate preparation, a merger or acquisition is set up to fail. This risk can be higher for startups and small companies, which don't have the resource buffer that some larger firms can fall back on. Large companies may face a different risk, business processes and data may not be aligned with their current state. And yet, according to Economy Watch, an extensively strategized merger or acquisition transaction, beyond increasing the company's size, can yield significant benefits that include:

  • Improving its strategic position
  • Entering a new market
  • Developing new assets
  • Lowering operational costs
  • Expanding market influence

For smooth mergers and acquisitions, we recommend a multi-step process so that you can identify and reduce risks, condense your integration timeline, and quickly capture value. Because despite the challenges, not all is lost during a merger or acquisition – and there is much to be gained.

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Elizabeth Gerbel is the CEO and founder of Houston-based E.A.G. Services Inc.