Technology Due Diligence

Most companies are technology dependant to some extent, however an increasing number are claiming that technology is their key differentiator and a subset of these are claiming to be genuine technology innovators.

However fundamental technology is to a business, it is important that an investor or acquirer fully understands the nature, characteristics, dependencies and risks around any technology that underpins that business case.

Wherever an investment prospect sits in the spectrum of technology dependence, the Technology Investor's Advisory Service has the expertise to investigate and report, in business terms, the true commercial weighting of a company's technology and technology related assets ( such as the people, processes and market dynamics).

We can break these down to three main scenarios:

Technology User: All companies, regardless of whether they also fit into additional categories as well, will be reliant on 3rd party technology to run their businesses. On the whole these will be standard packages from established vendors. The way they are deployed and integrated will, however, be unique to each company. Understanding and optimising the ongoing costs, risks and exposure as a company grows, along with the possible alternative options that might be considered, can significantly affect the process efficiency and cost base of a company.

Technology Adaptor: In order to gain competitive advantage, often to create a USP, bespoke adaptations of, and additions to, third party technology ( usually software) are developed and form an IP asset. The true value of this “Meta IP” will vary significantly and is often misrepresented by the investees and misunderstood by the investors. Meta IP is, by far, the most common asset of a technology company and the most difficult for non-specialist investors to verify, validate and value.

Technology Creators: Genuinely innovative and game changing technology invention is very rare and potentially extremely lucrative. Truly innovative invention that is functionally unique, however, is no guarantee of commercial success. Investors need a deep understanding of: what the invention does, how it does it, the commercial value of the resultant capability and, of course, the market and competitive landscape that could overtake or nullify that advantage. Of equal significance are the people - technical, sales and management- that turn a product into a business.

Tip :The simplest way to differentiate between adaptors and creators is look at their target customers. Adaptors will be primarily selling to end users, Creators will primarily be selling to other technologists.

Investors :Whichever category your potential investment clients fall under, we have a package of Technology Due Diligence services to suit  you, from a high level “ snapshot” report to a full, in depth enquiry.

Business Owners: Are you selling all or part of a technology company ? Achieving a successful, profitable exit or divestment involves more than dressing up your figures and collating your contracts. TIAS can help you at every stage of that journey, including peer to peer representation of your interests with your buyer's technical due diligence team.

Technology Due Diligence - Scope

Technology User

All Technology Categories

 

Operational Requirements

Company Growth Plans

ICT Team Capabilities

 

Current System Capability

Technical Debt

Current Infrastructure Map

Incumbent Vendor Health

Process Flow & Integrations

Security & Governance

Compliance Status (eg PCI DSS; Eprivacy, Security)

Availability & Support

Fitness to purpose

Scalability Limits

Redundant capabilities

Costs / License Options

 

Future Capability Wishlist

Impact Assessment

Prioritisation

Budget Constraints

Solution Research

Emerging Tech Assessment

New Vendor Evaluation

 Technology  Adaptor

As per Technology User +

USP

Product Claims

Product Capabilities

Delta

 

Unique IP capabilities

3rd party components

3rd party dependencies

IP Contribution to USP

IP Stand Alone Value

IP Reverse Engineer risk

IP Alternate solution risk

Technical Debt

Published Roadmap

Feature Priority

Delivery Schedule

Dev Team Capabilities

Support Availability

Budget Constraints

 

Product Positioning

User Mission Criticality

Disruption Claim

Disruption Validity

Emerging Tech Threats

End User Dependencies

End User Risk

End User Impact

Deployment models Deployment complexity

Published Roadmap

Delivery Schedule

 

Market Maturity

Competitive Landscape

Key Selling Points

Competitor Capabilities

Market SWOT

Purchase Criteria

Decision Team Profile

Pre-Sales process

 Technology  Creator

As per Tech Adaptor + 

Enhanced IP Validation

Enhanced IP Protection

Development approach

Use of open source

Key skills and competency

Deployment models#

Deployment complexity

Technical Deb

Key person retention

 

Standards Adherence

Certification Requirements

Stress Testing

 

Alpha feedback

Beta Feedback

Client Feedback

 

Primary Target Markets

Functional uniqueness

Function / market fit

Other markets / applications

Overall market significance

Functional Competitors

Market Relevance Window

User Technology Dependencies

User Skills dependencies

Dev Community Profile

 

Target Routes to Market

Key Strategic Alliances

Target Exit Profile

Complimentary product plans

Strategic importance

Research roadmap

Commercial viability

Meet the Team Leader

John Morton CEng, FBCS, CiTP


John has extensive experience in evaluating technology companies and services from both the poacher, (preparing services) including Siemens, Capita, PWC, Accenture; and the Gamekeeper, (procuring technology and services) with Diageo, Thames Water, Zapaygo, BBC, TeliaSonera,Yell and Barclays. John has been part of joint ventures aggregating technology creating new business and service models. John’s experience includes delivering global Customer Relationship Management environments, implementing contact centres and being at the forefront of delivering new innovative customer engagement approaches within B2B, B2C, B2E. John’s experience includes software product development, from MVP through to enterprise capable products using data driven, data decisioning analytics for sense, predict and taking action. John has been a senior director in software development covering all commercial aspects including PAAS, SAAS, IAAS commercial models, creating analytics teams and consultancy, financial and investment models and a broad range of contracts and terms. He has developed consultancy and services teams, mentored CIO and CTOs driving end to end improvement from client engagement through to long term client retention in technology and software business.

John has a engaged with C-Suite in enterprise customers, built technology vendor relationships, evangelised at conferences, promoted products to investors, market analyst and to the Technology industry in articles, papers and face to face interviews.

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