Technology due diligence ensures stakeholders understand the technical health, risks, and strategic value of an organization, enabling informed decisions about investment, acquisition, or collaboration.
Planning
- Define Objectives: Understand the purpose of the due diligence (e.g., acquisition, investment, or partnership).
- Create a Checklist: Identify key areas of assessment, including systems, architecture, security, compliance, and intellectual property.
Information Gathering
- Request Documentation: Collect materials like architecture diagrams, software inventories, IT policies, security protocols, and financial data for technology spend.
- Conduct Interviews: Engage with CTOs, IT managers, developers, and other key personnel to gain insights.
- Inventory Assessment: List all software, hardware, third-party services, and integrations.
Evaluation
- Architecture Review: Analyze scalability, redundancy, and alignment with business needs.
- Cloud and On-Premises Systems: Evaluate hosting solutions and dependencies.
- Interoperability: Assess compatibility across systems and platforms.
Engineering
- SDLC Development Practices: Assess adherence to agile, DevOps, or other methodologies.
- Roadmap Alignment: Verify that the product development roadmap aligns with business goals.
Security
- Cybersecurity: Review threat assessments, incident response plans, and penetration testing results.
- Compliance: Review adherence to regulations like GDPR, CCPA, HIPAA, or industry standards.
Load and Performance
- System Load Testing: Ensure systems can handle expected growth.
- Future Readiness: Assess the ability to integrate new technologies or scale operations.
Risk Assessment
- Identify Vulnerabilities: Highlight gaps in security, technical debt, or outdated technologies.
- Business Continuity Risks: Evaluate disaster recovery plans and redundancy systems.
- Contractual Risks: Review third-party agreements and vendor dependencies.
Report Read-Out
- Create a Report: Summarize findings, risks, and potential opportunities.
- Provide Actionable Recommendations: Suggest strategies to address gaps, improve systems, or capitalize on strengths.
- Deliver to Stakeholders: Share the findings with decision-makers for informed conclusions.