* 15 due diligence criteria to consider
When it comes to evaluating technology options and making investments, CIOs aren’t all that different from venture capitalists and IT vendors. Though all have different expectations from their investments, one thing they share is the need to perform due diligence.
Cutter Consortium’s report, “Digital Gold: Managing Technology Due Diligence,” defines due diligence as the process by which we screen and select options. The first of a two-part report delves into the range of technology investments and due diligence criteria.
“Due diligence is organized around a set of constant criteria that can be applied to technology investment decisions of all kinds. The investment targets include software applications, communications, data, security and technology services,” says Steve Andriole, senior consultant with Cutter Consortium and author of the study. “The lenses used to vet investment opportunities and challenges are organized around the specific requirements that CIOs, venture capitalists and technology vendors must satisfy to achieve their objectives.”
As identified in the report, here are 15 due diligence criteria to consider:
* Products and services that are on the right technology/market trends trajectory.
* Products and services that have the right infrastructure story.
* Products and services that sell clearly into budget cycles and budget lines.
* Products and services whose impact is quantitative.
* Products and services that do not require fundamental changes in how people behave or major changes in organizational or corporate culture.
* Products and services that, whenever possible, represent total end-to-end solutions.
* Products and services that have multiple “default” exits.
* Products, services and companies that have clear horizontal and vertical strategies.
* Products and services that have high industry awareness recognition.
* Products, services and companies that have the right technology development, marketing, and channel alliances and partnerships.
* Products and services that are politically correct.
* Serious people recruitment and retention strategies.
* Products and services that have compelling “differentiation” stories.
* Company executives that have wide and deep experience.
* Products, services and companies that have persuasive products/services packaging and communications.
No wonder selecting IT wares is difficult! For more information or to purchase the report, go to www.cutter.com.
Each part costs $150 but is only $275 when purchased together.
