Technology Due Diligence : Best Practices for Chief Information Officers, Venture Capitalists and Technology Vendors / Stephen J

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Technology Due Diligence : Best Practices for Chief Information Officers, Venture Capitalists and Technology Vendors / Stephen J Technology Due Diligence: Best Practices for Chief Information Officers, Venture Capitalists, and Technology Vendors Stephen J. Andriole Villanova University, USA INFORMATION SCIENCE REFERENCE Hershey • New York www.itdf.ir Acquisitions Editor: Kristin Klinger Development Editor: Kristin Roth Senior Managing Editor: Jennifer Neidig Managing Editor: Jamie Snavely Assistant Managing Editor: Carole Coulson Copy Editor: Jeannie Porter Typesetter: Amanda Appicello Cover Design: Lisa Tosheff Printed at: Yurchak Printing Inc. Published in the United States of America by Information Science Reference (an imprint of IGI Global) 701 E. Chocolate Avenue, Suite 200 Hershey PA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: [email protected] Web site: http://www.igi-global.com/reference and in the United Kingdom by Information Science Reference (an imprint of IGI Global) 3 Henrietta Street Covent Garden London WC2E 8LU Tel: 44 20 7240 0856 Fax: 44 20 7379 0609 Web site: http://www.eurospanbookstore.com Copyright © 2009 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or dis- tributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Andriole, Stephen J. Technology due diligence : best practices for chief information officers, venture capitalists and technology vendors / Stephen J. Andriole. p. cm. Includes bibliographical references and index. Summary: “This book develops a due diligence framework for anyone resolving technology decisions intended to help their business achieve positive results”--Provided by publisher. ISBN 978-1-60566-018-9 (hardcover) -- ISBN 978-1-60566-019-6 (ebook) 1. Information technology--Management. 2. Chief information officers. 3. Decision making. I. Title. HD30.2.A536 2008 658.1’62--dc22 2008009113 British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. All work contributed to this encyclopedia set is new, previously-unpublished material. The views expressed in this encyclopedia set are those of the authors, but not necessarily of the publisher. If a library purchased a print copy of this publication, please go to http://www.igi-global.com/agreement for information on activating the library's complimentary electronic access to this publication. www.itdf.ir Table of Contents Preface ................................................................................................................ ix Acknowledgment ............................................................................................xviii Section I: Due Diligence Strategies and Tactics Chapter I The Due Diligence Process ................................................................................. 1 Due Diligence Criteria ......................................................................................... 2 Criterion #1: The “Right” Technology ................................................................. 4 Criterion #2: Few or No Infrastructure Requirements ......................................... 9 Criterion #3: Budget Cycle Alignment................................................................ 10 Criterion #4: Quantitative Impact ...................................................................... 13 Criterion #5: Changes to Processes and Culture ............................................... 14 Criterion #6: Solutions ....................................................................................... 15 Criterion #7: Multiple Exits ................................................................................ 16 Criterion #8: Horizontal and Vertical Strength .................................................. 17 Criterion #9: Industry Awareness ....................................................................... 19 Criterion #10: Partners and Allies ..................................................................... 19 Criterion #11: “Politically Correct” Products and Services .............................. 20 Criterion #12: Recruitment and Retention ......................................................... 22 Criterion #13: Differentiation ............................................................................. 22 Criterion #14: Experienced Management .......................................................... 23 Criterion #15: “Packaging” and Communications ............................................ 25 Criteria Weighting ............................................................................................... 27 www.itdf.ir Organization and Execution ............................................................................... 31 Organizing the Right Team ................................................................................. 32 Finding and Leveraging Savvy Consultants ....................................................... 33 Scheduling ........................................................................................................... 34 Developing Powerful Business Cases ................................................................. 35 The Business of Business Technology Cases ....................................................... 36 The Recommendation .......................................................................................... 39 Execution ............................................................................................................. 40 Outcomes ............................................................................................................. 40 References ........................................................................................................... 45 Endnotes .............................................................................................................. 46 Chapter II Acquisition Targets ........................................................................................... 47 Applications Targets ............................................................................................ 47 Software Applications Investment Guidelines ..................................................... 56 Communications Targets ..................................................................................... 58 Communications Technology Investment Guidelines ......................................... 64 Data Targets ........................................................................................................ 66 Data Investment Guidelines ................................................................................ 72 Infrastructure Targets.......................................................................................... 73 Infrastructure Investment Guidelines .................................................................. 76 Security Targets ................................................................................................... 79 Security Investment Guidelines ........................................................................... 85 Advanced Technology Targets ............................................................................. 86 Advanced Technology Investment Guidelines ..................................................... 91 Services Targets................................................................................................... 92 Services Investment Guidelines ........................................................................... 97 References ........................................................................................................... 97 Endnote ............................................................................................................... 98 Chapter III Business Technology Trends Analysis.............................................................. 99 Business Technology Trends Analysis Methodology ......................................... 100 Current and Future Business Models and Processes by Vertical Industry ....... 108 Advanced Technology Trends ............................................................................ 109 Five Technology Trends That Matter .................................................................111 The Combined Effect ......................................................................................... 131 Implications ....................................................................................................... 132 Endnote ............................................................................................................. 134 www.itdf.ir Section II: Due Diligence Case Studies Chapter IV Venture Investing in Wireless Communications Technology: The ThinAirApps Case ...................................................................................136 Introduction to the Case .................................................................................... 136 The ThinAirApps Opportunity........................................................................... 137 ThinAirApps Solutions ...................................................................................... 140 Product Line .....................................................................................................
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