Digital isn’t a thing, it’s a way of doing things. The digital age and rapid evolution of new technologies have reinvented the tasks that people undertake in their daily life, as consumers and as employees. To succeed, businesses need to have a customer-centric and employee-empowered culture, and technology plays an important part in leading and enabling this.
The buzzword “digital transformation” is used to describe how every aspect of every business is being transformed to be digital on the inside and the back office, and on the outside to their customers, suppliers and partners. Digital and technology are critical levers in driving business growth.
As such, Technology Due Diligence in the digital age needs to consider the additional capabilities, assets, operations and practices that exist, or otherwise, beyond traditional technology areas such as software and systems. These areas provide clarity on the business’ ability to keep pace with the relentless pace of change, areas such as:
- Platforms and Products: the ability to operate, extend and promote a best-in-class digital presence
- Cloud Native: an architecture and approach that enables change to be developed, adapted and supported in a scalable, secure and predictable way
- Data and Analytics: the extent that data and machine learning is used to illuminate insights and unlock real-time decision making and forecasting
- Sales, Marketing and Service: the approach and tools used to increase lifetime customer value while reducing customer acquisition costs
- Cybersecurity: the policies and practices in place to protect the company from cybersecurity threats that may be known or unknown, internally or externally
- People, Culture and Skills: are the right leaders with the right digital skills in place to attract and retain the best talent to a collaborative and borderless organisation
The rapid disruption of business models requires companies to put in place the technology and digital capabilities appropriate that will be required to deliver growth. Furthermore, beyond the technology and digital aspects, a paradigm shift in business strategy to transform the business to one that can meet the ever-changing demand from a variety of sources in a timely and secure manner.
The concerning issue for strategic buyers, investors or sellers is that professional due diligence firms lack the digital and technology expertise and field experience required to provide a holistic, independent and relevant opinion. At Momentum, we know what great looks like from years of experience and practical expertise of disruptive technologies, digitally-native businesses and the start-up world. Contact us for a no-obligation conversation.