Saturday , 21 July 2018

Crucial IT Due Diligence Checklist To Analyze Business Technologies

If you have not already read our post on How Technology Due Diligence Reveals Hidden IT Value, I would recommend reading that post before this one. Without having a sound process in place, the IT due diligence checklist will not be nearly as effective. That being said, having a sound checklist is equally as important.

Business man with checkboxes

After establishing your goals, breaking technologies down into categories, you can start analyzing the technologies at hand. Here is where an in-depth checklist can help you uncover hidden costs or revenue. The following checklist will help you think about important aspects while conducting a technology review.

Hard Costs

The best place to start is probably with the hard costs. How much does the infrastructure cost? What was the upfront installation? Are there any recurring license costs or royalties? Some companies make savings just by moving hosted VoIP to cloud VoIP solutions.

Performance

Record what process the technology is being used to complete. What are the results? How can you quantify the performance? What is latency like at your organization? You need concrete numbers to work with.

Hardware

You want to think about the hardware of a technologies used in the workplace, just as you would consider i60 features before making a purchase. How were these products built? What are the costs associated with the hardware repairs or replacements? This can have an impact on your bottom line when unexpected issues arise. Make sure you answer these questions regarding hardware when doing your technology due diligence.

Competition

You should also take note of company competitors. Companies are defined by who they compete with. Make sure to take a close look at the technology in use by competing organizations, including cloud endpoints. This will help you to ensure you checked every box when doing your due diligence for technology.

Capacity

Take note of all the existing capacity. How much processing power do those servers have? Is there delays in the system? Is there too much capacity? Almost every company has hidden capacity.

Processing

Focus on the software or scripts that are consuming the majority of resources. Could they be broken down? Are their better solutions available like the new Dell super computer or hosted solutions? If the process is a core part of the business, then an increase in processing would lead to a effect to the bottom line.

Scale

Try to find scalable processes. Are there technologies that can be scaled for more production? Are there technologies that are not scalable? Perhaps, they should be outsourced it infrastructures?

Application

Imagine other ways of using your existing technologies. Can you apply the same competencies for different services or products? Are there any synergies that you can use? Could you service larger or smaller clients? Can you utilize the HTML definition in an innovative way? Usually, using the same technologies for new applications add increased value with marginal costs.

Life-Cycle

Be realistic about the life-cycle, or continuity of each process. As technology advances, will your process become obsolete? Will you be in a position to utilize new innovations like the Internet of Things? If the technology is on the horizon, the company can plan ahead strategically and financially for new IT investment.

Redundancy

Mitigate your IT risk by looking for redundancies. If certain processes went down, would the business be able to operate? How long would it take to fix? What does downtime cost per day? This risk analysis can avoid stressful times.

Growth Capabilities

In addition to an application being scalable, you must also look to see its growth potential. You want to have a clear plan regarding where you expect the product to go. You should also apply this to the technical employees of an organization. Do IT professionals stay with the company? How many workers have joined or left the company in the past year? Is custom software development a possibility for your organization? Consider the answers to these questions to ensure you are practicing technological due diligence for your company.

These are eight of the most important checks to make while conducting an IT due diligence process before getting some new Vblocks for your business. Hopefully, these points will help companies cut costs or increase revenues. If you think any of the above are helpful, please share this post with your networks.

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