IT as part of Commercial Due Diligence
The element of "IT Systems" within any commercial due-diligence assignment should maintain a significant profile.
One that is second only to the financial and legal elements since business functionality and resulting performance are so heavily reliant on IT.
The IT systems are a major investment and a significant on-going cost.
The return on that investment is reliant on the integrity of the systems and their continual operability.
The 'business engine' of modern corporate IT is now a complicated structure of different systems handling all aspects of business including production, process, quality, communication, sales, marketing, and administration. The reliance on key IT personnel or third parties to maintain functionality and the intellectual property ownership of software can expose companies to unnecessary risk. Pertinent aspects include the alignment of IT to the business strategy, systems scalability and usability.
Due Diligence assessment involving IT should follow a logical approach and include key areas of;
- Systems structure, functionality, ownership, and resilience
- Cost overhead & capital investment needs
- Information Accessibility
- Post-completion planning