Technology Due Diligence is an hot topic nowadays. In order to invest in a company or complete an acquisition managers need to understand the underlying technology situation and how it is related with the Business Model.
4. “Conventional” Companies’ pattern
Business CxO Profile: Business Leader
Business approach: Financial
Technology CxO Profile: Functional IT
Leaders
Technology approach: Reactive or
Responsive
Business
Strategy
Technology
Strategy
Business
Model
Technology
Model
6. Startups’ pattern
Business CxO Profile: Prioritizer
Business approach: Business within a
Business
Technology CxO Profile: Service
Manager
Technology approach: Customer
Satisfaction
Business
Strategy
Technology
Strategy
Business
Model
Technology
Model
7. Integrated Architectural View
Business: Outcomes and Benefits
Data/information: System of Digital
Records
Application: Engagement Platforms
Technology: Enabling Platforms
Business
Strategy
Technology
Strategy
Business
Model
Technology
Model
8. Models and Metrics are everything
0
17,5
35
52,5
70
87,5
0
25
50
75
100
125
9. Business Model Archetypes
Archetype Description
Product one time purchase of an artifact
Service manually doing something and
charging a fee
Trade linking buyers and sellers for
commerce
Brokerage providing trade as a service
Subscription productizing and semi-automating a
service
Marketplace productizing trade with a self-service
platform
Ecosystem platform that combines all three
credit: smarterstartup.org
10. Domain Knowledge
Domain shared best practices
Domain reference architectures
Domain experts
Overall Investment:
-20% pre MVP for
+100% per 1st development cycle
Efficiency
Time
MVP
Zone
11. Market Dynamics
Dynamic Description
Customer Who are you going to serve and how
do you plan to address?
Product What is the solution to the customer’s
need or desire and is it in a form that
the customer will embrace?
Competition Is timing favorable or are you going
to be fighting an uphill battle?
Timing How strong is the competition and how
open is the market to a new entrant?
Financial How much capital and where must you
invest to justify the risk?
Team How fit is your team to be a leader in
providing the proposed solution?
Strategy
Criterias
credit: smarterstartup.org
12. Metrics how to
Metric Description Score Weight Result
MetricID Metric Description 0 - 5 0 - 100% <Score*Weight>
Higher is
Better
Sum must
be 100%
Sum must
be 100%
5 metrics
x dynamic
13. Customer
Metric Description
Scalability How many users can you serve and
how?
Update
Policies
How do you plan to update your
product or service?
Personal
Data
Where and how do you store user’s
personal data?
Regulations Which regulations are you compliant
with?
Customer
service
How are you responding to customer’s
needs and questions?
credit: smarterstartup.org
5
14. Financials
Metric Description
Revenue
Streams
How do you handle incoming moneys?
Cost Streams How do you handle outgoing moneys?
Technology
Debt
Have you allocated money for
technology upgrades?
Technology
Costs
Are you able to handle technology
costs?
Develop
Roadmap
Will invested moneys producing
tangible outcomes?
credit: smarterstartup.org
2
15. Team
Metric Description
Domain
Knowledge
Is the team mastering the domain?
Technology
Knowledge
Is the team mastering the technology?
Share
Information
Are the team members able to share
information and documents easily?
Capacity
Planning
Are the team members able to
respect deadlines?
Beyond
Budget
Are you allocationg moneys for
beyond budgets?
credit: smarterstartup.org
3