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Secrets of
Technology Audits |
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Summer, 2002
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There are numerous examples of
the liability that may await those who underwrite technology
companies without taking the time or effort to undertake thorough
technical due diligence.
We all know that the need for such an undertaking is critical
because the technology is the fundamental asset of the company,
and the driving force behind the deal.
Successfully backing technology requires numerous experts --
expert valuation and due diligence processes. More often than
not the software or digital due diligence must be done quickly
and with resulting analyses prepared in a short time frame to
satisfy the requirements for lenders, lawyers, accountants, Boards
of Directors, the technical press and the investment community.
The purpose of the technology audit is to measure the capability
of the technology to fulfill its promise to the paying customer.
Determination of Validity
A software audit is an objective and rigorous technical analysis.
It is a determination of validity and compares 'best practice'
software development to the technology under scrutiny. Systematically
gathering information about product lifecycle, development process,
tools of development, applications including a litany of sub
processes to name a few aspects.
Phases of Development
Since putting out the ßetaWatch shingle in 1999 we have
noticed, that underwriters accept the description of the software
carte blanche. Technologists confuse the phases of software
development. They may think that they have beta sites and that
these sites will become paying customers. However when
we audit the testers, we find out that not nearly as many as
imagined are using the software, let alone intending to buy it.
Another common thread is that configuration management (CM) is
often overlooked. This means that there is an inadequate or non-existent
CM plan or poor process for controlling work products and procedures,
no CM library system, or a poorly managed one. There may also
be a poorly established Change Request process or none at all.
Several years ago ßetaWatch developed a proprietary audit
template for technology. We customize this proven checklist for
the specific platform and software functionality. The features
of ßetaWatch's technology audit can be found at http://betawatch.com/sanitycheck.htm
In addition, the ßetaWatch's audit helps management update
development processes based on an actual third party performance
appraisal. For instance, a Marketing Director can be encouraged
to collaborate with the Product Manager and write a Marketing
Requirements Document (MRD). Furthermore, ßetaWatch includes
'best practice' templates for all absent written requirements
for each department.
The need for a substantive technology audit cannot be ignored.
Successful placements will be those in which underwriters, accountants,
and lawyers sign off on the technology - this can only be done
with the expertise of a third party auditor. |
ßetaWatch Inc. digital due diligence™
ßetaWatch Inc. President
and Senior Consultant Temi Grafstein and her team provide audit
services for clients in a wide range of technologies including
middleware, virtual private network, customer-relationship management,
e-commerce, firewall, knowledge management, transaction switch,
point of sale, media convergence, online auction, information
warehousing and business and intelligence tracking.
Grafstein developed ßetaWatch's
digital due diligence™ to accelerate revenue growth.
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Sanity Check |
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Security Audit |
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Competitive Intelligence |
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Field Trials |
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Please send
comments, questions and suggestions for newsletter topics to:
tgrafstein@betawatch.com
To speak to
Grafstein call 866.638.2382 |
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