Grant Thornton's Mark Steele discusses the need for IT due diligence to respond to how technology is changing businesses
As the digital revolution continues to change the way businesses operate, it is fast becoming clear that IT due diligence must take into account broader technological advancements.
IT due diligence has been one of the top four reasons for deals falling over in recent years. Mark Steele, partner at Grant Thornton, explains that, historically, IT due diligence focused on making sure the technology did not fail; that IT was sustainable and scalable and able to cope with all of the things the business wanted to achieve in terms of technology. But now that question has moved on – he questions the last time people asked when their computer failed.
But now that technology has moved on, due diligence processes should be looking at how technology has changed and how it will help carry out the business plan. Steele highlights the introduction of the iPad in 2010, not that long ago, and how it has changed the way we work, showing how technology is more incumbent in our everyday working lives.
Today, the focus for IT due diligence needs to be on how technology will support the business plan; how does it impact communication, and its impact on culture.
Steele also notes how the value of technology has shifted; today it is about providing transparency – to better understand what people are doing both inside and outside of the business. He highlights the importance of technology when it comes to delivering efficiency – over the supply chain and administration process es– as automation and integration has become mission-critical and outstripped a chunk of costs.
We would like to thank Grant Thornton for sponsoring this video.
Convergence Ventures and CyberAgent Ventures have led a $4.2 million pre-Series A round for Indonesian hotel reservation service provider Nida Roomss.