M&A automation: Definition of the task "IT due diligence"
Definition of the task IT Due Diligence
Why a task definition?
To enable digitization, we have to define tasks in the M&A process in detail. We use goals and objectives, a description of the task and data objects used by the task. In addition, we list questions used during execution of the tasks to provide more context. In addition we can have a look at the automatability of the task and the automation in practice. That will show us the automation potential we have today. More details will be published in my new book “Foundations of digitization for M&A processes: The Due Diligence Phase“.
Goals and objectives of the task IT Due Diligence
The task has the following goals (planned results):
Draft IT integration plan: prepared
IT infrastructure of the target: analysed
Application systems of the target company: analysed
The task has the following objectives:
Information asymmetry: minimized
Integration success: maximized
Risk: minimized
Automatability and automation
While this task can be semi-automated, the level of automation in practice is usually low
This task is semi-automatable. There are several automated network scanning and inventory creation tools as well as security vulnerability scanning tools that fully automate actions that often are carried out manually today.
In practice, this task is usually not automated, not even in parts.
Task description
The IT due diligence includes the analysis of IT resources as well as application systems and communication systems of the company. In addition, IT costs and IT budgets are analyzed and the projects planned and running in IT are sifted and analyzed. Security aspects of the target IT are analysed and the risk of the applications, infrastructure and IT projects is assessed. Complementarity and potential synergies between target and buyer IT are evaluated.
The task works on the following data object types
Information technology of the target company, resources for automation of information systems of the target, application systems of the target company, IT infrastructure of the target, risk of the application systems, risk of the IT infrastructure, target IT projects, processes of the target IT, target IT strategy, target IT budget, target IT costs, Target IT Policy, Target Company Hardware, Target Hardware Contract, Legal Aspects of the Hardware Contract, Target IT Software Contracts, Legal Aspects of Target IT Software Contracts, IT Applications, Target Production Application System, Target Application System for Hiring New Employees Payroll application of the tar-gget, application for assessing employee performance, risk of application systems, risk of IT infrastructure, risk of application systems, risk of IT infrastructure, IS automation complementarity, IS automation synergy, resources for automation of information systems of the buyer company, Draft IT integration plan, buyer company information technology, buyer IT projects, buyer IT strategy, buyer IT budget, buyer IT costs, buyer IT costs, buyer company application systems, buyer IT infrastructure, buyer IT processes, buyer IT policy,
This is an excerpt of my new book “Automation of Mergers and Acquisitions“.
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