Preface ........................................................ ix
Acknowledgment .............................................. xviii
Section I: Due Diligence Strategies and Tactics
Chapter I
The Due Diligence Process ....................................... 1
Due Diligence Criteria .......................................... 2
Criterion 1: The "Right" Technology ............................ 4
Criterion 2: Few or No Infrastructure Requirements ............. 9
Criterion 3: Budget Cycle Alignment ........................... 10
Criterion 4: Quantitative Impact .............................. 13
Criterion 5: Changes to Processes and Culture ................. 14
Criterion 6: Solutions ........................................ 15
Criterion 7: Multiple Exits ................................... 16
Criterion 8: Horizontal and Vertical Strength ................. 17
Criterion 9: Industry Awareness ............................... 19
Criterion 10: Partners and Allies .............................. 19
Criterion 11: "Politically Correct" Products and Services ...... 20
Criterion 12: Recruitment and Retention ........................ 22
Criterion 13: Differentiation .................................. 22
Criterion 14: Experienced Management ........................... 23
Criterion 15: "Packaging" and Communications ................... 25
Criteria Weighting ............................................. 27
Organization and Execution ..................................... 31
Organizing the Right Team ...................................... 32
Finding and Leveraging Savvy Consultants ....................... 33
Scheduling ..................................................... 34
Developing Powerful Business Cases ............................. 35
The Business of Business Technology Cases ...................... 36
The Recommendation ............................................. 39
Execution ...................................................... 40
Outcomes ....................................................... 40
References ..................................................... 45
Endnotes ....................................................... 46
Chapter II
Acquisition Targets ............................................ 47
Applications Targets ........................................... 47
Software Applications Investment Guidelines .................... 56
Communications Targets ......................................... 58
Communications Technology Investment Guidelines ................ 64
Data Targets ................................................... 66
Data Investment Guidelines ..................................... 72
Infrastructure Targets ......................................... 73
Infrastructure Investment Guidelines ........................... 76
Security Targets ............................................... 79
Security Investment Guidelines ................................. 85
Advanced Technology Targets .................................... 86
Advanced Technology Investment Guidelines ...................... 91
Services Targets ............................................... 92
Services Investment Guidelines ................................. 97
References ..................................................... 97
Endnote ........................................................ 98
Chapter III
Business Technology Trends Analysis ............................ 99
Business Technology Trends Analysis Methodology ............... 100
Current and Future Business Models and Processes by Vertical
Industry ...................................................... 108
Advanced Technology Trends .................................... 109
Five Technology Trends That Matter ............................ 111
The Combined Effect ........................................... 131
Implications .................................................. 132
Endnote ....................................................... 134
Section II: Due Diligence Case Studies
Chapter IV
Venture Investing in Wireless Communications Technology:
The ThinAirApps Case .......................................... 136
Introduction to the Case ...................................... 136
The ThinAirApps Opportunity ................................... 137
ThinAirApps Solutions ......................................... 140
Product Line .................................................. 141
Pricing ....................................................... 141
Sales ......................................................... 142
Customers ..................................................... 142
Marketing ..................................................... 143
History and Accomplishments ................................... 143
Management Team ............................................... 143
Risks ......................................................... 145
Financials .................................................... 146
Forecast ...................................................... 146
Additional Funds .............................................. 146
Investment Highlights ......................................... 147
Due Diligence ................................................. 148
Conclusion .................................................... 156
Endnotes ...................................................... 156
Chapter V
Enterprise Investing in Remote Access Technology:
The Prudential Fox Roach/Trident Case ......................... 157
Introduction to the Case ...................................... 157
Description of the Investment Opportunity ..................... 159
Due Diligence ................................................. 165
Conclusion .................................................... 174
Endnotes ...................................................... 174
Chapter VI
Venture Investing in Voice-Over-IP (VOIP): The NexTone
Communications Case ........................................... 175
Introduction to the Case ...................................... 175
Background .................................................... 177
Prior Financing ............................................... 178
Management Team ............................................... 178
Market ........................................................ 179
Competition ................................................... 179
Technology Drivers ............................................ 181
Market Evolution .............................................. 182
Intellectual Property (IP) .................................... 185
Due Diligence ................................................. 185
Conclusion .................................................... 188
Endnote ....................................................... 190
Chapter VII
Enterprise Investing in Radio Frequency Identification
(RFID): The Oracle Case ....................................... 191
Introduction to the Case ...................................... 191
Oracle's RFID Investment Strategy ............................. 193
Oracle's RFID Development Roadmap ............................. 195
RFID Hardware Considerations .................................. 196
RFID Standards ................................................ 196
Integration ................................................... 197
Manageability, Scalability, Security .......................... 197
Oracle RFID Partners .......................................... 199
The Horizontal and Vertical Market Strategy ................... 201
Due Diligence ................................................. 202
Conclusion .................................................... 208
Endnotes ...................................................... 209
Chapter VIII
Technology Product and Service Development in an Enterprise
Architecture Service Capability: The LiquidHub Case ........... 210
Introduction to the Case ...................................... 210
Background .................................................... 210
The Challenge ................................................. 211
The Approach .................................................. 212
The LiquidHub Enterprise Services Transformation Roadmap ...... 221
Due Diligence ................................................. 222
Conclusion .................................................... 228
Endnote ....................................................... 228
Chapter IX
Venture Investing in E-Mail Trust Solutions: The Postiva
Case .......................................................... 229
Introduction to the Case ...................................... 229
Background .................................................... 229
The Market and the Opportunity ................................ 231
Productivity .................................................. 233
Business-to-Business Integration and Messaging Optimization ... 234
The Postiva Solution .......................................... 236
Revenue and Business Model .................................... 238
Competitive Advantages ........................................ 242
Competition ................................................... 243
Technology .................................................... 245
Summary of Projected Financial Performance .................... 246
Management: Officers, Directors, and Key Consultants .......... 246
Due Diligence ................................................. 251
Conclusion .................................................... 256
Endnote ....................................................... 267
Chapter X
Investing in Knowledge-Based User-Computer Interaction:
The TechVestCo Case ........................................... 258
Introduction to the Case ...................................... 258
The Need for Easier to Use Software Applications .............. 258
The User Interface Workbench .................................. 259
Components of the Interactive Knowledge-Based Workbench ....... 260
Due Diligence ................................................. 263
Conclusion .................................................... 268
Endnote ....................................................... 269
Chapter XI
Enterprise Investing in Wireless Technology: The Villanova
University Case ............................................... 270
Introduction to the Case ...................................... 270
Background .................................................... 270
Challenge ..................................................... 271
Solution ...................................................... 271
Results ....................................................... 273
Due Diligence ................................................. 273
Conclusion .................................................... 279
Endnote ....................................................... 279
Section III: Due Diligence Tools and Techniques
Chapter XII
Tools of the Trade ............................................ 281
Technology Trends Analysis Methodology ........................ 281
Off-the-ShelfTools for the Due Diligence Analysis ............. 285
Due Diligence Project Management .............................. 285
A Due Diligence Template ...................................... 287
Reference ..................................................... 291
Endnote ....................................................... 291
Section IV: Appendices
Appendix A
Technology Trends Analysis: Trends in Pervasive Computing ..... 293
Pervasive Computing Technology Trends ......................... 298
A Pervasive Computing Action Plan ............................. 324
Appendix В
Technology Trends Analysis: Trends in Intelligent Systems
Technology .................................................... 327
Intelligent Decision-Making and Transaction Support ........... 330
Intelligent Systems Technology and the Range of Computable
Problem ....................................................... 337
AI Tools and Techniques ....................................... 338
Why You Need to Understand It ................................. 342
The Range of Applications ..................................... 342
Case Study .................................................... 344
Appendix С
Technology Trends Analysis: Trends in Business Technology
Integration ................................................... 349
Do You Think? ................................................. 352
Acceptable Addiction .......................................... 353
Having Fun Yet? ............................................... 354
Privacy ....................................................... 356
Who is Technology? ............................................ 356
Now What? ..................................................... 358
The New Compact, or 'Alignment" in the 21s' Century ........... 360
How to Think .................................................. 367
Business Technology Trends .................................... 377
10 Take-Aways ................................................. 379
Where is it All Going? ........................................ 381
Endnote ....................................................... 391
About the Author .............................................. 392
Index ......................................................... 394
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