So by the end of our talk, I hope you will not only be understanding the tech due diligence better, but also you already have some ideas on how to improve your work, whether it could be your team or your product.
So before we start, I want to ask you a question here. Hands up if you are already familiar with what tech due diligence is. Alright, five, six maybe? That's pretty cool. That's why I'm here. So don't worry. I expected that.
The truth is, in the fast-paced world of software development, whether you're part of a nimble startup, hungry for its first round of funding, or a key player in a well-established tech giant, considering it a strategic acquisition, the concept of tech due diligence is one you are most likely to encounter at some point in your career. We have various forms of due diligence, but today our spotlight is on TechDD, which directly involves us as software engineers.
So tech due diligence isn't just a box to tick. It's a thorough examination that can influence the future direction of a product or the entire company. Of course, on the other hand also, it is quite critical for investors, stakeholders, and potential buyers to understand the technical robustness, scalability, and future-proofing of the technology that underpins the company that they are really interested in.
A typical robust, let's say, TechDD involves several key steps, from starting with a kick-off session to define the scopes and objectives, to the thorough analysis of the technical architecture and code base. The process is usually spread over a few weeks to ensure an in-depth analysis without significantly interrupting the company's daily operations.
The areas which will be explored during a TechDD are tech team, team culture, of which are here, the product scalability, tech stack, of course, what frameworks they're using, languages, choice of tools. Tech assets, which is basically where we gain access to the data, get as much data as possible we can, and process them to extract some insights from. Product management, product development roadmap, maybe also even a competitive analysis. And lastly, legal and IP section, which could be quite critical for companies maybe in the sector of cybersecurity or insurance, let's say.
The outcome of a TechDD is a detailed report that provides insights into the technical health of a company. It identifies strengths, weaknesses, opportunities for improvements, and potential risks. Findings are almost the most important element of any TechDD report. In this context, a finding refers to a significant piece of information that has been uncovered during the TechDD process. Each finding is data-driven and often supported by visual aids, like charts for better understanding. They look at different things, like how serious a problem is, or whether it could be solved easily. This approach, of course, help us to sort out which issues are big deals and which ones aren't, and to spot any major concerns or red flags.
Red flags in TechDD diligence are essentially a combination of issues or findings that signaled potentially serious problems with a company's technology strategy or implementation. Red flags aren't just some simple alerts. They are evaluated based on how easily it can be fixed, the amount of effort and resources needed to address the issue, and the estimated duration for resolving the problem. Although it is not, I would say, although it is not relatively frequent for any company undergoing a TechDD to have a red flag, what's having a red flag is something to definitely vary off, because they could significantly impact a company's technology operations, and by extension, its business success.
Not that we have understood the concept of TechDD, you might wonder, where do I, as a software engineer, fit into this picture? So let's unravel that.
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