Investing in Technology

by Doctor Steve Bone

Investing in Technology by Doctor Steve Bone is offers sound advice on how the technology business investor should invest in the technology market. Investing in Technology is a practical guide to the financial questioning techniques that technology investors should consider.

Doctor Bone’s 4 Key Questions for Making Technology Investments

Doctor Bone raises the following four key questions which a business must think about and answer before progressing with a technology investment:

Is it technically feasible?
What is the true value?
Does it fit with our technology strategy?
Can it be implemented by our firm

Doctor Bone’s 1st Question: Is it Technically Feasible?

Doctor Bone emphasises that it is important to ask the basic technology questions. For example the business investor should verify that the technology does not have any technological mistakes that have not been identified or addressed.

Doctor Bone’s 2nd question: What is the true value?

This question from Doctor Bone explores the value of the successful technology in a market place. The business investor should be able to assess this using various benchmarks and assumptions.

Doctor Bone’s 3rd question: Does it fit with our technology strategy?

This angle from Doctor Bone’s investing in technology book is all about alignment, namely would the addition of this technology investment to the existing business enhance it or destroy it. Simplistically you could view this as “1+1=3?” or “1+1=1?”.

Doctor Bone’s 4th question: Can it be implemented by our firm

This question by Doctor Bone is important for the investor to assess, since it is the implementation that often causes acquisitions to fail. It is therefore key to have a clear investment review of the technology roadmap of the business and how this acquisition would assist the business investor.