■Perspective of LBC's IT due diligence
Evaluation is performed not only to know if the business operations as the source of added value of the enterprise is supported more effectively and accurately by IT but also for the IT system on the whole.
To express it in other words, it is evaluated in order to know if IT system on the whole is operated at TCO (Total Cost of Ownership) that suits the added value of the disadvantageous enterprise.

■Area of IT due diligence
Since IT system of the enterprise is deeply linked with the business process, it is not enough just to evaluate IT area.
Therefore, there is a need to consider the object area with the profitability clarified not only by business process but also by business due diligence. Further, it becomes necessary to verify the conformity with the business plans and also to verify if this is the IT system that effectively supports the business process as the value added source.

■Relevant IT due diligence items
1. Business model
The core business which is the source of added value of the enterprise is identified and then it is evaluated to find out how far this business process is supported by IT.
Further, conformity between IT strategy and medium and long term business strategy is evaluated.

2. Staff and organization
Balance between the resources and the role of the organization pertaining to IT. Evaluation is also performed in connection with the nature of the coordination between outside organization and IT organization.
In other words, evaluation is performed in order to find out if the skills that ought to be accumulated within the enterprise are mapping accurately with the skills expected from outside.
It is also evaluated to find out if the current outsourcing conditions of the enterprise matches with the corporate objective (mission) of the organization.

3. Business processing system
1) Basic business system
Evaluation is performed for the effectiveness of business systems such as Human Resources Management, Financial Accounting, Management Accounting, Sales Management, Production Management etc.
Further, the aspects such as external connections represented by EDI system, Sales Orders Entry System etc. are also included in evaluation.
2) Information System
Effectiveness of DWH and BI tools is evaluated. The perspective of the evaluation is to evaluate to find out if the freshness of the information as expected is maintained or not, if the required information is covered and further the information furnished is closely linked to management strategy and is effectively put into application.
Further, it is also evaluated to find out if KPI has flexibility to cope up with the changes and additions. Evaluation is performed to find out if information is created retroactively again.
3) Other systems
Evaluation takes place to find out the effectiveness and efficacy of the systems supporting the overall administrative systems such as workflow system, mail system etc.

4. Legal tasks
Verification is carried out for the validity of all types of licenses, agreement with the vendor and processing the agreement with the vendor.

5. Development system/System investment
Re-building of the system becomes necessary followed by the changes in the technological environment in IT or business environment. Hence evaluation is carried out if it is possible to achieve a flexible development system that can cope up with these changes or if appropriate system investment is ensured.
1) Development system
Balance between the resources within the company and skill levels is verified. Further, in case of vendors, it is also verified if the roll allotment is properly done for the system development with the vendors.
2) System investment
The appropriateness of the system investment is evaluated with TCO.
On having a correct understanding not only on initial introduction costs of the system (License costs, connection expenses, hardware expenses, introduction support expenses etc.) but also on the expenses pertaining to the overall system life cycle (Such as license maintenance costs, application maintenance costs, upgrade costs, helpdesk expenses, connection fee etc.), evaluation is performed from the perspective of investment effects.

6. Compliance
Evaluation is performed on specific maintenances such as security policy, personal information protection, access management etc.
Further, evaluation is carried out while checking the vouchers to find out if IT administration is being carried out under the provision of overall IT system. Evaluation, in this case, also includes the aspects such as proper decision on the vital issues such as data migration etc. at the time of system introduction.

7. Availability, redundancy
On having a clear understanding on contingency plans for duplexing of hardware, provision for backup, acmirror server and the cycle thereof, storage conditions, procedures for fault recovery, maintenance conditions for operation procedure documents etc. , procedures for disaster recovery, earthquake resistance conditions in case of the buildings, action against power failure and fire disasters etc. , evaluation is performed towards the action against the risk of the system.

8. Capacity
Based on the medium-term management strategy, evaluation is performed on the hardware configuration which solely withstands the increase in the data processing amount in the light of the future growth of the enterprise.
Further, evaluation is carried out to find out if business process is being executed without stress while ensuring sufficient network capacity.
In addition to it, it is also evaluated if the network withstands the increase in the future business processing volume.

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