‘Fake news derails careers, facts get you promoted,’ said Bob Hoey, former General Manager at IBM, at the Software Intelligence Forum in Paris , an annual event which brings together IT executives from around the globe to share best practices in software management. What he said cannot be more accurate, especially when it comes to managing critical software and IT decision making. The need of the hour for enterprise-level IT executives making decisions around their software is access to objective facts rather than surveys and subjective opinions.
The need for greater objectivity in IT decision making and Management was one of the key topics at the Software Intelligence Forum in Paris. We heard from a number of industry leaders who shared not only the benefits but the necessity of bringing objectivity into their IT decision-making processes.
Data-driven IT Decision Making at Enel
One of the central areas in enterprise IT where objectivity should be prioritized is in software vendor management and supply chain transparency. Enel, a world leader in energy distribution systems, relies heavily on vendors for their software development and maintenance.
The graphic below shows that strong vendor performance was crucial for fulfilling their digital strategy, but they did not have a process in place to assess vendors on the quality of their deliverables.
CAST’s ability to measure automated function points and code quality was the perfect answer to their need for objective insights on the resiliency and security of software delivered by vendors and enabled Enel to measure the vendors on structural quality, productivity, and continuous improvement. The vendors were rated and scored based on industry standards and were thus cooperative and open to feedback.
Using the insights generated by CAST removed any bias in how Enel was assessing its vendors. Enel’s use of CAST illustrates the importance of prioritizing data over opinions to increase the efficiency of its IT decision making and vendor operations.
Software Intelligence for Critical M&A Decisions
Historically, commercial and financial data were the most important considerations in mergers and acquisitions. The structural quality of their custom software has now taken center stage, especially in businesses that have software-heavy assets.
Ernst and Young’s transaction advisory line regularly uses CAST Highlight to assess the software assets of a target company. CAST Highlight is a SaaS solution that does not require the code to move out of the organization, thereby removing objections around security from the target companies. Furthermore, the intelligence from CAST on software composition and resiliency enables EY to provide recommendations to the client and back it up with data.
EY uses CAST Highlight to assess software quality and to check for IP risks of open source software dependencies. During a recent technical due-diligence of a target company, CAST Highlight revealed IP risks worth several thousand dollars, which would have otherwise gone undetected. In another instance, EY recommended that its client refactor certain business-critical applications to increase its valuation when looking for potential buyers. These insights around technology assets are not possible with subjective, survey-based assessments of software assets.
[Additional suggested reading : #1 in M&A Technology due diligence checklist - Application Portfolio Analysis ]
The above are just two examples of IT decision making where senior IT and business executives rely on objective, consistent, and accurate intelligence on the resiliency, security, and quality of their software assets. CAST’s ‘MRI for software’ analyses all database structures, code components, and interdependencies to deliver accurate, precise, and actionable software intelligence. It surfaces only the flaws that matter, and provides context-based scoring and industry benchmarks, across all quality characteristics and for any mix of technologies.
To find out more on how to gain the visibility needed for fact-based IT decision making, visit us at www.castsoftware.com/greater-objectivity-for-decisions-and-it-governance
Erik Oltmans, an Associate Partner from EY, Netherlands, spoke at the Software Intelligence Forum on how the consulting behemoth uses Software Intelligence in its Transaction Advisory services.
Erik describes the changing landscape of M & A. Besides the financial and commercial aspects, PE firms now equally value technical assessments, especially for targets with significant software assets. He goes on to detail how CAST Highlight makes these assessments possible with limited access to the targetâ€™s systems, customized quality metrics, and liability implications of open source components - all three that are critical for an M&A due diligence.