IT due diligence - Interim-CIO

Dr. Claus Michael Sattler

IT due diligence: More security for private equity companies and banks in the acquisition process

Advice that moves.

Solutions that work.

IT due diligence that secures value.

After more than 45 years in professional IT and 200+ successfully managed projects, I am your expert, sparring partner and bridge builder between your investments and digital technologies!

Phone:
+49 174 6031377

Address:
P.O. Box 1142 | 28833 Weyhe | Germany

E-Mail:
cms@sattlerinterim.com

DIGITAL ARCHITECT WITH BUSINESS SAVVY

Dr. Claus Michael Sattler

Advice that moves. Solutions that work. IT due diligence that secures value.

I am Dr. Claus Michael Sattler – interim CIO, digital strategist and bridge builder between IT, OT and data analytics. For over 45 years, I have been supporting medium-sized companies, corporations and private equity companies in the structured realignment of their value chains.

My focus is on the integration of IT and OT, the development of data-based decision-making models and the development of company-wide digital strategies with measurable added value. Whether it’s ERP migrations, production data streams or AI-supported analyses – I always think technology in terms of results.

In my projects, I have realized operational excellence through transparency, automation and data-based management – with clear effects on productivity, resilience and EBITDA. I have been responsible for investment and IT budgets in the millions and shaped the digital transformation of entire business units.

My approach is pragmatic, entrepreneurial and strong in implementation. I stand for digital solutions that work – and for decisions that are based on sound data and a real understanding of the business. Clear in analysis, committed in leadership and always with an eye on the big picture: increasing company value through intelligent digitalization.

My motto: “Without data, you’re guessing!” – I make sure that your decisions are based on sound data, modern technology and tried-and-tested concepts.

IT due diligence expert and interim CIO for sustainable value enhancement

As an experienced interim CIO, C-level expert for IT, OT and data analytics, I use IT due diligence to support entrepreneurs, companies, private equity firms, banks, auditors, tax consultants, M&A managers and management consultants in assessing a company’s IT risks, OT risks and data risks and protecting investments.

Challenges and problems of private equity companies and banks in IT due diligence

IT due diligence presents private equity companies with a number of complex challenges that go far beyond mere technical evaluation and have a significant impact on the success of a transaction. In particular, topics such as IT infrastructure, cyber resilience, integration of OT systems, data analytics and data-driven management decisions harbor numerous pitfalls and risks that must be identified at an early stage during the due diligence process. A precise analysis of these areas is crucial in order to avoid unexpected costs, integration problems and strategic mistakes post-closing.

IT infrastructure and cyber resilience

Outdated, fragmented IT infrastructures and a lack of standardization increase integration costs and make scalability after the takeover more difficult.
Inadequate cyber resilience strategies and a lack of zero-trust architectures make the target company vulnerable to cyber attacks and business interruptions.
A lack of transparency regarding IT budgets, license agreements and technical debt leads to unexpected investment and operating costs after closing.
IT security is often only seen as a technical task rather than a strategic management issue – which leads to a lack of management involvement and insufficient prioritization of resilience measures.

OT integration / machine integration / Industry 4.0

Heterogeneous machine parks and proprietary OT systems make secure integration into modern IT landscapes difficult and increase the attack surface for cyber threats.
A lack of interface standards between IT and OT hinders the implementation of Industry 4.0 initiatives and leads to high adaptation costs.
Legacy systems in production are often poorly documented, which makes risk assessment and the planning of integration projects much more difficult.
The lack of transparency regarding the status and networking of the OT infrastructure makes it difficult to assess operational risks and build a resilient overall system architecture.

Data analytics

Different data sources and a lack of data integration in the portfolio companies prevent a consolidated, fast and precise analysis in the due diligence process.
Poor data quality, fragmented data storage and a lack of governance lead to unreliable analyses and make it difficult to identify value levers and risks.
The lack of internal analytics expertise and suitable tools delays data-based decision-making processes and increases dependency on external consultants.
Time pressure and a lack of data accessibility at the target mean that critical insights into customers, the market and operational risks are overlooked in the due diligence process.

Data-driven management decisions

A lack of data culture and a lack of acceptance of data-driven decision-making at management level lead to suboptimal investment decisions.
Insufficient automation and reporting infrastructure hinder the rapid provision of decision-relevant information for management.
Inconsistent or incomplete data prevents the development of KPIs and benchmarks that are necessary for managing and increasing the value of the portfolio.
The complexity of the data landscape and the need to harmonize different data formats and sources lead to high implementation costs and delays in the operationalization of data-driven control.

First solution approaches (short form)

In order to specifically address the many challenges of IT due diligence, private equity companies should choose structured and pragmatic solutions that both minimize short-term risks and enable long-term value enhancement. The SWOT analysis plays a central role here: it creates transparency regarding the strengths, weaknesses, opportunities and risks of the target company’s IT landscape and thus forms the basis for well-founded strategic decisions. By integrating the SWOT analysis into the due diligence process, specific areas of action can be identified and prioritized so that tailored measures for IT infrastructure, cyber resilience, OT integration, data analytics and data-driven management decisions can be developed. This ensures that investments are made in a targeted manner and that the portfolio is optimally prepared for future challenges.

IT infrastructure and cyber resilience

Introduction of zero trust principles and consistent authentication of all users and systems to minimize attack surfaces.
Set up automated monitoring and incident response processes (e.g. SIEM / SOAR) to detect cyber threats at an early stage and respond quickly.
Regular IT health checks and targeted modernization of outdated IT components to reduce integration and operating costs after the takeover.
Development and testing of emergency plans and implementation of cyber resilience training for employees in the portfolio companies.

OT integration / machine integration / Industry 4.0

Promoting IT/OT convergence by standardizing interfaces and using edge computing solutions for better data integration.
Implementation of cyber-physical systems and IoT platforms to increase the transparency and controllability of production systems.
Introduction of digital twins to simulate and optimize integration projects and production processes.
Establishment of a central OT security concept that takes into account specific production requirements and is continuously developed further.

Data analytics

Establishment of a central data lake or data warehouse solution to integrate and harmonize all relevant data sources in the portfolio.
Introduction of automated data quality and governance processes to ensure reliable analysis and reporting.
Investment in modern analytics tools and targeted development of internal data science skills to reduce dependence on external consultants.
Use of benchmarking and real-time reporting to identify operational potential and risks at an early stage and manage them in a targeted manner.

Data-driven management decisions

Creating a data-driven corporate culture through targeted change management measures and incentivizing data-based decisions.
Development of a scalable reporting and automation infrastructure to provide management information quickly and reliably.
Development of consistent KPIs and dashboards for all portfolio companies for effective management and value enhancement.
Use of performance measurement systems and transparent target agreements to strengthen accountability and accelerate the implementation of data-based management.

What customers and partners say about me!