Audit Tools

1. Creativity and Innovation
Management
To Identify the Innovation Needs of a Business
Problems

2. Audit Tools (Technology Audit): Introduction
Today the companies must be able to be constantly innovative in
order to maintain or improve their position in the market. In order
to achieve this, they must know how to identify the innovation needs
of a business problem.
A technology audit is a method of
investigation aiming at the evaluation of the
a) technology capacity, b) procedures, c)
needs of an SME or an organization.
Furthermore, it is a process of analysis, a
method of identifying the strong and weak
points through the characterization and
general assessment of the firm’s basic know
how an assessment which is performed by
using the SWOT analysis method.

3. What is Technology Audit?
The Technology Audit is a method for identifying the major company
requirements, needs, weaknesses and strengths on both human
resources and infrastructure. The Technology Audit is a technique,
which identifies the management’s view of how the company performs as
well as strong indications of what the company really needs. The
Technology Audit technique examines concurrently the External and
Internal environment of the company and identifies the human resources
relation to company’s performance.
The objective of Technology Audit is to
provide a clear identification of company’s
first priority needs as well as strengths and
opportunities that should be taken under
consideration. It also assists the company to
identify the more significant actions that it
should adopt.

4. Why Perform a Technology Audit?
• To generate income (or more income) for the technology driven organizations
(e.g. technology based enterprises, research centres, institutes) from their
available technology
• To improve the productivity of the technological factors;
• To improve business competitiveness and public administration's performance
• Assess your current capabilities before making expensive changes
• Learn how to optimise the use of current technology
• Learn about your technology options
• An independent assessment can help convince your organisational partners of
changes needed
An SME can perform an audit in order:
Therefore those who ask for an audit are the
management of an organisation: a) as a source
of strategic management information; b) to
increase awareness and stimulate the staff.
Whoever is interested in the organization, in
terms of contracting, funding, investment, or
acquisition.

5. Where Technology Audit applies?
The technology audit is equally applicable to manufacturing and service firms.
The firms should wish to create new products, incorporate new processes,
diversify their activities and be with growth potential. They should have capacity
to survive and innovate and an aptitude for international cooperation.
How Technology Audit is applied?
Company Decision for
Tech Audit
Initial Phase for Tech
Audit
Interview and Report
Phase
Technology Audit
Report Framework

6. Where Technology Audit Applies?
o Step 1: Company decision for Technology Audit: The starting
point of the technology audit process is the desire or wish of a firm to
carry out a technology audit.
o Step 2: Initial Phase. The initial phase is important to ensure that
the audit proceeds smoothly and effectively. It includes discussion
with the Head of Department to explain and agree the purpose of the
audit, to modify the questionnaire and the framework for the report to
suit the Department and to select those to be interviewed. Initial
information about the Department (published and unpublished
reports) is gathered at this stage. Analysis of questionnaires should
be done prior to the interviews and might be done at an earlier stage,
so that selection of those to be interviewed is partly based on
questionnaires.

7. Where Technology Audit Applies?
o Step 3: Interview and Report Phase. The company is being
interviewed with a questionnaire, normally with the General Manager
aiming at:
• Collecting general company data
• Shaping company technology profile
• Performing SWOT analysis
• Identifying technological areas for further analysis
o Step 4: Technology Audit Report Framework. The final report of the
technology audit should include:
• Subjects analysed
• Methodology used
• Problem areas identified
• Solutions proposed by the problems
• Steps to be taken for implementing the solutions (action plan)

8. Expected Benefits of Technology Audit
• Complete and comprehensive analysis and evaluation of the
requirements of the firm for its sustainable growth.
• Thorough impartial SWOT analysis.
• Opportunity spotting for new products, new services, new
technologies, or new markets.
The expected results from a carefully conducted technology audit
mainly concern:
• Networking with technology
suppliers, technological sources,
other companies.
• Possible assessment of
technology portfolio, intellectual
property rights.

9. Expected Benefits of Technology Audit
TECHNOLOGY
AUDIT
Reviewing
Prior Audit
Issues
Develope IT
Audit Plan
Risk
Assesment
Information
Gathering
Execute IT
Audit Plan
Customer
Evaluation
Satisfaction

10. SWOT Analysis: Introduction
The Technology audit has been presented as a useful tool for identifying the
innovation needs of a business problem. SWOT analysis is another tool for
auditing an organisation and its environment. It is the first stage of planning
and helps markets to focus on key issues.
A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm can
usually be classified as strengths (S) or weaknesses (W), and those external
to the firm can be classified as opportunities (O) and threats (T). Such an
analysis of the strategic environment is referred as a SWOT analysis.
The SWOT analysis provides
information that is helpful in
matching the firm’s resources
and capabilities to the
competitive environment in which
it operates.

11. What is SWOT Analysis?
SWOT analysis is a business tool by which, a firm wishing to implement a strategic
analysis, analyses and recognises its corporate Strengths and Weaknesses as well
as the existed or forthcoming Opportunities and Threats from its external
environment. Only when these four critical information elements are well elaborated
and known, the enterprise is able to formulate and implement the strategy leading to
its business aims.
The role of SWOT analysis is to take the
information from the environmental analysis
and separate it into internal issues (strengths
and weaknesses) and external issues
(opportunities and threats). Once this is
completed, SWOT analysis determines if the
information indicates something that will assist
the firm in accomplishing its objectives (a
strength or opportunity), or if it indicates an
obstacle that must be overcome or minimised
to achieve desired results (weakness or threat).

12. When and Why to Use It?
• While developing a strategic plan or planning a
solution to a problem.
• In order to develop a plan that takes into
consideration many different internal and external
factors, and maximises the potential of the
strengths and opportunities while minimising the
impact of the weaknesses and threats.
The SWOT analysis is an extremely useful tool for understanding and decision-making
for all sorts of situations in business and organisations.
SWOT Analysis is a very effective way of identifying your Strengths and
Weaknesses, and of examining the Opportunities and Threats you face. Carrying out
an analysis using the SWOT framework helps you to focus your activities into areas
where you are strong and where the greatest opportunities lie.
By creating a SWOT analysis, you can see all the important factors affecting your
business together in one place. It’s easy to create, easy to read, and easy to
communicate.
A company can use the SWOT analysis:

13. Environmental Scanning
Internal Analysis External Analysis
Strenghts Weaknesses Opportunities Threats
How SWOT Analysis is Applied?
Action checklist:
Establish
Objectives
Allocate
Research
Create
Workshop Env
SWOT
Matrix
Evaluate
Ideas

14. 1. Establish the objectives. The first key step in any project is to be clear
about what you are doing and why. The purpose of conducting SWOT
analysis may be wide or narrow, general or specific.
2. Allocate research and information-gathering tasks. Background
preparation is a vital stage for the subsequent analysis to be effective, and
should be divided among the SWOT participants. This preparation can be
carried out in two stages: a) exploratory, followed by data collection; b)
detailed, followed by a focused analysis.
How SWOT Analysis is Applied?
Gathering information on Strengths and
Weaknesses should focus on the
internal factors of skills, resources and
assets, or lack of them. Gathering
information on Opportunities and Threats
should focus on the external factors.

15. 3. Create a workshop environment. If compiling and recording the SWOT
lists takes place in meetings, then do exploit the benefits of workshop
sessions. Encourage an atmosphere conducive to the free flow of
information and to participants saying what they feel to be appropriate, free
from blame. The leader/facilitator has a key role and should allow time for
free flow of thought, but not too much. Half an hour is often enough to
spend on Strengths, for example, before moving on. It is important to be
specific, evaluative and analytical at the stage of compiling and recording
the SWOT lists.
4. List Strengths, Weaknesses, Opportunities, Threats (SWOT Matrix)
5. Evaluate listed ideas against objectives. With the lists compiled, sort
and group facts and ideas in relation to the objectives. It may be necessary
for the SWOT participants to select their five most important items from the
list in order to gain a wider view. Clarity of objectives is key to this process,
as evaluation and elimination will be necessary to separate the wheat from
the chaff.
How SWOT Analysis is Applied?

16. How SWOT Analysis is Applied?
Strengths Weaknesses
 Advantages of proposition?
 Capabilities?
 Competitive advantages?
 USP's (unique selling points)?
 Resources, Assets, People?
 Experience, knowledge, data?
 Financial reserves, likely returns?
 Marketing - reach, distribution,
awareness?
 Innovative aspects?
 Location and geographical?
 Price, value, quality?
 Accreditations, qualifications,
certifications?
 Processes, systems, IT, communications?
 Cultural, attitudinal, behavioural?
 Management cover, succession?
 Disadvantages of proposition?
 Gaps in capabilities?
 Lack of competitive strength?
 Reputation, presence and reach?
 Financials?
 Own known vulnerabilities?
 Timescales deadlines and pressures?
 Cash flow, start-up cash-drain?
 Continuity, supply chain robustness?
 Effects on core activities, distraction?
 Reliability of data, plan predictability?
 Moral, commitment, leadership?
 Accreditations, etc?
 Processes and systems, etc?
 Management cover, succession

17. How SWOT Analysis is Applied?
Opportunities Threats
 Market developments?
 Competitors' vulnerabilities?
 Industry or lifestyle trends?
 Technology development and
innovation?
 Global influences?
 New markets, vertical, horizontal?
 Niche target markets?
 Geographical, export, import?
 New USP’s?
 Tactics - surprise, major contracts, etc?
 Business and product development?
 Information and research?
 Partnerships, agencies, distribution?
 Volumes, production, economies?
 Seasonal, weather, fashion influences?
 Political effects?
 Legislative effects?
 Environmental effects?
 IT developments?
 Competitor intentions-various?
 Market demand?
 New technologies, services, ideas?
 Vital contracts and partners?
 Sustaining internal capabilities?
 Obstacles faced?
 Insurmountable weaknesses?
 Loss of key staff?
 Sustainable financial backing?
 Economy-home, abroad?
 Seasonality, weather effects?

18. For Successful SWOT Analysis
1. Never copy an existing SWOT analysis; it will influence your thinking. Start
with a fresh piece of paper every time
2. Set aside enough time to complete it
3. The SWOT analysis itself is NOT the result. It’s only a tool to help you
analyse your business
4. A SWOT analysis is not a business school fad. It is a proven technique
used throughout the business community
5. Keep your SWOT analysis simple, readable,
short and sharp
6. You could use a standard template to help
the ideas flow
7. You may need to come back to it several
times before you are happy
8. Before you begin any analysis, you should
know what you intend to do with the results

19. For Successful SWOT Analysis
9. You need to be comfortable working with it in your business
10. It needs to make sense to outsiders (e.g. bank managers or investors) so
don’t use phrases or acronyms that only you understand
11. Make sure you create an action plan based on your SWOT analysis
12. A SWOT analysis only gives you insight at a single point in time
13. Don’t over-analyse. Try not to worry if it isn’t perfect, just get the analysis
done
14. You need to communicate this
clearly to everyone involved
15. You need to review it – probably
quarterly – to see how the situation
has changed
16. If you are going to act on the
results, it needs to be accurate in
all the important areas