Abstract:  While we would not normally think of a small manufacturer of simple toys being particularly "high tech" or their products containing or requiring a lot of technology, technology is increasingly important in order to compete in today's environment. In this case study, we consider a series of options set out to meet competitive pressures and take into due consideration the results of market research. These options include modernizing manufacturing processes, expanding the product line by including more modern "computerized" vehicles, expanding the market by selling to the chains and large retailers, expanding the market through an e-commerce approach, buying another smaller toy manufacturer and integrating their product lines, or a merger with another manufacturer. All of these options have varying kinds and degrees of technology implications. Each of these options requires the evaluation of technology to determine how or if an investment in technology would be wise.

Abstract:  New or evolving technologies are increasingly important in enterprise development. At the same time, we know that the higher the risk of failure and the greater the uncertainty in the investor’s mind about how big that risk really is, the lower are the chances that an investment will be made in new enterprise development. Investors and technology entrepreneurs see things differently further complicating investment decision-making. How do these things relate, and what can be done to facilitate sound investment decisions particularly when technology is a central matter? If we add independent technology assessments to conventional due diligence practices, we change the decision-making paradigm to one more favorable for both the investor and the entrepreneur. Investments are thereby facilitated.