Technology assessment for portfolio managers

In 2008 the CFA Institute, a global association of investment professionals, added a new topic to its Professional Development Program: “How to judge the technological strength and potential of companies” This offering reflects the growing importance of technological considerations in investment decisions. The offering is rooted in a comprehensive procedure for a technology due diligence exercise. The procedure relies on the recent advances in the management of technology (MOT), and particularly on the functionality grid, a key construct in the theory of technology. The procedure is summarized in a one-page Technology Assessment Template that allows portfolio managers to perform a quick individual assessment. This article describes the Template and offers brief guidelines as to its use.