The Business Of Software

Michael A Cusumano

Physical

In Circulation

The world's leading expert on the global software industry and coauthor of the bestseller Microsoft Secrets reveals the inner workings of software giants like IBM, Microsoft, and Netscape and shows what it takes to create, develop, and manage a successful company -- in good times and bad -- in the most fiercely competitive business in the world. In the $600 billion software industry it is the business, not the technology, that determines success or failure. This fact -- one that thousands of once glamorous start-ups have unhappily discovered for themselves -- is the well-documented conclusion of this enormously readable and revealing new book by Michael Cusumano, based on nearly twenty years of research and consulting with software producers around the world.

Cusumano builds on dozens of personal experiences and case studies to show how issues of strategy and organization are irrevocably linked with those of managing the technology and demonstrates that a thorough understanding of these issues is vital to success. At the heart of the book Cusumano poses seven questions that underpin a three-pronged management framework. He argues that companies must adopt one of three basic business models: become a products company at one end of the strategic spectrum, a services company at the other end, or a hybrid solutions company in between. The author describes the characteristics of the different models, evaluates their strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a business as well as in good versus bad economic times.

Readers will also find invaluable Cusumano's treatment of software development issues ranging from architecture and teams to project management and testing, as well as two chapters devoted to what it takes to create a successful software start-up. Highlights include eight fundamental guidelines for evaluating potential software winners and Cusumano's probing analysis, based on firsthand knowledge, of ten start-ups that have met with varying degrees of success. The Business of Software is timely essential reading for managers, programmers, entrepreneurs, and others who follow the global software industry.

What will you learn from this book

  1. Platform Power: Successful software businesses often establish platforms that encourage third-party developers to create complementary products, fostering an ecosystem around their core offering.

  2. Product Evolution: The software industry thrives on continuous innovation. Successful companies constantly evolve their products, adding features, improving usability, and adapting to changing market needs.

  3. Customer-Centric Approach: Understanding customer needs and pain points is crucial. Building software that solves genuine problems and provides value is more likely to succeed in the market.

  4. Agile Development: Agile methodologies allow for more adaptive and flexible software development processes. This approach emphasizes iterative development, collaboration, and responsiveness to change.

  5. Quality Matters: High-quality software is essential for success. It's not just about functionality but also reliability, security, and user experience.

  6. Business Models and Monetization: Diverse business models exist in software, from subscription-based models to freemium approaches. Choosing the right model that aligns with the product and target audience is critical.

  7. Ecosystem Building: Successful software companies often create and nurture ecosystems around their products. These ecosystems can include developers, partners, and users, fostering innovation and growth.

  8. Globalization and Outsourcing: The software industry is highly globalized, with companies often leveraging talent and resources from around the world. Outsourcing can be a strategic move but requires careful management.

  9. Marketing and Distribution: Effective marketing and distribution strategies are crucial for reaching the target audience. Leveraging digital channels and understanding the nuances of online marketing is vital.

  10. Leadership and Culture: Strong leadership and a positive company culture are key to sustaining innovation and growth. Encouraging creativity, collaboration, and a sense of purpose among employees can drive success.

Language English
ISBN-10 0-7432-1580-X
ISBN-13 9780743215800
No of pages 334
Font Size Medium
Book Publisher Free Press
Published Date 15 Mar 2004

About Author

Author : Michael A Cusumano

3 Books

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