Business of Software by Michael A. Cusumano

June 26, 2007 by derek · Leave a Comment 

The Business of Software What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad by Michael A. Cusumano presents a solid overview of the software business appropriate for software managers and entrepreneurs:

  1. Do you want to be mainly a Products company, or a Services company?
  2. Do you want to sell to Individuals, or Enterprises | Mass market, or Niche market?
  3. How horizontal (broad) or vertical (specialized)is your product or service?
  4. Can you generate a recurring revenue stream that will endure both good and bad times?
  5. Will you target mainstream customers, or do you have a plan to avoid the chasm?
  6. Do you plan on being a Leader, Follower, or Complementor?
  7. What kind of character do you want your company to have?
  8. Case studies

Software Entrepreneurship:

  1. Strong management team
  2. Compelling new product, service, or hybrid solution
  3. Strong evidence of customer interest
  4. An attractive market
  5. A plan to overcome the credibility gap
  6. Business model showing early growth and profit potential
  7. Flexibility in strategy and product offerings
  8. Potential for large payoff to investors

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