Four myths about building a software business
Unraveling the truth behind the misconceptions of establishing a software business, we delve into the four most common myths. We aim to debunk these fallacies, providing clarity and guidance for aspiring entrepreneurs in the tech industry.
Everyone wants to be a software company
Many companies expect software products and digital solutions to contribute to sales directly or to underpin the competitive advantage of their business models
- Only about 8 percent of companies believe that their current business models will remain viable if they don’t digitize
- Making the shift to digital requires not only upgrading your IT and tech infrastructure, but also transforming your entire business model
Avoid these four pitfalls
Jumping into the software game is becoming essential for a wide cross section of companies, whether or not they have thought of themselves as technology companies in the past
- Avoiding the four pitfalls described here can help them manage the journey more smoothly
Becoming more software focused requires a holistic transformation of the business and its operating model
For nontechnology companies, this includes elevating product leadership, creating more rapidly adaptive processes for budgeting and planning, establishing an empowered and distinctive culture, and shifting organizational structure.
- With regard to software, this operating model requires allocating resources more quickly; more strongly empowering your technical leadership and vision; deepening product-management capabilities; encouraging rapid product iteration and refinement; and putting in place the culture, tools, and practices that help unleash the full potential of software talent.
To get the talent you need, consider the road less traveled
In many businesses, consistent acquisition of small players is one proven way to improve company performance and typically has stronger performance outcomes than large deals do.
- Consider the role of organizational culture. Software companies are far from homogenous in their cultural styles, values, and norms. Embrace your own mission, purpose, and cultural strengths to build a software culture that fits who you are.
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