What is strategy?

27 September 2007

In his book Winning, Jack Welsh describes strategy brilliantly:

“What is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets.”

This makes it so simple and makes a few other things obvious:

  • It isn’t a strategy if you don’t have the resources to accomplish it – it’s a goal (or maybe you’re just dreaming)
  • There will always be an opportunity cost to a strategy
  • You will always use your resources/time/money – strategy is just being deliberate about it

And raises a few questions:

  • Do you have a strategy, or are you just reactive?
  • If you analyse how you allocate your resources, does it sync with your strategy?
  • Is your strategy actually working (ie achieving your goals)?

3 Comments | Business, Strategy | Permalink
Posted by Andrew

Micro ISVs are building desktop software

16 September 2007

This survey, done by Neil at Business of Software, shows that 75% of Micro ISVs are building desktop software, with an even split between business and consumer. Why? Because that’s where the money is.

Does this mean that there’s plenty of opportunity for Micro ISV’s to start offering niche value-add SaaS, or does it mean that SaaS/v isn’t viable or isn’t in demand yet?

platformtype.png

2 Comments | Business, Software | Permalink
Posted by Andrew

Its worth opening a bank account for

13 September 2007

I’ve just done my first bank rec using Xero’s brand new bank rec screen (released today) and its so good that I want open more bank accounts and spend more money just so I can reconcile it in Xero. Ok, so you think I’m probably just saying that because I work for Xero – so have a look at this short demo and see for yourself.

I’ve got two hints which aren’t mentioned in the video:

  1. If you import multiple statement lines that are similar, code the first, then hit F5 to refresh the page and the others will be automatically coded.
  2. Work from the bottom of the page – not the top, because this way you get to admire the way a new statement line will slide up onto the page from nowhere every time you click OK.

If you don’t know what Xero is … have a look at www.xero.com or XeroTV.

Leave a Comment » | Finance, Xero | Permalink
Posted by Andrew

Eric Sink on the Business of Software

11 September 2007

Here’s another excellent read. For a limited time, you can download Eric Sink’s ‘Business of Software’ eBook for free from:

http://www.businessofsoftware.org/ebook.aspx

It includes a lot of the articles that Eric has published on his business of software site, including:

  • Entrepreneurship
  • Finance
  • Micro ISVs
  • People
  • Hiring
  • Marketing
  • Sales
  • Pricing

Leave a Comment » | Business, Software | Permalink
Posted by Andrew

Business 2.0

7 September 2007

Business 2.0 magazine is a good read and is free at: http://digital.business2.com

1 Comment | Business | Permalink
Posted by Andrew

SaaS for commoditization

6 September 2007

Ben has two classifications of SaaS – SaaS/s and SaaS/v, differentiating offerings by those that (s)ubstitute existing software and those that add (v)alue. The SaaS/v classification makes sense, but SaaS/s seems to be based on the comparison with existing software, not on the characteristics/model of the SaaS offering itself and how it compares with other SaaS offerings. Maybe better classifications would be SaaS/c and SaaS/v?

SaaS for commoditization:

  • Drivers are quality, cost and service
  • Audience is mass market (long tail)
  • Indirect sales needed to keep price competitive
  • Not necessarily a commodity yet, but being commoditized through innovation in improved delivery and optimizing established features

SaaS for value-add:

  • Drivers are added value, integration, collaboration
  • Market is niche
  • Direct sales needed to educate market, so must be priced accordingly
  • Innovation is in new markets and new products

Typically low cost SaaS will commoditize a product so that high value add-ons can be sold on the low cost platform, but SaaS/v shouldn’t be low cost because its not a sustainable business model. Unless of course the business model is buy a customer base and then be acquired.

1 Comment | SaaS, Software | Permalink
Posted by Andrew

Being a software architect is not illegal

3 September 2007

Several people have told me recently that it’s illegal (in New Zealand) to call yourself a software architect, so I decided to check and yes, there is a law in New Zealand (the Registered Architects Act 2005) which protects the titles ‘Architect’ and ‘Registered Architect’.

But … Chris from the NZIA pointed out to me that this protection only applies to the provision of “building design” services. Other industries can use the term architect as long as its qualified – ie Software Architect, System Architect, Business Architect.

And even though “real” architects say that we’re just software designers, software architecture also “involves everything that influences the way in which the built environment is planned, designed, made, used and maintained.” – right from the big picture, to the smallest detail.

Leave a Comment » | Software | Permalink
Posted by Andrew

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