Software Pulse

Business Strategy for Software Executives

August 18, 2008

C.K. Prahalad

C.K. Prahalad on the New Age of Innovation

The convergence of four technology trends is creating a new business model and changes the nature of advantage in the competitive landscape.

By Kathleen Goolsby,

A prominent world-class figure, Dr. C. K. Prahalad was named number one in the Thinkers50 (the most influential thinkers in management alive today) poll conducted by Suntop media and the Times of London. He is currently Distinguished Professor, Ross School of Business, University of Michigan and specializes in corporate strategy.

Among the books he has written, Competing for the Future (co-authored with Gary Hamel) was named the Best Selling Business Book of the Year 1994; The Future of Competition: Co-Creating Unique Value with Customers (co-authored with Venkatram Ramaswamy in 2004) was described by Business Week as “an important book full of disruptive ideas;” and The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profit was selected as one of the best books of 2004.

Interop/Software 2008 was the site of the U.S. launch of his most recent book (co-authored with M. S. Krishnan). During his keynote address, Dr. Prahalad explained the concepts behind the new business model presented in the book, the role of IT in this model, and the business imperatives for succeeding in The New Age of Innovation.


New Podcast: Innovative Software Partnerships

M.R. Rangaswami of Sand Hill Group moderates an insightful discussion on how software companies can get the most out of software partnerships with Bob Langer, President of Qliktech Americas and David van Toor, SVP and General Manager of Sage CRM solutions. Click here to listen to the latest Podcast.

The ROI Revival: Taking SaaS to the Next Level

Shawn Santos A look at SignalDemand finds a small but high-growth SaaS provider that is breaking traditional support precedents by successfully embedding value measurement into every level of their organization. Shawn Santos of the SSPA shows how SignalDemand united their SaaS application with value-driven services and how the company is moving beyond customer satisfaction and focusing on the capability to deliver positive financial outcomes for their customers in this post to the Blog on SaaS.

Realizing a 47x Return on Capital

In 2006, Cramer Systems was purchased by Amdocs for $425 million after an initial investment of only $9 million. Javier Rojas of Kennet Partners talks to Cramer’s founder Jon Craton about how to realize a significant exit value in this post to the Blog, “Return Leaders.”

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Organizing for Value

The division structure can mask big differences in the performance of smaller units. A finer-grained approach can better show where value comes from. Read more about this organizational structure in this article from The McKinsey Quarterly.

News Update: Trouble in the Skies

Google’s outage calls the cloud into question; plus a virtualization “apocalypse” is coming, next-gen antivirus system is developed and HP’s chasing Cisco. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Drivers of Innovation?

Which of the four technology trends will be the biggest driver in the New Age of Innovation?
Take our Pulse Poll >>

Last week, readers gave us their opinion on whether software startups should be more focused on growth or acquisition.
Give us your opinion and see the results >>

More at

What recession? Gartner predicts IT spending growth.
Read the most important enterprise software industry news of the week >>

Clarabridge received $12 million.
Monitor the latest software venture capital deals >>

Return Path acquired Habeas.
Size up last week’s software M&A deals >>

OpenSpan named Eric Musser CEO.
See who’s made it to the top in our list of recent software executive appointments.

Send us your feedback on this newsletter and the site.

Parting Thought

Two things make a great futurist; a fascination and interest in change and you don’t want to get an MBA.”
— Peter Bishop

Courtesy of Malcolm Kusher, The Kushner Group


Acresso Software

For over 25 years, Acresso Software has helped software and hardware producers maximize revenue, cut costs, and eliminate manual processes. Acresso solutions, powered by FLEXnet, provide software producers with powerful licensing, updating, and delivery solutions, as well as entitlement and compliance management. Join Acresso at SoftSummit 2008 where leaders from software and hardware producers and their enterprise customers come together to discuss the business of software.
Find out more.


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