Business Strategy for Software Executives
November 7, 2005
Dealing with CIO Reality
Today’s abundance of compelling technology means even software vendors with great offerings won’t win deals if they can’t manage the "soft factors" of selling.
By Mike Nevens, Retired Managing Partner, McKinsey & Co.
Pity the poor CIO. The IT budget is flat, slightly up or, more likely declining a bit. Only 5 percent to 20 percent of the IT budget is available for new projects. The rest is consumed by operations, support, maintenance, business continuity and the like. Of that small slice available for the "new, new thing" a big piece is driven by security, pressures for mobile access and helping the business comply with Sarbanes-Oxley, HIPPA, Basel II and other regulatory mandates.
The CIO of one of the largest retail banks in the US recently told me that he has about 60 new projects under evaluation. About half of them will pass technical, functional and investment hurdles. He will then fund 4 to 6 over the next two years.
That means that 25 or so projects that meet all objective criteria will not go forward.
Software vendors and investors need to understand and deal with this reality.
Governance for the Governance Vendor
Last week, upstanding software citizen Mercury Interactive replaced its top executives in response to allegations of improper stock dealings. Tony Baer of onStrategies takes a look at what it means for customers and what it means for the company in this week’s post to the SandHill.com Blog on Software Intrigue.
Share your insight on the software business. Email email@example.com with your submissions to the SandHill.com Blog.
New Executive Positions Available
A new crop of software executive searches from executive recruiter Sterling Hoffman is available on the SandHill.com job page. SandHill.com receives visits from tens of thousands of veteran software executives every week. Post your job on the site and reach the Web’s most qualified pool of candidates. Visit the community page and click on ‘Want to Post a Job?’
Poll: Oracle Adrift?
Last week, SandHill.com visitors speculated about whether a forecasted rise in IT salaries is good news for the technology industry.
More at SandHill.com:
Geac and FrontRange targets of LBOs.
Akimbi Systems receives $8 million.
IBM buys iPhrase Systems.
Mindjet appoints Eric Borrmann as CFO and Richard Barber as VP of Engineering.
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"A real leader faces the music, even when he doesn't like the tune."
Courtesy of Malcolm Kusher, The Kushner Group
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