Business Strategy for Software Executives
May 5, 2008
Prescription for a Slow Economy
Innovative software companies are turning to revenue management to improve their bottom line.
By Kamal Ahluwalia, Model N
As the earnings season rolls by, a slew of companies across all industries are lowering their guidance for the remainder of the year. Some are already seeing their business slowing down and others are anticipating fewer and more protracted sales cycles.
During economic slowdowns, a herd mentality often emerges among CFOs and CEOs as they turn to cost reduction to boost profitability amidst declining top-line growth. But, if you have been in business for more than a few years, you have likely maximized your cost reduction and outsourcing opportunities during the last downturn. What remains then to keep shareholders at bay?
The answer is right in front of you: software companies don't necessarily need new business to improve your bottom line; better managing your current book of business can yield similar results. And the best strategy for achieving this is to take a closer look at the core processes that control your “gross to net” revenue life cycle. Automating and integrating these often disjointed processes can help you realize margins gains of 2% to 10% depending on the complexity of your business environment. These are returns that build careers and reputations.
Is SOA Dead?
The media has begun to talk about the death of SOA. As Judith Hurwitz of Hurwitz & Associates explains in this post to the SandHill.com Blog on SOA, reports of SOA’s death have been greatly exaggerated.
Soundbites from Software 2008
Last week, hundreds of software industry leaders gathered in Las Vegas for the Software 2008 conference. SandHill.com editor Maryann Jones Thompson shares a snapshot of the insight shared during the keynotes and breakout sessions in this post to the blog on Software 2008.
Publish Your Perspective!
SandHill.com wants your opinions. Send your thoughts on the enterprise software industry to SandHill.com editor, Maryann Jones Thompson (firstname.lastname@example.org) and have your opinions published on our site.
DON'T MISS: Preparing for a Slump in Earnings
Historic trends suggest earnings may fall more than most executives expect. Companies should prepare for steeper declines and take steps to strengthen their positions when times improve. Read how in this article from The McKinsey Quarterly.
News Update: Shaping the Future
Microsoft plays nice with Extensions and hardball with Yahoo, Memristor can think, the mainframe is back and Web 2.0 facilitates new danger. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Revenue Management?
What kind of profit lift can software companies expect from improved revenue management strategies?
Last week, readers speculated on whether the expanded landscape of enterprise software options will force buyers to return to basic buying expectations like reliability and security over technology bells and whistles.
More at SandHill.com:
New survey says open source is gaining traction in the U.S. government.
On-demand sales compensation maker Xactly Corp. received $30 million.
Microsoft dropped its bid for Yahoo but bought Farecast.
EveryZing named Scott Greenberg as Vice President of Business Development.
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“There is always a better strategy than the one you have; you just haven't thought of yet”
Courtesy of Malcolm Kusher, The Kushner Group
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