Software Pulse

Business Strategy for Software Executives

September 25, 2006

Vinnie Mirchandani

Eliminating the Innovation Disconnect

Software vendorsí concept of ìinnovationî is quite different from that of todayís CIOs. Understanding the ìMAGICî framework for CIO innovation can help close some of the gap.

By Vinnie Mirchandani, Deal Architect

CIOs, like most business executives, are under intense pressure to innovate as global competition intensifies.

But as I talk to CIOs around the country, it is becoming clear that their views on innovation are very different from those of software vendors. They do not want to be "spoon fed" innovation. They are irritated that vendors think there is a magical budget called “innovation” that they can just open up and spend. They want building blocks they can use and adapt to their own vision of innovation.


New at Software Finance
A one-stop destination for the latest software stock, M&A and VC data.

The new Finance section compiles the news, data and deals which drive the software industry. Debuting this month, the Sand Hill 30 stock index charts the progress of 30 companies which best represent the new world of enterprise software and services. The M&A and venture capital sections showcase software industry trends, the most recent deals and hand-picked news on the latest partnerships. We will continue to add and revise these pages in the coming months so send us your feedback.

AJAX: A Victim of its Own Success?

There are now hundreds of AJAX tools to help build Web pages. That’s the bad news. While standards exist for specific pieces of AJAX, no standards exist for how it is used. Tony Baer of onStrategies says this posts a problem for mashups and other enterprise uses for AJAX. Read more about the new OpenAjax Alliance and what it hopes to achieve in this week’s post to the Blog on Enterprise 2.0.

Learning Customer Needs from a 5th Grader

Software vendors have long been criticized for being out of touch with their customersí needs. Antony Awaida learned another lesson about product development and the importance of getting into the customerís head while working with his sonís Bizworld class. Read more in this weekís post to the Blog on Sales & Marketing.

How Will Tomorrow’s Tech Builders Raise Capital?

Technology entrepreneurs are common. Tech company builders – the Gates’, Ellisons, Jobs’ and others who spend decades building their companies – are a rare breed. Phil Bookman argues that the current startup finance model may not ensure that the next generation of these industry leaders will be able to fund their ventures. Read more in this week’s post to the Blog on Software Finance.

Publish Your Perspectives!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

New Webinar: Learn Distributed Agile Development

Agile development methods have gained popularity for being people focused, results driven and high quality. But many vendors struggle with how to leverage agile methods across a distributed development environment. Learn how in a new webinar, “Effective AGILE Product Development for Distributed Engineering Teams.” Speakers will include reknown Agile expert, Dr. Alistair Cockburn, Mark Madsen of Rivermine and Stuart Donovan of Induslogic.  Click to find out more and register for one of two sessions, Sept. 26 or Sept. 28.

Battle of the Megavendors

A new war of words and a new batch of numbers scores this round of "SAP vs. Oracle"; plus, what's holding open source back, what's holding SOA back, what's pushing software patents to record levels and more software news of the week. Read more about these stories and more software news of the week in the news summary.

Don’t Miss: Enterprises Getting the Most Out of CRM

Few companies gracefully pass sales leads and service information across the barriers of departments and business units. But those that do enjoy substantial rewards. Read more about how enterprises are linking CRM systems in this article from The McKinsey Quarterly.

Poll: Is HP Abnormal – or the Norm?

The HP corporate espionage scandal has once-again tainted the technology giant’s image. But were HP’s actions that uncommon – or did they just get caught in the act? Give us your two cents.
Take our Pulse Poll >>

Last week, readers gave their opinions as to how the software IPO market would perform over the next 12 months.
Give us your opinion and see the results >>

More at

SOAs help improve dialogue between IT and business users.
Read the most important enterprise software industry news of the week >>

OpSource receives $20.5 million.
Monitor the latest software venture capital deals >>

Art Technology Group pays $48.3 million for eStara.
Size up last week's software M&A deals >>

Captara names Rick Ludlow 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

"Before you build a better mousetrap, make sure you have some mice out there."
– Yogi Berra

Courtesy of Malcolm Kusher, The Kushner Group