The Business of Software Summary
6 min read ⌚
What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad
You are probably aware of the highly competitive environment in which businesses function today. Have you ever wondered why some companies succeed and how “The Business of Software” can make that happen? Have you ever thought of the working processes in software giants such as Microsoft and IBM while you are using their products?
If you are a manager, entrepreneur, and programmer, you need to realize how to handle good and bad situations – something we will give you the basics of in our summary of “The Business of Software“.
And if you are not in the industry, but you are a curious reader, we recommend that you stay with us for the next few moments all the same.
Who should read “The Business of Software”? and Why?
You cannot limit Cusumano’s writing to one particular business group.
Those eager to understand the importance of software development in all sorts of private and public services would find this book filled with useful material that may come in handy anytime.
The Business of Software is intended for the entire business community since automatization and digitalization are becoming the core elements of the new business era.
Young adults, students, and digital “fanatics” are also advised to read and perhaps re-read The Business of Software; it would answer a significant portion of their digital mysteries like: What should we expect in the near future from the world?
About Michael A. Cusumano
Michael A. Cusumano is an American author born on September 5, 1954, New Jersey – United States of America.
He obtained a Princeton University bachelor degree, while Harvard University gave him the privilege to earn his Ph.D. Momentarily Cusumano is highly prominent Professor who teaches at the Technology’s Institute in Massachusetts – Sloan School of Management.
A well renowned and leading expert on everything that concerns the software industry, he is the legitimate writer of some the best-selling books relating to Microsoft Secrets and Competing on Digital Time.
As a former editor and director of the MIT Sloan Management Review, he is accredited as one of the leading writers on implementing business strategies and latest information technology matters.
“The Business of Software Summary”
The software industry is one of the very few sectors that change our way of life on a day to day basis.
Gigantic software industry continues to overwhelm every other as time passes by.
Even the success of the dot-com and their business boom wasn’t enough to challenge the need and demand of the software industry services, skimming off the top is not an option since software yet remains the business world’s most profitable industry.
Michael A, Cusumano as a software expert is a part of an intriguing and insightful study that skips the glamor and go straight to the point.
What can you expect from The Business of Software?
The Business of Software generates techniques that explain accurately what makes one software company a technological leader in difficult economic times, recessions, and bankruptcies.
Unlike other tangible goods that are for disposable use and have their purpose, the software industry is on a mission to alter the world. Challenging the disruptive technologies and forming a tech-savvy generation is the ultimate goal.
Anyway, the software industry is approached differently based on the culture, and the resources available. In Europe in particular, the software companies prefer to “label” the process as art. In Japan, it’s merely a process of undisclosed character in which all parties strive for perfection.
The U.S. strictly focuses on the business side of things, and ROI. Service-rendering software companies are focusing on outsourcing, integration, training and so forth, while the product-based organizations are trying to create a comprehensive output.
Unlike other industries, the prosperous software market allows companies to absorb substantial profit margins, thanks to low costs when it comes to distribution and sales. It’s essential to mention that many companies nowadays prefer the hybrid approach, where both products and services are offered.
Cusumano writing style has some academic tendency in it.
However, he tries hard to demonstrate why a prosperous and well-organized software company can be a gold mine in the digital era by using a vocabulary that can be understood by a high school kid.
Furthermore, the Business of Software clarifies the best methods in the software development industry coherently and transparently.
Cusumano offers plenty of real-life examples and case stories also that add a little more fire to it.
We are not the only ones captivated by this book!
It is recommended by numerous of software experts, investors, and teachers that also clarify to people why they need to wait a little longer from time to time when they make a call to a software company’s toll-free number.
Entrepreneurial adventures are an indispensable element of an this all around software book, professionals and investors would find them as the most intriguing and engaging sections of the entire work.
The digital age is compiled out of hardware and software services so is no wonder that futurologists, experts, and investors are currently advising people to invest their capital in those two industries.
You probably have heard this saying: In Japan, everything requires time, and everything is a process, while in the U.S. everything is a business.
At the very end, it all comes down to choosing the right software products and services for your needs.
Next, take a look at the key lessons that we extracted from this book.
Key Lessons from “The Business of Software”:
1. Software Industry has a strong vision
2. Reproduction Efficiency
3. Mass Market relies on software
Software Industry has a strong vision
The Software Industry requires different perceptions from the community as it has a unique and unsubstitutable nature.
For beginners, its visionaries are often the main reason for world economic progress and for the majority of times, they do that successfully. For instance, back in the 70s, Bill Gates had a vision, that vision later to become our everyday reality.
Here are Bill’s long-term plans:
Microsoft Corporation studied the future; they were 100% sure that every home and every office at the late of the 20th and the beginning of the 21st century would have their personal computer, while these computers would run on their software.
Would you know it, their vision became our reality, these hardware and software geniuses didn’t forecast anything, nor did they used any magic to see the future, they’ve just analyzed one thing:
How can we change people’s lives for the better?
Reproduction Efficiency
Unlike long-established companies that manufacture tangible products or other service companies, software firms are renowned for the low-fixed costs that grant them the opportunity to spend the exact same amount of money to sell one or a million versions of their items.
Companies started to realize that they’re all dependent on the software industry, B2B and B2C sales are the fundamental basis of what makes the software so essential to us.
Mass Market relies on software
What is a Mass Market why should we mention it? If you want a straightforward and honest answer then-The mass market is merely a system that consists of a vast number of computers and connects some casual users that are using those computers.
The new digital time brings all sorts of marketing, financial, and interactional opportunities, for a company to exploit some of these opportunities it must rely on software.
Financial success in this market can lead to increased profits, but the Mass Market is no stranger to Globalization, so companies must be aware of the fact that this Mass Market carries an increased competition with itself.
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“The Business of Software” Quotes
Vertical markets that are exactly right for your solution must be easier to conquer than horizontal markets that require general-purpose solutions that anybody can use. Click To Tweet Success stories are rarely planned exactly in advance. Click To Tweet Between 1998 and early 2000, we experienced a once-in-a-century event, equivalent to and perhaps surpassing the introduction of the transcontinental railroad, commercial electricity, the telephone, the television and the computer. Click To Tweet It is too easy to overestimate the potential of horizontal markets and end up with products that have too few customers or that are too weak to combat the competition. Click To Tweet
Our Critical Review
The Business of Software gives a basic look at the software business and is written for programmers, managers, and entrepreneurs.
However, although it offers significant insight, it does that in an unorganized form. If you do not mind its lack of organization, you will surely benefit from this book.
Emir is the Head of Marketing at 12min. In his spare time, he loves to meditate and play soccer.
