Psios

The Business of Software What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad by Michael A. Cusumano presents a solid overview of the software business appropriate for software managers and entrepreneurs:

1. Do you want to be mainly a Products company, or a Services company?
2. Do you want to sell to Individuals, or Enterprises | Mass market, or Niche market?
3. How horizontal (broad) or vertical (specialized)is your product or service?
4. Can you generate a recurring revenue stream that will endure both good and bad times?
5. Will you target mainstream customers, or do you have a plan to avoid the chasm?
6. Do you plan on being a Leader, Follower, or Complementor?
7. What kind of character do you want your company to have?
8. Case studies

Software Entrepreneurship:

1. Strong management team
2. Compelling new product, service, or hybrid solution
3. Strong evidence of customer interest
4. An attractive market
5. A plan to overcome the credibility gap
6. Business model showing early growth and profit potential
7. Flexibility in strategy and product offerings
8. Potential for large payoff to investors

Technorati Tags: book review, business, entrepreneur

Case studies that provide insight include:

• Microsoft
• IBM
• Netscape
• Business Objects
• i2

Buy The Business of Software What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad by Michael A. Cusumano.Cross-reference:Geoffrey Moore - “Crossing the Chasm.”Michael A. Cusumano - Microsoft’s Secrets