Every business will be a software business. That’s what Microsoft CEO, Satya Nadella famously said in 2015, but he wasn’t the first. In fact it’s an idea and phrase that has now become so pervasive among the “technorati” that actually digging into it and fully understanding its meaning for the average business may sometimes become overlooked.
LicensingLive, the only event dedicated to software monetization strategies for ISVs and hardware manufacturers, is right around the corner. The theme of this year’s event is next-generation monetization strategies for embracing the NOW economy. One presentation I’m particularly looking forward to is by leading pricing and monetization expert Madhavan Ramanujam of Simon-Kucher & Partners.
In my role as Strategic Analysis Manager of the Software Monetization division at Gemalto, I lead in-depth strategic market analysis, evaluate worldwide technology trends, and understand the competitive market to support new strategic leads and business opportunities. Recently, I had the pleasure of talking with Kathleen Goolsby, Managing Editor at SandHill.com, about the mind shift that’s taking place in the medical equipment sector.
Increasingly, hospitals and medical centers are moving away from traditional up-front medical equipment purchasing toward a variety of more flexible paradigms. At the same time, medical device manufacturers are starting to realize the potential of the software that resides in their equipment. This embedded software enables Pay-Per-Use (PPU) and other flexible pricing models, which open up new business opportunities.
On November 1-3, the Juniper Hotel in Cupertino, CA will play host to LicensingLive! 2016 – the most comprehensive software monetization event dedicated to ISVs and hardware manufacturers. The two-and-a-half-day convention is the highlight of the software industry calendar, jam-packed with insightful sessions from industry experts and senior software leaders. Attendees at this year’s event will discover the next-generation monetization strategies that are enabling business transformation in the NOW economy.
Innovation in farming technology can tell you a lot about how the IoT affects business models in the 21st century. Whether you’re a device manufacturer or software developer, it is important to evaluate the type of offering you bring to market in light of emerging markets and trends. In this article, we present five lessons every IoT player can learn from technological advancements in agriculture.
In 1997, a pair of management consultants – Michael Treacy and Fred Wiersema – published a book entitled The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market, which suggested that companies could only become dominant players in their industry by achieving a proficiency in one of the following areas:
In ancient times, juggling was seen as a ritual that symbolized the seeds of Order and Chaos. It was believed that throwing balls in the air in a certain sequence would ensure fertile soil and good crop harvests. For today’s software companies, managing multiple licensing systems is more Chaos than Order, and no amount of juggling will yield the desired results. That’s why so many ISVs are turning to software monetization as a means of creating a more unified licensing experience.
I recently published an article on sandhill.com about the adoption of emerging business models for IoT-connected devices. The article looks at how IoT connectivity has led to increased risk for hardware manufacturers, namely IP theft, piracy, misuse, and reverse engineering, and how software monetization solutions can help overcome these risks.
As the Internet of Things (IoT) continues to grow, the implications for business model innovation are huge. One of the major drivers in this connected landscape is the shift in end-user preferences: there is an increasing demand for flexible pricing models, ease of access to software upgrades, and a superior customer experience. As a result of the rise in connectivity, end users’ perception of value and what they are willing to pay for is changing drastically. Therefore, to take advantage of the IoT, independent software vendors and intelligent device manufacturers alike need to fundamentally rethink their orthodox attitudes towards value.