The Business of Software
Michael A. Cusumano
Cusumano, a professor at MIT's Sloan School, emphasizes the need for software companies and solutions providers to be able to quickly adapt to rapidly-changing markets. Cusumano argues that companies must adopt one of three basic business models:
- Become a products company at one end of the strategic spectrum
- Become a services company at the other end
- Become a hybrid solutions company "in between"
This is a very good read, and it describes the characteristics of the different models, evaluates strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a company, as well as through different economic climates. There's also an interesting analysis of ten start-ups that have met with varying degrees of success.
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