The Business of Software : What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad

The world's leading expert on the global software industry and coauthor of the bestseller Microsoft Secrets reveals the inner workings of software giants like IBM, Microsoft, and Netscape and shows what it takes to create, develop, and manage a successful company -- in good times and bad -- in the most fiercely competitive business in the world. In the $600 billion software industry it is the business, not the technology, that determines success or failure. This fact -- one that thousands of once glamorous start-ups have unhappily discovered for themselves -- is the well-documented conclusion of this enormously readable and revealing new book by Michael Cusumano, based on nearly twenty years of research and consulting with software producers around the world. Cusumano builds on dozens of personal experiences and case studies to show how issues of strategy and organization are irrevocably linked with those of managing the technology and demonstrates that a thorough understanding of these issues is vital to success. At the heart of the book Cusumano poses seven questions that underpin a three-pronged management framework. He argues that companies must adopt one of three basic business models: become a products company at one end of the strategic spectrum, a services company at the other end, or a hybrid solutions company in between. The author describes the characteristics of the different models, evaluates their strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a business as well as in good versus bad economic times. Readers will also find invaluable Cusumano's treatment of software development issues ranging from architecture and teams to project management and testing, as well as two chapters devoted to what it takes to create a successful software start-up. Highlights include eight fundamental guidelines for evaluating potential software winners and Cusumano's probing analysis, based on firsthand knowledge, of ten start-ups that have met with varying degrees of success. The Business of Software is timely essential reading for managers, programmers, entrepreneurs, and others who follow the global software industry. Publisher description: The world's leading expert on the global software industry and coauthor of the bestseller Microsoft Secrets reveals the inner workings of software giants like IBM, Microsoft, and Netscape and shows what it takes to create, develop, and manage a successful company -- in good times and bad -- in the most fiercely competitive business in the world. In the $600 billion software industry it is the business, not the technology, that determines success or failure. This fact -- one that thousands of once glamorous start-ups have unhappily discovered for themselves -- is the well-documented conclusion of this ... book by Michael Cusumano, based on nearly twenty years of research and consulting with software producers around the world. Cusumano builds on dozens of personal experiences and case studies to show how issues of strategy and organization are irrevocably linked with those of managing the technology and demonstrates that a thorough understanding of these issues is vital to success. At the heart of the book Cusumano poses seven questions that underpin a three-pronged management framework. He argues that companies must adopt one of three basic business models: become a products company at one end of the strategic spectrum, a services company at the other end, or a hybrid solutions company in between. The author describes the characteristics of the different models, evaluates their strengths and weaknesses, and shows how each is more or less appropriate for different stages in the evolution of a business as well as in good versus bad economic times. Readers will also find invaluable Cusumano's treatment of software development issues ranging from architecture and teams to project management and testing, as well as two chapters devoted to what it takes to create a successful software start-up. Highlights include eight fundamental guidelines for evaluating potential software winners and Cusumano's probing analysis, based on firsthand knowledge, of ten start-ups that have met with varying degrees of success The software industry is in a fast-paced league of its own. The drive to have the highest level of speed, the highest level of flexibility in strategic planning, and the need to manage talent of a different generation and mindset, make it truly unique. Few possess as much experience showing software professionals how to succeed as Michael Cusumano, who has served as a board member or consultant to such organizations as AT & T, AOL, CompuServe, Lucent and Verizon. THE SOFTWARE BUSINESS packs his invaluable insight into a single, powerful guide. Just as he did in MICROSOFT SECRETS, Cusumano links issues of strategy and organization with those of managing technology. He argues that the key to success in the 600 billion USD software business is choosing a business model that will capitalize on the good times and survive the bad Through eye-opening case studies, Cusumano introduces a ground breaking framework that any manager can use to select the right business model from a choice of three: products, services, or hybrid business solutions. A must-read for every manager, programmer, analyst, entrepreneur, and student interested in software, THE SOFTWARE BUSINESS is destined to become a handbook for getting ahead in the competitive field of computers and e-commerce The co-author of Microsoft Secrets links issues related to strategy and organization to those of managing technology, arguing that companies must chose a business model that will capitalize on good times and survive more difficult periods, and presenting the success stories of such companies as IBM, Toshiba, and Motorola. 25,000 first printing. Michael A. Cusumano. Includes Bibliographical References (p. [303]-319) And Index.