Transforming Poor Product Performance for Enterprise IT Software Into Opportunities – Insulate Core Revenue

Enterprise IT ISVs with poor performing products can use these products as the basis of new, and likely to be more promising, opportunities to develop products for these same markets. The first requirement, obviously, is to take the required steps to ensure that the business is not the victim of product poor performance. Two methods of insulating the business from product failure are rather obvious, including:

  1. Launching products that are otherwise tangential to the primary revenue stream of the business
  2. Launching new products under the radar

The first strategy can be put into motion by an entrepeneur who opts to begin a business while employed, or otherwise dedicated via a contract to a customer. In this scenario a business is usually operating solely on funds received from the business owner, who pays out the funds from salary, personal savings, etc. A product failure of this type should not threaten the overall business, unless the product, itself, is introduced to a market that is closely connected to the market targeted by the employer of the entrepeneur. Even a miserable failure of this type, which can be identified by an employer, who, in turn, can construe this type of a business venture as a threat, should be avoided, at all cost.

The second strategy is usually implemented by a business that has achieved some level of revenue. In this scenario, a new product is launched under the covers, certainly with a wholly separate brand, and, perhaps, for a separate market. A potentially familiar example of this type of effort can be found in the “Saturn” automobile effort undertaken by GM in 1982, which was largely disconnected from the GM brand until 1994, when GM accomplished an effort to ” . . . is [fold] Saturn into GM’s Small Car Group.” (quoted from Saturn Timeline: 1982-2009). We wrote frequently on the topic of this type of under the radar marketing approximately a year ago.

If either of these two strategies are implemented as the basis of operation while a product is introduced, there is a good likelihood that the business will survive, should the initial product effort fall short. In fact, there are other ways of paying for a product launch beyond these two methods, but for expediency sake we are not going to detail them here. The key point, which we will explore in the next post, is to very carefully collect and analyze the specifics that arise as market prospects are engaged on the topic of the product.

If you are planning on launching a software product (on premise, cloud, software as a service, etc) you need to make sure that your business plan promises to insulate your core revenue driver from your still to be proven product concept. If you lack the internal resources to manage this type of effort, then you need to engage with a third party.

IMB Enterprises, Inc. offers directly relevant experience on this type of effort. Our monthly plans start at $3200.00, with a 3 month minimum client commitment. Please contact us to learn further. You can call Ira Michael Blonder at +1 631-673-2929 to further a discussion about our services plan. You may also email Ira at imblonder@imbenterprises.com.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved

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