Software is intangible: it doesn’t have weight or size or per-unit manufacturing costs. But if we’re in the software business, we have to assign units and prices that reflect our value to customers. And we should be mapping out pricing strategy before we start development, not the day before product launch.
Occasionally building something unique and small for a single customer makes sense. But enterprise software companies can easily fall into the habit of including custom work in too many of their major deals… with disastrous results. This (long) post lays out root issues and possible solutions.
There are some fundamental laws of tech product economics (especially software) that should drive executive-level decisions about business and product strategies. It’s easy to forget them, or decide they don’t apply to our special situation. We unpacked a few.
Lean Product/UX Meetup: Enterprise software products often have long sales cycles, lumpy revenue streams, and organizational gaps between buyers and users. How does this shape enterprise product management?
It’s easy to believe that broadly available commercial products don’t give us exactly what we want, but that our internal team can quickly whip up precisely the right thing. This ignores some fundamental economics of software commercialization.
There are some fundamental laws of software economics that should drive executive-level decisions about business and product strategies. It’s easy to forget them, or decide they don’t apply to our special situation. (Gravity’s not just a good idea, it’s the law.)