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Competing with Entrenched Software & Technology Industry Giants
2008-08-16 01:56:00
I was reading an article in the business section of our local newspaper recently about a new Search Engine name CUIL (pronounced Cool). I already knew about CUIL, because I had noticed that it had recently indexed the PJM Consulting website. One of their claimed differentiating factors is that they've their search index is twice as large as Google's is. In addition, they believe that they have improved the ranking algorithms, and they also present the results in a different way. The results offer fewer results per page, but more comprehensive information on each site, and often include a photo or other graphic. The premise of the article was that it may have a chance to be a real competitor vs. Google, or at least Yahoo and Microsoft, for market share in the huge search business. The founders have impressive pedigrees and come from Google on the technical side.The article gives credence to the possibility of CUIL being a potentially serious competitor to Google, Yahoo and MS, whil...
More About: Software , Technology , Industry , Giants

Integrating the Marketing and Engineering Functions at Technology Companies
2008-07-08 23:09:00
In most tech companies, Product Marketing and Product Development/Engineering are managed separately. There is usually a VP over the Product Development function and another over the overall marketing function, which usually includes future product marketing/planning.While this is certainly an appropriate way to organize a tech company, there is a great danger in one are when it comes to these separate operating "silos": the planning of new products.I have a particularly strong opinion on this topic, with an extensive product marketing background and also having worked as a product developer earlier in my career (albeit in a non-tech business).With respect to current products, the silo approach isn't much of an issue. The day-to-day activities of the marketing and engineering departments are very different, and can be managed separately quite successfully.It's in the future product area that things can get messy. Product Marketing and Product Development both have a key role to pl...
More About: Companies , Technology , Functions

Trade Shows for Software & Technology Firms - Do They Still Make Sense?
2008-06-06 01:15:00
Let's talk about what, for some people, is a marketing method from a bygone era: Trade shows, or Trade Fairs, as they're referred to in most places outside of the US.At one point in time, Trade Shows were a staple in most every tech company's marketing budget--shows like Comdex, PC Expo, Network World and a host of others were annual rites of passage. But in this Internet age, they have been greatly reduced in the marketing mix, if not taken completely out of the picture.There are many reasons for this. First and foremost, the ROI of tradeshows was always very questionable for most exhibitors. In marketing departments everywhere there were sharp discussions during budget time, on whether to continue the expense of the major shows. They always seemed important to be at, but usually it was pretty difficult to make a direct correlation to enough actual revenue, to justify the large expense. As the Internet became more prominent, this ROI looked even worse in comparison--as it did fo...
More About: Software , Technology , Sense , Make

The End of Customer Service
2008-05-07 01:11:00
No one answers the telephone anymore.At least, technology companies in the US surely don't. With big companies, you are either presented with an endless phone tree--"press 1 for a company directory"--or the newest innovation in communications technology: the cheerful "automated voice attendant". In many cases these attendants, and several other "innovative" service options, can lead to a great deal of frustration for customers and prospects.As a consumer and business buyer I've found this frustrating, not to mention an incredible productivity sink. As a High Tech industry executive and consultant with a strong marketing background, I find this practice curious at best--and insane at worst!Think about it--how many BILLIONS of dollars companies spend trying to get the attention of potential new customers--most of who are going to need to contact the company at some point. Yet it seems that once we've got their interest, or God forbid, they've signed up as an actual customer--we ar...
More About: Customer Service , Service , Customer

Retail Distribution of Software Products
2008-04-12 00:48:00
Selling software at retail at one point in time was the "Holy Grail" for consumer, home office and small office software suppliers. That's where the volume was. Everything that a company did starting up was intended to build enough volume to get into a distributor, so they could then pursue shelf space at the major retailers of software.But oh, how times have changed. The advent of the Internet and wide availability of broadband has made nearly every consumer and small business application downloadable with the click of a mouse, and a major credit card. In the meantime, major sellers of software have dropped like flies (CompUSA, Computer City) or have de-emphasized software in their retail assortment.PROFITABLE retail distribution of software, which has been a major challenge for software companies dating back more than 20 years, has gotten tougher every year, as the retail distribution pipe shrinks. And even twenty years ago, it was already very tough, for small software companies...
More About: Software , Products , Distribution , Retail

High Tech Market Research for New Products
2008-03-11 04:24:00
One of the biggest problems in High Tech businesses is the "technology-driven" approach that tends to predominate, especially among startups. Much of this occurs due to the fact the many founders of software and technology companies tend to come from an engineering, programming or other technical background. While a strength in creating a flow of technical innovation, this can be a real problem when companies are planning new products which they hope to find a real market for.Everyone has a tendency to focus on what they know best; that's just human nature. Folks spend more time on the issues that they enjoy, are more comfortable with, and are more confident about their ability to make good decisions on. Things that don't fit into this category tend to be put off, or given short shrift.The result is often products are well thought out from a technical viewpoint--but much less well so from a "meeting market needs" perspective. While both are important, the market perspective is abs...
More About: Products , Research , Market

Which Online Advertising Platforms Should You Include in Your Marketing Mix
2008-02-12 17:59:00
I often write about online marketing, as many of my regular readers know. A frequent topic of mine is Pay-Per-Click (PPC) advertising, also known as Cost-Per-Click (CPC). Occasionally, people will refer to this marketing vehicle as Search Engine Advertising . What you're hearing this called more and more is "Google Adwords".HAS GOOGLE ADWORDS "BECOME" ONLINE ADVERTISING?Of course, its kind of like asking for a "Coke" when you want a soft drink, or "Scotch Tape" when you are seeking sticky-backed tape. It's the age old story of a brand DEFINING the category itself, and usually happens when a product becomes dominant in a market segment.The conventional wisdom these days is that Google has basically won the Online Search Engine-based advertising wars, so don't even bother with any of the other advertising platforms out there. This topic is the very reason for Microsoft's recent offer to buy Yahoo for a gazillion dollars; they are motivated to do this because Google is so far ahead ...
More About: Marketing , Online Advertising

Strategies for a Technology Market Slowdown
2008-01-15 02:01:00
Is the world economy slowing down? What are the implications for technology companies?Recently, technology stocks (along with the stock market in general) have tanked. There is a credit crunch that shows no signs of abating, and inflation is rearing its ugly head, with the continual climb in the prices of oil and other natural resources--commodities which touch every aspect of the world economy. Is the economy headed for a severe downturn--taking technology businesses down the drain with it?I hardly think so, but we have had a very long running economic expansion, that eventually will reverse by the universal law of "what goes up, must come down". Economies are cyclical by nature, so a downturn has to happen eventually. And tech stocks are usually affected more severely than average in an economic downturn, which affects technology industry investment and ultimately tech growth rates.So what should you do if you're the CEO of a software or hardware tech business?Be Prudent, But Don...
More About: Technology , Market , Strategies

Negotiating and Working with Large Technology OEM Partners
2007-12-15 00:11:00
The Holy Grail for many software and technology companies, especially the early stage type, is the big deal. Everyone is looking for the big deal, the one that will fund the company's early activities, provide market credibility and momentum in the marketplace. Of course, if it goes well, there can be nothing better. Many times the big deal takes the form of an OEM partnership with a much larger company. But often when these deals do happen, they end up fitting in the category of "be careful what you wish for".TARGET YOUR OEM PARTNERS CAREFULLYThis is where it all starts, good or bad. It's important to pick compatible partners. Companies looking for large OEM partners are often blinded by the potential of what the OEM can do FOR their business. They often fail to pay any attention at all to what the OEM might do TO their business!Can the partner cause severe channel conflict? Will they tie the small company up in endless meetings, procedures and negotiations? Do they have a corpor...
More About: Technology , Partners , Working , Large , Workin

Channel Pricing Strategy for Software and Hardware Products
2007-11-24 02:32:00
Pricing software products is always a difficult exercise. With high product development costs, but near zero costs of goods sold, there are many different strategies that people have followed successfully (and not so successfully!) over time. Pricing hardware products is a bit simpler because there is generally a significant cost of goods sold that acts as a governor on pricing behavior. But even with hardware, technology markets are dynamic and fast moving. And it's a complex enough topic when all sales are going direct--once you bring channels into the picture, it only gets worse.CHANNEL CONFLICTThe biggest concern most companies have when pricing for multiple channels is channel conflict. I have seen many companies who actually AVOID selling through channels for fear of the pricing implications it brings. They are afraid of a channel undercutting their direct sales force in price, and channel conflict in general, which arises as a result of different prices being presented to cu...
More About: Hardware , Software , Products , Strategy , Channel

Forecasting New Technology Products
2007-10-18 02:14:00
Forecasting is a thankless job. It's a lot like being a referee or umpire in your favorite sport; the only time a game official is noticed is when they do something wrong! Similarly, a forecaster's primary aim is too stay out of the "news".Make no mistake; forecasting is a very important function in any business. In the software business, your whole business plan could be riding on meeting the forecast to fund growth and product development. In a hardware business, it's even worse--you have to worry about creating too much or too little inventory--either of which can be a huge problem for your business.HARD IN THE BEST OF CIRCUMSTANCESIt's bad enough when you are trying to forecast an existing, mature product, in a mature industry. This is a difficult and complex task, using well known techniques such as smoothing, trending and seasonality to fine tune the next month or annual forecast.Early in my career, at Hewlett Packard, I spend 4 months in a special assignment dedicated sol...
More About: Technology , Products , Forecasting , Forecast

More SEO Tools
2007-09-29 01:58:00
From time to time, I let you know about some of the more useful (out of the abundant crop available on the Internet!) online tools for Search Engine Optimization (SEO) that I have come across. So here's the latest batch of valuable, and free, widgets that I've found:The first is a site that checks on all of your back links, with a twist: it actually details not only the back link itself, but the anchor text associated with the link. For those of you sophisticated about SEO for your website, you'll know that this is very important information. There are a couple of reasons why this is important. First of all, the search engines use anchor text to associate your site with keywords that might be searched on in that engine, and uses this information in it's search rankings. So it's very important to have your most important keywords show up as anchor text on as many back links as you can manage. Secondly, if the search engines find that the anchor text on your back links is too rep...
More About: Tools

System Integration vs. Product Development
2007-09-22 02:07:00
I've recently engaged on assignments with two new clients. Both of them have businesses selling to large, blue chip customers. Customers of the size that are used to "having it their way"; as a result, getting a deal with them often includes the need for a lot of customization.The interesting thing about these two clients is how they perceive and approach that need to customize.A Tale of Two CompaniesCompany A views customization somewhat as a pain and distraction, something to be controlled--I am assisting them with creating a standard solution offering menu outlining the "Base" offering, with a list of options available at an added cost. They really want to discourage certain customizations, absolutely won't do some things that will be asked, and want to make sure that they charge dearly for items that they find painful. They have the classic mentality of a product company; they want to do the amount of customization necessary to make a large sale to this important customer--but...
More About: System , Integration , Development , Product , Stem

The Future of Wireless Communications
2007-09-04 22:29:00
Land Lines are going away, right? Everyone says so. We hire young women, generally in their twenties, to help take care of my son. I can't remember the last time one of their phones had an Area Code associated with the place they are currently living.That's because they don't use landlines--many people in their twenties and thirties move around a lot, and rely strictly on a cell phone as their sole or primary telephone. If they have a couple of roommates, occasionally they will also have a landline. But the number usually isn't given out, and doesn't appear to be used much.So does this mean that we are rapidly heading toward the wireless society that pundits have been predicting for a number of years? Or is wireless growth slowing and about to settle into mature market mode, with modest incremental growth in the future? There are a number of factors on both sides of this discussion--let's explore a few.Factors Pointing Towards Acceleration Of Wireless MobilitySociety is becomin...
More About: Future , The Future , Communications

Steve Jobs, the iPhone and Apple Strategy - have we seen this story before?
2007-07-24 01:59:00
Apple computer and its red-hot iPhone have dominated the business news recently. By all accounts, with good reason. I haven't had the opportunity to play around with an iPhone yet, but the early reviews have been very positive. Initial interest demand has been high, especially given the usual amount of mystery and intrigue woven by Mr. Jobs and the folks at Apple.For a first-time entry in to a large, competitive business such as cell phones--you've got to be impressed. Yet I've got this vague feeling of familiarity when it comes to this story--I somehow feel that I've seen it and heard it all before?.THE RETURN OF JOBSApple Computer since the return of Steve Jobs from the hinterlands has felt a lot like the Apple from Jobs initial run at Apple. He's restored the company's attitude, and dominates publicity, product direction and what feels like nearly every little detail about the company. Not bad for what is roughly a $20B company. It speaks to how strong and impressive Mr. Jo...
More About: Pod , Apple , Story , Steve Jobs

The Haphazard Development of People in Early Stage High Tech Organizations
2007-06-25 03:51:00
Many entrepreneurs start out giving little thought to how they will grow their embryonic technology business in the long run. They are totally focused on designing and releasing the first product, or making that first sale. This focus is usually a very positive thing in a new company, since grandiose plans of startups have a way of getting derailed by the harsh realities of trying to survive.Other more organized and contemplative entrepreneurial types have a master plan all laid out, including the steps on how they are going to grow their company all the way to the happy exit they have planned. This approach can be of great benefit as well; even though things won't go exactly as planned, it's great to have a road map that you can adjust as conditions change.One thing that many younger organizations don't do so well, is in planning the development of their staff. Don't misunderstand; there are a lot of development opportunities for employees of newer and smaller companies. But th...
More About: People , High Tech , Tech , Development , High

Business Models in the SMB Market
2007-06-10 23:55:00
The SMB market is typically a very popular topic for hardware and software companies. Every one wants to sell to the Enterprise market; as a result, competition is fierce and standards are very high. If you get to the Enterprise market early, with an innovation that creates a new category, you can find success if you are truly making a contribution to the market. But late entries into a market segment, as well as early stage companies competing with larger, established companies, often have a very tough go of it. In these situations, attention often turns to the Small and Medium-Size Business , or SMB, market.And why not? At first blush, the SMB market appears to be huge, as well as underserved. It looks like a perfect haven for an early stage or turnaround company with a solid product, but not quite enough differentiation, brand name, or marketing muscle to push out the big boys in the Enterprise space. So the decision is made to focus on SMBs.What's Wrong With This Decision?There ...
More About: Models , Market , Mark , Sine

Is It Time to Sell Your Hardware or Software Company!
2007-05-31 02:21:00
This is the point that most, if not all, technology entrepreneurs aspire to reach. They dream of selling their company and laying on a beach somewhere, a colorful drink with the requisite umbrella, cooling in their hand.There are a few of you out there that would never sell your company (it's your identity, after all), preferring to work forever lest you slow down and quickly deteriorate. But that's another story; we'll save your psychoanalysis for another day?Some of you that want to sell your company have the most grandiose plan of all in mind: An initial public offering (IPO) through a brand name investment banker, bringing not only unimaginable riches, but fame along with that fortune. But that rarely happens--we'll also table that discussion for another column?So let's get back to the great majority of you out there, who set out to some day cash in all of your hard work, by selling your company directly to another company. How do you know when the time is right?WHAT MAKES ...
More About: Hardware , Software , Company , Time , Sell

Organizational Structures in Software & High Tech Companies
2007-05-12 00:37:00
So you've put together a hardware or software startup company. Chances are you didn't give a lot of thought to what the next step should be in organization development--you just wanted to bring in some revenue and find a way to keep the doors open. Or, maybe you gave it a great deal of thought, even before you bound your initial business plan--there are quite a few anal-retentive planning types out there--you know who you are!I don't mean to make light of this issue; it's actually quite a serious one. Let's look at a few of the questions to consider when deciding how to organize your company, as well as a few options.IMPORTANT QUESTIONS TO PONDERWhat are the strengths, weaknesses, and operating styles of the principals? I believe that this is a critical question to ponder, if one wants to organize the company successfully. One of my great examples is HP. Bill Hewlett and Dave Packard instituted a decentralized structure almost from the very beginning of Hewlett-Packard. They we...
More About: Software , Companies , High Tech , Tech , High

Strategic Acquisitions for Software and Technology Companies
2007-04-30 22:35:00
Acquiring new products or whole companies is a popular activity for many growth and market-share oriented companies. Is it a good idea?Well, as I often say--it depends. I get involved in company or product acquisitions quite often in my consulting practice. There is nothing inherently good or bad about acquisitions in the technology business. However, there is nothing inherently bad about opening a restaurant, either. Nonetheless, a very high percentage of restaurants (I've seen figures as high as 90%) fail within 5 years. The failure rate for acquisitions may not be quite as high as for restaurant startups, but technology acquisitions are also judged to be failures at shockingly high rates. Caution should rule when approaching either of these very popular activities. As I'm fond of saying about success or failure in any complex business activity--the devil's in the details.Common Motivations for Acquisition ActivityLet's examine the common reasons that acquisitions are consider...
More About: Software , Companies , Technology , Soft , Trat

The Mechanics of Email Marketing
2007-04-08 02:53:00
There are many different possibilities for technology and software companies, when it comes to formulating a marketing mix. I've written before about some of my favorites. One method that can be a big winner, if done well, can also be a big loser if done poorly. I'm referring to email marketing. If you want to be successful, you need to do it very well, as a result of SPAM and the general bursting of everyone's email inbox these days.Why Email Market ing ?Email marketing can be so productive for a company, because unlike more passive forms of online marketing (ex: PPC advertising, Banner Ads), you can usually target you audience very effectively. This is especially true if you are using an in house list; by definition, these are prospects that have some reason to have an interest in your products. In B2B marketing, there is an abundance of excellent niche lists available for rental, to use in a targeted campaign. In B2C they aren't quite as good overall, but there may be very good...
More About: Mail , Email Marketing

Open Source Software Business Models
2007-03-30 01:59:00
Open Source has been gaining ground for quite some time. Some would say, using the example of Linux, that Open Source has Microsoft and the rest of the traditional software giants on the run. No doubt that open source software has had a major impact on the economics of the software business, across many different market segments.But is it a good model to use in your software business--if you are actually interested in making money?Not Generally My Cup of Tea--But Let's Take Another LookI will admit that my feelings toward open source business models have always been lukewarm, at best. Maybe there's a bit of dinosaur in me. But the idea of putting into the public domain the code that you've sweated to produce, at great emotional and financial expense rubs me the wrong way. It trikes me as fundamentally opposed to the basic nature of capitalism and the entrepreneur.Like just about everything else in business, however--the devil's in the details. Using Open Source methods has been ...
More About: Software , Business , Open Source , Models , Open

Selling Through OEMS
2007-03-13 20:10:00
I've recently discussed selling through VARs as a distribution channel strongly favored (maybe a bit too much!) by many early stage technology and software companies. In this article I'm going to look at another channel that is often misunderstood and misused: The OEM channel.When a company goes about it the right way, OEM business can be an excellent additional revenue source for startups--and any high tech company, for that matter. Where I want to throw out a caution flag, is when a company decides they are going to rely on OEMs as its primary--or only--channel.Now this can work, you might say. And you would be right. But in most cases, I believe, it isn't the best way to proceed. It can work, if you have the right type of product, and you've thought your strategy through very thoroughly. The problem is with most companies, this the usual scenario. What I find more prevalent is the old "let's make it, and we'll get someone else to sell it for us" approach. As I've discussed...
More About: Selling , Through , Sell

Pay Per Click (PPC) Online Advertising
2007-03-01 10:43:01
It's known by several names: PPC or Pay Per Click advertising, CPC or Cost Per Click advertising, or sometimes by the best known PPC advertising engine, Google Adwords.Pay Per Click advertising is no longer new; as a result, much of the "easy" money has already been made. But I'm struck by how many companies I run across that are NOT using this method, to attract prospects or make sales on the web. While it is a competitive channel, unlike the early days of this medium, it is still one of the most effective, and cost-effective, method to promote most any product or service online.PPC should not only be a staple of the promotion budget of nearly every company, it should be one of the first promotion methods utilized on behalf of a new product, service or company. Here's why:Complex to Optimize--But Simple to StartPPC advertising campaigns can be very complex and extensive, and will be once you get them optimized. Many companies are spending tens of thousands of dollars/month on PP...
More About: Advertising , Online Advertising , Online

Dell Computer
2007-02-15 10:37:04
Dell has been in the news recently, and like many big companies that have had a glitch in their performance, not in a good way.Slowing revenue growth, accounting scandals and customer service issues--you've heard it all before. By the way, where was the seminar that all big company managements attended, encouraging them to cut corners on their financial reporting practices? It seems that the same pattern has been replicated to an astounding degree across a broad array of large corporations. There has to be some root cause of this; too much smoke in this area to be a coincidence. And of course, the "Professional CEO" relieved of his duties--and replaced by the company founder, returning on a white horse to his original role to refocus the company.These things have been so common in corporate America. Business writers may have been able to perform an automated "search and replace" in their word processor and write a new, yet the same, story for each additional corporation unfortunat...
More About: Computer , Dell , Comp

Search Engine Optimization (SEO) Through Online Bookmarking
2007-02-08 22:33:01
I've spent a fair amount of time talking about Search Engine Optimization in the past. The reason is that in the new century, this is as fundamental to marketing success as print advertising in the last fifty years, and maybe billboard advertising in the fifty years previous to the last fifty. The details and tactics of marketing change, but goals don't really--getting your products and business in front of prospective customers. It would be really hard to find a business of any size these days that doesn't have a website. If they don't, they are probably on the same path as the carriage builders of the early 1900's--becoming extinct.That's why I spend so much time exploring SEO: it is nearly universally critical to the market presence of every company, especially high tech and software companies. So here is one more new technique that you can use to build your company's Internet presence, including the always present goal of improving your ranking in Search Engine Results fo...
More About: Bookmark , Book

Marketing and Selling Technology Products through the Value-Added Reseller
2007-01-29 04:28:04
Selling through multiple channels is one of my preferred strategies in technology marketing. If done properly, it allows a company to fully exploit its expensive, hard-earned intellectual property to the maximum extent. One of the most popular channels (and one of my favorites) used to sell B2B software and hardware is the Value-added Reseller, or VAR channel.VARS ARE THE DISTRIBUTION HOLY GRAIL FOR MANY STARTUP COMPANIESIn fact, with a great many startup software and technology companies, building a VAR channel network to sell their companies products is the first thing they want to do, upon releasing their first product. This is especially true when the founding management team primarily comes from a technical background. The thinking goes; they are technologists who have created a great product. They don't have a lot of experience selling or marketing--and most of the startup money has gone to, and will continue to go to developing products. Why not just recruit a bunch of resel...
More About: Marketing , Technology , Products , Selling , Market

Keyword Discovery Site
2007-01-25 04:25:02
I've run across yet another great free resource for marketing on the web. This site is focused on Search Engine Marketing (SEM). It's specifically targeted at finding niche keywords to use in the search engine optimization (SEO) of your website, as well as keywords to use in your CPC advertising campaigns.What's unique about this site is that it combines a number of important web-based resources for finding good keywords into one, easy-to-use interface. Simply go to this site, sign up for a free account, and you are then able to drop into one "basket" all keywords that you've found, using a variety of different methods that NicheBot has aggregated into a single interface. I find it an extremely convenient and fast way to conduct keyword discovery.The interface contains six different tools, all accessible with a single click: Keyword Discovery , Word tracker, Overture, Thesarus, Keyword Analysis and Google Ranking. NicheBot does a great job of providing you with key information. T...
More About: Site , Cover

A Special Appeal
2007-01-25 04:25:02
To all the loyal readers of the Morettini on <High Tech> Management:I rarely diverge from High Tech Management topics in this Blog. The following note is about a very important cause to me, and to society at large.I am participating in the upcoming San Diego Walk for Autism fundraiser, a charity event near to my heart. The Walk for Autism Research is the signature fundraising event of Autism Speaks/NAAR, one of the prominent parent-founded charities which funds Autism Research. I am asking for your generosity and seeking donations as part of my participation in the Walk--all donations going to Autism Research. You can find more information on the event at the San Diego NAAR/Autism Speaks-Walk for Autism website.The most important reason to contribute to Autism Research is the suffering of the children affected by this hideous disease, along with the difficulties it presents to their families. More than 50 years after it was first described, Autism remains a mystery, and is aff...
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Software and Technology Customer Service
2007-01-25 04:25:02
An under-rated competency, which should be considered more important to software and technology companies, is customer service. I guess that?s only natural; tech companies are very focused on gaining strategic advantage via technological advances and product differentiation. Once the product is in good shape, companies shift there focus, and become hell bent on marketing and sales activities to attract new customers. But what about taking care of existing customers?  And how about the operational details of what happens when someone?be it a prospect, new customer or existing customer?contacts the company for assistance? I find these are areas that software and tech companies aren?t ?naturally good at?. It?s not part of the DNA of most tech companies. Very seldom will you see a founder or CEO who came up on the support, or customer service side of the tech business.Because of this, customer support is quite often an afterthought, a detail that senior management never seems ...
More About: Software , Technology , Techno , Customer Service , Tech