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Morettini on Management

Morettini on Management
Phil Morettini provides commentary on the High Tech industry, as well as tutorial articles for C-level managers in Software & Technology companies

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VAR vs. Retail Distribution in Software and Technology Markets
2009-11-09 01:19:00
There is much talk in the software and technology industry about distribution through the "Channel". Generically that means selling through some type of a third party company, rather than selling directly to the end customer. But in reality the "Channel" includes a wide variety of disparate types of third party resellers. Today we'll take a look at when to consider partnering with two of the main
More About: Software , Technology , Markets , Distribution , Retail

Will SaaS Lead to the Death of Software Product Management?
2009-10-13 06:59:00
There is a lot of talk in the software business these days about changing business models, particularly the trend toward SaaS (Software as a Service). Will SaaS business models dominate the software business? Many consultants, pundits and other industry figures are proclaiming that SaaS will very soon take over the world; saying if you're not on the bus soon, you're going to be out of business
More About: Management , Product , Death

Startup Mistakes by Software and Tech Companies
2009-09-15 02:17:00
Starting a company, any kind of company is the hardest thing to do in business. Sez me. It's also one of the most rewarding and fun, if you're built for the startup experience--though not everyone is. Tech nology startups have their own unique challenges. There are many different ways to drive off the road, some of which I list below. Keep in mind that no startup is perfect, and mistakes will be
More About: Software , Companies , Startup

Compensating the High Tech Sales Force
2009-08-18 00:49:00
A very controversial topic within many software and other tech companies is how to best compensate the sales force. How much is required? How much is too much? What's the best mix of salary and incentive comp?If you've read anything I've written before, you'll find my next comment familiar:It all depends on your particular situation.There is no across-the-board best practice for optimizing your
More About: High Tech , Sales , Tech , Force , High

All atwitter About Twitter Marketing
2009-07-23 04:25:00
There's been a lot said and written about the newest Social Media craze, Twitter .Particularly in the popular press, there's also been a lot of misinformation. Sometimes the only way to get the real story is to try it yourself. I thought I'd give it a shot, and throw in my two cents on what Twitter's really all about with respect to marketing.I've been on Twitter for a few months now. As of today,
More About: Marketing

Business Intelligence Software 101
2009-07-10 05:29:00
This month we have a guest Blogger: The Actuate Corporation Team. Acutuate is an Open Source Business Intelligence Software vendor. Hope you enjoy their post-Phil MorettiniThanks to the global recession, companies worldwide are looking for ways to streamline their organizations and cut costs. Increasingly, they?re turning to business intelligence software to help find solutions. Developed by
More About: Business Intelligence

Will Microsoft's BING Finally Bring Success in the Search Engine Market?
2009-06-06 01:08:00
Microsoft's new search service is called BING, and takes a contrarian approach to the simple Google Interface. The BING interface is kind of a cross between Google and the Yahoo Directory, with a bit of Expedia, MapQuest, Shopping.com, UTube and Flicker thrown in for good measure. Never accuse Microsoft of being modest in their ambitions--this site takes on directly just about every major category in the online world.I've given BING a quick look. It's polished and appears pretty comprehensive. The search results don't seem to be that much different from previous Microsoft efforts, although the interface's major categories may allow the finding of information more quickly than an elegantly simple one like Google's--if you know upfront the category of information that you're looking for.HOW LIKELY IS SUCCESS?Will they succeed? They have many times before in similar situations. They've been laughed at and written off in quite a number of markets over the years. MS has a bad cor...
More About: Market , Search , Search Engine , Success , Engine

Cloud Computing, SaaS and Such--Have We Read This Story Before?
2009-05-05 02:30:00
I have this incredible feeling of déjà vu.Cloud computing and Software as a Service is all the rage. In my practice at PJM Consulting, I am very involved in software startup activity. Nearly every new software company that I see today is being built on the Software as a Service business model. It's all the rage--so much so that it appears that any self-respecting software entrepreneur would be embarrassed to start a company using the traditional software licensing model. Even if an entrepreneur was so inclined, good luck finding a VC who would even consider funding such a company. No one wants to look like a dinosaur.It's all well and good--there is definitely a real trend toward SaaS and Cloud Computing , with many good reasons for it. But most high technology trends are initially a bit over-hyped, and tend to get ahead of themselves. In addition, this particular story seems ever so familiar to a tech veteran that's been around for a few of these cycles.The first bit of history t...
More About: Story , Read , SAAS

Oracle is buying Sun?
2009-04-23 02:25:00
Breaking News?. Oracle buys Sun!? What's wrong with this picture?What's surprising is that a very large software company is buying a very large hardware company. You often see a hardware company buying a software company, but I can't really think of a deal that's gone the other way around. Certainly not at this level. My practice at PJM Consulting serves all kinds of technology companies--but a focus is on software. Although every situation is different, my typical advice is for software companies to stay away from hardware, if at all possible.This news is very interesting on several levels:Involvement of two high profile, strong personalities in the technology businessI'm talking about Larry Ellison and Scott McNealy. Of course, MCNealy no longer actively runs Sun, but he is still Chairman and a power to be dealt with. He was allegedly the force behind the killing of the potential deal with IBM. Apparently Larry and Scott are old buddies, so maybe there won't be a problem. Bu...
More About: Buying

White Papers in the High Tech and Software Marketing Mix
2009-04-16 01:52:00
There are many marketing methods in Software and IT marketing that can be appropriate in some, but not all situations. I'd put White Papers in that category. The term "white paper" is a broadly used term, and can mean different things to different people. I define a white paper as a document written to provide insight or expertise specific to a market, process or product category.PRODUCT & MARKET APPLICABILITYWhite Papers are used far more often in B2B marketing than in B2C marketing. I have seen them used in a B2C environment, but only infrequently. A White Paper is most often useful when there is complex technology or work processes involved. In a B2C environment, they would usually only be used in an "early adopter" market where a product concept is new, and prices and sales cycles are still long.MARKETING RATIONALE FOR WHITE PAPERSWhy use a White Paper at all? The best reason is to build credibility for your company or product. White papers are most frequently accessed by p...
More About: Marketing , High Tech , Tech

The Future of Venture Capital Funding in High Tech
2009-03-03 01:44:00
Like almost every aspect of the current economy, Venture Capital Fundings of High Tech and Software startups are way down.There is pressure on virtually every segment of our economy, and the worldwide financial system is in by far the greatest disarray of our lifetime. The preferred exit strategy for Venture Capital ists, the IPO, pretty much shut down quite a while back. Financial returns at Venture funds have taken a hit like everything else financial, and VCs are definitely not in good position to attract new capital in the near term--given the current frantic flight to quality by investors. Things look dire in the VC business. There are even suggestions by many people, including some prominent VCs, that the long running and revered Venture Capital business model is "broken", and that it will cease to exist as we now know it.So what really is going to happen? Is the end of the world near? (well?maybe, based on the news headlines every day). Will a software or technology entreprene...
More About: Future

Inside TeleSales versus Outside Sales in Software and High Tech Companies
2009-02-06 02:09:00
There are many ways to deliver your software and technology products to the market. For example, one and two step distribution through third party channels, direct marketing/sales over the Internet, OEM relationships and many variations of these, as well as other methods.One classic method of delivering products to the marketplace is by using a direct sales force. Within the direct sales methodology, two of the most popular variations are an outside sales force and an inside telesales group.Inside sales forces utilizing telesales are cheaper per rep, so your cost of sales is reduced, and you can potentially afford more reps. Outside sales forces can provide additional credibility and stronger relationship with the account. How do you choose between the two methods? Does it sometimes make sense to use both? Let's take a look at some of the key aspects to consider when making this decision:PRODUCT COMPLEXITY AND LENGTH OF SALES CYCLEProbably the most important consideration in this d...
More About: Software , Companies , High Tech , Sales , Tech

Effective Management During an Economic Crisis
2009-01-22 00:59:00
This month we're doing something a bit different--we have a guest post from Holly McCarthy. Please be aware that Ms. McCarthy is not affiliated with PJM Consulting, and the views expressed in this post are her own.In the current economic climate, there is much that can still be done to turn business around. Certainly, technology has come a long way in helping businesses to maximize productivity with a minimum amount of manpower. While this is a great advantage over the economic crises of years past, the fact remains that effective management and leadership is still a key factor in maintaining the integrity of any business that wants to stick around after the dust has settled.Leading by ExampleManagement will need to take the reins of companies and lead by example for the best results as the economy continues to waver in the coming months. Being able to roll up one?s sleeves and get down to business will show employees just what it takes to get the job done right. Unemployment i...
More About: Economic , Effective , Crisis

What Happens to Apple after Steve Jobs?
2009-01-09 23:31:00
I've written several times on Steve Jobs and Apple , one of the most fascinating companies and executives that we've seen in the history of high technology.I don't mean to make this a morbid article; the current speculation on Steve Job's health has been well-documented. I hope that Mr. Jobs is fine, and that he has many more years of good health, with a continued long reign at Apple.But it does raise a slightly different question that is interesting to ponder. There has always be a "cult of personality" surrounding Apple and Steve Jobs . In fact, when Jobs recently announced that his recent weight loss was do to a minor hormone imbalance rather than a reoccurrence of cancer, the stock was up 4% that day. Mr. Jobs is joined at the hip with Apple in the investment community and public's eyes. Jobs will leave Apple at some point, hopefully to go into a happy retirement, as I stated above. Regardless of the circumstances of his leaving, what will become of the company once he is gon...

Integrating Sales and Marketing at Software and Technology Companies
2008-12-11 23:42:00
In some, but not all tech companies, the Sales and Marketing functions are managed separately. They are separate, but closely related functions that some people (especially technical folks) have a tendency to confuse. Normally, there is a VP or Director heading up the Marketing department, and another VP or Director leading the Sales staff. But it is also not unusual to see a VP or Director of Sales & Marketing who leads both functions at once.This all seems benign enough, so what's the issue? The issue comes when actual revenue fails to meet the forecast--that's when the finger-pointing usually begins. Unfortunately, not meeting forecasts is a common event in technology businesses, where forecasting of new software and tech products can be particularly challenging. When that finger-pointing starts, it often breaks out first between the Marketing and Sales departments--here's how the ensuing "discussion" might go:SALES: "You haven't planned products that our customers want t...
More About: Software , Companies , Technology

Structuring a High Tech Sales Force
2008-11-06 06:45:00
There are many ways to organize a sales force. In my opinion, there is no one "right" way. There is only the BEST way for unique circumstances of your current company.Like most aspects of developing a software or technology company, there are guidelines, but no exact roadmap to building a successful sales force. In my practice at PJM Consulting, I often suggest that a management exercise like structuring a sales force should begin with a series of questions:What stage of development is your company in?This important, because an early stage company may not have the resources to fully fund the outside sales force that may be ideal for its situation. Or the company may want to sell primarily via an inside sales force, but hasn't had enough early success or nailed down the sales process sufficiently, to sell effectively through this less "high touch" method. Stage of development can be as important as what the ideal "steady state" organization would look like--don't over shoot your de...
More About: High Tech , Sales , Tech , Force , High

Google Chrome--a Strategic Platform or just another Browser?
2008-10-10 01:27:00
Google's new Chrome Browser came out a few weeks ago to quite a bit of attention. It's big news 1) because it's from Google and 2) it brings back memories of the "browser wars", and seems like it could potentially signal the next big battleground in the intense rivalry between Google and Microsoft.I've downloaded Chrome and played with it a bit, but this isn't intended to be a technical review of Chrome's merits. It seems reasonably snappy, and has Google's typical minimalist design philosophy, including a single box for multiple functions (search, address bar, etc.). Your personal preferences will decide whether you like that or not. It has some nice features such as tabbed browsing, which theoretically should prevent one bad browser window from crashing all open browser windows--much like when Windows became multi-threaded. Nice stuff, but doesn't really fundamentally change the browser game. But technically it's still a beta anyway (of course just about everything is wit...
More About: Google , Strategic , Platform

Structuring Channel Discounts for Software and Technology Companies
2008-09-09 00:44:00
Selling through sales and distribution channels of various types is very important to many software and tech companies. Yet channel programs, and specifically discount structures, are often thrown together quickly and haphazardly, without looking at any real hard data. Let's examine some of the key items it's advisable to consider, when structuring a channel discount program:Market NormsThe absolute first place to start when considering channel discounts is to survey the SPECIFIC market that you are entering. By this I mean look at similar products through the EXACT profile of channel partners you are considering selling through. For example for consumer software, retail margins of 15-18% are common, whereas for a specific VAR segments the discount norms may be in the 25-40% range. If your discounts fall too far below the market norm, your program will likely fail. If discounts are set much higher than the market norm (without good reason), your company will be leaving considerabl...
More About: Software , Companies , Technology , Discounts , Channel

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
2008-07-09 01:09:00
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

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

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