Register for your free TechRepublic membership or if you are already a member, sign in using your preferred method below.
We recently updated our Terms and Conditions for TechRepublic Premium. By clicking continue, you agree to these updated terms.
Invalid email/username and password combination supplied.
An email has been sent to you with instructions on how to reset your password.
By registering, you agree to the Terms of Use and acknowledge the data practices outlined in the Privacy Policy.
You will also receive a complimentary subscription to TechRepublic’s News and Special Offers newsletter and the Top Story of the Day newsletter. You may unsubscribe from these newsletters at any time.
Username must be unique. Password must be a minimum of 6 characters and have any 3 of the 4 items: a number (0 through 9), a special character (such as !, $, #, %), an uppercase character (A through Z) or a lowercase (a through z) character (no spaces).
3 pitfalls to creating your internal software company 
Your email has been sent
Many companies have launched their own internal software companies tasked with developing new products for the market. While an excellent idea, there are significant risks and pitfalls for what is ultimately entering a new business. 
Your company may be one of the hundreds that have added a software element to its strategy to create software products that can be sold to existing or perhaps new customers. The motivation for this strategy is usually sound. Digital products and software can provide consistent, recurring revenue with minimal incremental cost. While there’s a fixed incremental cost to sell another product, machine or hour of your people’s time, adding another user to your software platform usually requires little additional cost.
SEE: Hiring kit: Data scientist (TechRepublic Premium)
However, as companies further down this path can attest, adding software to your portfolio isn’t an easy job. Here are three pitfalls that many companies have encountered and how to avoid them as you start your journey.
Many companies incorrectly assume that software is unconstrained by old-fashioned rules about bringing products to market, like having a product owner, managing a thoughtful release schedule and following a consistent approach to building the digital product.
Suppose you assume that all you need are some great technical resources. In that case, you’ll soon find your product is a mess of cool features at various stages of functionality, bundled together in an unconnected and incoherent mess.
Just because you’re operating in the digital realm, you still need a strong product owner who can determine which features and functionality are built when and can manage the integration points between them. Similarly, you’ll need thoughtful schedules on when and who will perform testing, how the product will be rolled out and how you’ll manage customer service, billing and product support.
If you’re working for a company that doesn’t have a history of launching physical products, you might lack these basic disciplines and find that launching software is even more challenging than a company used to that world. In this case, proceeding slowly and thoughtfully and communicating that your organization will require significant learning and growing pains will temper expectations and give you time to develop digital and product-related abilities to build software.
Software product development is mature enough to have right and wrong ways of building and launching products. You can attempt to implement these in your organization, work with a partner to build an internal software company or hire outside expertise to fill some of the roles.
However, many organizations are configured in a way that’s incompatible with successfully building and launching software. For example, if all your technical resources are encouraged to bill hours to client projects, you will struggle to find and retain resources for your internal software organization. Similarly, if you use your internal tech help desk to support your software products, service levels and expectations internally, it will likely conflict with what’s expected on the external market, creating a situation that could cost customers and put your product at risk.
SEE: The COVID-19 gender gap: Why women are leaving their jobs and how to get them back to work (free PDF) (TechRepublic)
Before you write your first line of code, investigate who, where and how your software products will be built and maintained. How will these individuals be managed, and what will their metrics look like?
It might be more exciting to get that first proof of concept demo done for the executive team, but a few weeks spent determining how to properly configure your organization as a software company will pay off significantly in the longer run.
While it may be evident that you’ll need technical support for your software products, you’ll also likely need various support back-office systems, from billing to tech support to new accounting and revenue tracking approaches.
Aside from the back office, you’ll also need a different approach to marketing and selling. Too many companies fall victim to the “Field of Dreams” approach to selling their software, assuming that, like the movie’s tagline, “if you build it, they will come.” Even if you successfully sell services or physical products to a well-understood set of customers, adding software to your portfolio doesn’t guarantee immediate success.
Test your assumptions around how you’ll sell, support and service your software products, and make sure you at least have an initial version of the supporting actors you’ll need in place before you launch.
Software products are undoubtedly worthwhile and potentially lucrative pursuits. The ability of an organization to add customers at little cost while creating durable new revenue streams should be on the table for every organization. However, like most worthwhile pursuits, adding software to your portfolio isn’t easy or a one-size-fits-all proposition. Embark on the journey thoughtfully and realize that success is more than just shipping some cool new app out the door and hoping for the best.
Discover the secrets to IT leadership success with these tips on project management, budgets, and dealing with day-to-day challenges.
3 pitfalls to creating your internal software company 
Your email has been sent
Your message has been sent
TechRepublic Premium content helps you solve your toughest IT issues and jump-start your career or next project.
These 11 cloud-to-cloud solutions back up your organization’s data so you’ll be covered in the event of deletions, malware or outages. Compare the best online cloud backup services now.
You can use a mobile device to speak with another person directly through the Teams app. Lance Whitney shows you how to use this handy feature.
A phishing technique called Browser in the Browser (BITB) has emerged, and it’s already aiming at government entities, including Ukraine. Find out how to protect against this new threat.
With so many project management software options to choose from, it can seem daunting to find the right one for your projects or company. We’ve narrowed them down to these nine.
Start-ups, DARPA and Accenture Ventures announce research partnerships, new hardware and strategic investments.
Procuring software packages for an organization is a complicated process that involves more than just technological knowledge. There are financial and support aspects to consider, proof of concepts to evaluate and vendor negotiations to handle. Navigating through the details of an RFP alone can be challenging, so use TechRepublic Premium’s Software Procurement Policy to establish …
Recruiting a Security Analyst with the right combination of technical expertise and experience will require a comprehensive screening process. This hiring kit from TechRepublic Premium includes a job description, sample interview questions and a basic want ad that you can customize for your business to find, interview, recruit and hire the best candidates for a …
Recruiting a DevOps engineer with the right combination of technical expertise and experience will require a comprehensive screening process. This hiring kit from TechRepublic Premium includes a job description, sample interview questions and a basic want ad that you can customize for your business to find, interview, recruit and hire the best candidates for a …
Video game writing jobs are in demand. Recruiting a video game/quest writer with the right combination of technical expertise and experience will require a comprehensive screening process. This hiring kit from TechRepublic Premium includes a job description, sample interview questions and a basic want ad that you can customize for your business to find, interview, …

source

Leave a Reply

Your email address will not be published.