Software Business Model

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Revision as of 00:04, 29 May 2009 by Red1 (talk | contribs) (EIDA link)
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This article is started by Red1. You may discuss about it in Talk:Software Business Model. This page is related to ADempiere Rapid Development.

Magic Wand, Anyone?[edit]

Figure 1 - A new contributor can design another add-on layer for the whole ERP to benefit from as a win-win self-positioning
  • Many have gone looking for the holy grail of software development tools and often came back empty handed.
  • For us here (do not take our word for it) ADempiere is the 'Pretty Good' framework to use for any serious financials related enterprise development.
  • It requires serious hands-on learning curve, say 3 months by a passionate team.
  • Here we have a sample case of a prospective application 'EIDA' or Economic Intelligence Data Analysis already deployed on top of a national database of agricultural produce.
    • It likes to go backwards into some suitable ERP functionality.
    • It wants to do order processing and document flow.
    • It wants to keep track of product and database expansion
    • It wants to integrate with many things along the highway.
    • It wants it fast, cheap and good.
  • The first thing a new application has to do is to trade-off with the ADempiere project.
    • It has to offer something in return
    • It has to exploit the community open source paradigm
    • It has to be useful to the horizontal ERP and other verticals
    • It has to be componentised and portable
    • It has to earn potential income to the contributor due to its branded domain expertise
    • It has to start releasing now.
    • It has already started here.
  • Consider this its first specification page.

Integrated Business Formula[edit]

Figure 2 - A community engineered product can turnaround faster in the market
  • The benefits to the contributor is:
    • Reduced development team. It can contract the best developers already present in the community.
    • Reduced development time. It can rest on a proven and stable application framework that already has inherent working features.
    • Reduced reinvention of the wheel. It can make use of any stated ERP functions.
  • The business direction for the contributor is:
    • To facilitate global presence of its vertical. It may offer training and consultation as to the subject expertise behind the application. In this case it is economic intelligence.
    • To position its name and services within the community resources. Its name can appear on the site and application credits page.
    • To work with community representatives worldwide. It need not overstretch but make use of present network as its reseller front.

Dual Mode Strategy[edit]

  • Going community open source allows the contributing company to enjoy tremendous marketing and branding.
  • Less reliance also on bloated marketing budget. Non-core activity elimination can happen.
  • Open information spells out its services model clearer to the market. Less demand for presales effort.
  • Small-time users will take DIY Mode and not pay for high-worth services fees.
  • High level users get the ground swell and engage disruptively upstream with Flagship Mode providers.
  • Large vendors threatened and react either matching the FOSS move and thus dilutes itself.
    • Or differentiates further thus pushing up the water level.
  • Either way the FOSS player travels light and moves above the water level and awaits market understanding.

Contributor Makeup[edit]

Figure 3 - EIDA is a sample idea that can be contributed. If not, someone else will
  • The contributing company should not have over-reliance on own local IT and developer resource.
    • Java or ERP resource is expensive and even more expensive to keep. Just have a skeletal 3 man support team per base is sufficient.
    • Rely more on short term and well paid expatriate team already available in the community. Hire our best brains and hands to ensure a quick kickoff and exit strategy.
    • Keep lean and beam. Not mean.
  • Go up your own value chain. Be better in what you are good at and nothing else.
    • High worth deals only seek for high worth consultancy and services.
    • Seek a niche and not be everything to everyone. You will soon dry up and no one pays a dime more. There are many more cups better than yours.
  • Focus to enjoy more.
    • You won't like a big headache from big office and staff.
    • No one likes you having big headaches all the time.
    • When you are having fun, you won't mind failing. It is already paid for.

Business Horizon[edit]

  • ERP is getting hot. Most SME to large enterprises have software that need changing between 5 to 10 years. Most software half-life ends in 8 years.
  • Open Source is even hotter. If yours is not free, someone else is. In fact, almost everyone else is. Even Microsoft gets it.
  • Been number one is hottest. ADempiere is not only number one, but will explode further every season due to unabated growth.
  • Pressure of ubiquitous and disruptive integration tolls on limited expert resource. No one can remain closed and even compete.
  • Many ERP projects fail. More pressure for quick and easy wins.
  • ERPs need to be everything to everyone. Now no single company can do that. But a community can. A borderless timeless one.

See Also[edit]