I was recently presented with a business concept and a rough outline of how the business intended to automated its product delivery and back-end operations with software. Most of the documentation was sales focused -- what is the market, what are the demographic drivers for this product, et cetera. What was immediately apparent to me when reviewing these documents was that their business was at its core a software technology company.
So what makes your business a software company?
Years ago, I started a small light manufacturing building material supply business with my father. It was 2007 and residential and commercial construction was strong. My father had been in the construction industry for nearly 30 years, and was anxious to run his own shop again. I had a young family, and I was eager to learn the ropes and contribute my skills in technology and business management.
As we developed our business, we quickly realized that our competitive advantage was not just in the quality of the materials we produced or the relationships we had with our customers, but in the way we leveraged software technology to streamline our operations, inventory management, and customer service. In essence, our business became a software company, not just a manufacturing and supply operation.
Here are some key indicators that your business may be a software company at its core:
Dependency on software: If your business relies heavily on software tools and systems to deliver its products or services, it's a clear sign that technology is a central component of your value proposition.
Innovation through technology: If your business is continuously developing new software applications or improving existing ones to enhance its products or services, then it's evident that technology is a driving force in your company's growth and development.
Competitive advantage: If your business's competitive advantage is rooted in the unique software systems or applications it employs, it further reinforces the idea that your company is fundamentally a software business.
Digital transformation: If your business is proactively embracing digital transformation and shifting its focus from traditional methods to technology-driven approaches, it's another strong indicator that you are operating as a software company.
Software development expertise: If your business has a dedicated team of software developers or engineers to create, maintain, and improve software applications, it's clear that technology is an essential component of your business model.
Understanding that your business is a software company at its core can be a powerful realization. It can help you make strategic decisions, allocate resources, and prioritize investments in technology to drive growth and success. By embracing the software-centric nature of your business, you can unlock new opportunities, streamline operations, and deliver exceptional value to your customers.