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The VP R&D Open Seminar




          Software Biz:
     The 3 Pillars of Success
            mokplan@  gmail.com
  http://blogs.microsoft.co.il/blogs/vprnd
The 3 Pillars of Successful Business
                   Prices Discrimination


                 Products Differentiation


                      The Critical Mass

    Strategic Entry Barriers        Natural Entry Barriers



2
           http://blogs.microsoft.co.il/blogs/vprnd
The Critical Mass

    $$$
                                   Total Cost

                                                        Variable Cost
                                                        (OPEX)



                                                Fixed Cost (CAPEX)



                            You want
                            to be here
                                                    Per Client Cost
                                                             Clients


3
          http://blogs.microsoft.co.il/blogs/vprnd
Entry Barriers
    Natural
      Regulation
      Absolute advantage cost structure
      Scale
      Equity requirements
    Strategic
      Barrier Price
      Reliability
      Sunk Cost

4
           http://blogs.microsoft.co.il/blogs/vprnd
Platform and Products Differentiation
                    http://basecamp.com




5
         http://blogs.microsoft.co.il/blogs/vprnd
Prices Discrimination




                               http://us.123rf.com/400wm/400/400/timea/timea1210/timea121000012/159


6
    http://blogs.microsoft.co.il/blogs/vprnd
                       39362-world-map-with-small-figures.jpg
Prices Discrimination




                               http://us.123rf.com/400wm/400/400/timea/timea1210/timea121000012/159


6
    http://blogs.microsoft.co.il/blogs/vprnd
                       39362-world-map-with-small-figures.jpg

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The Software Businesses - VP R&D Open Seminar

  • 1. The VP R&D Open Seminar Software Biz: The 3 Pillars of Success mokplan@ gmail.com http://blogs.microsoft.co.il/blogs/vprnd
  • 2. The 3 Pillars of Successful Business Prices Discrimination Products Differentiation The Critical Mass Strategic Entry Barriers Natural Entry Barriers 2 http://blogs.microsoft.co.il/blogs/vprnd
  • 3. The Critical Mass $$$ Total Cost Variable Cost (OPEX) Fixed Cost (CAPEX) You want to be here Per Client Cost Clients 3 http://blogs.microsoft.co.il/blogs/vprnd
  • 4. Entry Barriers Natural Regulation Absolute advantage cost structure Scale Equity requirements Strategic Barrier Price Reliability Sunk Cost 4 http://blogs.microsoft.co.il/blogs/vprnd
  • 5. Platform and Products Differentiation http://basecamp.com 5 http://blogs.microsoft.co.il/blogs/vprnd
  • 6. Prices Discrimination http://us.123rf.com/400wm/400/400/timea/timea1210/timea121000012/159 6 http://blogs.microsoft.co.il/blogs/vprnd 39362-world-map-with-small-figures.jpg
  • 7. Prices Discrimination http://us.123rf.com/400wm/400/400/timea/timea1210/timea121000012/159 6 http://blogs.microsoft.co.il/blogs/vprnd 39362-world-map-with-small-figures.jpg

Editor's Notes

  1. The Matrix, The Architect Speach http://www.youtube.com/watch?v=mod6xr-lyBc A better w/ titles: http://www.youtube.com/watch?v=K3OXs_5AD2A Second, Kong foo: http://www.youtube.com/watch?v=j82GKTgVDkw Twitter Source: http://www.slideshare.net/Blaine/scaling-twitter