The document outlines 6 mistakes for software vendors to avoid: 1) Underestimating the Technology Adoption Lifecycle and where the market currently stands. 2) Lacking focus on target customers and market segments. 3) Letting customers dictate strategy instead of controlling direction. 4) Remaining tech-focused instead of being market-centric. 5) Maintaining a consulting mindset instead of pushing standardized products. 6) Neglecting to define and communicate their unique value proposition or positioning. The author advises software vendors to focus on their market strategy from the beginning.

1. 6 mistakes for a software vendor
Alain Meller – NovaXone
Info@novaxone.com
i A. Meller

2. 1. To underestimate the Technology Adoption Lifecycle
(TALC)
Maturity
Hyper Growth
Assimilation
Early Market
 What Category are you in? What is the stage of the corresponding market?
 Each Phase of the market requires a different market strategy
If you don’t get it correctly: you will waste a lot of time and efforts!
A. Meller

3. 2. Absence of focus
 If you never decide where is your Segments’ requirements
sweet spot and who is your ideal
target customer, you will end up
with :
 Running after your different customer
requirements and after your more
Segment
Segment
Segment
focused competitors
Competitor
A

C
B
Loosing ability to compete in each
segment
Functions of Your Product
 For each segment, your product offers too much …and not
enough! You will consistently loose over competition.
A. Meller

4. 3. To let the customer drive your strategy
 Customers will tell you what is important to their job, but do not generalize
too quickly!
 Customers want their particular problem to be solved. They will ask you to do
custom specific development
 Although corresponding revenues may be vital, keep your eyes open:
 They may drag you to directions where you may loose your very uniqueness
 Too much custom development will kill you by creating liabilities that will
hamper your growth
 You need segment discipline and focus in order to grow
 Control your customer, don’t do whatever they want you to do, feed others
A. Meller

5. 4. To remain techno-centric and to refrain to be market-
centric
 Ventures start often with a bunch of brilliant techies that eventually capture
Early Adopters. When the market develops and Pragmatists are becoming
interested you need to be more and more focused on their needs and not on
what you think is the last cool feature.
 Capturing the industry knowledge of your customer is key: if you don’t have it in
the beginning, get it in-house ASAP
 Spend time on your Marketing Strategy: the sooner the better
 If you don’t do it, others will do it and will outpaced you big times!
A. Meller

6. 5.Never distance yourself from a consulting-oriented
mindset
 If you are coming from a customer service background (consultancy, software
house), you’ll need to change your culture to succeed
 Proposing a software product to a market with an objective of high margin and
growth means: pushing a standard offer
 You’ll need to move from «Tell me what you want me to do Mr. Customer » to
« Here’s what I am coming up with for you to solve your problem »
 Choose you business-model and start working on marketing
A. Meller

7. 6. To neglect to work on « positioning »
 Let’s suppose you know your ideal customer who is aligned with your very
unique capabilities.
 Great! That is not enough if nobody knows it!
 Positioning means making clear and communicating on your value
proposition
 Positioning will make you the obvious choice when your ideal customer
is going to make a buying decision
 Average products with outstanding positioning will win over you.
A. Meller

8. Don’ts in short
 To underestimate the Technology Adoption Lifecycle (TALC)
 Absence of focus
 To let the customer drive your strategy
 To remain techno-centric and to refrain to be market-centric
 Never distance yourself from a consulting-oriented mindset
 To neglect to work on « positioning »
Work on your Market Strategy from day one!
info@novaxone.com
A. Meller