The Product mindset and the Services mindset

Posted by Robert Merrill on February 21, 2009 under Concepts | Be the First to Comment

Rick Freedman, writing about marketing for IT consultants on TechRepublic, put into clear, memorable terms something I’ve been trying to express for years, namely the difference between product sales and services sales.

Product selling is transaction-oriented, while services selling is relationship-oriented. Product businesses sell based on the “four Ps:” product, price, place, and promotion, while service businesses sell based on the “three Rs:” referral, reference, and reputation.

How to hire good people

Posted by Robert Merrill on October 25, 2008 under Concepts, Software-Intensive Businesses | Be the First to Comment

Seth Godin says that you should be careful who you work for, either as an employee or as a client.

Executives and managers, consider the corollary. If you want to hire and retain people with certain character qualities, talents, and skills, then you and your organization probably need to exhibit those. If you are lacking in some way, join the club. We all are. Character can be developed, and skills can be acquired. Talent? Find someone you trust, who has what you lack, and team up. They need you, too.

The Software Value Circle

Posted by Robert Merrill on October 17, 2008 under Concepts | Be the First to Comment

This figure goes with the article Let’s All Join Hands on WTN, the Wisconsin Technology Network.

The Software Value Circle shows the relationship between cost (creating and operating software) and benefit (use of the software for positive business impact).

The Software Value Circle shows the relationship between cost (creating and operating software) and benefit (use of the software for positive business impact).