Software Product Management and Pricing - Key Success Factors for Software Organizations

Software product management and pricing are key success factors for any organization providing software, be it a software company or an organization responsible for software in a company that belongs to a different industry. After defining the term "software product" and looking at the business and organizational sides, the core elements of software product management and pricing are discussed. Recommendations are given on how to deal with these elements depending on different types of organizations and products in order to achieve the long-term success.

List of contents

Responsibility for economic success (profitability across the life cycle).- Definition of the total market and the target market (e.g. national vs. international).- Scope and Positioning.- Definition of the packaging (product family vs. single product, name etc.).- Controlling of Marketing.- Definition and Controlling of the sales channels.- License models.- Value vs. Cost Pricing, Strategic vs. tactical pricing.- Client for Development.- Requirements Management.- Definition and coordination of the support structure.- Competitive advantages and how to defend them.

About the author

Hans-Bernd Kittlaus, Graduate of University of Dortmund (Diplom-Informatiker). Spent 12 years with IBM, first in the Boeblingen Development Lab in technical and management positions, then as the head of EMEA (Europe, Middle East, Africa) Software Product Management for IBM's database and application development products in Stuttgart (Germany), San Jose (California, USA) and Toronto (Canada). Spent 6 years as Director with SIZ (Informatics Center of the German Savings Banks Organization). Started his own consulting company InnoTivum, Rheinbreitbach, Germany, in 2001 focussing on all strategy and management topics in relation to software, in particular the alignment of business and IT. Mr. Kittlaus has published numerous articles and the books.

Summary

Software product management and pricing are key success factors for any organization providing software, be it a software company or an organization responsible for software in a company that belongs to a different industry. After defining the term "software product" and looking at the business and organizational sides, the core elements of software product management and pricing are discussed. Recommendations are given on how to deal with these elements depending on different types of organizations and products in order to achieve the long-term success.

Additional text

From the reviews:
"These two seasoned practitioners have masterfully distilled the essence of the software business and the art and craft of the increasingly important and challenging field of software product management. Worthwhile to any who want an appreciation of the evolving world of product management, seasoned veteran and new entrant alike."

Richard Campione, Senior Vice President, Business Suite Solution Management & CRM On Demand, SAP, Germany/USA

"Mr. Kittlaus and Mr. Clough have used their considerable knowledge and experience to succinctly lay out the value chain that is essential to the development of a financially healthy software company. If you want to understand how to turn software technology into a long-term profitable company this is the book to read."

Paul Kaplan, Vice President, Worldwide Enterprise Software Sales, Software Group, IBM, USA

"This book on Software Product Management and Pricing is the first book that treats the business of software in a systematical way. Although software products were already shipped in the seventies of the last century, there are hardly any books providing an overview of all issues a company faces when playing a role in this industry. Product management and pricing are key processes, and this book informs the reader of the essentials. It is a must-read for anyone involved in software products, be it in business or in research."

Prof. Dr. Sjaak Brinkkemper, Information and Computing Sciences, Utrecht
University, Netherlands

"This compendium covers all facets of the software business using the advanced professionalism of the industry's global players as its standard. The authors have managed to combine professional accuracy with helpful practical examples and valuable references for further reading. Highly recommended, in particular for managers in corporate IT and software vendor organizations!"

Wilhelm Gans, CTO, DSV Group (German Savings Banks Organization), Germany

"A comprehensive book on best practices for software product management and pricing. It provides a deep insight into strategy and tactics of software organizations in a time of growing complexity and new challenges like Software as a Service."
Udo Hertz, Director of Information Management Development, IBM Germany Research & Development, Germany
"Software is big business to the largest of the information technology companies. … Kittlaus and Clough frame their topics with considerable insight. … written for practitioners that work with or are responsible for software product management and pricing. Kittlaus and Clough have shared their points of view in a well-structured, easy-to-read format. … The authors added job descriptions for the software product management role and software pricing manager, which are very helpful in distinguishing these roles from others that may be or sound related." (Brian D. Goodman, ACM Computing Reviews, May, 2009)

Report

From the reviews:
"These two seasoned practitioners have masterfully distilled the essence of the software business and the art and craft of the increasingly important and challenging field of software product management. Worthwhile to any who want an appreciation of the evolving world of product management, seasoned veteran and new entrant alike."

Richard Campione, Senior Vice President, Business Suite Solution Management & CRM On Demand, SAP, Germany/USA

"Mr. Kittlaus and Mr. Clough have used their considerable knowledge and experience to succinctly lay out the value chain that is essential to the development of a financially healthy software company. If you want to understand how to turn software technology into a long-term profitable company this is the book to read."

Paul Kaplan, Vice President, Worldwide Enterprise Software Sales, Software Group, IBM, USA


"This book on Software Product Management and Pricing is the first book that treats the business of software in a systematical way. Although software products were already shipped in the seventies of the last century, there are hardly any books providing an overview of all issues a company faces when playing a role in this industry. Product management and pricing are key processes, and this book informs the reader of the essentials. It is a must-read for anyone involved in software products, be it in business or in research."

Prof. Dr. Sjaak Brinkkemper, Information and Computing Sciences, Utrecht
University, Netherlands

"This compendium covers all facets of the software business using the advanced professionalism of the industry's global players as its standard. The authors have managed to combine professional accuracy with helpful practical examples and valuable references for further reading. Highly recommended, in particular for managers in corporate IT and software vendor organizations!"

Wilhelm Gans, CTO, DSV Group (German Savings Banks Organization), Germany

"A comprehensive book on best practices for software product management and pricing. It provides a deep insight into strategy and tactics of software organizations in a time of growing complexity and new challenges like Software as a Service."
Udo Hertz, Director of Information Management Development, IBM Germany Research & Development, Germany
"Software is big business to the largest of the information technology companies. ... Kittlaus and Clough frame their topics with considerable insight. ... written for practitioners that work with or are responsible for software product management and pricing. Kittlaus and Clough have shared their points of view in a well-structured, easy-to-read format. ... The authors added job descriptions for the software product management role and software pricing manager, which are very helpful in distinguishing these roles from others that may be or sound related." (Brian D. Goodman, ACM Computing Reviews, May, 2009)

Product details

• Authors: Peter N Clough, Peter N. Clough, Hans-Bern Kittlaus, Hans-Bernd Kittlaus
• Publisher: Springer, Berlin
• Languages: English
• Product format: Paperback / Softback
• Released: 11.03.2011
• EAN: 9783642095702
• ISBN: 978-3-642-09570-2
• No. of pages: 232
• Dimensions: 156 mm x 236 mm x 15 mm
• Weight: 370 g
• Illustrations: X, 232 p.
• Subjects: Natural sciences, medicine, IT, technology > IT, data processing > Hardware; A, Software Engineering, computer science, IT in Business, Software Engineering/Programming and Operating Systems, Information Technology, Programming Techniques, Computer programming, Operating systems, Business mathematics & systems, Computer programming / software engineering, Computer Engineering and Networks, Computer Systems Organization and Communication Networks, Computer organization, Business—Data processing, Business applications, Computer networking & communications, Distributed databases, Input/Output and Data Communications, Input-output equipment (Computers)