By Lauren Dresnick
Positioning your company’s products and services as a “must have,” instead of a “nice to have,” set of solutions was the predominant theme during this month’s expert panel discussion at San Mateo Software Innovations 2009—an event that kicked off the new San Mateo Chamber of Commerce campaign to spotlight San Mateo’s growing role in the software industry and to foster community building among the city’s software players and civic leaders.
Moderator Becky Buckman, senior editor of Forbes, strategically posed questions to the six-person panel that explored the various angles of today’s most important and widely discussed topic: prospering despite hard times. And, more specifically, the role San Mateo’s software community will play in sparking the next wave innovation and driving economic development.
Though the panelists represented diverse areas of expertise—ranging from SaaS to cloud computing, online marketing and healthcare IT—they provided complimentary insight into where bright spots exist within the software industry and how companies can reevaluate their strategies to achieve better success.
Right out of the gate, Brian Jacobs, Founder and GP of venture capital firm Emergence Capital Partners, noted that as far as market value is concerned, larger software companies (such as the Microsofts, Apples and IBMs of the world), have taken less of a hit than lower-cap companies. He explained the public tends to view these organizations as more stable and viable, better able to withstand the recession.
However, Jacobs was quick to qualify this trend as one founded in somewhat of a fallacy, that big companies are never “too big” to fail. He emphasize that the agility and adaptability of small software companies—the ones that can prove to customers that they’re offering a more cost-effective and competitive solution—will ultimately come out on top, and perhaps even ahead of the big guys.
Similarly, Ben Smith from SalesForce.com, the company that generously hosted this first event, suggested that businesses are looking to spend in areas that provide the best value or can lead to direct ROI. When a potential enterprise software provider goes in for the sale, the companies’ representatives must be able to evangelize real-world cost savings and superior services.
Comparing this bust to the dot com, Paul Albright, VP of Global Marketing & GM of SMB Business at SuccessFactors, suggested that the Bay Area is faring better than other business hubs across the globe. He pointed out that in any downturn, it’s about having the right goals and strategy and ensuring that these initiatives are executed effectively. Process or tool overhauls that allow a company to better leverage its strategic initiatives, making it more agile, are crucial. Because software solutions and the tech sector in general are uniquely situated to help businesses achieve such goals and because the Bay Area is the hub of this innovation, it’s no surprise that the local community is seeing more stability.
Diaz Nesamoney, CEO of Jivox Corporation, agreed. Since this is a global recession, he explained, the bottom line is ROI. That’s what customers must see before and after they invest in your offering. If a software company is NOT positioned to provide cost-savings—be them immediate or prolonged—then that company MUST reposition itself.
Narinder Singhm, CEO and Founder of Appirio, chimed in on this topic, too, suggesting that there’s only going to be “winners and losers” in this downturn, unlike in times of economic prosperity when you may see “winners and winners.” To win, software companies must be able to explain in a dollars and cents formula how their offerings are going to lead to less overhead and better tools.
On a more forward-focused note, Ben Smith of SalesForce.com added that technology innovation in general, in terms of research and development, will pull the country through this downturn. And, both Diaz Nesamoney of Jivox and Narinder Singhm of Appirio felt there was a unique opportunity for local and national government to provide assistance to business educational institutions that are on the cutting edge of such innovation.
Perhaps the most unique perspective on the panel was that of Dr. Terry Forte, Chief Medical Officer of Mills-Peninsula Health Services, who is responsible for a five-year rollout of the medical conglomerate’s electronic medical records system. Terry discussed not only the specific aspects of his organization’s tech movement, but also that of medical organizations across the nation. He suggested that the movement towards electronic systems of record will create a major shift in the culture of today’s medical industry—one that’s characterized by collaboration, cost-efficiency and, most importantly, better care.
To wrap up the discussion, panelists offered a little investment advice. Where in the software industry would they put their hard-earned salaries? Well, not surprisingly, in many of the areas that they’re already pursuing, those that are gaining international notoriety right now, including SaaS, cloud computing, alternative energy solutions and electronic records systems for the healthcare industry.
For more in the San Mateo Software Innovations 2009 event series, please check out the San Mateo Chamber of Commerce website (www.sanmateochamber.org) or join the group’s community page on Facebook. Footage of the event will be available soon.
Tags: cloud computing, healthcare IT, online marketing, SaaS, San Mateo Chamber of Commerce, San Mateo Software Innovations 2009