The current supply chain difficulties are impacting revenue for many organizations, including General Electric Co.1 As product roadmaps are being re-evaluated and options for maintaining revenue expectations are evaluated, be sure your organization is not missing out on revenue from the largest part of product development – software! The ophthalmic industry discovered over a decade ago the importance and need for regular software revisions in order to provide the highest level of patient care as well as to stay competitive. If you currently have a consumables revenue stream, why not create a revenue stream out of software? These software product development initiatives come at both a development and regulatory cost.
The question then becomes, how do you productize your software product development? Your organization may not be set up for it. You may not believe you have the right team architecture. There is certainly effort in developing and productizing software product development. However, the benefit outweighs the cost when you have unknown timelines for supply chain challenges and if you order parts from overseas, you potentially have shipment uncertainties even in a healthy supply chain environment. What are some of the benefits of creating a software product?
- Minimal reliance on the supply chain for delivery of a product
- Ability to manage software updates and enhancements with greater regularity – thereby increasing competitiveness and adding value to the client
- Recurring revenue model in addition to consumables
- Differentiation to maintain your competitive edge
Of course, even with the benefits, you may have concerns:
- Skilled labor shortage with software
- Pricing – willingness to pay
- Deployment – How do we even approach the problem
BeanStock Ventures has experience in software product development and in the commercialization of software. Contact us today to explore how you can monetize your software to fill the supply chain revenue gap.
Be sure to tune in to our LinkedIn Live Event: Monetize Software: Leverage Your Software to Fill the Supply Chain Revenue Gap – April 14th 2022, 11am PT!
- GE’s Sales Decline 3%, Hit by Supply-Chain Woes. The Wall Street Journal. Accessed at: https://www.wsj.com/articles/ges-4q-sales-fell-3-hit-by-supply-chain-woes-11643112508 on Feb 2, 2022.
