Big suite software hit by the innovator’s dilemma
BSSC has noticed their innovation gap—the gap between their legacy architecture and modern, agile, cloud-native, connected and intelligent architectures of the present and future. The difference may be not merely a gap, but a gulf.
The Innovator’s Dilemma, the axiom where highly successful companies focus only on continuous improvement of their product, lead by their biggest paying customers who only want incremental improvement, has a stranglehold on BSSC. Therefore, there are layers of conflicts within BSSC. It is an oxymoron to expect this strategy to help your business leapfrog the competition, enter new business models, or respond to disruption.
BSSC recognizes this—their Innovator’s Dilemma problem. So what do they do? They buy smaller companies. In fact, the largest software companies (Microsoft, SAP, Oracle, IBM, CA, Manhattan Software and so on) are on a buying spree. Microsoft, for example, has been doing this since 1987 when it bought the company that created the original Powerpoint. Microsoft in one 13-year timeframe purchased 149 companies3.