In prior months we touched on four challenges for entrepreneurs: perceiving the need to change versus denial and isolation, moving toward commitment and planning versus indecision and procrastination, accepting the pace of change versus doubt and uncertainty, and tolerating instability and uncertainty versus regressing to old ways. This month we focus on “working towards resolution versus fragmentation."

 

Even as organizations change they maintain core values and beliefs. Surviving a transition, introducing a new product or service, realignment of function and priorities all seek to integrate the old with the new. We don’t “throw out the baby with the bathwater” in bringing change to organizations. The challenge for the entrepreneur in this step is to stabilize the organization around an innovative, integrated way of doing business. The alternative to integration is conflict and fragmentation with various departments and people operating in opposing ways in “turf battles.”

 

As a way to introduce this next challenge to entrepreneurs, I’ve decided on an exciting development of “shareware” versus proprietary software which is sold by major software companies. There is a battle developing between copyrighted software companies and game developers who unabashedly and shamelessly place their games on the Internet for free downloads. This “sharing the technology” approach is being picked up by our younger generation interested in flash presentations, video streaming, graphic design, and web page development. Many existing Internet sites offer free downloads for strategic planning (planware.com) and interpersonal growth (authentichappiness.org).

 

The software industry is in transition from proprietary “off the shelf” programs to more dynamic software that can be tailored to specific companies and problems. The Linux system is an example of using an operating system without spending hundreds of dollars. My view is that we will see a friendlier shareware that operates on “point and drag” technology to simplify and personalize our working on the Internet. Self-help books will be replaced by “self-help shareware” that informs, educates, and increases productivity.

 

The challenge for entrepreneurs is how to survive in a “non-competitive” environment that markets “ideas” rather than technology. Legal issues will undoubtedly ensue around trademark, copyright, and public vs. private domain. Let’s take as an example--the latest proprietary game from Microsoft, the XBOX 360, which was sold out last week but some gaming units are being returned for “glitches” in the software that freeze the video. We’ve also experienced viruses that are susceptible to proprietary products and systems that do not exist on more user friendly systems such as “Mambo.”

 

The challenge for program developers during the next five years will be to increase market share and product identity while building a corporate culture that moves from maverick to competitive to stay in business. We’re all aware of “loss leaders’ in retail stores—those sale items that bring people into the store, only to find the product sold out but can purchase a more expensive item. This will happen in the shareware industry if shareware is to survive and maintain corporate identity—just witness the phenomenal success of Google and Yahoo. Search engines that increase traffic to WebPages is still in its infancy and further refinements and tools will assist the Internet surfer in obtaining more relevant information with the pinpoint accuracy of “smart bombs.” Another development on the horizon is collaboration between software developers who pool talent and resources to bring R&D products to the general public in pre-release, Beta versions. This will assist developers in feedback in a competitive marketplace rather than secret, proprietary shops across the country.

 

And now, for my most controversial prediction: that money will cease to be the driving force behind software innovation; the new mantra will be one of product volume in a user-friendly environment. Product Identification (Branding) will be the next wave, much like Google and Yahoo were in the 90s. We will see new companies and IPOs around user friendly technology that operates in a maverick, fast-pace environment that avoids fragmentation because there is no “turf” to protect. The value placed on these companies will depend on user demand, and companies will be bought and sold based on “innovation” rather than “technology.”

 

Getting Into Action:

1. Surf the net and see what free shareware you can find.
2. Read the story behind Google and Yahoo; there are many excellent articles and books on this subject; look through your local bookstore or visit Amazon.com.
3. Free WebPages exist on the Internet. You don’t need to spend money to have a personalized presence in Cyperspace. Many Web Designers use free templates from various shareware programs, like Mambo.