The famous line from Field of Dreams, “If you build it, they will come”, has been adapted for business, but is it true for HCM, LMS, and Talent Management software vendors as well? Let’s modify the original line and make it more accurate by saying, “If You Build It, Will They Come?”
The short answer is yes, but software vendors must start from the beginning by focusing on their clients. Then they can generate real business solutions that help solve business problems and help make their client successful. This important relationship between technology and customer success must begin by focusing on the client.
So how do existing technology companies (which includes software vendors) add a new product to their offering?
Historically when tech companies see a gap in their product offerings the next step is a choice to either: build the technologies internally or acquire the technologies externally.
However, another choice has evolved over the years. Instead of building or buying, why not invest in a start-up company first and see if the product really has potential? In fact, a tech company might invest in several start-ups that offer similar products and see who wins. In this scenario, the tech company minimizes some financial risk while still creating a solution that they can consider buying in the future.
Of course, this option is not without risk. Take for example the start-up company that Workday purchased recently. Did you know that Cornerstone was an early investor in this company? Now I don’t know if Cornerstone ever wanted to fully acquire this company, but if they did they lost this battle to a competitor.
What’s changed over the last decade is that more companies are exploring a hybrid of ALL of their options ALL of the time when attempting to fill product gaps. The larger companies are selectively investing (providing capital), to start-up companies that are incubating new ideas in the HCM, LMS and Talent Management marketplace and that could potentially provide “better mousetrap” solutions that help you the client solve business problems in the future.
So what does this mean to a Bluewater client or any company that uses HCM, LMS and Talent Management solutions?
It means the pace of development and change is still increasing. While you may have thought that the pace couldn’t get any faster, I’m here to tell you that it will continue to increase at a breathtaking rate. The good news? This is an exciting time in the industry and you can be sure Bluewater will continue to keep you informed on these kinds of topics in the future.