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<\/p>\nI believe that the software industry currently offers great opportunities for providers of innovative business solutions. The changes brought about by the cloud and AI in particular will be more profound for the software industry than many assume. This is good, but it poses major challenges.<\/p>\n
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It is typical that we repeatedly misjudge technological developments. People from the tech industry are not excluded from this. Recognizing trends that are not yet obvious is usually relatively easy with the necessary time and meticulousness. However, it is extremely difficult to assess the development and momentum of such a technological trend.<\/p>\n
In my opinion, this effect also plays a role in the software industry. It’s rare to find someone who doesn’t seriously claim that AI will play a role in the future. But if you then ask where exactly this role could be, you get rather vague answers.<\/p>\n
This is both logical and problematic. Logical on the one hand, because the development of AI breaks with the paradigm of classic software development to a large extent. Another problem is that the widespread introduction of AI into the software world is making the existing, traditional software business model obsolete. Because in order to achieve the full potential and thus the full customer benefit of AI, the previous (great) model of “creating software” and “selling copies” is no longer sufficient. Instead, the software becomes a service partner for the customer. For the customer, software is transformed from a pure tool into a partner that works hand in hand with the user.<\/p>\n
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There is still not much to see. AI is used selectively for trivial tasks in business software and the benefits are limited. In order to enable ground-breaking benefits, the entire solution concept and therefore also the business model must be rethought and redesigned. For example, where accounting software was previously a tool for accountants, AI-based software will take over most of the repetitive work completely in the future.<\/p>\n
I assume that we will continue to see a storming phase among providers and customers for quite some time. As always, the solutions that create the best economic basis for the customer win in the end. And in this respect, radical AI-based solutions can be convincing. This is because they are not just a bit better, but open up completely new possibilities for the customer while at the same time offering radical savings. You are creating a new category of software.<\/p>\n
This is difficult for software providers. For now, such paradigm shifts mean investments at every turn. At the same time, we see that AI-based software companies generally have a lower gross margin than pure SaaS companies because software is no longer just code, but code AND data. Such a paradigm shift means restructuring the software business model. And this definitely belongs on the desk of every manager in a software company. Better today than tomorrow.<\/p>\n
This article was originally published in topsoft magazine<\/a>.<\/p>\n Artikel auf Social Media teilen:<\/p>\n<\/div>