Big Data for Software Vendors: Your Biggest ISV Challenges Today
Typically, the word integration triggers two scenarios in people’s minds. The first is a simple integration that’s pretty fast, relatively cheap and works pretty good. Or there’s the incredibly hard integrations that are long, arduous, expensive, and even relationship damaging. In fact, some integrations can be so difficult that two vendors decide it’s not worth […]
Typically, the word integration triggers two scenarios in people’s minds. The first is a simple integration that’s pretty fast, relatively cheap and works pretty good. Or there’s the incredibly hard integrations that are long, arduous, expensive, and even relationship damaging.
In fact, some integrations can be so difficult that two vendors decide it’s not worth the time, money or pain to get it done, leaving the restaurant operation without a viable solution.
Big Data and the Internet of Things are eclipsing all of these scenarios, making it easier for Independent Software Vendors (ISVs) to access data across multiple systems and build powerful applications for restaurants without all the roadblocks that have characterized the industry for so long.
Still, there’s work to be done to bring ISVs up-to-speed on the new technologies available in the market.
ISV CHALLENGE #1
nNo Access To Restaurant Data In Real-Time
There’s no hiding the fact that getting access to the data in a single, standardized format that’s delivered fast is one of the single biggest challenges facing ISVs.
ISVs have to write a lot of code if they want to create a holistic application that processes data from all sources. This typically means longer ramp up times, exorbitant development budgets, and subpar work because of deadlines.
ISV CHALLENGE #2
External software vendors, especially ones that assist businesses with marketing, are under increasing pressure to demonstrate their return on investment (ROI). Given the complexity of the current marketing ecosystem, accurately proving ROI is often difficult.
ISVs that create software for restaurants have to calculate ROI based on incomplete data. This involves several assumptions and the use of industry benchmarks. The risk in calculating ROI this way is that its as an educated guess and it doesn’t reflect the true ROI seen by a restaurant.
ISV CHALLENGE #3
Customer Acquisition is Very Expensive
ISVs need to excel at two things-creating a fantastic product, and being able to sell it well. Most ISVs are great at building products but don’t know how (or want) to find customers. As a result, they end up spending a lot of money on marketing and customer acquisition activities.
ISVs have to keep sales and marketing personnel on board and ask them to sell and market their product. Most managers, especially those who are primarily technology people, struggle to find the right positioning and marketing mix for their product. ISVs make expensive mistakes and have to allocate a lot of employees towards customer acquisition.
As described earlier, many development platforms come with a marketplace where restaurant operators can purchase apps and software-just as you would on an iPhone. While ISVs still need to engage in sales and marketing efforts, their resource requirement isn’t nearly as much. Their products are in front of thousands of customers from day one, and they can focus their energies on things they are best at-building great products.
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