Disruptive innovation is fast becoming a make-or-break activity for software development units in India, according to a new report by Forrester.
This has become important as interactions become more iterative, and customers become more demanding.
Manish Bahl in his Forrester blog says that today, software vendors have very large R&D budgets but they are quite slow in using disruptive technology innovation to their advantage.
If Indian firms can increase software innovation maturity, they can easily connect internal and external innovation.
Eventually, this will result in a disruptive revolution that will enhance the value of software to the end client. Also, it will provide a competitive edge to software firms.
Best practices for software innovation
Software vendors should focus on developing a culture of entrepreneurship which can be achieved by moving away from a linear revenue model in which revenues bear a consistent relationship to costs.
Instead, they should search for high-value and high-growth value opportunities such as digital economy opportunities.
Software innovation can also be achieved by acquisition of a business-oriented skill set and adopting social tools and collaborative workflow.
Indian innovators can gain sustainable competitive edge by mobilising the expertise and judgment of their own people to invest in assets and platforms that will deliver future streams of revenue.
Vendors can also use a few revenue models based on business outcomes and on shared rewards and risks. This will not only limit risks but will drive long-term mutual value.