Verified Document

Diagnosis For Change At Cincom Essay

Scenario Analysis

Taking the five drivers of technological innovation, consolidation of the enterprise software industry, increased focus of new competitors in high growth sectors, compliance requirements of customers, and the shift in software to becoming more knowledge-based, the future of Cincom Systems is highly dependent on strategic renewal (Agarwal, Helfat, 2009). Taking these five factors together and defining realistic, optimistic and pessimistic scenarios provides insights into the extent to which Cincom Systems needs to accomplish strategic renewal.

Under a realistic scenario, Cincom Systems can expect the pace of technological innovation to continually increase with SaaS-based competitors gaining market share in the key areas of CRM and channel management. The consolidation of the industry and increased focus of new competitors is under realistic scenario-based assumptions force Cincom to innovate from one product generation to the next with greater urgency. The two drivers of compliance requirements and the shift in enterprise software towards becoming more knowledge-based will also require Cincom to either acquire new companies in these areas or augment their own applications to stay current.

In an optimistic scenario, Cincom quickly moves into the SaaS market, dominating it with new technologies for compliance and knowledge-based workflows their customers need. The high...

The combined effects of this strategic transformation (Agarwal, Helfat, 2009) sees Cincom gain additional market share and revenue as a result.
In the pessimistic scenario the five drivers force Cincom out of key markets and into a defensive selling and product development mindset, looking to defend their annuity-based revenue streams. An onslaught of SaaS competitors gain venture capital funding and become an entirely new force of consolidation in the industry. The added funds for these competitors from venture capitalists turn SaaS-based networks into knowledge management hubs that capture compliance-based intelligence and create compliance networks. In short, through innovation, acquisition and consolidation an entirely new architecture of the industry is created. This leaves Cincom with a licensed model that is no longer seen as relevant over time.

References

Agarwal, R., and C. Helfat. 2009. Strategic Renewal of Organizations. Organization Science 20, no. 2, (March 1): 281-293,478.

Campbell-Kelly, M.. 2009. The Rise, Fall, and Resurrection of Software as a Service. Association for Computing Machinery. Communications of the ACM 52, no. 5, (May 1): 28.

Mitsuru Kodama. 2006. Knowledge-based view of corporate strategy.…

Sources used in this document:
References

Agarwal, R., and C. Helfat. 2009. Strategic Renewal of Organizations. Organization Science 20, no. 2, (March 1): 281-293,478.

Campbell-Kelly, M.. 2009. The Rise, Fall, and Resurrection of Software as a Service. Association for Computing Machinery. Communications of the ACM 52, no. 5, (May 1): 28.

Mitsuru Kodama. 2006. Knowledge-based view of corporate strategy. Technovation 26, no. 12, (December 1): 1390-1406.
Cite this Document:
Copy Bibliography Citation

Related Documents

Innovation in Organizations Innovation Is Significant for
Words: 947 Length: 3 Document Type: Essay

Innovation in Organizations Innovation is significant for all business entities, the different levels to which this significance applies notwithstanding. Bringing this about also requires the implementation of features like training, incentives, and education whose roles in triggering innovation are widespread. It is however imperative that implementing such features, say the reward systems, the organizations institute proper leadership and follow carefully laid down principles considering, the ethical implications they come with. Additionally,

Innovation at 24-Hour Fitness Innovation Is Important
Words: 751 Length: 3 Document Type: Essay

Innovation at 24-Hour Fitness Innovation is important for any business in any industry, yet it is easy to become complacent and to forget about the needs of innovation as long as the money keeps coming in. If a company continues to make sales, pay its employees, and turn a profit for shareholders, investing the time, energy, and resources into effective innovation can be difficult. In a highly competitive industry like that

Innovation and Pricing Are Concepts That the
Words: 2459 Length: 8 Document Type: Essay

Innovation and pricing are concepts that the manufactures and service providers should focus on. This paper focuses on how value is created on various products and services highlighting on the impacts value addition can bring to the company against the consumer behavior which is the center of focus. It looks at innovation and price variance in different market segments and addresses various reasons for the variances in pricing and the

Innovation Ethic in Chapter 4 Of Perils
Words: 1352 Length: 4 Document Type: Essay

Innovation Ethic In Chapter 4 of Perils of Prosperity, John Sarno argues that American industry does not really have an innovation ethic, and as a result it has been very badly damaged by the system of global capitalism and free trade that the U.S. government created after World War II. They were not prepared for the intense foreign competition that began to hit them full force in the 1970s and 1980s.

Innovation Is a Key Success Factor for
Words: 1209 Length: 4 Document Type: Essay

Innovation is a key success factor for many businesses. Fostering innovation, however, can be challenging. For much of the 20th century, management focused on push strategies for innovations, where managers would push resources into areas deemed in greatest need. This system is designed around the idea that scarce resources must be carefully allocated to meet anticipated demand (Brown, 2005). In more recent years, the pull approach to innovation has increased

Innovation in a Single Day, the Average
Words: 982 Length: 3 Document Type: Essay

Innovation In a single day, the average person comes into contact with a range of services, products, and processes that can be categorized as forms of innovation. Furthermore, most of these innovations will differ in degree, some being radical innovations and others being merely incremental; some sustaining, others breakout, and still others viewed as disruptive innovations. This paper will analyze the different examples of innovation with which I come into contact

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now