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software? Get it on the market and run like hell
New software? Get it on the market and run like hell
As Wollongong software firm, DigitAce Systems launches its new casino surveillance
system onto the European market this year, it knows it"s capitalising on
a very narrow window of opportunity.
Chief Executive David Stanton refers to the software industry as an evolutionary
rather than revolutionary business and advises companies in it to develop their
products and run like hell.
'Every software product has, to some extent, emerged from someone else's product
so, legally, although software is rarely copied, it's very difficult to protect-Apple
almost went broke trying to protect its PC windows concept against Microsoft.
'The best protection for software firms is a rapid development strategy - you
develop your product and move fast, use your window of opportunity, capitalise
it and move onto the next thing,' Mr Stanton said.
DigitAce is a syndicate formed in the early 1990s to research, develop and
market computer software, and equipment, to assist the international casino
industry with the surveillance of live card games. Since then it has moved on
to other projects which are consolidating its reputation as an innovator in
the international software business.
Last year, after two years of research and development, DigitAce launched PROTEC21
onto the Australasian market. It targets the game of Blackjack and helps casino
surveillance staff assess the behaviour of a player, or group of players, with
the view of determining their possible short and long term effect on the casino's
bankroll.
Blackjack is an interesting game. The skill of the player can determine the
long term outcome with respect to winning or losing and the player may deploy
a range of techniques to assist in winning. Some of these techniques are fair,
some rather shady and some downright cheating.
It is beyond the capabilities of a human observer to note the behaviour of
a player and apply the necessary analysis and mathematical techniques to determine
what he or she is doing. PROTEC21, with the aid of computer power and speed
can do this analysis in real time and produces an easy-to-read interpretation
of the situation.
'We're a research and development shop and we survive by reputation and quality.
In my opinion, this is the best protection a software house can have-to create
a company or product image which is far more than a piece of software.'
'The problem with protecting a software program is what precisely is protectable
and perhaps more importantly, can the company afford the litigation costs to
protect its product?'
'Customers are looking for solutions, not tools, and the company which is prepared
to go that one step further in solving a customer's problems will win and hold
the market. This involves primarily an attitude and human skills-in the long
run, this is what makes the difference.'
The market environment also has a signifcant bearing on how vulnerable a market
niche is to on-going competition. It's unlikely, for instance, that the 'big
boys' will be going after a small market unit such as PROTEC21-it simply isn't
worth their while. And computer software has a short life cycle with all manufacturers
constantly on the lookout for the next model or an angle which will cause users
to upgrade.
'As we venture out into the world market this year with PROTEC21, we are ensuring
that our trade marks are properly secured and that our copyright protection
is correctly registered. Our focus is on branding to protect our development.
You get get known for your products so it's important to select and protect
a name which is strong and unique,' Mr Stanton said.
'The best protection, though, is staying ahead. The reality is that you can"t
invent something and expect it to carry you for 20 years. Someone else will
evolve something better from your product so you have lead your sector of the
market.'
'The only problem with this is that for an innovator, the market is usually
small. The market for very new products comprises the early adopters and they
represent only about 16 or 17 per cent of the market. The rest of the market
follows later when they"ve seen that your product works. But by then, of
course, your product has been superseded by something new, hopefully by yourself.
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