15 - Nov - 2019
  Author- Pravin Taneja

The entire solution suite from Intelli Softwares® is following certain principles. These principles are

1. Use Leverage Factor

What is the leverage? Leverage means today's effort should be able to bring you handsome money in the future. The software industry, particularly the closed-source & product-based model, has a built-in leverage factor.

How? If you look at the manufacturing industry, you manufacture a product, sell it and make a profit. You are happy. You want to make more profits, you need to manufacture it again.


If you are in a service industry, you provide your services, you make profits. You want to make profits, you need to provide the services again.

In the case of software, closed-source one not an open-source one, you build the software that has a value. You sell a license for it and earn money.

Now you want to make more money, you sell one more license for it. Do you need to build the software one more time? The answer is no! You just make a copy of it and making it available to the new customer. Creating software for the first time takes a very very very long period, don't underestimate that. But once it's ready, making a copy of it costs almost nothing. But it continues to carry the same value.

Take one example, Microsoft Office - a single user pays around a few hundred dollars to own the Office license. Globally it means Microsoft receives around USD 29 Billion/ a year from Office alone. That’s the power of leverage.

Leverage factor works better when there is high customer size and/ or high perceived-price per customer.


2. Value

The second principle is "Value". As you can see a “Value Map” chart taken from a McKinsey article "Setting value, not price"

This says that the market generally provides many alternative solutions with a certain set of benefits at a certain price. Most solutions can be plotted in a straight line known as “Value Equivalence Line” or VEL.

As you see D offers a set of benefits at some price.

C offers better benefits at higher prices as compared to D. B offers the best benefits and is also the costliest of all.

Most solutions fit into a single line.

But there are some exceptions. Like A. A offers the same set of benefits as B but his price is the same as that of C. As compared to B, A is cheaper for the same benefits. As compared to C, A offers more benefits for the same price. Thus entire area on the right-bottom side of the VEL is called “Value Advantage”.

E is just the opposite. E is offering the same benefits as D but with premium prices. E costs the same as C but provides fewer benefits. Thus entire area on the left-top side of the VEL is called “Value Disadvantage”.

In this example, A is share gainer and E is share loser.

Our guiding principle is to stay in the Value advantage side. How do we intend to achieve that?

Value equals Features + Quality / Price. If we have better features, better quality at lower prices, our value is higher.

One quote from Ex-Chairman of Citicorp - "All looking forces and all looking men are helpless in front of a product that simply adds more value".

This is exactly the theory that Dr. W. Edward Deming promoted through his books & teachings. Japan adopted it and it helped them to bounce back after WWII. He mentioned that more features at better quality than your competitors and do it at less cost then you will have ultimate victory. That's why Japanese cars did better than American cars. Today in Japan the best award for quality is named after Dr. Deming.

This principle has never failed, and many countries/ many large corporations have followed it and propelled them to huge successes.


3. Being Invisible

The software industry also has its 80-20 rule. The rule is when 80% of the functionality is coded then the software is just 20% ready.

A journey from this real 20% onwards takes huge efforts & time. After long persistent efforts when the product attains real “80%” progress, something magical happens. Software becomes invisible. Before this stage end-user puts all blame on the software – software cannot do this, it has this bug, etc. When software reaches this stage then end-user starts taking credit. Users say “I can do this very fast, I can manage this part fully all alone” kind of remarks come from the users. Here transition happens from putting blame on the software to taking credit for the self. Users don’t give credit to the software, and software becomes invisible. To know more about it, please read my blog “80-20 rule in software development”.

So, what is our principle here? Most of the avg. software products out there talk about having all the necessary features but their product is somewhere between real 20-50% mark. We will persist product growth till we see users getting empowered, starts taking credit and we become invisible.

Being invisible is a yardstick that allows us to know whether the solution is ready for the mass market deployment or not.



To summarize - Our guiding principles are to keep adding more & more features, with better & better quality, pricing as low as possible so that we offer unbeatable value to customers.

We persist, empower users till they start taking credits and our software becomes invisible.

And make this solution available to the mass market to use the leverage factor.

Any individual customer who uses our solution would always walk away with a great solution that offers great value, fits into their budget comfortably, and empowers them immensely. Our success & financial abundance comes only from having a large number of happy & satisfied customers.

To know about that solution,
Sign up for a free demo with IntelliSoftwares today!

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