Worldwide markets are poised to achieve continuing growth as the enterprise seeks to develop new products in response to changing technology and changing market conditions. IBM concentrates on building end to end systems that are able to adapt of market changes. While this may make the IBM product set seem overly heavy in the short run, in the long run, this is of enormous value to clients as proved by the company market leading position in innovation software.
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The enterprise uses software innovation to transition to higher quality automated process, middleware to support smarter computing, and cloud computing in an era of smart phones. IBM is profiled as the leader in this software innovation initiative. The ability to federate and spread workloads securely between private and public clouds is “hybrid cloud computing.” One mission of software innovation is to lead customers on the journey to hybrid cloud computing.
Physical convergence with digital representations of the physical world is creating complexity. Communication between machine to machine has caused an inflection point for the need for a quickened pace for the management and design of assets with software representing a significant aspect of innovation implementation. Software is able to support innovation in enterprise markets because software is so much easier to change than physical devices.
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Some software is better than other software in supporting innovation. Simple software changes challenge the best of IT departments in many cases, just for software that is used to run the business. For software used to create entire new business initiatives, innovation software is needed. Innovation software is used to handle the complexity of supporting a current market offering while tailoring a new modality. Software for innovation represents a category distinct from software for existing applications, middleware for existing applications, and upgrades to existing applications. Software for Innovation is that software that helps enterprises grow existing markets.
For that reason, it is of interest to the line of business more than to the IT department. Innovation is needed by an enterprise to gain competitive advantage and respond to change in markets. Software used to effect business change, to make innovation happen is fundamentally different from established applications software and the infrastructure that supports those applications. Software for Innovation is most often tuned to supporting any kind of analytics, to helping the line of business change the fundamental nature of the business as product cycles create new market opportunity that demands attention. Good businesses learn to listen to clients. They interview customers and try to be responsive to customers.
Customers, clients create fickle markets, demanding the newest and best in an inevitable manner. Enabling client capabilities as the foundation of business process speaks to the very heart of innovation. A lot of support is needed to enable enterprise IT departments to adapt existing systems to new challenges. Software for innovation market driving forces relate to the need to adapt to market changes on an ongoing basis. People have difficulty with change; change is hard. Growth was achieved as companies positioned to garner a presence in real time computing, adapt to the Internet as a channel, and embrace mobile devices as adjuncts to business process. Worldwide software revenue increased 8.9 percent in 2012.
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Software for innovation was a $73.4 billion sub-segment of the overall software market. This is an entirely new category of software. As WinterGreen Research prepares to break out its software industry index worldwide, studies define the segments of the software industry more clearly. One of the things that jumps out of a close look at all the software industry segments worldwide is the software for innovation that is used primarily by the line of business to respond to the need for growth initiatives.
This software goes beyond managing the existing business with implementation of automated process to giving the line of business tools that support growth initiatives. Growth is a result of enterprise need to innovate to grow. It is not enough to maintain a static position in a market, nimble competitors steal market share away if innovation is not pursued. Innovation provides competitive advantage and protection of market position.
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