A POST FROM DR ROKON UZ ZAMAN, Professor, Department of Electrical and Computer Engineering, North South University.
Basically, there three money elements: 1. Cost of production, and 2. Willingness to pay, and 3. Number of customers.
Although the cost of production points to salary given to developers, but this vital component could be lowered by other means, such as dividing the development cost over many customers or reducing the rework. Similarly, willingness to pay could be increased through R&D investment. By segmenting the market, we can target those segments which have large customer base, with high degree of commonality. How to take advantage of these three elements appears to be the critical challenge in making money in developing and commercializing software.
Although we have been focusing on giving better education and training to CS/CSE graduates, but the focus on improving the capability to address these vital elements in building software firms does not appear to be adequate.
