Every Company is a Software Company, but...
The Imperative of Technology Expertise & Focus
Key Points
Software profoundly shapes businesses, echoing Andreessen's "software is eating the world."
Leadership with deep hands-on tech experience is crucial for business success.
Stop simply using software. Invest in expertise and treat software as an asset.
Technology risks lurk in the shadows. Ensure hygiene through focus.
In an era where software is undeniably shaping the destiny of businesses, echoing Marc Andreessen's assertion that "software is eating the world," McKinsey emphasizes an extended reality: "every company is a software company." (source: McKinsey Digital) While not every entity is a software company per se, the impact of software on businesses cannot be overstated.
Businesses are not merely incorporating software into their operations; they are looking for value and innovation, yet they are entangled in a struggle for survival within the rapidly evolving technological landscape. The truth is, software is devouring businesses as much as it empowers them.
It's not just about having software as a component; it's about leveraging it strategically to drive innovation, create value, and ultimately secure a competitive edge. Yet the scarcity of top-notch, experienced, and specialized software and technology skills is an increasing concern and business issue.
The value lies not just in theoretical knowledge but in individuals with broad yet deep skills who have rolled up their sleeves and done the work.
This scarcity serves as a stark reminder of the pressing need for business leadership that can adeptly navigate, build, and sustain enterprises where software is not just a tool but a central driving force. It's about leaders who understand the intricacies of the technology landscape, have hands-on experience, and possess the vision to harness software for transformative outcomes.
A recent [MIT CISR article](https://cisr.mit.edu/publication/2024_0101_TechLeaderTime_WeillWoernerEvans) delves into the time allocation of technology leaders in high-performing businesses. While it doesn't explicitly correlate the change in time allocation with superior business performance, a plausible hypothesis emerges. Could a meticulous focus on the technology function and its hygiene, coupled with close collaboration among peers, be the linchpin driving organizational success?
The core responsibilities of a technology leadership role must encompass continuous innovation, change and improvement but not at the expense of risk management, cyber security, and the operational intricacies required to leverage data and technology. Exceptional leaders understand that expertise, unwavering focus, continuous investment and technology evolution are indispensable for comprehending and mitigating the underlying risks within an organization's unique technology environment, including cyber security and the risk of technology and innovation stagnation.
Top-performing organizations distinguish themselves by having leaders who adeptly manage technology risks while fostering innovation and driving transformative change. The question arises: in a landscape where McKinsey posits that every business is a software business, how many are actively identifying and managing technology risks as enterprise risks? The answer lies in the depth of experience and proficiency in software, technology, and cyber-security leadership.
For businesses to thrive in a world where software permeates every aspect, cultivating and sustaining robust technology leadership capability is non-negotiable. The success of a company is intricately tied to its ability to manage the ever-evolving technological landscape.
Author
Andrew Todd
These are my personal views based based on practical experience, influenced by aspects of my professional life, work engagements and often curious discussions with those I see as software, technology, leadership and strategy experts.
Initially published on 17 February 2024