Profit is Sustainable Value, Part 3

All profitable products have three things in common: They generate superior value thanks to the three dimensions of economic sustainability, solution sustainability and relationship sustainability.

Understanding this sustainability trifecta is critical for providers of software enabled solutions to succeed.

Economic sustainability hinges on the balance of value and cost: It demands that the revenue generated from a software solution consistently exceeds its development, maintenance, and operational costs. This aspect is deeply intertwined with strategic pricing, cost management, and understanding market dynamics.

As a prerequisite, solution sustainability focuses on the long-term viability of the product offering itself. It requires that the functionality not only addresses current customer needs, but is also adaptable to future market changes and technological advancements. This involves ongoing innovation, user feedback incorporation, and lifecycle management.

Lastly, relationship sustainability is about fostering enduring, mutually beneficial contractual integration with all stakeholders such as customers, suppliers, employees, and regulators. It emphasizes trust, compliance with legal and ethical standards, and the nurturing of partnerships that support and enhance the overall value proposition of the software solution.

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