National Software Strategy for Scotland : The Way Forward : Productisation

Initiative 9; Strategic Alliances

Further support to the productisation thrust should be centred around Scotland’s ability to engage fully in international product development. This will enable Scottish firms to have the earliest possible involvement in emerging software platforms and technologies. For example, at present, web browsers, internet applications, open and pseudo open systems, organisational resource planning tools and trading on the internet are examples of key opportunities for software firms in Scotland.

Consequently, Scottish firms must enter into strategic alliances with (mainly) US firms. The drivers behind this are:

• US firms hold first mover advantage and, while JAVA and open systems are the growing area today, Scotland needs earlier insight into the emerging technologies and operating systems of the future;
• Product development cycle time and product lifetime in the market are getting shorter. In the future, Scottish firms will not be allowed the luxury of catching up once technologies such as JAVA become more commonplace. Strategic alliances can provide vital early market intelligence.

Therefore, this initiative - alongside initiatives 5 and 6 - looks to encourage Scottish firms to enter strategic alliances. For example, setting up alliances often requires additional experience and costs within the firm. More often leverage of the previous initiative (expertise and mentoring) could be the key.