For Altair's data analytics platform, should we emphasize developing more industry-specific solutions or improving the general-purpose capabilities?

Introduction

The trade-off we're examining today is whether Altair's data analytics platform should focus on developing more industry-specific solutions or improving its general-purpose capabilities. This decision is crucial for Altair's product strategy and market positioning. I'll analyze this trade-off by considering various factors including market demand, technical feasibility, resource allocation, and potential impact on different user segments.

Step 1

Clarifying Questions (3 minutes)

• Based on Altair's current market position, I'm thinking our platform might be more established in certain industries. Could you share which industries we currently have the strongest presence in?

Why it matters: Helps identify potential focus areas for industry-specific solutions Expected answer: Strong presence in manufacturing, aerospace, and automotive Impact on approach: Would prioritize these industries for specific solutions

• Considering our revenue model, I assume we have a mix of subscription and enterprise contracts. What's the current split between general-purpose and industry-specific solution revenues?

Why it matters: Informs the potential financial impact of shifting focus Expected answer: 70% general-purpose, 30% industry-specific Impact on approach: Would influence the balance of resource allocation

• Looking at user behavior, are we seeing any trends in terms of customization requests or feature usage that might indicate a need for more industry-specific solutions?

Why it matters: Helps gauge user demand and potential adoption Expected answer: Increasing requests for industry-specific features in finance and healthcare Impact on approach: Would consider these industries for new specific solutions

• From a technical perspective, how modular is our current platform architecture? Could we easily build industry-specific solutions on top of our general-purpose capabilities?

Why it matters: Determines the feasibility and efficiency of developing industry-specific solutions Expected answer: Moderately modular, some refactoring needed Impact on approach: Would factor in additional development time for industry solutions

• Regarding our development resources, what's our current team structure? Do we have dedicated teams for general-purpose features and industry solutions, or is it more fluid?

Why it matters: Influences how we might allocate resources for different development paths Expected answer: Mostly general teams with a few industry specialists Impact on approach: Might need to consider team restructuring or hiring