Our Research Publications

FULL STUDY Published 2024, Updated 2025, 2026 by Tom Ingram and Associates, Inc.

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Jack Henry, 30 other software companies identified producing 200-300%+ ROIC over 10 years with minimal invested capital
Software Companies are “Hollowed Out”
- Software Industry Unprofitable since 2015 per Robert Morris Associates (RMA)
- Debt now 95% of assets
Only 11% of Public Software Companies beat cash invested in Mutual Fund over 10 years (7% ROIC)
Identified 12 defects of the Business Software industry
Identified 12 artifacts documenting that the 12 defects are under control
Pressure to mature, improve project outcomes continues
See How The Winners Do It for ongoing list of best strategies from the winners (password required)

20 Dramatic Losers (requires password)

Major Findings, 49 firms in study:

Ratio of Software to Services: Most firms are between a 70/30 and 30/70 mix.
Numerous firms started with software product only focus but migrated to a substantial mix of services over time. Appears these service are "low hanging, profitable fruit"
Gross Profit data are no longer reported for software companies
Net Profits: Range from a high of 22% to severely negative. 20 of the 49 firms sustained 10% or higher profit over long term. Note that RMA reports average of 310 companies is NEGATIVE 4.8% profit for 2017.
18 FIRMS PRODUCED BIG RETURNS ON LOW INVESTED CAPITAL: These firms were the initial target of the study - we aim to emulate them.
REVENUES SPENT ON SALES GENERAL AND ADMINISTRATIVE: For 27 firms with info available: 33% average. Removing three largest and three smallest as outliers results in 35%
STRATEGY:

19 firms exhibited a "PROFITS, HAPPY CUSTOMERS FIRST" approach with 16 out of 19 producing a clear win for their owners.
Seven firms exhibited a "GROWTH AT ALL COSTS" strategy. 3 produced a clear win for owners but the others incurred EXTREME LOSSES.
See How The Winners Do It for ongoing list of best strategies from the winners (password required)

Short Book Published 2004 by Tom Ingram and Associates, Inc.

Software companies must spend between 28-40% of Revenues on Sales and Marketing to be viable
15 / 5 / 3 / 1 Close Ratio learned from Xerox and IBM still true (Qualified Prospects – Approaches – Demos/Contracts – Close)
Demanding 10X minimum payback from project is best approach to controlling project problems
Pressure to mature, improve project outcomes continues
See How The Winners Do It for ongoing list of best strategies from the winners (password required)

Book by Tom Ingram Published in 1998 by the

Project Management Institute

“How to Turn Computer Problems Into Competitive Advantage”

Major Findings

Business software is IMMATURE. Projects are on-time, on-budget, as promised only 30% of the time as of 1998. (Includes five additional sources confirm success rate of 305 – at best.)
2026 Update from Standish Group - on time, on budget, as promised rate remains in 33% range.
Benchmarked Software against 3 other industries with 90% on-time, on-budget, as promised project outcomes
Root cause analysis found:

Outcomes are only minimally affected by TECHNICAL EXCELLENCE
Outcomes are POSITIVELY AFFECTED BY AUTHORITY, RESPONSIBILITY AND COMPETENCE IN LEADERSHIP
Firm DISCIPLINE IS NECESSARY to prevent INCOMPETENCE AND SELF-SERVING BEHAVIOR from adversely affecting project outcomes.
Scope and change control remain most critical failure points