Compuware’s mission is to continuously improve customer experience and to deliver products and services with elegant simplicity.
Peter Karmanos, Allen Cutting, and Thomas Thewes wanted to provide computer services so companies could focus on their core businesses. So in 1973 they pooled $9,000 to launch Compuware in Michigan. It was a provider of data processing and computer installation professional services. It also provided “programmers for hire” who would assist with specific client projects.
Compuware distinguished itself from competitors by emphasizing diverse applications of mainframe computer technology. In 1977 it joined the software product market by releasing Abend-AID, a fault diagnosis tool. Its name was a reference to the term “abnormal end“, which refers to unexpected system failures or errors. The product business provided more stability than the services one.
The next few decades saw various milestones. In the 1980s Compuware introduced its File-AID product line, which helped developers and programmers more easily work with data. In the 1990s it acquired several competitors, achieving significant growth. In 1992 it went public and was listed on the NASDAQ. In 2014 it was acquired by Thoma Bravo and went private again.
Business model of Compuware
Compuware has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at firms of all industries and sizes.
Compuware offers two primary value propositions: accessibility and brand/status.
The company creates accessibility by providing a wide variety of options. It has acquired numerous firms. In the 1990s those included software firms XA Systems, Centura Software, EcoSystems Software, and Programart. In the 2000s they included services firms such as BlairLake, Adlex, Covisint, and Nomex. This strategy has enabled it to diversify its capabilities and expand its portfolio.
The company has established a powerful brand due to its success. It has won several honors, including the following:
- Ranking on Database Trends and Applications’ “DBTA 100”
- Recognition as a “2015 Top Workplace” by the Detroit Free Press
- Recognition as one of of Metropolitan Detroit’s “101 Best and Brightest Companies to Work For”
- Recognition as one of Crain’s “Cool Places to Work” in 2016
Compuware’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, and participation in conferences.
Compuware’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company’s website offers online training modules for product installation and usage.
It also features a “Resource Center” section that includes useful tools such as analyst reports, case studies, fact sheets, infographics, webcasts, videos, and white papers.
That said, there is a personal assistance component in the form of associated services such as testing and development. There is also general phone, e-mail, and online support.
Compuware’s business model entails designing and developing its products and related services for customers.
Compuware’s key partners are the suppliers that provide it with the equipment, materials, and services it needs to develop its products and manage its operations. Specific goods and services it purchases include software, hardware, office products, consulting, and telecommunications. Important partners also include the third-party firms that manufacture its products.
Compuware also works with various firms to help them sell its products and services in order to expand its reach. These include integrators, distributors, and service providers. Specific partners include BMC, Correlog, CPT Global, Dynatrace, Mainsoft, Lochbridge, Splunk, and Syncsort.
Compuware’s main resources are its human resources, who include the technology employees that design and develop its products and services, the sales personnel that promote them, and the customer service employees that provide support.
Compuware has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely cost of revenues, a variable expense. Other major drivers are in the areas of sales/marketing and customer support/operations, both fixed costs.
Compuware has one revenue stream: revenues it generates from the sales of its products and services to its customers.