legal, software, intellectual-property, processWe have developed prototype of system and our business model would be B2B with one national consumer. One of major critical risks is our client taking our solution and then implementing his own. We are based in UK so any patent for software or process is not possible and we have signed NDA with one of regional heads of organisation (however I don’t think this is enough as he can simply pitch idea to someone and we would have no way of knowing).
We will be doing system demonstration in near future - at the point they see that system works they pretty much don’t need us (it’s not to hard to figure out how it works) and I am sure later in meeting they will have to make a choice ether to buy our licenses or to simply develop their own solution or ask one of existing software suppliers to create one.
What could I do to prevent them from cutting us out?
My experience is most businesses want someone to undertake responsibility. Your solution might be simple, but do they have the skills onsite? I suspect not or they would have asked their team to create it.
You say “We are based in UK so any patent for software or process is not possible” and I do not understand why. If your client is outside the UK, then patent it in their country, and the UK.
If you have not already agreed terms, I would make two offers to them.
Make whatever you offer attractive so that they will consider you for future work. Don’t worry about your solution being simple - The fact that you guys seen a simple solution is a credit to you when compared to anyone who previously thought the issue complicated - if you play your cards right it could encourage additional business from them. Don’t start your meeting in a combative approach - don’t make the client out to be stupid for not seeing a simple solution. Respect the client and in most cases they’ll respect your effort.
Best of luck!
What are the incentives for the client to side you?
Choices have a cost. I think by investigating the client options it should help to decide your own actions.
A deeper answer requires more context, but let me explore a couple cases. You mention building a prototype for a client. One important case that comes to mind is a call for offers. Another important contextual element is the “literacy” of the client, with respect to the technology and skills required for the target service.
A call for offer is a common tactic from government agencies and large companies to get good service candidates. The client gets N offers (e.g. prototypes), for free or a small fee. Then the client chooses one and orders full development. If you are in that case, the client may side you for a better solution (from their standpoint). Please note that you may not be aware that they are conducting a call for offers. I have often seen companies asking server hardware makers demonstrate custom solutions, to end up with a single contract—very common.
Literacy is how much the client is familiar with the technology and skills involved in the target service or product. A drug maker may not devote a full-time team on a mobile app… This implies that the client may not evaluate solutions as you would expect. Your solution may be great, simple to use, to the point—all because you got things right from pure perspiration. But the client may not see that the end result required a lot of innovation, etc., and may just deem it trivial (e.g. the iPhone in 2007 against the Blackberry). That is where communication and marketing become crucial.
I also concur with @fiprojects: Several companies want a service without responsibility for it. Responsibility these days means:
So what to do to prevent being sided? Hard. I think you need to understand your client and its environment. Same as chess, you can predict her next move, and yours, knowing about your competitors in a call-for-offers and how much the client knows about technology. Wrapping all that knowledge into a great collaboration with the client sets up positive conditions to start and keep on working together.
Please keep in mind that all this is quite rational, but some decisions can be impulsive or political. In those situations, there is not much to do (I am not saying impossible—just harder), so your company should also explore alternative clients.
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