Product details

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Case
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Reference no. SB172
Subject category: Entrepreneurship
Published by: Stanford Business School
Originally published in: 2003
Version: 24 March 2004
Length: 19 pages
Data source: Field research

Abstract

This case follows the creation of DX Development, the company built to produce and market the first trading floor software product. In 1986 four partners, all of whom had high technology experience and had worked together at Berkeley Research Institute, identified an opportunity to bring high technology to the trading floors of large banks. DX Development began as a pilot proiect for one bank; the initial success led to more clients and the company grew to become a leader in trading floor software. The case finds the founders at a management retreat, making a ''Crossroads'' decision. The founders must decide whether to continue on its path of developing a ''generic'' product that would suit the basic needs of many of the world''s trading floors, or to move into a ''consulting'' model, within which the company would build custom software solutions. Finally, the partners must decide how to finance the next phase of the company, and several options are presented.
Industry:
Size:
Fewer than 50 employees, >USD10 million annual gross revenues
Other setting(s):
1988

About

Abstract

This case follows the creation of DX Development, the company built to produce and market the first trading floor software product. In 1986 four partners, all of whom had high technology experience and had worked together at Berkeley Research Institute, identified an opportunity to bring high technology to the trading floors of large banks. DX Development began as a pilot proiect for one bank; the initial success led to more clients and the company grew to become a leader in trading floor software. The case finds the founders at a management retreat, making a ''Crossroads'' decision. The founders must decide whether to continue on its path of developing a ''generic'' product that would suit the basic needs of many of the world''s trading floors, or to move into a ''consulting'' model, within which the company would build custom software solutions. Finally, the partners must decide how to finance the next phase of the company, and several options are presented.

Settings

Industry:
Size:
Fewer than 50 employees, >USD10 million annual gross revenues
Other setting(s):
1988

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