The following appeared in a memorandum to a team developing accounting software for SmartPro Software, Inc.:
“Currently, more professional accountants use SmartPro accounting software than any other brand. However, in the market for personal accounting software for non-professionals to use in preparing their income tax returns, many of our competitors are outselling us. In surveys, our professional customers repeatedly say that they have chosen SmartPro Software because our most sophisticated software products include more advanced special features than competing brands. Therefore, the most effective way for us to increase sales of our personal accounting software for home users would clearly be to add the advanced special features that our professional software products currently offer.”
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.
SmartPro Software, Inc., is in the business of creating accounting software for personal and business use. The company’s executives believe that the best way to increase sales of their products is to add more features to the software, thereby increasing its perceived value. The executives of the company believe that professional accountants have purchased SmartPro products because they are more technologically advanced than competitors’ products. However, this assumption is based on flawed reasoning
The executives make the assumption that professional accountants use SmartPro products because they are more advanced than competitors’ products. In their argument, the executives fail to consider the possibility that accountants use SmartPro products because accountants desire the advanced features. A feature is something that makes the product easier to use, or that makes the product more valuable. SmartPro executives could be right that professional accountants use SmartPro products because of the special features, but they may be wrong that these features make SmartPro products superior to other accounting software. A feature may be desirable, yet the product lacks other functions that would make it necessary. For example, the SmartPro accounting systems lack certain features that professionals commonly use, such as the ability to send invoices to clients for services rendered. When accountants check the boxes for features that SmartPro products lack, they could easily find a product that does contain these capabilities
SmartPro also fails to consider the possible reasons clients choose competing products instead of SmartPro products. Clients may prefer another accounting program because its interface is easier to use, or because it is less expensive. SmartPro executives could further investigate why clients do not use SmartPro products if they believe that professional accountants prefer SmartPro over competing products. For example, accountants may prefer to use accounting software that hosts files on cloud-based servers, instead of the SmartPro product that requires an accountant to install software on every computer in the office
Although SmartPro executives may think that the addition of advanced features will increase sales, they might want to consider an alternative strategy. Many software companies add features to their products over time, and then cease development. As a result, they begin to fall behind their competitors. SmartPro executives should find another way to differentiate their products from those of their competitors. A less risky alternative is to create add-on products that include additional features. In this way, SmartPro would not run the risk of being surpassed by a competitor that continues to add features to a product.