State of Flux Brings Software Firm Statess Back In-House

Just a few months after we reported on the official launch party for Statess, the State of Flux software offshoot, the firm has decided to bring it back firmly in-house rather than pursuing the idea of creating a separate business.

The explanation from State of Flux is that in practice, and obviously not as they had planned and hoped, it became clear pretty quickly that clients were not particularly interested in the Statess software product as a self-standing purchase. The software started its life some years back as an in-house developed system, used very much as a tool to support the core State of Flux consulting offering around Supplier Relationship Management. Apparently, after some months of promoting it as an independent product it appears that the potential for the software does lie primarily in those consulting clients.

We’re a little surprised about that outcome. We think the product is good and it seemed a credible idea that some organisations might not want external consulting support on SRM matters but might well go for the software to assist them in their own efforts. However, the firm retains its position as a leader in that SRM consulting field, and the software (it is not clear whether the “Statess” name will survive at all) will still be promoted to clients.

For what is still a privately owned mid-sized firm, the cost of the new division, including branding, sales support and so on must have been considerable, so State of Flux clearly have made a rapid decision rather than let things run on. This was perhaps the first mis-step in their successful 10-year history – but we applaud them for decisiveness!

And you can still complete their well-respected annual SRM survey, which will give you a personal benchmarking report and other output once the results are put together later this year.


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