Study On Strategic Evaluation Of Listed Software Companies Based On Interaction Of Financing And Industry

During the past few years, some new technology, such as internet of things, big data, cloud computing and so on, became popular. These technology changed the development direction of software industry. Firms had to develop new software and expand business related with these technology. The high investment of these things was the strategic bottleneck of software firms, and listed software companies adopted interaction strategy of financing and industry.Evaluating strategy on time is helpful to master strategic performance, and learn whether financing interacts well with industry. That will contribute to find hidden problems and take corrective action.There are three parts of contents in this paper. First, evaluation of the strategic performance based on ECIRM model; Second, evaluation of the effectiveness of strategic behavior based on interaction strategy of financing and industry; Third, explanation of the evaluation results in Glodon’s case.In the first part, this paper took fifteen listed software company as research object, evaluated their strategic performance based on ECIRM model. By measuring, the firms were divided into four levels. The firms in the first level did well in nearly all aspects; the firms in the second level had a large scale of assets and made a lot of profit, but the profit margin went down sharply; the firms in the third level had a small scale of assets and earned little profit, but the profit margin rose wel; the firms in the last level did bad in nearly all aspects.In the second part, this paper evaluated the effectiveness of their strategic behavior. By measuring, two firms are not DEA efficient. They need to improve the interaction of financing and industry.In the third part, this paper explained the evaluation results in Glodon’s case. In 2015, the net profit of Glodon fell by 59 percent, which lead to bad strategic performance. And the capital market didn’t respect to his merger action. Glodon needs improvements in two aspects in the future. In the aspect of capital, Glodon needs to strengthen the financing, which will help to make up the high strategic improvement; while in the aspect of industry, Glodon needs to attach importance to the action which are popular in the capital market, such as the equity incentive.This paper created the indicator system based on the ECIRM model and the interaction strategy of financing and industry. The indicator is the innovation of ECIRM application.