Submitted to the Sloan School of Management in Partial Fulfillment of the Requirements for the Degree of Master of Management of Technology at the Massachutsets

Using Michael Porter's framework for the competitiveness of the nations and Professor Michael Cusumano's theory on the orientation of the software companies toward services, I analyzed the country of Colombia's software industry to elaborate a diagnosis of current conditions and to generate some strategies for the Government and for the business sector using diagrams of dynamic systems. Keeping in mind that Colombia has significant human capital, success in this type of industry is likely, not only because the industry is highly dependent on human talent; but also because seeing the reality and determining that the number of qualified people is not very large, the country should create aggressive strategies to increase the number of people qualified for the industry. In the short term, it should emphasize the information technology (IT) services sector taking advantage of its strengths and looking for specific market niches. For the medium term it should look for software products where Colombia has a competitive advantage. Studies the Government is conducting to identify industries favorable to domestic growth could be very valuable to the software industry and could focus on the products those types of industries need. For example, Colombia could begin to analyze if it is well-suited to develop software products for the bio-fuel industry, relatively new industry, Brazil could be a great client and Colombia already has the necessary natural resources for this type of industry. Thesis Supervisor: Alex Pentland Title: Professor of Media Arts and Sciences Strategies for the development of the software industry in Colombia 2 Table of