Each week Fluid Innovation receives unsolicited inquiries from companies interested in commercializing a software technology it developed for internal use. Of course, everyone thinks what they’ve developed is the greatest thing since sliced bread. But here are two simple screener questions to determine if it’s worth exploring commercialization:

1. Why did you develop the software internally rather than buy it?

There are two common answers: a) We couldn’t find a software product on the market to solve our problem or b) it was cheaper to build it in house than buy it.

The answer we’re looking for it A. If your company had a business problem and couldn’t find an available solution, then you have likely identified a market need. Your home grown product is a solution to a problem that likely hasn’t been addressed yet.

2. How much benefit does the software provide to the company?

Consider how much it saves the company or generates in revenue. For example, a new human resources process application may cut annual overhead costs by $5 million. Although generally the higher the number the better, this isn’t always the case. Think about the total market size. If an application saves $5 million but would only be purchased by a few companies, then an application that saves $100,000 but could be purchased by 1,000 companies is better.

These are just the first two questions to answer as an initial screen. Stay tuned for more considerations when considering commercializing your software intellectual property. (Hint: note that I didn’t ask anything about patents.)