Misys chairman Dominic Cadbury has told shareholders that the UK vendor's technology is not currently good enough to compete with products from its competitors in the banking and healthcare markets.
Speaking at the company's annual meeting, Cadbury said Misys's product development had not "kept pace with the changing competitive products that are available in the industry".
He reportedly described the vendor's software as "not at the leading edge" and admitted that the company has not had "the most competitive products out there".
Cadbury said following the collapse of takeover talks last week, Misys will focus on developing the next generation of its software to compete with rival products in the company's core markets.
Cadbury also defended his handling of the three-month bidding process for Misys, which was prompted by an approach by former chief executive Kevin Lomax who proposed a management buyout.
Takeover talks were terminated last Friday after the firm failed to receive a single formal offer for the business. Lomax quit the company on Monday. Cadbury told shareholders that Lomax had wanted to take the company private but when that strategy failed it was clear "that his position was untenable".
When asked by a shareholder about a 'management walk-in' approach by former directors Ross Graham, Mike O'Leary and John Sussens, Cadbury said the company needs a new chief executive rather than a team of new managers, although he added that any of the three were free to apply for the chief executive's role.
Lomax's replacement is expected to be announced by mid-October.