Software Business Model Characteristics

Abstract

This section develops the conceptualization of the software business model characteristics. The literature review in Section 2.2 emphasizes value as a business model’s center of gravity. Accordingly, Section 3.1 analyzes how value is generated in the software industry by developing an industry-specific value chain. Morris et al. (2005, p. 728) claim that a firm’s value chain is a major foundation of every business model. The software value chain builds hence a central part of the software business model framework, which is developed subsequently in Section 3.1. Beyond the value chain it builds upon the state-of-the-art in generic and software industry-specific business model concepts as well as upon the software industry’s economic properties. Finally, empirical analyses provide a software industry overview.