Open Source Software Business Models and Customer Involvement Economics

2009 ◽  
pp. 1906-1915
Author(s):  
Christoph Schlueter Langdon ◽  
Alexander Hars

This chapter is focused on the business economics of open source. From a strategic perspective, open source falls into a category of business models that generate advantages based on customer and user involvement (CUI). While open source has been a novel strategy in the software business, CUI-based strategies have been used elsewhere before. Since the success of e-commerce and ebusiness, CUI-based strategies have become far more prevalent for at least two reasons: Firstly, advances in information technology and systems have improved feasibility of implementation of CUI strategies and secondly, CUI-based economics appear to have often become a requirement for e-business profitability. This chapter presents a review of CUI-based competition, clearly delineates CUI antecedents and business value consequences, and concludes with a synopsis of managerial implications and a specific focus on open source.

2011 ◽  
pp. 240-249
Author(s):  
Christoph Schlueter Langdon ◽  
Alexander Hars

This chapter is focused on the business economics of open source. From a strategic perspective, open source falls into a category of business models that generate advantages based on customer and user involvement ( CUI). While open source has been a novel strategy in the software business, CUI-based strategies have been used elsewhere before. Since the success of e-commerce and e-business, CUI-based strategies have become far more prevalent for at least two reasons: Firstly, advances in information technology and systems have improved feasibility of implementation of CUI strategies and secondly, CUI-based economics appear to have often become a requirement for e-business profitability. This chapter presents a review of CUI-based competition, clearly delineates CUI antecedents and business value consequences, and concludes with a synopsis of managerial implications and a specific focus on open source.


Author(s):  
Christoph Schlueter Langdon ◽  
Alexander Hars

This chapter is focused on the business economics of open source. From a strategic perspective, open source falls into a category of business models that generate advantages based on customer and user involvement ( CUI). While open source has been a novel strategy in the software business, CUI-based strategies have been used elsewhere before. Since the success of e-commerce and e-business, CUI-based strategies have become far more prevalent for at least two reasons: Firstly, advances in information technology and systems have improved feasibility of implementation of CUI strategies and secondly, CUI-based economics appear to have often become a requirement for e-business profitability. This chapter presents a review of CUI-based competition, clearly delineates CUI antecedents and business value consequences, and concludes with a synopsis of managerial implications and a specific focus on open source.


2020 ◽  
Vol 58 (5) ◽  
pp. 40-46 ◽  
Author(s):  
Jose Alberto Hernandez ◽  
Marco Quagliotti ◽  
Emilio Riccardi ◽  
Victor Lopez ◽  
Oscar Gonzalez de Dios ◽  
...  

Author(s):  
Risto Rajala ◽  
Jussi Nissilä

Profit-oriented business behavior has increased within the open source software movement. However, it has proved to be a challenging and complex issue due to the fact that open source software (OSS) business models are based on software that typically is freely distributed or accessed by any interested party, usually free of charge. It should be noted, however, that like all traditional software businesses, the business models based on OSS ultimately aim at generating profits. The aim of this chapter is to explore the key considerations in designing profitable revenue models for businesses based on OSS. We approach the issue through two business cases: Red Hat and MySQL, both of which illustrate the complexity and heterogeneity of solutions and options in the field of OSS. We focus on the managerial implications derived from the cases, discussing how different business model elements should be managed when doing business with OSS.


2009 ◽  
pp. 2599-2613
Author(s):  
Risto Rajala ◽  
Jussi Nissilä ◽  
Mika Westerlund

Profit-oriented business behavior has increased within the open source software movement. However, it has proved to be a challenging and complex issue due to the fact that open source software (OSS) business models are based on software that typically is freely distributed oraccessed by any interested party, usually free of charge. It should be noted, however, that like all traditional software businesses, the business models based on OSS ultimately aim at generating profits. The aim of this chapter is to explore the key considerations in designing profitable revenue models for businesses based on OSS. We approach the issue through two business cases: Red Hat and MySQL, both of which illustrate the complexity and heterogeneity of solutions and options in the field of OSS. We focus on the managerial implications derived from the cases, discussing how different business model elements should be managed when doing business with OSS.


Author(s):  
Ufuk Alpsahin Cullen

Circular entrepreneurship is becoming a new, promising reality, in the manner of needed radical paradigmatic change in the era of Anthropocene. Circular entrepreneurs intend to create social and environmental value while they build financially viable businesses. They are embedded in multiple institutionalised value systems that they are expected to adhere to. Those institutionalised systems provide circular entrepreneurs with different, in many cases, contradictory norms, values and guiding principles. Substantial amount of research has been done to date to examine the impact of institutions on entrepreneurial endeavours. And yet, research lacks sufficient insights into how circular entrepreneurs engage with the institutional structures in designing business models on a financially feasible ground while creating social and environmental value. To address this, this paper investigates how circular entrepreneurs respond to the value systems of surrounding institutions in business modelling and how two fundamental aspects of embeddedness, namely resource integration and value cocreation, are achieved within a circular business model that is coherent in itself and with the entrepreneur's ambitions. Both the institutional context and the institutional logics surrounding entrepreneurs are examined to comprehend the surrounding institutional systems more in-depth and extensively. By analysing a longitudinal in-depth case study, this article aims to develop better insights into circular business modelling and underlying mechanisms of embeddedness. The case is a born-circular small cidermaker in Cornwall (UK), namely Wasted Apple. The findings show that the circular entrepreneur is surrounded by dominant normative institutions forming the principles of business model design. circular entrepreneurs mark fidelity to the institutional norms to obtain a range of microcompetencies and to manage integrated hybrid tensions within the value creation system. And therefore, a circular business model is a more holistic and inclusive structure as compared to a typical conventional linear business model. And yet, paradoxically embeddedness facilitates business survival but hinders strategic business planning as well as business profitability and growth.


2017 ◽  
Vol 16 (2 (2017)) ◽  
pp. 184-196
Author(s):  
Vitalina Kurylyak ◽  
Bogdan Litovchenko

The concept of organization as an organistical system facing the challenges of the creative economy is considered. It is grounded that the ideal creative organization with a high level of information will represent a certain symbiosis between organic and anarchic culture in the future. It is identified that with the emergence of virtual organizations, traditional elements of the organizational culture lose their value, while the informational technologies create opportunities for communication and collaboration, regardless of distance and borders. Thus, the basis for the virtual organizations creates their adaptability and transferability. Key requirements regarding the creative industry management organization are singled out as following: proactivity, strategic perspective, innovation, initiation of risk, modeling, experimentation and creativity, support of the independent business units’ coordination. The model of organizations’ types, which should reflect their organistical nature, strategic perspective and attitude to risk is presented. The main barriers that limit the ability of organizations to creativity – the lack of the innovative organizational culture as well as the lack of professional risk managers and analysts are outlined. However, these features have not yet organically become peculiar by creative organizations, requiring the development of the appropriate business models culture.


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