The Software Value Chain as an Analytical Framework for the Software Industry and Its Exemplary Application for Vertical Integration Measurement
AbstractThe value chain concept disaggregates a firm into the various activities it performs. Abstracting from the firm-level this concept has also been applied to industries as a whole. In this paper we conceptualize a software specific value chain and provide a first proof of concept. Our approach aggregates and unifies findings from a literature review on industry-level value chains, software value chains, and related concepts. The resulting unified software value chain comprises eleven activities: product research, component procurement, product development, user documentation, production and packaging, marketing, implementation, training and certification, maintenance and support, operations, and replacement. A first proof of concept is provided through expert interviews with software firms. Furthermore, we present an example that shows how the software value chain can be applied to measure the degree of vertical integration in the software industry.
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Bibliographic InfoPaper provided by Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL) in its series Publications of Darmstadt Technical University, Institute for Business Studies (BWL) with number 52732.
Date of creation: 04 Aug 2011
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software industry; value chain; software value chain; vertical integration; degree of vertical integration; vertical integration measurement;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-22 (All new papers)
- NEP-COM-2011-08-22 (Industrial Competition)
- NEP-CSE-2011-08-22 (Economics of Strategic Management)
- NEP-MKT-2011-08-22 (Marketing)
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