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The Software Value Chain: Methods for Construction and Their Application

Pussep, Anton and Schief, Markus and Widjaja, Thomas (2012):
The Software Value Chain: Methods for Construction and Their Application.
In: ECIS 2012 Proceedings, In: European Conference on Information Systems (ECIS), Barcelona, Spain, June 10-13, 2012, [Online-Edition: http://aisel.aisnet.org/ecis2012/116],
[Conference or Workshop Item]

Abstract

The value chain is a widely used framework for industry and firm analysis. To our knowledge, the conceptualisation of value chains is so far guided by “soft” criteria like intuition of experts rather than clearly stated methods with regard to the value chain boundaries and the granularity as well as the separation of activities. Therefore, we propose a combination of well-known methods – such as the Delphi study approach and clustering algorithms – to (1) ensure a holistic view of the industry at hand by covering all underlying economic concepts, (2) ensure the uniqueness of activities, and (3) provide a hierarchy of activities that allows deriving value chains at different levels of granularity. Since software is a good with specific economic properties, practitioners and researchers require a value chain framework reflecting the industry specifics. This paper contributes by proposing methods for value chain construction and applying these methods to the software industry. The resulting universal and hierarchical software value chain can serve as a sound foundation for further studies of the software industry. Furthermore, practitioners can tailor the proposed methods to their needs and apply the software value chain to their firms.

Item Type: Conference or Workshop Item
Erschienen: 2012
Creators: Pussep, Anton and Schief, Markus and Widjaja, Thomas
Title: The Software Value Chain: Methods for Construction and Their Application
Language: English
Abstract:

The value chain is a widely used framework for industry and firm analysis. To our knowledge, the conceptualisation of value chains is so far guided by “soft” criteria like intuition of experts rather than clearly stated methods with regard to the value chain boundaries and the granularity as well as the separation of activities. Therefore, we propose a combination of well-known methods – such as the Delphi study approach and clustering algorithms – to (1) ensure a holistic view of the industry at hand by covering all underlying economic concepts, (2) ensure the uniqueness of activities, and (3) provide a hierarchy of activities that allows deriving value chains at different levels of granularity. Since software is a good with specific economic properties, practitioners and researchers require a value chain framework reflecting the industry specifics. This paper contributes by proposing methods for value chain construction and applying these methods to the software industry. The resulting universal and hierarchical software value chain can serve as a sound foundation for further studies of the software industry. Furthermore, practitioners can tailor the proposed methods to their needs and apply the software value chain to their firms.

Title of Book: ECIS 2012 Proceedings
Divisions: 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Information Systems
01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete
01 Department of Law and Economics
Event Title: European Conference on Information Systems (ECIS)
Event Location: Barcelona, Spain
Event Dates: June 10-13, 2012
Date Deposited: 18 Apr 2012 12:00
Official URL: http://aisel.aisnet.org/ecis2012/116
Alternative keywords:
Alternative keywordsLanguage
value chain, granularity, software industryEnglish
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