Evolution of Secondary Software Businesses: Understanding Industry Dynamics
Primary software industry originates from IBM’s decision to unbundle software-related computer system development activities to external partners. This kind of outsourcing from an enterprise internal software development activity is a common means to start a new software business serving a vertical software market. It combines knowledge of the vertical market process with competence in software development. In this research, we present and analyze the key figures of the Finnish secondary software industry, in order to quantify its interaction with the primary software industry during the period of 2000–2003. On the basis of the empirical data, we present a model for evolution of a secondary…
Evolution of secondary software product businesses: Momentum of concurrent enterprising
A growing part of commercial software production is provided by the so-called secondary software industry, involving both software products and services offered by other industries than the actual software industry, i.e. the primary industry. We have been investigating the evolution of businesses in the secondary software industry in two phases, first by developing a framework to analyse the change of host industries from closed and vertical to open and horizontal especially in terms of software products. Secondly, we have studied a set of selected industries in a pivotal era called the momentum of concurrent enterprising in this paper. The key finding is: the value creation is moving towar…