6533b82efe1ef96bd1293b8b

RESEARCH PRODUCT

Effect of Software on CSP Performance

Oleksiy MazhelisKimmo SuojapeltoPasi Tyrväinen

subject

Market capitalizationNet incomeEconometricsControl variableRevenueAverage revenue per userRegression analysisBusinessPerformance indicatorOperating expense

description

In order to verify how (if at all) CSP's investments in software affect their business performance, the relationship between (i) CSP's spending on software and (ii) its key performance indicators (KPIs) is considered below. The investments in software are represented by internal, external, and total software spending a year or two years prior to the KPI values, while the KPIs include average revenue per user (ARPU), revenue, net income, EBIDTA, and change in revenue (as an indicator of company growth). Besides, Opex and Capex along with R&D expenses are used as control variables. We use the data collected for the years 2004–2007 (revenue, net income, EBITDA, market capitalization, R&D, CAPEX, OPEX), and 2004–2006 (ARPU). The data is used to construct regression models wherein the dependencies between KPIs and software spending are evaluated in terms of the variance explained by each of the independent (or control) variables.

yearjournalcountryeditionlanguage
2009-01-01
https://doi.org/10.1007/978-3-7908-2352-3_7