Examining Business Models of Software-as-a-Service Firms

Luoma, Eetu

doi:10.1007/978-3-319-02414-1_1

Cited by 10 publications

(7 citation statements)

References 23 publications

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“…Since software pricing has become increasingly complex ("constantly changing labyrinth of pricing", [34], p. 127), one of the most important factors for a pricing model is simplicity ("the vision is that less is more", [45], p. 7). The customers need to understand immediately how their value creation is represented in the software pricing ("Firstly, be boring.…”

Section: Results and Implicationsmentioning

confidence: 99%

Customer is King? A Framework to Shift from Cost- to Value-Based Pricing in Software as a Service: The Case of Business Intelligence Software

Baur

Genova

Bühler

et al. 2014

IFIP Advances in Information and Communication Technology

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HAL is a multidisciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L'archive ouverte pluridisciplinaire HAL, est destinée au dépôt et à la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d'enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

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Section: Results and Implicationsmentioning

confidence: 99%

Customer is King? A Framework to Shift from Cost- to Value-Based Pricing in Software as a Service: The Case of Business Intelligence Software

Baur

Genova

Bühler

et al. 2014

IFIP Advances in Information and Communication Technology

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“…Because software pricing has become increasingly complex ("constantly changing labyrinth of pricing", Laatikainen et al, 2013;p. 127), one of the most important factors for a pricing model is simplicity ("the vision is that less is more", Luoma, 2013;p. 7).…”

Section: Leading Bi Vendors and Their Pricing Conceptsmentioning

confidence: 99%

How pricing of business intelligence and analytics SaaS applications can catch up with their technology

Baur

Bühler

Bick

2015

J of Systems and Info Tech

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Purpose -The purpose of this paper is to investigate the development of software pricing, following the advent of cloud-based business intelligence & analytics (BI&A) Software. A value-based conceptual software model is developed to ignite and structure further research. Design/methodology/approach -A two-step research approach is applied. In step one, the available literature is screened and evaluated, and this is followed by ten semi-structured expert interviews. With that input, a conceptual software pricing model is designed. In step two, this model is validated and refined through discussions with representatives of the five leading business intelligence suites. Findings -The paper sheds light on the value perception of customers and suggests a clear focus on the interaction between customers and vendors, and less on technical issues. The developed customer-centric, value-based pricing framework helps to improve pricing techniques and strategies.Research limitations/implications -The research is focused on the pricing strategy of software houses and excludes differentiations of technical specifications and functionalities. Practical implications -The research can support practitioners in the field of BI&A in rethinking their pricing methods. Placing the customer at center stage can lead to lower customer churn rates, higher customer satisfaction and more pricing flexibility. Originality/value -This empirical study reveals the importance of a customer-centric pricing approach in the specific case of BI&A. It can also be applied to other fast-developing sectors of the software industry.

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“…Given the flexibility and imprecision of the concept of business model, it is necessary for researchers to define the key business model elements that are in line with the purpose of their study (Luoma, 2013). For this reason, we apply roughly the four business model elements introduced by Ojala (2016a) which are largely based on the business model pillars by Osterwalder et al (2005).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Effectuation logic in digital business model transformation

Baber

Ojala

Martínez

2019

JSBED

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Purpose The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted with the key decision-makers from the case firms. Findings The findings show that through digital transformation, the case firms’ digital business models evolved by following effectuation logic as well as causal logic. All the firms employed causal logic when moving to new platforms, among other actions. The case firms used effectual logic with success for product development and adjustments to their network. Especially firms providing video games relied on effectuation for high impact products. Effectual logic did not play a role at all in changes to value delivery and had only little impact on revenue structures. Originality/value This research helps understand how digitalization of platforms and subsequent moves to newer digital platforms improve a firm by changing the business model elements through effectuation and causation logics. This research extends the understanding of digital business model transformation to a more granular level, business model elements.

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Examining Business Models of Software-as-a-Service Firms

Cited by 10 publications

References 23 publications

Customer is King? A Framework to Shift from Cost- to Value-Based Pricing in Software as a Service: The Case of Business Intelligence Software

Customer is King? A Framework to Shift from Cost- to Value-Based Pricing in Software as a Service: The Case of Business Intelligence Software

How pricing of business intelligence and analytics SaaS applications can catch up with their technology

Effectuation logic in digital business model transformation

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