An Enterprise Perspective on Customer Value Propositions for Open Source Software

Research on open source software (OSS) has examined value creation primarily from the perspective of the individuals and suppliers that create the software. The perspective of enterprise users who use and pay for OSS has been largely neglected so far. Understanding what paying customers want and how...

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Bibliographic Details
Main Author: Aparna Shanker
Format: Article
Language:English
Published: Carleton University 2012-12-01
Series:Technology Innovation Management Review
Subjects:
Online Access:http://timreview.ca/sites/default/files/article_PDF/Shanker_TIMReview_December2012.pdf
Description
Summary:Research on open source software (OSS) has examined value creation primarily from the perspective of the individuals and suppliers that create the software. The perspective of enterprise users who use and pay for OSS has been largely neglected so far. Understanding what paying customers want and how to create products and services they value is the cornerstone of any business model. Therefore, research on what enterprise users value in OSS is of paramount importance to OSS solution suppliers; it can be used to create a new customer base and sustain an existing one. This study examines the value of OSS as perceived by enterprise customers. Through an analysis of three literature streams (firm participation in open source software, business models, and customer value), a model on customer value creation was developed. Interviews were conducted with nine decision makers from enterprises that use OSS in operational projects. The key findings of this research are that: i) the maturity of the software determines the degree to which customers value their relationship with the supplier; ii) customers value differentiating functionality and costs savings; and iii) switching costs with OSS depend on the size, complexity, and dependencies of the software itself. This research identifies the points of value that the suppliers of OSS should focus on, and it points to the need for marketing strategies that can demonstrate this value to enterprise customers.
ISSN:1927-0321