Developing Business Model with Open Source Enterprise Resource Planning

Developing Business Model with Open Source Enterprise Resource Planning

Swanand J. Deodhar (Management Development Institute, India), Kulbhushan C. Saxena (Management Development Institute, India), Rajen K. Gupta (Management Development Institute, India) and Mikko Ruohonen (University of Tampere, Finland)
DOI: 10.4018/978-1-61350-486-4.ch005
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Abstract

Open source approach to software development has been used to develop the so-called ‘horizontal infrastructure’ software such as databases and application servers. However, there is an increasing acceptance of open source approach for developing business applications like enterprise resource planning (ERP) software. Indeed, organizations are building business models around ERP and similar business application developed using open source. In this chapter, the authors analyze the business model of one such open source ERP and explain increasing importance of software licensing and partner networks in FOS-ERP business models.
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Software Business Models

In this section, we provide a brief review of the term business model and provide the conceptualization of business model adopted for this study. This exercise is important as there is little consensus in organizational research literature about the term business model (Morris et.al, 2005). Thus to bring uniformity in readers’ perception about business model, we explicitly define the term business model as we perceive and employ in this chapter. We also describe the business model framework by Rajala et.al (2003) which we use to analyze the business model of the product under study. We culminate the section by once again highlighting the focus of the chapter.

Business Models

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