Open Source Software Business Models and Customer Involvement Economics

Open Source Software Business Models and Customer Involvement Economics

Christoph Schlueter Langdon (Center for Telecom Management, University of Southern California, USA) and Alexander Hars (Inventivio GmbH, Bayreuth, Germany)
DOI: 10.4018/978-1-59904-943-4.ch022
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This chapter is focused on the business economics of open source. From a strategic perspective, open source falls into a category of business models that generate advantages based on customer and user involvement ( CUI). While open source has been a novel strategy in the software business, CUI-based strategies have been used elsewhere before. Since the success of e-commerce and e-business, CUI-based strategies have become far more prevalent for at least two reasons: Firstly, advances in information technology and systems have improved feasibility of implementation of CUI strategies and secondly, CUI-based economics appear to have often become a requirement for e-business profitability. This chapter presents a review of CUI-based competition, clearly delineates CUI antecedents and business value consequences, and concludes with a synopsis of managerial implications and a specific focus on open source.

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