Open Source Software Business Models and Customer Involvement Economics

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Author(s): Christoph Schlueter Langdon (Center for Telecom Management, University of Southern California, USA)and Alexander Hars (Inventivio GmbH, Bayreuth, Germany)
Copyright: 2008
Pages: 10
Source title: Electronic Commerce: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): Annie Becker (Florida Institute of Technology, USA)
DOI: 10.4018/978-1-59904-943-4.ch022

Keywords: Business & Management / Business Science Reference / E-Commerce

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Abstract

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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