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The Role of Platforms in Software Development: Planting Real Options to Manage Uncertainties
Responsible organisation
2010 (English)Conference paper, (Refereed) Published
Abstract [en]

The innovation process of developing new software is a challenging job and an uncertain process because of the tasks associated with the development. These uncertainties can be categorized based on what drives the uncertainty. In this paper we separate between inner and outer uncertainty. Inner uncertainty stems from how a software product shall be developed and the cost associated with it. The outer uncertainty stems from what software product shall be developed and the revenues associated with it. This paper draws on theories from innovation and development research to develop a model to analyze how the uncertainty during a software development project can be managed. In doing so, we take a supply side view on software development where the firm does not merely respond to given market needs in the development cycle but instead plays a more active role. We operationalize the supply side of the innovation process in the software development by developing a model where we analyze how service platforms create real options for future innovations. An empirical study has been conducted to examine whether and how platforms are used in software development to plant options for future innovations as suggested by the model. The study was conducted at a company that primarily develops IT-phone-service products. This study shows that the company use platforms for the development of their products. Further, it is a prerequisite for developing software at the pace as well as the cost and the quality demanded by their customers. The platforms play different roles in the development depending on the product being developed. The study describes the development of two different products and how the platforms are used in different ways in the development of these products. The differences in the use of platforms is partly because of the different nature of the products but also due to the market maturity of the software, this result in a difference in the kind of real options that is created for the future. The study shows that both inner and outer uncertainties are reduced by the use of platforms in the development phase.

Place, publisher, year, edition, pages
Cape Town: ACADEMIC CONFERENCES LTD , 2010.
Keyword [en]
Innovation, platform, real option, uncertainty reduction, software development
National Category
Software Engineering Business Administration
Identifiers
URN: urn:nbn:se:bth-7610ISI: 000280731500032Local ID: oai:bth.se:forskinfo7216BBB9CE3A3C99C125781100392E2EISBN: 978-1-906638-57-3 (print)OAI: oai:DiVA.org:bth-7610DiVA: diva2:835254
Conference
International Conference on Information Management and Evaluation
Available from: 2012-09-18 Created: 2011-01-07 Last updated: 2015-06-30Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf