Study On Business Model Of Software Enterprises On Value Creation

Since the 90s of last century, the software industry's contribution to the world economic growth is increasing and its effects on a country's economic development and economic security is extensive and far-reaching. Therefore, how to successfully develop the software industry, to heighten the position in the value net of global software industry, and to grasp the initiative in the future development of software industry are regarded as the primary strategic thinking of many governments. Currently, the software technology presents a development trend towards networking, servitization, intelligentization and platformization. Software companies have evolved into competition based on business models from relying on a single product. Security, reliability and practicality of information system with software as its core of became basic requirements of the target customers for software companies and their products and services. The traditional business model of R&D, testing and delivery in software companies is fiercely changing. Software is evolving into services from products and software industry is gradually evolved into the modern service industry.In this background, the survival and development of software companies is not only depending on the relationship between business and customer relations. Enterprise competitiveness is also not only depending on their competitive advantages. The ability for enterprises to participate or organize cooperation becomes more and more important. Therefore, to study how the software business model fulfill value driving and sharing in the value net composed of different stakeholders from the aspect of value creation and to explain how software companies improve the value creation process through building customer relationships, looking for partners and improving the process of innovation become the most concern of software enterprises.This article begins with the current driving factors of software industry's business model and indicates the effects of the software target market, open source and software industry's M&A and restructuring on the formation of different software companies'business model, analyze the mechanisms and activities of value creation in software companies in the perspective of value creation and also establish the formation process and elements of software companies'business model based on value creation after introducing the concept of business mode. After establishing in the analytical framework of business model, this article analyzed the business models of mature international software companies and china's existing software companies, and proposed the future growth strategy for our software companies'business model. Finally, this paper presented a profitability evaluation system for business model of software companies, established a series of indicators that can fully evaluate different aspects of a software company's business model and evaluated profitability of different business models through empirical data of several software companies.