Analysis of the value that open source contributes to business models

Abstract

In the constantly turbulent and dynamic environments in which businesses today function, one has to be able to adapt and change one's overall strategy in order to remain competitive. Business models, when carefully constructed can be a valuable tool for firms. In addition to focussing a firm's activities on crucial areas from which they gain the most value, they play an important role in innovation. Innovation is the key to competitiveness and growth. The phenomenon of open source software (OSS) is gaining momentum and attracting much interest in the business world. Firms can take advantage of this situation by combining the power of business models with the opportunities surrounding OSS. In this paper the authors develop a business model framework to analyse the different OSS strategies available and provide clarity around these concepts