A Study on Business Models and Strategies of the Software Industry in Taiwan
Date Issued
2005
Date
2005
Author(s)
Wang, Szu-Chun
DOI
zh-TW
Abstract
Contrary to the IT hardware industry that has possessed a rather competitive position in the world, the development of information software industry in Taiwan is obviously far from policy expectation. This in turn stimulates our research motivation as to explore the structural factor leading toward the current industry development. In addition, we are interested in exploring the potential business opportunities among different industry segements through innovative business models. To achieve these goals, this research undertook both industry analysis and field interviews within a broad context of information software industry. We also apply both diamond model and value net analysis over the software industry in various countries to guide our research exploration, upon which strategic suggestions and policy implications are based.
First of all, according to the analysis of diamond model, we found that the competitive advantages of the software industry in Taiwan are relative low in aspects of factor conditions, demand conditions, and firm strategy, structure and rivalry. Althoguh the supporting hardware sectors are strong, the amount of synergy between software and hardware sectors are in fact limited. Moreover, government doesn’t make her supporting policy effective
Second, using the value net analysis, our research proposes that Taiwanese software companies should develope talents in different specialization areas, provide customers value-added functions, and enhance technology development themselves. In addition, commercial software companies should emphasize on the demand of small-and-medium enterprises while mass merchandise software companies should develop software to services with creative business models. To avoid competition from multinational firms, local software firms could focus on niche markets and work out co-opetitive relationship with multinational firms. More importantly, they should combine the software functions, integrate the software and hardware, and unite across industries.
Finally, this research suggests that collaborative research efforts between industries and academic institutions are crucial to the future development of the software industry. However, to formulate proper incentives, including market-based, financial, and technical ones, is critical to success. Suggestions to both software firms and policy formulation based on these findings are discussed.
Subjects
軟體產業
營運模式
鑽石模型
價值網
Software Industry
Business Model
Diamond Model
Value Net
Type
thesis
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