Valuation and pricing of software licenses to support supplier–buyer negotiations: A case study in the automotive industry

Bodendorf, Frank; Lutz, M.; Franke, Jörg

doi:10.1002/mde.3336

Cited by 8 publications

(3 citation statements)

References 73 publications

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“…Lee [22] developed pricing game models involving multiple IoT providers and analyzes both a non-cooperative game and a cooperative game. Developed a model to evaluate the appropriateness of software prices and thus to support the negotiation and decision process regarding suppliers [23,24]. Thus, it seems important to develop pricing models according to the type and characteristics of the commodity or product.…”

Section: Introductionmentioning

confidence: 99%

The Development of a Web-Based Strategic Pricing Application to Support the Sustainability of Creative-Based SMEs

Zuhroh¹,

Sunardi²,

Muslikh³

et al. 2023

IJSDP

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This study analyzes the theoretical and practical effects of Perceived Usefulness and Perceived Ease of Use on Attitude Toward Using and Behavioral Intention to use the web-based pricing application Mersyprice, based on the Technology Acceptance Model theory. Mersyprice is a web-based application to support strategic pricing for Small and Medium Enterprises (SMEs) in the creative sector. Data was collected through an online Focus Group Discussion (FGD) using Zoom to introduce the use of Mersyprice in supporting strategic pricing for creative SMEs. Participants then completed a questionnaire using a Google form. Data analysis was carried out in 2 stages. The first stage, to answer theoretical objectives, Structural Equation Modeling was used. While the second stage, to answer practical purposes, the Analytical Hierarchy Process was used. The firststage of analysis showed that Perceived Usefulness and Perceived Ease of Use have a significant impact on Behavioral Intention to use the Mersyprice application via Attitude Toward Using it. Respondents considered that the "Ease of Use" variable was more important. The second stage of analysis revealed that 47% of creative SMEs intend to use Mersyprice, while 35% are considering using it. It can be concluded that Mersyprice is useful in supporting strategic pricing by creative sector of SMEs. For future research it is important to develop the Mersyprice in a more user friendly so that it can be used more widely.

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Section: Introductionmentioning

confidence: 99%

The Development of a Web-Based Strategic Pricing Application to Support the Sustainability of Creative-Based SMEs

Zuhroh¹,

Sunardi²,

Muslikh³

et al. 2023

IJSDP

View full text Add to dashboard Cite

show abstract

“…I4.0 and its digital technologies, such as big data, sensors, analytics, virtual reality, real-time networking and intelligent systems call for a change in purchasing (Schiele and Torn, 2020; Bodendorf et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

An empirical investigation into intelligent cost analysis in purchasing

Bodendorf

Lutz²,

Michelberger³

et al. 2021

SCM

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Purpose Cost transparency is of central importance to reach a consensus between supply chain partners. The purpose of this paper is to contribute to the instrument of cost analysis which supports the link between buyers and suppliers. Design/methodology/approach Based on a detailed literature review in the area of cost analysis and purchasing, intelligent decision support systems for cost estimation are identified. Subsequently, expert interviews are conducted to determine the application possibilities for managers. The application potential is derived from the synthesis of motivation, identified applications and challenges in the industry. Management recommendations are to be derived by bringing together scientific and practical approaches in the industry. Findings On the one hand, the results of this study show that machine learning (ML) is a complex technology that poses many challenges for cost and purchasing managers. On the other hand, ML methods, especially in combination with expert knowledge and other analytical methods, offer immense added value for cost analysis in purchasing. Originality/value Digital transformation allows to facilitate the cost calculation process in purchasing decisions. In this context, the application of ML approaches has gained increased attention. While such approaches can lead to high cost reductions on the side of both suppliers and buyers, an intelligent cost analysis is very demanding.

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“…It plays an increasingly important role in satisfying various administration demands, concerning human resource management, finance management, resource planning, customer relationship management and many others. For instance, enterprise software with smart sensors is becoming popular in the automotive industry, which helps collect high-quality data, promote business model innovation and improve information management service capabilities (Bodendorf et al , 2021). The information technology (IT) expenditure on enterprise software generates such a huge share in the total software market, which is estimated to be 465bn US dollars in 2020, according to statistics from Gartner (2021a).…”

Section: Introductionmentioning

confidence: 99%

Optimal versioning strategy of enterprise software considering the customer cost-acceptance level

Sun

Chen

Feng

et al. 2021

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PurposeThe emergence of the Software-as-a-service (SaaS) licensing model dramatically changes how enterprise software is released. Especially, it is favored by small and medium enterprises (SMEs) because of the cost-friendly feature. In contrast, many large enterprises (LEs) own relatively abundant budgets and prefer the on-premise software to fulfill demands through customization. Considering the differentiated cost-acceptance level among customers, this study aims to address the versioning problem of the enterprise software faced by software firms.Design/methodology/approachA two-point distribution model is formulated to calculate the maximal profits software firm earned from both LEs and SMEs under three strategies (On-premise, SaaS and Hybrid). Then through profit comparison, this paper obtains the optimal versioning strategy and corresponding feasible conditions. Finally, the optimal solutions are derived concerning social welfare.FindingsA significant finding is that moving to SaaS becomes necessary for the software firms in product releases since the on-premise strategy will not be optimal. Based on this, this paper discovers that when LEs own a cost-acceptance level close to that of SMEs, the hybrid strategy is the only optimal choice. When LEs become less sensitive to costs, the hybrid strategy is suggested if the customization cost falls below the threshold. Otherwise, the SaaS strategy becomes the optimal option. The conclusions explain why some software vendors transit to “cloud companies” thoroughly and provide practical insights for software firms’ future decisions.Originality/valueTo the best of the authors’ knowledge, this paper is the first information economics study to consider consumer cost sensitivity in discussing enterprise software versioning. The differentiated cost-acceptance level is introduced to describe the customer utilities, and the results uncover the necessity of moving to SaaS under diversified customer composition. This work provides significant theoretical value and practical insights.

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Valuation and pricing of software licenses to support supplier–buyer negotiations: A case study in the automotive industry

Cited by 8 publications

References 73 publications

The Development of a Web-Based Strategic Pricing Application to Support the Sustainability of Creative-Based SMEs

The Development of a Web-Based Strategic Pricing Application to Support the Sustainability of Creative-Based SMEs

An empirical investigation into intelligent cost analysis in purchasing

Optimal versioning strategy of enterprise software considering the customer cost-acceptance level

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