Managing the versions of a software product under variable and endogenous demand

Name: Managing the versions of a software product under variable and endogenous demand
Author: Doğan, Kutsal, Ji, Y., Mookerjee, V. S., Radhakrishnan, S.

İsim	Managing the versions of a software product under variable and endogenous demand
Yazar	Doğan, Kutsal, Ji, Y., Mookerjee, V. S., Radhakrishnan, S.
Basım Tarihi:	2011-01-03
Basım Yeri	- Informs
Konu	software upgrades, demand endogeneity, upgrade design effort, demand variability, upgrade strategy
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1047-7047
Kayıt Numarası	bff05ee6-ad7a-40ba-8a67-5ab699f82c5d
Lokasyon	Management Information Systems
Tarih	2011-01-03
Notlar	Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Örnek Metin	Software product versioning (i.e., upgrading the product after its initial release) is a widely adopted practice followed by leading software providers such as Microsoft, Oracle, and IBM. Unlike conventional durable goods, software products are relatively easy to upgrade, making upgrades a strategic consideration in commercial software production. We consider a two-period model with a monopoly software provider who develops and releases a software product to the market. Unlike previous research, we consider demand variability and endogeneity to determine the functionality of the software in the first and second period. Demand endogeneity is the impact of the word-of-mouth effect that positively relates the features in the initial release of the product to its demand in the second period. We also determine the design effort that should be spent in the first period to prepare for upgrading the product in the second period—upgrade design effort—to tap into the possible future demand. Results show that the upgrade design effort can be lower or higher when there is more market demand uncertainty. We also show that the features of the product in its initial release and upgrade design effort can be complements as well as substitutes, depending on the strength of the word-of-mouth effect. The results in this paper provide insights into how demand-side factors (market demand variability or demand endogeneity) can influence supply-side decisions (initial features and upgrade design effort). A key insight of the analysis is that a high word-of-mouth effect helps manage the product in the face of demand variability.
DOI	10.1287/isre.1090.0275
Cilt	22

Kaynağa git Özyeğin Üniversitesi

Aramaya Dön

Özyeğin Üniversitesi

Kaynağa git

Managing the versions of a software product under variable and endogenous demand

Yazar Doğan, Kutsal, Ji, Y., Mookerjee, V. S., Radhakrishnan, S.

Basım Tarihi 2011-01-03

Basım Yeri - Informs

Konu software upgrades, demand endogeneity, upgrade design effort, demand variability, upgrade strategy

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1047-7047

Kayıt Numarası bff05ee6-ad7a-40ba-8a67-5ab699f82c5d

Lokasyon Management Information Systems

Tarih 2011-01-03

Notlar Due to copyright restrictions, the access to the full text of this article is only available via subscription.

Örnek Metin Software product versioning (i.e., upgrading the product after its initial release) is a widely adopted practice followed by leading software providers such as Microsoft, Oracle, and IBM. Unlike conventional durable goods, software products are relatively easy to upgrade, making upgrades a strategic consideration in commercial software production. We consider a two-period model with a monopoly software provider who develops and releases a software product to the market. Unlike previous research, we consider demand variability and endogeneity to determine the functionality of the software in the first and second period. Demand endogeneity is the impact of the word-of-mouth effect that positively relates the features in the initial release of the product to its demand in the second period. We also determine the design effort that should be spent in the first period to prepare for upgrading the product in the second period—upgrade design effort—to tap into the possible future demand. Results show that the upgrade design effort can be lower or higher when there is more market demand uncertainty. We also show that the features of the product in its initial release and upgrade design effort can be complements as well as substitutes, depending on the strength of the word-of-mouth effect. The results in this paper provide insights into how demand-side factors (market demand variability or demand endogeneity) can influence supply-side decisions (initial features and upgrade design effort). A key insight of the analysis is that a high word-of-mouth effect helps manage the product in the face of demand variability.

DOI 10.1287/isre.1090.0275

Cilt 22