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Evaluation of a Product Platform Strategy
September 08, 2004In his dissertation, Mr. Petri I. Salonen explores the use of the product platform approach as applied to the development of analytical application software solutions. The product platform concept has been successfully demonstrated in several industries, for example, the automobile industry and the electronics industry (printers, cameras etc.).
Salonen argues that technology-driven software development without careful consideration of the selected market segment and product architecture could lead to a situation in which a software product becomes either obsolete or does not address any market segment and its functional requirements.
Salonen explains the current trend (common in the United States) in which end user organizations are more inclined to purchase (rather than build from scratch) prepackaged analytical application software solutions that include 80 percent or more of the required functionality for selected market segments.
Furthermore, a number of end user organizations are considering buying and paying for software on an "as you go" basis, in a manner similar to that by which households pay for electricity. These trends will require new alternative views of how software is developed and deployed in end user organizations. Salonen introduces in his dissertation an alternative to more traditional technology-driven software development by defining a framework based on the use of a product platform concept that enables software companies to identify the impact of technology selections both on the product architecture and on market segmentation.
The aim of the product platform approach is to enable the utilization of a common core (product platform) that becomes the foundation for derivative product development within a product family. Salonen introduces software product line engineering as a viable alternative foundation for software product platform development. Existing software related product platform development literature has not addressed the practical implications of software development using a product platform approach for analytical application software.
The product platform development approach has the aim, different from that of the traditional software development approach, of maximizing the revenue (and not minimizing the cost) that can be leveraged from a product platform using a product architecture that is specifically designed to be common to all selected market segments.
The dissertation is part of ongoing research by Professor Markku Saeaekjaervi's research group into flexible, long-lasting, and reusable software product platform use so as to enable maximization of the effectiveness and efficiency of long-term software product development.
In his dissertation, Mr. Salonen has further developed product platform theory within software development by exploring different alternative architectural options for analytical application software and by defining different alignment perspectives for a software vendor when selecting market segments for a given product architecture and selected technology. The dissertation also presents different variation options that an analytical application software vendor has in the implementation of derivative products within a product family.
The study includes the results of a ten year longitudinal single-case study of an internationally successful software company that demonstrates the use of a product platform concept and alignment perspectives. These alignment perspectives help to show how changes in product architecture, market segmentation, or technology can impact a software vendor's product development effectiveness, and how executive management can assess the impact and reasons for these changes.
The empirical evidence reinforces the researcher's view that a software vendor can achieve significant benefits using the product platform concept in its software development. The study also demonstrates how technology selections can impact both future market segmentation strategies and software development for a software vendor.
Helsinki School Of Economics (HSE) - Helsingin kauppakorkeakoulu
Furthermore, a number of end user organizations are considering buying and paying for software on an "as you go" basis, in a manner similar to that by which households pay for electricity. These trends will require new alternative views of how software is developed and deployed in end user organizations. Salonen introduces in his dissertation an alternative to more traditional technology-driven software development by defining a framework based on the use of a product platform concept that enables software companies to identify the impact of technology selections both on the product architecture and on market segmentation.
The aim of the product platform approach is to enable the utilization of a common core (product platform) that becomes the foundation for derivative product development within a product family. Salonen introduces software product line engineering as a viable alternative foundation for software product platform development. Existing software related product platform development literature has not addressed the practical implications of software development using a product platform approach for analytical application software.
The product platform development approach has the aim, different from that of the traditional software development approach, of maximizing the revenue (and not minimizing the cost) that can be leveraged from a product platform using a product architecture that is specifically designed to be common to all selected market segments.
The dissertation is part of ongoing research by Professor Markku Saeaekjaervi's research group into flexible, long-lasting, and reusable software product platform use so as to enable maximization of the effectiveness and efficiency of long-term software product development.
In his dissertation, Mr. Salonen has further developed product platform theory within software development by exploring different alternative architectural options for analytical application software and by defining different alignment perspectives for a software vendor when selecting market segments for a given product architecture and selected technology. The dissertation also presents different variation options that an analytical application software vendor has in the implementation of derivative products within a product family.
The study includes the results of a ten year longitudinal single-case study of an internationally successful software company that demonstrates the use of a product platform concept and alignment perspectives. These alignment perspectives help to show how changes in product architecture, market segmentation, or technology can impact a software vendor's product development effectiveness, and how executive management can assess the impact and reasons for these changes.
The empirical evidence reinforces the researcher's view that a software vendor can achieve significant benefits using the product platform concept in its software development. The study also demonstrates how technology selections can impact both future market segmentation strategies and software development for a software vendor.
Helsinki School Of Economics (HSE) - Helsingin kauppakorkeakoulu
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