Abstract Research on interorganisational relationships is highly fragmented. It can be found in, for example, sociology, economics, anthropology, psychology, marketing, organisational behaviour, strategic management, and entrepreneurship. It is unsurprising that the terminology and units of analysis vary notably, as does the theoretical basis of the research. The forms of interorganisational relationships researched also vary, including among others networking, outsourcing, strategic alliances, joint ventures, and partnering. The focus of this research is on outsourcing partnerships – what is the process involved in the formation and management of a software research and development (R&D) outsourcing partnership and what are the factors that affect the successful outcome of the said relationship. Understanding of how the relationship works, how it grows and develops is crucial for getting the best out of the collaboration and for avoiding possible difficulties. Outsourcing and partnering have been researched from many different viewpoints, depending on the domain. Some common topics of interest can still be found and they are presented in this study. However, a complete picture of an outsourcing partnership life cycle cannot be found in the literature. Because of that a synthesis outsourcing partnership life cycle model has been created based on the models found in other studies. In the second part of the study, empirical data from a software R&D outsourcing partnership case is analysed based on the synthesis model, and a new, improved model is created. The new model gives a more in-depth insight into the formation and management of an outsourcing partnership. Also, the success factors collected from the case are compared to the ones found in the literature. Even though the model is created and presented mainly from the customer company viewpoint, it has been affected by the partner company viewpoint as well, as the case data was collected from both companies.

Abstract Literature on strategic management has largely concentrated on strategy formulation, or, the analysis of strategic content, whereas limited attention has been given to the implementation of strategy, or the analysis of the strategic process. This study represents process research and approaches strategy as practice. The aim of this study is to increase both empirical and theoretical understanding of the nature of the processes or generative mechanisms through which the strategies are formed in small software companies – i.e., to open up the ‘black box’ of strategy formation. The field of strategic management studies is mapped with the help of reviews and meta-theoretical analyses conducted by other researchers, shedding light on the content aspect of strategy. To understand the process and context of strategy, the network perspective and the research of change are reviewed. Based on the literature review and data analysis, an a priori model is developed. The empirical research is based on the analysis of the development process of three entrepreneur-led software companies located in Kajaani, Finland, and the research is conducted as a process research using the method of a multiple case study. Based on the data analysis and the a priori model, the generative mechanisms inside the process of strategy formation in the case companies are identified: situational and transformational mechanisms, formed by the interplay of Network Visioning and Organising, and action-formation mechanism, formed by the interplay of Strategising and Organising. By opening up the ‘black box’ of strategy formation, this study increases the understanding of the reality of small software companies and the effect of the context of software business on the development of the companies. Recognising the different elements affecting strategy formation may help the companies to be aware of the mechanism affecting their development and to guide the development in the direction deemed appropriate.

Abstract Malmi et al. (2004) argue that the cost of quality (COQ) literature typically deals with manufacturing or service organizations in continuous or repetitive business processes in which identical or similar activities and work phases are repeated in the same sequence or order, batch after batch or customer after customer. Many modern businesses, such as the software business, are outright project based, or operate like a string of semi-independent projects characterized by unique resources, customized activity or work sequence order, and a predefined start and finish. COQ measuring and reporting are traditionally based on ex post calculations. In this study, an idea of real-time quality cost measurement will be developed and tested. The literature on real-time quality cost accounting is limited or even non-existent. The dissertation investigates whether it is possible to measure quality costs as a real-time basis in the software industry. The purpose is to develop a model for measuring quality costs on a real-time basis in software development. This is achieved by seeking answers to the research question how to measure quality costs on a real-time basis in the software industry. The research extends the current literature in three main respects. First, the study presents the idea of measuring quality costs in real-time basis. Second, a contribution is made by investigating how the characteristics of software business impact on the accounting of quality costs by presenting the nature and distinction of software business as well as its implications for software quality and applying quality cost measurement to the software business. Third, this study is expected to make a contribution by investigating how to use quality cost measurement as a management accounting tool in modern software business environment. The constructive research approach (CRA) proposed by Kasanen et al. (1993) is used in a case company, A, that develops and produces packaged software used in embedded products. Since it is not typically possible to pass semi-strong or strong market tests within a medium-term time span, the construction is tested by using more detailed nuances within the weak market test category suggested by Labro and Tuomela (2003) in order to analyse the level of progress of the construct. The possibility of constructing a real-time cost of quality measurement system developed in Case A is also tested in another case company (Case B) to make the weak market test stronger, and the boundary conditions how to construct such a system in a totally different working environment are charted. The results indicate that such a system could be constructed irrespective of the cost accounting environment or the software used. The anticipated contribution arises from the fact that the construct is a novelty that leads to a new means of quality cost accounting in software business (cf. Lukka 2000).

Thesis (Ph.D.)--University of Western Sydney, 2008. / A thesis submitted to the University of Western Sydney, College of Health and Science, School of Computing and Mathematics, in fulfilment of the requirements for the degree of Doctor of Philosophy. Includes bibliographical references.

Abstract This study is concentrated on value creation in the context of the software business, especially the enterprise system solution business. The purpose of this study is to increase both theoretical and empirical understanding of value creation in this specific context through the integration of economic value creation theories and software development. The theoretical framework includes the perspectives of both the customers and the suppliers, and their interactions during the value creation process. For this study, the main perspective is that of the supplier. The customer, therefore, is like a mirror from which the requirement for action (on the part of suppliers) originates. The main focus is the understanding that the use period is important, which concretises the made-value offering and determines the future of the collaboration. The empirical material is collected through interviews of four software organisations. The research strategy is the qualitative case study, which is fulfilled with the narrative method. The interviews performed were quite expansive, and allowed interviewees to share examples and real-life stories. As a result of the empirical analysis, the use period is at the heart of the value-creation process, because the software’s success depends on the use experience. Understanding both the reason and the use purpose is the key to support customer’s use process. Learning from the customer’s use process is extremely important and increases everyday interaction. It is true, that the focus broadens from evaluating basic attributes of the relationship as a whole to include an evaluation of cumulative experiences. Satisfaction is strongly linked to behavioural outcomes. While use experiences have been researched widely, but their connection to economic theories (and value in particular) is not very well known. Theoretically, the challenge is to connect abstract value concepts to the more practical area of software business theories. This study finds connection by explicitly tying user experiences with the types of efforts that suppliers make (and the theories that inform these efforts) to create value. / Tiivistelmä Tutkimus keskittyy arvontuotantoon ohjelmistoliiketoiminta kontekstissa, erityisesti ratkaisuliiketoimintaan. Tutkimuksen tarkoitus on lisätä sekä teoreettista että empiirista ymmärrystä arvontuotannosta integroimalla taloustieteen arvontuotantoteorioita sekä ohjelmistoratkaisujen kehitystä ja käyttöä. Ohjelmistojen käytöstä syntyvää taloudellista arvoa on tutkittu todella vähän, vaikka käyttäjäkokemukset ovat keskeinen osa ohjelmistojen suunnittelua. Taloustieteen, erityisesti markkinoinnin, näkökulmasta arvoa on tutkittu laajasti, mutta tutkimukset keskittyvät asiakkaan ostopäätöksiin ja myyntiprosesseihin eivätkä tuotteen/ palvelun käytöstä saatavaan hyötyyn. Teoreettinen viitekehys sisältää sekä asiakkaiden että toimittajien näkökulman vuorovaikutuksen aikana arvontuotantoprosessissa. Päänäkökulma on toimittajan, joten asiakas on kuin peili josta vaatimukset saavat alkunsa ja jonka kautta tehdyt ratkaisut tulevat näkyviksi. Empiirinen materiaali on kerätty tekemällä haastatteluja neljässä ohjelmistoalan yrityksessä. Tutkimusstrategia on laadullinen tapaustutkimus, jota on täydennetty narratiivisella menetelmällä. Käyttöjakso on arvontuotantoprosessin sydän, koska ohjelmistoratkaisun menestys riippuu käyttökokemuksesta. Käyttötarkoituksen ymmärtäminen on avain asiakkaan käyttökokemuksen tukemiseen. Asiakkaan käyttökokemuksesta oppiminen on erittäin tärkeää ja osa vuorovaikutusta. Käyttökokemuksen arvioinnissa sekä hyvät että huonot kokemukset kasaantuvat ja saattavat aiheuttaa yllättäviä reaktioita. Tutkimus yhdistää käyttäjien käyttökokemukset ja toimittajan pyrkimykset vaikuttaa näihin kokemuksiin arvonluomiseksi. Käyttäjien kokemalla arvolla on merkitystä sekä ohjelmistoliiketoiminnan kannattavuuden ja kasvun että käyttäjäkeskeisen suunnittelun kannalta.

Abstract The relationships between software producing companies, their customers and other parties involved have growing importance in the turbulent and fast developing business environment of today. The software industry itself is characterized by the Commercial-Off-The-Shelf (COTS), tailored, and Modified-Off-The-Shelf (MOTS) businesses modes. In this versatile context of cooperation, financing and acquisitions demand exact details of the ownership of the products, i.e. the Intellectual Property Rights of these products and services. Legal forms and contracting procedures are emerging as the critical issues for the development of the information technology industry. This study addresses the problem of how software contracting has been approached and what concepts and models have been presented to understand it. Further, the question of the role of inter-organisational relationships (business-to-business) and intra-organisational process evolution in software contracting is discussed. The domains of interest and of relevance in this research are software development process, business process, legal process, and the contracting process itself, and the evolving interaction between these processes. The focus of this study is especially on contracting and on analysing the process of contracting, i.e. the dynamics, dependencies and elements of process related issues. The empirical part of the study was completed by analysing twelve software producing companies - eight were Finnish firms established in Silicon Valley (USA) and the rest were local Finnish firms with international operations. Based on the empirical findings, a software-contracting model was elaborated to describe how the contracting processes form and evolve in the context of software business. The model gives more understanding of the evolving contract processes and relationships. Further, the research produced concepts of how to manage contracting processes in the software business. Contributions of this study are, first, the well-defined model for contracting process in a software developing company. The elaborated model gives new insight into the elements, interrelationships and governance structures included in the contracting process and the relationship development between cooperating companies. Software companies can compare their contractual situation with the model. This enables them to develop their own processes further to respond to the present-day requirements. Secondly, the study specifies and introduces three different generic contracting networks for COTS, tailored, and MOTS business modes of software developing companies. It was established that these three business modes have similarities as well as differences in the application of software contracting processes. The COTS business relied firmly on multiform licensing practices, whereas the tailored business saw the framework contract as the main contractual tool and interestingly the MOTS business employed combinations of these two previous forms, i.e. both licensing and framework contracts. This study evoked some interesting future research prospects. In order to create a more accurate overall view of the whole contracting process the research should be continued and take the interplay of both customer and supplier under closer scrutiny. Another important issue would be to examine the contracts used in these different business modes from a strict legal viewpoint and the possible transformation of the predominant legal practices.

Abstract Applying the principles of user-centered development (UCD) in software development practice is not straightforward. In technology-push type software product development it is not clear how to match the new product innovation to the future needs of potential future users. Intensive collaboration between different organizational functions becomes essential. UCD provides valuable tools and practices as learning mechanisms both for users and for the company. The purpose of cross-functional interaction is to iteratively define the best possible market for the emerging new product. This study investigates cross-functional interaction during the early phases of a new software product. The roots of UCD are in traditional software engineering (SE). However, in a software product company it is necessary to take a broader new product development (NPD) perspective. The results indicate that the early phases of software NPD are actually a collaborative learning process in which representations of the new product are built iteratively, increasing multidisciplinary knowledge related to the evolving shared object of development. The cross-functionally shared object is more than the new software product. It is an emerging new vision for the whole new business area. Both the product and its users-customers-market develop iteratively. Traditionally this is considered to happen through communication within a cross-functional NPD team. Rather than one cross-functional team effort, software NPD seems to be a network of cross-functional activities. Furthermore, in software NPD practice the development of the new business unit may actually overlay the more established business organization. This has not been visible enough, and part of the problems with cross-functional interaction may be due to confusion between these two activity systems during every-day practices. Different mediating representations of the multidimensional object knowledge become crucial. The study starts with a summary of a three-year process improvement effort in one case company, providing the basis for theoretical reflections and analytical generalizations. SE and NPD literature is reviewed to situate the case within current theoretical understanding. The findings are synthesized using concepts from cultural-historical activity theory. This study will hopefully provoke the rethinking of some of the current taken-for-granted issues related to the management of new emerging software product businesses.

Abstract Knowledge management is a new academic discipline that has been growing during the past decade but is still in its embryonic stage with much potential left. What makes knowledge management an attractive research field is its multi-discipline perspective. In the knowledge management the context is important because the value of an organization’s knowledge is context-based. In this research the context are the innovation networks within the software industry and thus besides knowledge management the research contributes to the software business literature. The aim of this study was to get an understanding about the interaction the in asset-based value creation within innovation networks. This was done by examining the effects of the interaction in asset development and deployment in innovation networks, where activities are related to research, development and innovation collaboration. This was studied against the theoretical framework that was developed in this research based on earlier studies. This study shows that in the examined research context actors from outside of the software industry have a direct effect on both asset development and deployment based on their funding requirements and aims. The study shows that in this wider environment trust, openness and mutual benefits are important factors of the interaction atmosphere, regarding where funding is targeted and where the actual work is done. This study shows the importance of the interaction framework as a motivator and an entity that enables direct benefits to participating actors from their interaction and collaboration. It also shows that some of the episodes where interactions occur need to be regular, on-going and have a certain rhythm. As a result of this research a framework of interaction in the asset-based value creation in innovation networks was created. It shows how funding mechanisms affect the asset development and deployment, as well as that some episodes where interactions occur are especially important, because they limit or support value creation. Moreover, the role, contributions, aims and motivations of actors are seemingly different within these episodes. / Tiivistelmä Tietojohtaminen on uusi akateeminen tieteenala, joka on ollut kasvussa viimeisen vuosikymmen ajan, mutta on silti alkuvaiheessa ja omaa paljon potentiaalia. Tietojohtamisesta tekee vetovoimaisen tutkimusalan sen monitieteinen perspektiivi. Tietojohtamisessa konteksti on tärkeää, koska organisaation tiedon arvo on kontekstipohjainen. Tässä tutkimuksessa tutkimuskontekstina ovat ohjelmistoteollisuuden innovaatioverkostot ja siispä tietojohtamisen lisäksi tutkimus myötävaikuttaa ohjelmistoliiketoiminnan kirjallisuutta. Tutkimuksen tavoitteena oli ymmärtää vuorovaikutusta varantoihin pohjautuvassa arvonluonnissa innovaatioverkostoissa. Tämä tehtiin tutkimalla vuorovaikutuksen vaikutusta varantojen kehittämisessä ja käyttöönotossa innovaatioverkostoissa, joissa aktiviteetit liittyvät tutkimus-, kehittämis- ja innovointiyhteistyöhön. Tätä tutkittiin teoreettista kehikkoa vasten, joka kehitettiin tutkimuksen aikana aiempiin tutkimuksiin pohjautuen. Tutkimus osoittaa, että tarkastellussa tutkimuskontekstissa ohjelmistoteollisuuden ulkopuolisilla toimijoilla on suora vaikutus, sekä varantojen kehittämiseen, että käyttöönottoon rahoitusvaatimustensa ja tavoitteidensa pohjalta. Tutkimus osoittaa, että tässä laajemmassa ympäristössä luottamus, avoimuus ja molemminpuoliset hyödyt ovat vuorovaikutusilmapiirin tärkeitä osatekijöitä sen suhteen mihin rahoitus ohjataan ja missä tosiasiallinen työ tehdään. Tutkimus osoittaa vuorovaikutuskehikon tärkeyden motivaattorina ja kokonaisuutena, joka mahdollistaa suorat hyödyt osallistuville toimijoille heidän vuorovaikutuksestaan ja yhteistyöstään. Se myös osoittaa, että joittenkin niistä tapahtumista, joissa vuorovaikutusta tapahtuu, täytyy olla säännöllisiä, jatkuvia ja omata tietty rytmi. Tutkimuksen tuloksena luotiin vuorovaikutus varantoihin pohjautuvassa arvonluonnissa innovaatioverkoissa kehikko. Se osoittaa kuinka rahoitusmekanismit vaikuttavat varantojen kehittämiseen ja käyttöönottoon. Kuten myös, että jotkin tapahtumat, joissa vuorovaikutusta tapahtuu, ovat erityisen tärkeitä, koska ne rajoittavat tai tukevat arvonluontia. Sen lisäksi toimijoiden rooli, myötävaikutus, tavoitteet ja motivaatio ovat ilmeisen erilaisia näissä tapahtumissa.

The area of business process management in general and and especially business process design has only recently discovered potential applications of social software to facilitate and support collaboration [Scheer and Klueckmann, 2009]. This development is also fueled by the practical insight that organizations have experienced top-down approaches in the design and implementation of business processes to be not effective. In fact, many process management initiatives failed due to a lack of acceptance of chosen methods and tools. As a consequence in many organizations so called [Klückmann and Scheer, 2009] "Guerilla approaches" have been followed where individual organizational units introduced their own business process management philosophy and as well techniques and tools that fit their specific needs. However, Klückmann and Scheer [2009] stress the fact that although distributed business process management initiatives should generally not be hindered, it is important to channel and integrate these initiatives towards a more consistent and efficient process management in the large. Business process modeling in this context serves several purposes in the process management cycle. One purpose is the analysis of business processes to uncover potential performance weaknesses and provide a basis for improvements. Another purpose is the unambiguous documentation of business processes as a resource for knowledge transfer, organizational learning and governance. An increasingly important purpose is the use of process models to support the design and engineering of respective enterprise information systems [Davies et al., 2006]. Hence, the complex and abstract nature of process models and the closedness of process modeling environments has prevented them to be broadly accepted and used by non-experts [Nolte et al., 2011] viz the process community in a wider sense. Consequently, process documentation and models in organizations frequently is outdated, incomplete and inconsistent. This model-reality divide in turn leads to even more reluctance towards the adoption of process modeling environments and use of process models. Bridging this model-reality divide by fostering open and fluent col- laboration through adequate features inspired by social software has gained growing attention by academia and industry [Mathiesen et al., 2012]. Although both industry and academia have addressed the need for collaboration support in process modeling only limited insight exists regarding the specific requirements for software-support in collaborative process modeling. This work refers to existing research (e.g. [Mendling et al., 2012; Riemer et al., 2011]) on requirements for software-support in collaborative process modeling and wiki-based process modeling (e.g. [Ghidini et al., 2010; Dengler and Vrandecic, 2011]). and pursues the following goals: (1) gain an understanding of the nature and requirements of collaborative process modeling in practice, (2) investigate how these requirements can be addressed through the design of a wiki-based collaborative process modeling environment, and (3) gain insight how a wiki-based collaborative process modeling environment supports process design activities in practice. To address these goals a design science approach has been followed. Through a systematic literature review and qualitative expert interviews a preliminary understanding of the problem domain and specification of requirements has been achieved. Through the extension and adaption of a well-proven collaboration platform (a wiki engine) for process modeling support several of the previously identified design issues have been addressed. In particular, issues regarding the flexible integration of a visual process modeling interface component into a collaboration environment and issues regarding concurrent scenarios in process modeling have been discussed in detail and realized partly on a technical level. Two major software components have been developed for the support of collaborative process modeling. First, a light-weight and easily integratable user-interface component for process model creation has been developed and integrated into the collaboration environment (a wiki engine). Second, the identification and handling of concurrent situations when multiple modelers access and modify a process model page has been implemented on an element level which allows for the interactive resolution and semi-automatic merging of conflicting revisions of a process model. Case-studies in an industrial and an academic setting provided valuable insights in the practice of collaborative process modeling and gave feedback on the applicability of a wiki-based approach. The first case-study of a process re-design in the recruiting department of an office supply manufacturing company in Hungary describes the insights gained during a long-term collaboration within a small group. Findings were especially valuable for further enhancements of the software and an understanding of practical requirements in iterative model creation and validation. The second case-study in the context of two bachelor and master courses in information system design has lead to insights regarding the requirements in highly dynamic collaboration scenarios in small groups and large groups but as well regarding the efficiency and effectiveness of wiki-based process modeling in collaborative learning processes. (author's abstract)

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