Implications of New Technology and Services in the Software Industry : A Review of the literature

Sammanfattning: The development of the internet to a more interactive and communicative instance as well as new developments in the software industry and new services that are available to companies and users warrants an investigation of this emerging field of business. In order to shed light on this topic a systematic search of the current literature has been conducted using some specific areas of the software industry as search words (Cloud computing, open source, on line advertising, mobile software and service oriented architecture) dating back from 2007 until present. The relevant literature was then summarized, categorized and discussed based on the Porter’s strategic management approach; “the five competitive forces that shape strategy”, where the forces are rivals, customers, suppliers, substitute products and potential entrants. Recognition of these forces and some other effective factors on them, such as the industry’s growth rate, government, technology and innovation, and complementary products/services, provides a comprehensive analysis of the market situation, which is essential in strategic management for medium and long-term profitability. This study infers that for companies to take advantage of the opportunities arising from the emerging changes in the software industry, it is required to recognize the powerful forces of the industry, develop innovation, and be aware of the possible implication on several level of business administration, including the need for adopting new organizational schemes and new strategies.