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The transformation of a B2B IT service company from customer-specific software development to SaaS product development

Schmaeing, M. (2022) The transformation of a B2B IT service company from customer-specific software development to SaaS product development.

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Abstract:Recent cloud developments enabled Software-as-a-Service business models which are proving to be very profitable. The most successful software companies are adopting these business models and even allow smaller software companies to launch own SaaS applications on their digital marketplaces. Therefore, the role of existing IT service companies changes from reselling and implementing the products of the software vendors to developing own applications. A business model transformation from customer-specific software development in projects to SaaS product development is required. This design-inspired case study examines an IT service company, here called “Company A”, that is already part of a value creation network of a software vendor, here called “Company B”, and aims to successfully transform to a SaaS product business model. It has been found that the transformation bears significant risks due to the required acquisition of new resources. Simultaneously, existing literature offers different models to successfully create scalable software products. After gaining insights from a literature review, this thesis explores the developments of leading software companies. Furthermore, 10 interviewees from the case organizations and its partner network are conducted to gain further insights on the applicability of the theoretical models. Finally, this thesis is aimed to provide Company A with a valuable model for transforming towards a SaaS product business model with low-risk involvement. In addition, this thesis could be used as a generalizable model for the partner network of Company B.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/91305
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