Abstract
The paper looks at the history of two ERP vendors (Maconomy and Navision) in Denmark pursuing two different business models. On one hand, Maconomy decided to develop, sell and implement ERP packages directly to customer. They believed they would be best at it, and they would obtain valuable information about customer requirements in the process. On the other hand, Navision adopted a business model which relied on an ecosystem of partners consisting of value added resellers (VAR) and independent software vendors (ISV) to sell, implement and further develop add-ons for their software. The paper presents a Resource Based View (RBV) analysis comparing and contrasting the resources of the two companies, in order to explain why Navision was sold for 16 times as much as Maconomy. We posit that the main reason for this huge difference is the value of Navision’s ecosystem enabling them to achieve economies of scale.
Keywords
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Zwilling, M.: How To Value A Young Company:You could stick a wet finger in the air. Or you could use these smarter techniques. Forbes (2009)
Mata, F.J., Fuerst, W.L., Barney, J.B.: Information Technology and Sustained Competitive Advantage: A Resource-Based Analysis. MIS Quarterly 19, 487–505 (1995)
Wade, M., Hulland, J.: Review: The Resource Based View and Information Systems Research: Review, Extension and Suggestions for Future Research. MIS Quarterly 28, 109–142 (2004)
Barney, J.B.: Firm Resources and Sustained Competitive Advantage. Journal of Management 17, 99–120 (1991)
Ray, G., Barney, J.B., Muhanna, W.A.: Capabilities, Business Processes, and Competitive Advantage: Choosing the Dependent Variable in Empirical Tests of the Resource-Based View. Strategic Management Journal 25, 23–37 (2004)
Das, T.K., Teng, B.-S.: A Resource-Based Theory of Strategic Alliances. Journal of Management 26, 31–61 (2000)
Eisenhardt, K.M., Schoonhoven, C.B.: Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms. Organization Science 7, 136 (1996)
Mahoney, J., Pandian, J.: The Resouce-Based View within the Conversation of Strategic Management. Strategic Management Journal 7, 363–380 (1992)
Kvale, S., Brinkmann, S.: Interviews: An introduction to qualitative research interviewing. Sage, Thousand Oaks (2008)
Eisenhardt, K.M.: Building Theories from Case Study Research. Academy of Management 14, 532–550 (1989)
Walsham, G.: Doing interpretive research. European Journal of Information Systems 15, 320–330 (2006)
Smith, P.: Deltek Completes Tender Offer for Acquisition of Maconomy, Herndon, VA (2010)
World, D.: Dynamics NAV Timeline (2011)
Kane, M.: Microsoft seals deal for Danish company. CNET (2002)
Wright, R.: Microsoft Lays Out Navision Plan. CRN (2002)
Maconomy: Annual Reports (2000-2009)
Echols, T.: Deltek offers $73 million for Maconomy. Washington Business Journal, Washington (2010)
Collins, J.C.: A Review of Axapta. Accounting Software News. Accounting Software Advisor, LLC (2003)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2011 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Antero, M., Bjørn-Andersen, N. (2011). A Tale of Two ERP Vendors – and the Crucial Decision of Choosing the Right Business Model. In: Cruz-Cunha, M.M., Varajão, J., Powell, P., Martinho, R. (eds) ENTERprise Information Systems. CENTERIS 2011. Communications in Computer and Information Science, vol 219. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24358-5_15
Download citation
DOI: https://doi.org/10.1007/978-3-642-24358-5_15
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-24357-8
Online ISBN: 978-3-642-24358-5
eBook Packages: Computer ScienceComputer Science (R0)