Shift to Value-based Outcomes

Software solutions. Companies no longer want to buy license software. The evolution of software as a service (SaaS) and iTUnes concepts are shifting purchasing behavior. The shift is from a large purchase (license software model) to one of rental (incremental payments based on usage). This shift in the sale of enterprise software also redefines the customer relationship to drive higher levels of satisfaction and customer value. 

Software maintenance is currently 32 percent of a manufacturer s information technology budget. With the move to SaaS solutions, many companies can eliminate the maintenance charges and the headcount to service the software. It also increases a company s flexibility to stay current on new releases. 

It also improves adaptability of the solution to deal with increasing importance of content. In the software value chain, content is growing in importance. Companies want software solutions that combine the right software and content to improve decision making. To date, there is no company that has been successful in producing both content and software. The transition from licensed software sales to SaaS sales has been made by fewer than 5 percent of licensed software companies. 

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY (TSMC) REDESIGNING A VALUE NETWORK TO DRIVE VALUE-BASED OUTCOMES 

Founded in 1987, TSMC was the semiconductor industry s first pure-piay foundry, in this roie, the company made no product of its own and focused aii of its efforts in making semiconductor chips for third-party manufacturers. Today, the company is one of the world s largest foundries serving more than 450 customers and manufacturing more than 8,800 products for a variety of applications in computer, communications, and consumer electronics value chains. 

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