Standardization and the competition on the market for ERP-systems

Although frameworks appear to be a promising means to provide the industry with business management software, one cannot observe that framework vendors begin to threat the market position of vendors of established standard software. We build a microeconomic model to analyze the competition of software development with or without frameworks in which we concentrate on the network effect and the effect of compatibility decisions. We can show how the introduction of a standard will help to establish framework technology on the software market and finally increase social welfare. Therefore we recommend the standardization organizations to support framework technology by establishing standards.