The Second-Hand Software Case—Knowledge Management in the Contract Planning Stage

Abstract

This case study deals with the purchase of new software on the one side and the reselling of the used software and knowledge management on the other side, the latter being necessary for successfully managing the preparation of such negotiations. It highlights the different sources of information which must be approached for successfully negotiating a deal (information input), as well as the need for the dissemination of knowledge and experiences to other company functions which depend on such data for current processes as well as for future activities (information output). Furthermore, the case study demonstrates the importance of risk management for the preparation of a transaction, and the fact that such risk management forms a part of the knowledge management system. It applies the Contractual Management Model (CM Model) from the viewpoint of a company manager and thereby demonstrates the necessary interaction between different management fields (here, especially risk and knowledge management) during the CM process steps plan and draft. The target-orientation of the CM Model stresses the importance of contract design for the subsequent contract handling activities of a company. This way, it becomes apparent that the possibility to resell the used software depends on the content of the purchase contract for the new software through which the seller can try to restrict such resale. The sales contract thus becomes a steering instrument for business.