Case | HBS Case Collection | January 2002 (Revised May 2003)

ProfitLogic

by Richard G. Hamermesh, Michael J. Roberts and Taslim Pirmohamed

Abstract

Describes an "application software" company that has been through several evolutions--from consulting firm to applications service provider (ASP). The firm has received significant venture funding to pursue the ASP model but this has not worked, at least at the time the case ends. The company faces a choice: continuing with its current ASP business model, increasing its burn rate to convert to a licensed software model, or decreasing its burn rate to offer a more custom version of the ASP product.

Keywords: History; Business Model; Venture Capital; Cash Flow; Decision Choices and Conditions; Balanced Scorecard; Information Technology Industry; Service Industry;

Citation:

Hamermesh, Richard G., Michael J. Roberts, and Taslim Pirmohamed. "ProfitLogic." Harvard Business School Case 802-110, January 2002. (Revised May 2003.)