Catching Fire: Start-Ups in the Text Analytics Software Industry

Abstract

While there is a certain amount of M&A activity in the software industry, it is far from consolidating. Start-ups in certain parts of this dynamic industry continue to thrive. In the case of Business Intelligence and Business Analytics (BI&A), more and more players enter the stage and either offer full packages or claim niche positions. The BI&A sub-market of Text Analytics is well researched regarding technical basics and dimensions. However, a comprehensive investigation of drivers and dynamics that encourage entrepreneurs to start their businesses in this rapidly growing market is missing. This research-inprogress paper provides an understanding of developments in this flourishing industry sector. After an extensive market study combined with theoretical, literature-based reasoning, this paper presents seven propositions that will be analyzed and tested with qualitative expert interviews and a large-scale quantitative survey in a next step.

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