Issues and formulas for sustainable profitability of an embedded software business

To be making continuous stable profit is one of the most important activities for the enterprises as profit-making organizations. Moreover, the industry of which mainly perform development, without performing manufacturing nor selling products, especially the embedded software enterprises, must make the steady profit by each development to make the continuous stable profit and profit variation causes a threat to the stable business management. However, in the embedded software development business, which is in the midway stage of the development of industrialization, the profit variation is wide on some development items. The big issues in embedded software enterprises are how much can the width of the variations in profits distribution straiten and profit ratio increase. In this study, the purpose is to show the formulas of producing stable profit and high profit ratio, by generating hypothesis and its verification to the variation factors of profit ratio. Further, we specified some models during the validity confirmation of hypothesis by verify various data of the past embedded software development.