Changing the Rules of the Game: Nonlinear Business Models for IT Services

2010 ◽  
Author(s):  
Prasanna Mohan Raj
2011 ◽  
Vol 15 (01) ◽  
pp. 37-62 ◽  
Author(s):  
D.V.R. Seshadri

The case describes XGen Technologies (name disguised), an India-based IT Enabled Services (ITES) company having to grapple with the issues of linear growth. The company's headcount had touched a whopping 40,000 and managing such a large setup was becoming a severe challenge, putting immense pressure on Partha Sen, the CEO, to adopt an innovative business model to sustain historical growth rates of revenue and profitability. This situation was similar to what most Indian ITES companies faced: they had been clocking impressive growth, yet there were concerns about the future. The case then describes some of the strategies that software companies have been adopting in order to achieve greater non-linearity in their business. In particular, the case concentrates on Zyme Solutions, Inc., a fully outsourced hosted data service provider to the high-tech vertical market, which has built as a non-linear business from the ground up, without the legacy of the linear business models to contend with. Students are put in the place of Partha Sen, having to decide on an approach that established companies like XGen could adopt to transit to a non-linear model.


Author(s):  
Róbert Marciniak ◽  
Péter Móricz ◽  
Máté Baksa

Over the past few years, there has been an avalanche of new digital technologies in the business services sector, many of which proved to be disruptive. Business service centres (BSCs) even in innovative industries like information and communication technology (ICT) find it highly challenging to accommodate these changes. New technological solutions transform consumer needs, shape organizational processes, and alter the way employees cooperate in a computerized environment. These changes make it inevitable for companies to adjust their business models. In this paper, we present a case study of IT Services Hungary Ltd., a Hungarian based BSC in the ICT industry. We carried out semi-structured interviews with the CEO and four senior technology experts of the company to analyse digital transformation plans they initiated. We investigated and now reveal three projects through which they implemented cognitive automation, cloud computing, and advanced cybersecurity technologies. We also describe the general organizational, financial, employment, and motivational background of these projects at IT Services Hungary Ltd. With this paper, we aim to present transferable best practices and appealing management efforts to invest in an intelligent and digital future.


2015 ◽  
pp. 1140-1161 ◽  
Author(s):  
Victor Chang ◽  
Gary Wills

This chapter proposes a new Supply Chain Business Model in the Education domain and demonstrates how Education as a Service (EaaS) can be delivered. The implementation at the University of Greenwich (UoG) is used as a case study. Cloud computing business models are classified into eight Business Models; this classification is essential to the development of EaaS. A pair of the Hexagon Models are used to review Cloud projects against success criteria; one Hexagon Model focuses on Business Model and the other on IT Services. The UoG case study demonstrates the added value offered by Supply Chain software deployed by private Cloud, where an Oracle suite and SAP supply chain can demonstrate supply chain distribution and is useful for teaching. The evaluation shows that students feel more motivated and can understand their coursework better.


2019 ◽  
Vol 135 ◽  
pp. 04039
Author(s):  
Vera Krasavina

Relevance. Today, in the context of global digitalization, the world IT services market is developing at quite a rapid pace and remains one of the fastest growing segments of the IT industry. Researchers of this market in their works describe direct dependence between globalization of IT services market and development of national economic systems. Thus, today it is most important to determine the key trends in the development of IT services world market. In this paper, the most important trends of the most significant segments of IT service market are determined and described, such as: IT consulting, system integration, custom software development, IT outsourcing, IT support, and IT education and training. Understanding and following the current trends contributes not only to the development of existing opportunities for companies’ growth, but also to the emergence of new ones, due to which the companies will not only retain, but also increase their competitive advantages on the global market. Goal. To identify and analyze the most important current trends in the global IT service market development, which contribute not only to the reformation of the market itself, but also to change in the relationship of its constituent elements. To systemize the latest trends in the global IT service market and evaluate them in terms of their impact on the economic development of the countries. Methodology. The methodology of system analysis, methods of structural, logical and comparative analysis are used in this paper. Results. The key trends in the development of the main segments of the modern IT service market have been determined and described. Among them, cloud computing technologies, cybersecurity and innovative business models are particularly important. Conclusions. It is obvious that the identified trends in the development of the global IT services market are critical to the effective performance of each enterprise both in terms of understanding, forming a business strategy, timely implementation of innovative business models, following the latest trends, and in terms of building up their competitive advantages in extremely difficult conditions on the global market.


2012 ◽  
Vol 3 (1) ◽  
pp. 11-32 ◽  
Author(s):  
Siddhartha SenGupta

In spite of rapid strides in evolving Architecture processes that can help Enterprises leverage IT for creating Value, shortcomings are widely perceived. In this paper, the author discusses four points. Part I covers structuring the enterprise, business value and its measurement and maximizing returns from IT assets. This part examines architecting for value, IT enabled. It is suggested that, since the impacts are generally inseparable, IT changes should be planned within a holistic framework considering all other business considerations, merging all enterprise capabilities and all approaches from different disciplines to creating Value. Further, this Architecture should be aligned with the Architecture of the business, i.e., with business models, rather than with business strategies. A subsequent paper will study the application through a case study and share recommendations for IT services vendors.


2013 ◽  
Vol 4 (2) ◽  
pp. 76-106
Author(s):  
Siddhartha SenGupta

In spite of rapid strides in evolving Architecture processes that can help Enterprises leverage IT for creating Value, shortcomings are widely perceived. Parts 1 and 2 of this paper suggested four improvements in the processes for structuring enterprises, defining and measuring business value, ensuring maximal returns from IT assets and architecting them for value-oriented improvements, IT enabled. After summarizing the suggestions, this paper describes how those framework and processes elements were used to create, largely through IT, explicit above average value in an enterprise. The processes are elaborated, with special emphasis on how the initiatives were prioritized. The results indicate that the enterprise gained particularly from its extensive use of computers to apply science to its business beyond common transactional purposes. Finally, the authors analyze the business environment for the ‘emerging mega-vendors’ for IT services, examine relevant elements of their SWOT and make a few recommendations for new business models of a higher scientific intensity that leverage the ORMS-based servitizing of successful IT products and offer services that create measurable business value with reliability.


Author(s):  
Petter Gottschalk

An important point is made about how strategy was absent from early e-business attempts. The first part of this book described how strategy might be present. To establish and maintain a distinctive strategic positioning, an organization needs to follow six fundamental principles concerned with right goal, value proposition, value configuration, trade-off, fit, and continuity (Porter, 2001). One of the strategic choices often overlooked is concerned with IT sourcing. IT sourcing decisions are influenced by trade-off, fit, and continuity principles. IT sourcing is related to the previously discussed topics in various important ways. First, the resource-based theory influences the choice of sourcing options, as sourcing is dependent on the availability of IT resources from internal and external sources. Second, e-business has specific requirements for IT infrastructure services depending on e-business models, and these requirements will typically be met through sourcing of IT services. Furthermore, decisions concerning IT sourcing belong in the strategic IS/IT planning process at the middle stages of the Y model. Finally, while e-business represents an answer to the question “what” the organization wants to do, sourcing represents an answer to the question “how” the organization can do it. More and more companies move into IT sourcing combinations that require proactive management, leading to an increased need for IT governance. This is the topic of the third and final part of this book.


Author(s):  
Matthew Guah

The National Programme for Information Technology is the largest civil IT program worldwide at an estimated cost of £6.2 bn, US$ 10 billion, over a ten-year period. Launched in 2002, it provides an opportunity for the IT service industry to develop business models in the UK healthcare sector in which, historically, has seen low investment in IT services. Despite highly publicised large-scale IT outsourcing contracts, many IT vendors have been unable to fulfil the rigid terms and conditions of their contracts. The chapter provides current additional evidence to that found in the literature on emerging technologies in the health sector. It aims to investigate some of the issues that are associated with the implementation of the emerging technologies in the NHS and explores whether the implementation of the National Program, by the NHSIA, would bring value to patient care, and influence staff perception of IS.


Author(s):  
Victor Chang ◽  
Gary Wills

This chapter proposes a new Supply Chain Business Model in the Education domain and demonstrates how Education as a Service (EaaS) can be delivered. The implementation at the University of Greenwich (UoG) is used as a case study. Cloud computing business models are classified into eight Business Models; this classification is essential to the development of EaaS. A pair of the Hexagon Models are used to review Cloud projects against success criteria; one Hexagon Model focuses on Business Model and the other on IT Services. The UoG case study demonstrates the added value offered by Supply Chain software deployed by private Cloud, where an Oracle suite and SAP supply chain can demonstrate supply chain distribution and is useful for teaching. The evaluation shows that students feel more motivated and can understand their coursework better.


Author(s):  
Dohoon Kim

This chapter introduces the ASP (Application Service Provider) industry which provides essential infrastructure for the Internet-based e-business transactions. First introduced is the current status of the ASP industry with some industry analysis focusing on the driving forces shaping the evolutionary changes. Then, emerging ASP business models are classified and analyzed in order to assess their positions in the competitive landscape based on the economies of scale. We also explore the prerequisites for the success of each ASP business model. Lastly, a conceptual model is provided to predict some possible scenarios of the evolution of the industry structure. For example, we identify the prerequisites for the ASP business models to develop themselves into XSPs (eXtended Service Providers), and develop a scenario for that evolutionary path. The proposed framework will present a deep insight into the e-transformation and a way to improve enterprise intelligence and performance through ASPs.


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