|
Title:
|
MOVING FROM PRODUCT-BASED BUSINESS TO ONLINE SERVICE BUSINESS |
|
Author(s):
|
Aki Lassila |
|
ISBN:
|
972-8924-06-2 |
|
Editors:
|
Nitya Karmakar and Pedro Isaías |
|
Year:
|
2005 |
|
Edition:
|
Single |
|
Keywords:
|
Software as a Service, e-commerce, value creation, business model, online service. |
|
Type:
|
Full Paper |
|
First Page:
|
109 |
|
Last Page:
|
117 |
|
Language:
|
English |
|
Cover:
|
|
|
Full Contents:
|
click to dowload 
|
|
Paper Abstract:
|
The purpose of this paper is to study how a software product company can expand its business with the Software as a Service (SaaS) model. The differences between the product and service business are considerable and the change of focus from one to the other is not easily done. For example, the scale economies, which are associated with product business, are not easily achieved in service business. However, the SaaS business model has many benefits to offer to both SaaS customers and providers. SaaS services e.g. enable customers to focus on their core competencies, provide easier access to technical expertise, and offer economical access to valuable software applications at anytime and from anywhere. To providers, SaaS offers e.g. lowered production and distribution costs, more predictable cash flows, and shortened sales cycle. In this research study we examine how the SaaS model can be implemented by a software company and conduct a case study on F-Secure and its Personal Express security service. By successfully solving the risks associated with the SaaS model and by fulfilling the customers demands of customization and at the same time benefiting from economies of scale, scope, and aggregation, F-Secure has leveraged its domain area expertise with its SaaS offering: F-Secure has expanded its operations in a number of countries and increased its customer base both in B2C and SME markets profitably with the help of its partners. |
|
|
|
|
|
|
