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Market Opportunities And Challenges Facing The Asp Model And The Corresponding Strategy

Posted on:2002-08-12Degree:MasterType:Thesis
Country:ChinaCandidate:H Q ZhangFull Text:PDF
GTID:2206360092465197Subject:Business management
Abstract/Summary:PDF Full Text Request
Since the Internet technology was produced by APRA in 1969. It has been bringing lots of changes in economy, life, society, and nearly all aspects of mankind. It reached the peak during 1998-1999. Because this technology combines with venture capital. There are lots of creative ideas and business modules coming forth nearly in one night. Such as ICP, ISP, ASP, B2B, B2C and so on. There are lot things can't be illustrated by traditional economical theory .We call this period is a new economy time.But all the things changed after NASDQ crashed in April 2000. Later, lots of .com companies bankrupt; remove the direction of business; seek co-operation with traditional industry companies. More and more media and professional persons criticized these new business model and call this is foam economy.ASP (applicant serves provider) module is a very import branch of so-called new economy .the first company created in 1999. Now I will analysis this module from two factors: through Internet platform, providing service package; outsourcing services, which are growing great market in present economic situation, are provided by ASP companies.Above all, based on Internet platform, ASP module operation has more advantages than traditional ISV (independent software vendor) operation. They can reduce the cost of development. The costs of develop applications on a Wintel ASP platform are at least five times lower than developing the same applications for a Client Server environment. Debugging and testing takes long time during releasing a new client/server software, for the application has to work with hundreds of different hard/software combination and installed the beta version on different systems. But ASP doesn't have this hardware/software testing and debugging tasks in development path. Now Microsoft company wants todeliver this ASP module product. Also ASP module don't need to sell tangible products just like CDs or Disk, no packaging or distribution costs. They can shorten the cycle time of deploying the software and lead-time for customers.They can get a scalable system to easily delivery upgrade application to their customers. At last they can make predict for cash flow management. At present, outsourcing is a trend in company 's operation. ASP is also based on this concept and utilizes the Internet technology. ASP can provide some benefits for his customers: ASP 's target customer can concentrate all resources on building core competitive capability; getting fast time-to-marketHe has a solution for lacking for IT talents in his company. He has not large transfer cost from old system to new system, being Changing Information technology, he can use latest server for ASP provider. He can also predict cash flow in financial operation.He can save the costs of maintain and relevant human resources In conclusion, we can see the ASP module has either more advantages than traditional operation or great potential market, It is not a bubble.Now we can get further study on the new business module, what issues or barriers have ASP module?We can analysis this problem from government attitude and policy; I T infrastructure; industry and company 's knowledge and concept for Internet.Although Chinese government invests lots of money on the new economy, launches many policies and regulations in order to incent development of new economy. There are some problems, such as some law and regulation is not fit to new case connected to the Cyber. There are seldom channels of financing for these start-up ASP companies. The speed of building I T infrastructure in China lagged behind that of the number of persons who surf on Internet. But the ASP module is interactive process, he demand wide bandwidth. The companies 's cognition of Internet' apply is located on surface, now they think the internet is a tool to propagandize company's image and products, or a tool to search some demand or supply information. The habit of consume behavior is also a barrier for ASP modul...
Keywords/Search Tags:Opportunities
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