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ASP and ERP: An Alternative Buying Model and Its Critical Success Factors, Slides of Business Administration

An overview of the application service provider (asp) model, its types, and its relationship with enterprise resource planning (erp) systems. It discusses the mechanics of asp services, critical success factors, potential partners, and future trends. The document also touches upon evaluating it investments and managing them.

Typology: Slides

2012/2013

Uploaded on 07/29/2013

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ASP – An Alternative buying

ERP

Alternative: The Application

Service Provider model

  • Attempt to increase the market
    • Extending to smaller players
    • Speeding up implementation
    • Limiting draw on scare expertise
  • "An ASP manages and delivers application capabilities to multiple entities from a data centre across a wide area network.”
  • different types of ASP:
    • horizontal: enterprise or regional ASP
    • vertical model: task-specific or industry-specific ASP
  • solution offered through a Best-of-breed or One- stop-shopping model

ERP and ASP

  • As with all ecom systems, service has two parts:
    • interface (web) or client
    • back end functionality on a server
  • opportunity to differentiate service for ASP + offer additional software in the package
  • opportunity for customer to pay far less and to implement far quicker (c.f. SMEs)
  • Also, traditional ERP market is contracting
  • expertise is in short supply

Mechanics of ERP / ASP

Services

  • 24 to 36 months contracts
  • 500 euros per workstation per month + subscription fee at start
  • service includes: technical setup / implementation + software licences + on-going support + upgrade
  • some ASPs offer differentiated services for different industries
  • others develop interfaces that allow some degree of customisation without touching the software
  • SAP claim the same margins can be obtained as with traditional projects

Potential partners

  • Pure play ASPs - 100% new
  • ISP and Telecom companies - own the

infrastructure

  • Software vendors - own the licences
  • Hardware vendors - own the platform
  • Distributors - own the customers
  • No one has all the required competence

Future trends

  • Risk element is great for all partners involves - especially customers
  • Application Service Provider Industry Consortium created end of 1999
  • Code of good practice written in January 2000
  • creation of a certification that guarantees service and gives protection to customer (CGEY and Deloite & Touche)

Managing IT investments

  • Allocation of resources to selected projects
  • Application portfolio contains list of potential

systems

  • Limited resources mean that systems must be

evaluated in terms of their business potential

  • justifying investment
  • allocating priorities
  • determine how the expected benefits will impact the business overall (+review of these)