Application Service Providers: Will They Succeed?

This article examines the likelihood of success for application service providers (ASP) drawing from the outsourcing literature, interviews with ASPs in the USA, and the experience of Bennett who has held leadership roles in ASP and ERP in South East Asia. This article proposes that application service providers (ASP) rent packaged software, predominantly over the Internet. It shows why organizations might employ the ASP model to manage their enterprise resource planning systems. Using a framework adapted from Lacity and Hirschheim, it demonstrates that the financial, business, technical and political reasons why organizations evaluate outsourcing can be applied to ASP model. While ASPs generally target the mid-market, large enterprises are also using ASPs to introduce new ERP modules. Potential users of ASP should regard the risks of outsourcing prior to entering into business arrangements. This examination concludes that there are strong financial and technical reasons for adopting the ASP model and therefore it has potential to succeed.     

Price and capacity competition of application services duopoly

In this paper, we study the price and capacity competition of two application service providers (ASPs). The customers realize an intrinsic time-independent value from transactions processed by the ASP. The cost to the customers includes both the price charged by the ASP and the delay cost due to turnaround time of the ASP service system. Customers will choose to join the ASP who delivers a higher net value of the service. This paper examines the competition between two ASPs and the impact of customers' delay cost on ASP's pricing and capacity decisions. We find that the ASP with higher capacity will charge a higher price and enjoy a larger market share and, surprisingly, that customers' delay cost has no direct impact on the arrival rates to the ASPs but affects the ASPs' pricing decisions. The ASPs will charge a higher price premium to capitalize customers' higher delay cost. For the long-run problem, we find that in the presence of higher customer's delay cost, both ASPs' optimal profits suffer, in contrast to the short-run problem where a higher customer's delay cost leads to a higher profitability for both ASPs.     

A theory of application service provider (ASP) use from a client perspective

Since the late 1990s, “application service providers” (ASPs) have offered telecommunication-based application services. ASP use can be considered a type of IS outsourcing as well as the creation of an inter-organizational system, such as is created for electronic data interchange (EDI). We developed a theory of ASP adoption and use from the client’s perspective based on analysis of primary and secondary data on ASP use and analysis of literature on IS outsourcing and EDI. We present a model and highlight similarities and differences between conventional IS outsourcing, ASP use, and EDI.     

Myths about outsourcing to application service providers

Which applications are organizations outsourcing to ASPs? What did they hope to gain? And what are the critical success factors for organizations using ASPs? To assess these issues we cosponsored a study to assess organizational attitudes and adoption metrics for ASPs. Our survey garnered 256 usable responses from businesses regarding their use of ASPs. The study indicated that a significant number of respondents believed ASPs offer a fast-track way of implementing IT projects. However, 80 percent also favored internal implementation for core IT projects, which suggests that other factors still present a substantial barrier to ASP adoption. Nevertheless, companies are outsourcing some core applications - such as supply chain management and e-commerce - and several non-core applications. This outsourcing implies that companies perceive a significant benefit to ASP adoption. The message for users is unambiguous: to succeed, understand how Internet outsourcing works for your company, benchmark against successful ASP adopters, and establish a common criterion for evaluating an ASP     

A Framework for Certification and Audit of Application Service Provider—ASP

Application service provider (ASP), network-based application rental service provider of information system (IS), has appeared as a new business style in information technology (IT) market. However, there are two main differences between the ASP model and traditional IS model. First, the relationship between ASPs and customers in ASP model is more temporary than in traditional IS model. Second, information resources of ASP's customers are located at the public network and data center. In these reasons, it is important that third parties need to certify and audit an ASP for successful implementation of the ASP model. This paper investigates characteristics of the ASP model and designs the framework for certification and audit of ASP. It is examined how the framework can remove potential threats and risks of the ASP model, and how the framework can be compared with traditional approaches.     

Determinants of success for application service provider: An empirical test in small businesses

Recently, application service provider (ASP), a new rental-based enterprise software business, has become a viable option. Although ASP has the potential to fundamentally change the manner in which IT services are provided for user firms, current ASPs often fail to show robust records in accumulating and maintaining customers. Therefore, this paper attempts to explore the main success factors for ASP-based information systems on the basis of past IS success models. Two hundred and three samples were collected from small and medium enterprises with ASP service experiences. Data analysis using LISREL shows that seven IS success factors—system quality, information quality, service quality, intention to use, user satisfaction, individual benefit, organizational benefit and an additional factor, trust, have good fit with data gathered. These factors, except for system quality, show significant coefficients and explanatory power. Furthermore, it is found that both service quality and information quality are significant for fostering user satisfaction, trust, and intention to use.     

Antecedents of application service continuance: A synthesis of satisfaction and trust

Although ASP (Application Service Provider) has the potential to fundamentally change the manner in which IT services are provided for user firms, current ASPs often fail to provide good results in accumulating and retaining customers. To fill the gap between the expected benefits of application service and its disappointing results in the real world, we present a conceptual model including three quality measures – System Quality, Information Quality, and Service Quality. To extend the horizons of ASP acceptance, this study sharpens the model that these quality measures regulate Satisfaction and Trust, which lead to Continuance Intention. We test the research model and hypotheses through the use of the data from 203 small and medium enterprises with application service experience. Data analysis results using LISREL reveal that Satisfaction and Trust have significant effects on a client firm’s Continuance Intention. Trust is found to be the most salient determinant while previous studies mainly focused on the role of Satisfaction. Furthermore, an empirical support is found for the direct effect of Service Quality on Continuance Intention as well as its mediating effects.     

Asps: Do They Work?

Application service providers (ASPs) offer and manage outsourcing application services to many organizations via the Internet. Organizations outsource applications to ASPs to reduce upgrade and maintenance costs and to focus their efforts on core competencies. To that end, it is essential for CIOs and senior IT executives to understand the dynamics of the ASP market, services provided, and outsourcing trends within their particular industries. This study identifies the critical success factors (CSFs) for ASPs to sustain the fierce competition in the outsourcing market. the CSFs include delivery of applications, efficiency in responding to demands, management of resources, assurance of 24/7 access, meeting IT needs, and economic distribution of applications. Moreover, the study highlights issues of concern involved in outsourcing internal applications via the Internet, such as security, reliability, quality of service, employees' concerns, and existing infrastructure, and provides managers with an action plan to address these concerns.     

在ASP模式下实现有线电视管理信息系统

ＡＳＰ（Ａｐｐｌｉｃａｔｉｏｎ Ｓｅｒｖｉｃｅ Ｐｒｏｖｉｄｅｒ）是近年兴起的计算机网络应用的新模式。本文对ＡＳＰ的主要形式及现有的主要平台作了介绍,并对微软的ＡＳＰ解决方案作了进一步的说明,最后给出了使用ＡＳＰ模式开发ＭＩＳ系统的实例。     

Modelling the impact of mHealth service quality on satisfaction,continuance and quality of life

Understanding the impact of service quality on economic and social outcomes is critical to extend the focus of IT service research. This study evaluates the impact of quality on both these dimensions in mHealth using a cross disciplinary approach. The conceptual model is rooted in the traditional cognition–affective–conation chain but explicitly incorporates convenience, confidence, cooperation, care and concern as the primary dimensions of mHealth quality. The model is validated in the context of a business-to-consumer mHealth services using partial least squares path modelling. The results confirm that service quality has both direct and indirect impact on continuance intentions (i.e. economic outcome) and quality of life (i.e. social outcome). In this relationship, satisfaction plays the key mediating role, whereas service quality does not have any moderating effect. Research implications point to scale and sustain this new healthcare paradigm by linking service quality to satisfaction, continuance intentions and quality of life.     

Quality of service in dial-a-ride operations

Few studies have been conducted on the quality of service provided by the organizations responsible for the operation of dial-a-ride services for people with reduced mobility. In order to study quality in such contexts, the paper first provides several definitions of quality in the service sector. Then, some models based on the definitions of quality in marketing will be quickly surveyed, and various measurement scales will be presented. After a brief review of the tools and practices used in the service sector to improve quality, the notion of quality in dial-a-ride services is discussed more in depth. In particular, the dimensions and attributes of various scales of measurement used by researchers in dial-a-ride studies are reviewed. Finally, the impact on quality of various elements, like the size and type of organization and the operational rules used, are discussed.     

Expectation-based quality of service assessment

The ability to gauge quality of service is critical if we are to realise the potential of the service-oriented computing paradigm. Many techniques have been proposed for calculating the quality of a service, and they do so typically by collecting quality ratings from the users of the service, then combining them in one way or another to derive the quality of the service. We argue that collecting quality ratings alone from the users is not sufficient for deriving a reliable and accurate quality measure for a service. This is because different users often have different expectations on the quality of a service and their ratings tend to be closely related to these expectations, i.e. how their expectations are met. In this paper, we propose a quality of service assessment model based on user expectations. That is, we collect expectations as well as ratings from the users of a service, then calculate the quality of the service using only the ratings that have similar expectations. Our experiments show that the method we propose here can result in more meaningful and reliable quality ratings for services.     

基于社团服务链的Web服务组合方法

针对Web服务组合的时间效率提高问题,提出了一种基于服务社团和服务链的Web服务组合方法。在构造的服务网络上应用基于信息中心度的服务社团发现方法,将Web服务网络划分为不同的服务社团,然后构造了社团服务链发现算法和基于服务链的Web服务组合算法,这些算法将服务社团内Web服务之间的所有可组合关联转变成服务链,实现了基于社团服务链和服务质量(QoS)剪枝的Web服务组合过程。实验结果表明,与传统的图深度遍历Web服务组合方法相比,基于社团服务链的Web服务组合方法在5个测试集上的响应时间平均提高了46%,最好情况为67%。社团服务链可以有效地减少针对当前服务请求的服务搜索空间,提高服务组合的时间效率。     

面向客户视角的Web服务组合优化与集成管理方法*

现有Web服务组合研究未考虑客户视角的服务质量感知和对功能与质量的均衡需求,无法优化配置网上丰富的Web服务资源并与网下服务资源协同。借鉴已有研究成果,研究基于客户视角的服务组合优化与集成管理问题：建立客户视角的Web服务模型、提出服务组合质量均衡推荐方法、建立服务功能和质量的网上网下集成管理模型。研究有助于提高现代Web服务管理服务水平。     

融合服务聚类与协作相似度的服务替换方法

当前服务替换方法多关注于替换服务与失效服务在功能和质量层面的匹配,缺乏对两者协作关系的考量。针对上述问题,提出一种融合服务聚类与协作关系的服务替换方法。首先,利用服务之间的组合关系构建服务协作图谱,基于node2vec进行序列采样并生成协作向量,进而计算服务之间的协作相似度。然后,通过引入服务簇缩减替换时的服务查找空间,从功能和质量层面快速构建候选替换服务集合。最后,在候选替换服务集合中综合服务质量评分和协作相似度实现可替换服务的择优推荐。实验证明该方法可以有效提高服务替换的效率与合理性。     

Benchmarking of service quality with data envelopment analysis

This paper proposes a data envelopment analysis (DEA) approach to measurement and benchmarking of service quality. Dealing with measurement of overall service quality of multiple units with SERVPERF as multiple-criteria decision-making (MCDM), the proposed approach utilizes DEA, in particular, the pure output model without inputs. The five dimensions of SERVPERF are considered as outputs of the DEA model. A case study of auto repair services is provided for the purpose of illustration. The current practice of benchmarking of service quality with SERVQUAL/SERVPERF is limited in that there is little guidance to whom to benchmark and to what degree service quality should be improved. This study contributes to the field of service quality benchmarking by overcoming the above limitations, taking advantage of DEA’s capability to handle MCDM problems and provide benchmarking guidelines.     

Understanding the consequences of information systems service quality on IS service reuse

IS researchers have normally assumed that satisfaction is the key factor influencing IS customers’ reuse of services; however, a focus on customer satisfaction does not always guarantee customer retention. We synthesized customer satisfaction and dissatisfaction models from prior service quality research to provide a comprehensive model predicting the behavioral intentions of customers to reuse IS services. Five research hypotheses were empirically tested by using a field study of 263 users of an IS service department. Our findings placed IS service quality in a causal network leading to IS service reuse and highlighted the relative importance that service quality value played in predicting behavioral intention to reuse the service.     

Making the most out of an ASP relationship

Our research indicates that to ensure mutual success, companies and ASPs will need to explore sophisticated methods of pricing ASP contracts rather than using a simple fixed-price monthly rental form. Also, companies must understand the legal implications of outsourcing to an ASP and realize the necessity of specific contractual clauses. We expect that as companies outsourcing complex products to an ASP come to understand the importance of incorporating an ASP into their strategic IT needs, contracts will provide for profit sharing and other arrangements.)