Netsourcing: Renting Business Applications and Services over a Network

by Kern, Thomas; Lacity, Mary Cecelia; Willcocks, Leslie P.

• ISBN13: 9780130923554
• ISBN10: 0130923559
• Format: Hardcover
• Copyright: 2002-04-01
• Publisher: Pearson P T R

Summary

Effective ASP decision-making has never been more crucial, as companies increasingly prepare to explore outsourcing mission critical operations into a rapidly-changing ASP marketplace. Now, the world's leading ASP research team shares its up-to-the-minute, provocative findings -- offering practical advice for every aspect of the outsourcing decision, and every phase of the outsourcing project lifecycle. You'll learn which ASP applications have proven most and least successful; who the leading market players are and how their services have evolved; how to manage technology infrastructure in an outsourced environment; and much more. This book includes detailed guidance on defining an ASP strategy and mitigating its attendant risks; evaluating and selecting ASPs; and managing ASP partnerships. It also previews new trends that will shape the future of ASPs -- and your relationships with them.

Author Biography

Leslie P. Willcocks is Anderson Professor of Information Management and e-Business at Warwick Business School, U.K.

Table of Contents

Foreword	xix
Preface	xxi
Acknowledgments	xxxi
An Overview of Netsourcing	1	(34)
Netsourcing by Any Other Name...	3	(8)
Managed Service Providers	4	(1)
Storage Service Providers	4	(1)
Application Service Providers	5	(1)
Full-Service Providers	6	(1)
Business Service Providers	7	(1)
ExSourcers	8	(1)
Commerce Service Providers	9	(2)
Netsourcing Viewed as a Service Stack	11	(15)
Which Applications Are Customers Netsourcing?	14	(1)
What Is the Promised Customer Value of Netsourcing?	15	(5)
What Other Values Do Netsourcing Business Models Offer?	20	(6)
Customer Perspective: Who's Buying?	26	(2)
Are Early Adopters Satisfied with Netsourcing?	28	(3)
Summary	31	(1)
Endnotes	32	(3)
Principles for Effective Sourcing Decisions	35	(30)
Four General Sourcing Options	37	(1)
Three Paths of Outsourcing	38	(4)
In-House Commitment	38	(1)
Selective Sourcing	39	(1)
Total Outsourcing of Necessary Noncore Cost	39	(1)
Total Outsourcing of a World-Class Provision Via an External Venture	40	(2)
Using External IT Services: The Track Record	42	(5)
Case Illustration: United Airlines and Time to Market	47	(1)
Managing Successful Sourcing Decisions	48	(14)
Business Imperatives	50	(4)
Cost Issues	54	(3)
Market Capability Issues	57	(1)
Technical Issues	57	(5)
Conclusions	62	(1)
Endnotes	63	(2)
Management Principles: Core Capabilities and Contracting	65	(18)
Core IT Capabilities	67	(6)
Comments on the Core IT Capabilities Model	72	(1)
Provider Evaluation and Contracting	73	(3)
Detailed Contracts	76	(4)
Conclusions	80	(2)
Endnotes	82	(1)
Netsourcing Technology Guide for Customers	83	(20)
Technical Infrastructure	84	(13)
Application Access Level	85	(2)
Application Operating Infrastructure	87	(3)
Hosting Infrastructure	90	(4)
Network Service Infrastructure	94	(2)
Network Infrastructure	96	(1)
Evaluation of Options	97	(3)
Conclusions	100	(1)
Endnotes	101	(2)
U.S.-Based Netsourcing Case Studies	103	(56)
Introduction to the Case Studies	104	(8)
Corio Overview	104	(1)
EDS Overview	104	(1)
Host Analytics Overview	105	(1)
MainPass Overview	105	(1)
Zland Overview	106	(1)
Summary of the Cases	107	(5)
Corio	112	(8)
Products	114	(3)
Customer Perspective	117	(3)
EDS	120	(15)
Hosting and Application Services	123	(7)
EDS's Client Care for Alpha Corporation	130	(4)
Conclusions	134	(1)
Host Analytics	135	(8)
Conclusions	142	(1)
MainPass	143	(6)
Service Essentials	144	(1)
Operational Benefits	145	(1)
Company Strategy	146	(1)
Marketing	146	(1)
Toward A Competitive Edge	147	(1)
Conclusions	148	(1)
Zland	149	(7)
Evolution of Products	151	(2)
Customer Perspective	153	(3)
Conclusions	156	(1)
Endnotes	157	(2)
European-Based Netsourcing Case Studies	159	(54)
Introduction to the Case Studies	160	(3)
Lodge Overview	160	(1)
MarviQ Overview	160	(1)
Sap Overview	161	(1)
Siennax Overview	161	(1)
Vistorm Overview	162	(1)
Lodge	163	(15)
Lodge's Sap-Centric ASP Solution	164	(3)
Customer Case Study 1: Punch International	167	(6)
Customer Case Study 2: RealScale Technologies	173	(5)
MarviQ	178	(9)
MarviQ's FSP Strategy	179	(3)
N-Tier Architecture	182	(2)
Customer Case Studies	184	(3)
SAP	187	(10)
MySAP.Com	187	(3)
Sap Hosting Versus Local Asp Strategies	190	(6)
Customer Adoption	196	(1)
Siennax	197	(4)
Siennax's Pure-Play ASP Strategy	198	(1)
Abz Insurance Facilitator: ASP Customer Scenario	199	(2)
Vistorm	201	(5)
Capabilities	203	(3)
Summary of Case Evaluations	206	(5)
Endnotes	211	(2)
Mitigating and Managing Risks in Netsourcing Deals	213	(28)
The Customer Perspective: Primary Netsourcing Risks	214	(7)
Preliminary Risk-Profiling Framework	221	(2)
Risky Asp Practice: Siennax and Abz Case	223	(7)
Siennax-Abz Case Background	223	(2)
The ASP Decision	225	(1)
Selecting an Application Service Provider	226	(2)
Transitioning to an Application Service	228	(2)
Risk Mitigation Across a Netsourcing Deal	230	(8)
Better Practices for Netsourcing Risk Mitigation and Management	238	(1)
Conclusions	239	(1)
Endnotes	240	(1)
Netsourcing Drivers: Customer Decision Checklist	241	(28)
Business Drivers	242	(4)
Netsourcing Providers: Making a Response	245	(1)
Business Drivers: Checklist Questions	246	(1)
Technology Drivers	246	(5)
Netsourcing Providers: Making a Response	249	(1)
Technology Drivers: Checklist Questions	250	(1)
Economic Drivers	251	(3)
Netsourcing Providers: Making a Response	253	(1)
Economic Drivers: Checklist Questions	254	(1)
The IT Services Market	254	(4)
Netsourcing Providers: Making a Response	257	(1)
IT Services Market: Checklist Questions	257	(1)
Relational Drivers	258	(5)
Netsourcing Providers: Making A Response	261	(1)
Relational Drivers: Checklist Questions	262	(1)
Summary: Decision and Selection Checklist	263	(4)
Endnotes	267	(2)
Past, Present, and Future of Netsourcing	269	(24)
Life-Cycle Stages	270	(8)
Embryonic Stage	270	(1)
Growth Stage	271	(2)
Shakeout Stage	273	(4)
Maturity Stage	277	(1)
Trends Driven by the Tough Customer	278	(12)
Mass Customization	278	(2)
Customization	280	(1)
Integration	280	(1)
Industry-Specific Solutions	281	(1)
Larger-Sized Customers	282	(1)
More Detailed Contracts	283	(3)
More Sophisticated Pricing Mechanisms	286	(3)
Globalization	289	(1)
Conclusions	290	(1)
Endnotes	291	(2)
Appendix A International Survey of Netsourcing Customers	293	(16)
Research Method	294	(1)
Research Respondents	295	(5)
Current Netsourcing Customers	300	(2)
Potential Netsourcing Customers	302	(2)
Summary of Findings from the International Survey	304	(4)
Endnotes	308	(1)
Appendix B Guide to Authors' Publications on Sourcing IT and IT-Enabled Business Systems, 1993-2001	309	(8)
Books and Reports	309	(1)
Refereed Papers: Journals	310	(2)
Refereed Papers: Conference Proceedings	312	(2)
Reprints and Shorter Papers	314	(1)
Contributions to Books	315	(1)
Working Papers	316	(1)
Index	317