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Software as Services and Services as Software: Next Generation Internet and Successful Business Cases

Explore the concept of Software as Services (SaaS) and Services as Software (SaaS), including the implications of Web 2.0 for communities and successful business cases. Learn about the next generation of the internet and new business models enabled by SaaS.

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Software as Services and Services as Software: Next Generation Internet and Successful Business Cases

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  1. Services ComputingChapter 17: Software as Services and Services as Software IEEE Body of Knowledge on Services Computing Sponsored by Technical Committee on Services Computing, IEEE Computer Society Your Name:________________________________ 1

  2. Focus Outline • Software as Services • Next Generation of Internet: Web 2.0 • Web 2.0 Implication for Communities • Service Mash-up • Case Study of Salesforce.com • New Business Models through Software as Services • Tips for Software as Services Model 2

  3. Focus Outline • Services as Software • Two Phases of Services As Software Model • A Successful Case • Healthcare under Transformation • Innovative Store • Personalized Insurance Premiums • Business Performance Transformation Services 3

  4. 17 Software as Services and Services as Software 17.1 Software as Services 17.1.1 Next Generation of Internet: Web 2.0. 17.1.2 A Case Study of Web 2.0 Service Model Service Mash-up 17.1.3 New Business Models Through Software as Services 17.1.4 Tips for Software as Services Model 17.2 Services as Software Outline 4

  5. 17.3 Successful Business Cases 17.3.1 Healthcare Under Transformation 17.3.2 Innovative Store 17.3.3 Personalized Insurance Premiums 17.3.4 Business Performance Transformation Services 17.4 Summary Outline 5

  6. Over the last several decades, software has become an integral part of all government, military, and business systems. After enabled by SOA and Web services, software systems have become more flexible, extensible, and scalable. When such an SOA-enabled software system is deployed on the Web, users who have access to the Internet can access the software system from the Internet. Such a typical scenario represents a rapidly emerging computing and business model: Software as Services. 17.1 Software as Services 6

  7. 17.1 Software as Services In short, Software As Services represents a model that supports services delivery based on software technology. The key idea of the model is to expose software solutions, including features and capabilities, to users over networks, either Internet or Intranet. 6

  8. The first phase is to use Web technologies to transform a software system into a Web application, which can be accessed by individuals from the Internet or Intranet. Typical examples are Google searching services, Amazon.com shopping services, and PayPal online payment services. The second phase is to leverage SOA and Web services technologies to transform existing software systems into Web services, which can be accessed by programs and integrated into other business processes. 17.1 Software as Services2 Phases 7

  9. 17.1.1 Next Generation of Internet: Web 2.0 Web 2.0 represents the a collection of the next-generation technologies over the Internet. In contrast with other services delivery methods, the tenet of Web 2.0 is “complete openness.” Web 2.0 introduces a concept of “open community”. 8

  10. 17.1.1 Next Generation of Internet: Web 2.0 Feedbacks and improvements all go through online approaches and become available to participants instantaneously. Web 2.0 encourages people to leverage open-source software components. Web 2.0 is mainly built on open standards. 8

  11. Techniques: Mash-up, wiki, tagging, blogging Tools: Atom, AJAX, PHP, Ruby Standards: REST, XHTML, CSS The Intelligent Web Harnessing Collective Intelligence Rich user experiences Web as a Platform Data is the “intel Inside” SW above a single device End of the Software Release Cycle Light-weight programming models 17.1.1 Next Generation of Internet: Web 2.0 9

  12. Aiming at providing an open platform for open community users to collaborate on, Web 2.0 relies on open standards and technologies as foundations. Web 2.0 is enabled by its core enabling platform that comprises six major components: business requirements repository, shared context, value-added manager, relationship manager, collaborators, and collaboration space. 17.1.1 Next Generation of Internet: Web 2.0 10

  13. Web 2.0 Implication for Communities 11

  14. Web 2.0 is oriented to open community; collaborators may come from different communities and organizations. Meanwhile, software components used in Web 2.0 may be produced and published by various organizations or communities. They can be either open-source or associated with fees. Web 2.0 allows various collaborators to participate in the collaboration, while organizes them with an internal hierarchy tree for proper management. Web 2.0 Implication for Communities 12

  15. With collaborators organized, Web 2.0 provides a collaboration space to enable collaborators to cooperate on a shared work product to be delivered as an ultimate service. The components of the service product may be software components or service components coming from various communities or organizations. Web 2.0 Implication for Communities 13

  16. Web 2.0-based Software as Services delivery features the following four patterns: the long tail, rich information architecture, user-involved value creation process, and open collaboration. Web 2.0 Implication for Communities 14

  17. Web 2.0 Implication for Business Models Source: … 15

  18. The long tail means that with open technologies and open communities, the “small applications” that used to be too small to be developed by large companies but too big for individuals can now be developed by Web 2.0 open community. Shows the importance for supporting long-tail applications Web 2.0 Implication for Communities 16

  19. Rich information architecture means that Web 2.0-based services are typically composed from a set of other services. For example, the open service “Google House” is constructed based on the Google Map data using so-called “Mash-up” technology, which seamlessly integrates Google data with house information and leads a completely new type of service. Web 2.0 Implication for Business Models (Cont’d) 17

  20. Web 2.0 Implication for Business Models (Cont’d) User-involved value creation process means that participants do not just passively accept what they get; instead, they can actively participate in the design and development process. For example, each participant can “tag” the contents (i.e., a kind of self-categorization process) and associate the contents with their defined semantics. 17

  21. Web 2.0 Implication for Business Models (Cont’d) Open collaboration implies weak control over collaboration (at least theoretically). Since Web 2.0 is built upon open community, the services and development process should be regulated in a loose manner. The open community works in a way of cooperation. 17

  22. 17.1.2 A Case Study of Web 2.0 Service Model - Service Mash-up 18

  23. The mash-up of software applications results in aggregated services not quite envisioned when the individual applications were written. Before aggregation, these applications may be provided by different service providers, with different business models, technologies, and different user experiences. 17.1. 2 A Case Study of Web 2.0 Service Model - Service Mash-up 19

  24. This requires that the users have to switch between different user interfaces in a complex way to complete a service. With the Web 2.0 mash-up technology, users can now only visit one portal, which seamlessly integrates the pieces of services from different providers, without knowing where the services come from. The service is thus fulfilled in a consistent manner. 17.1. 2 A Case Study of Web 2.0 Service Model - Service Mash-up 20

  25. The model Software as Services has big advantages and potential to enter the long-tail application business, which can hardly be covered by the traditional service model that is propriety, labor-based, and heavy- weighted. 17.1.3 New Business Models Through Software as Services 21

  26. Case Study: Salesforce.com is Emerging as Web 2.0 & Service 2.0 company 22

  27. Case Study: Salesforce.com is Emerging as Web 2.0 & Service 2.0 company (Cont’d) 23

  28. Starting from 2005, Salesforce.com is heading to SaS marketplace operator & SaS OS service provider: AppExchange marketplace: “eBay” in SaS world Enabling a community for producing/trading SaS applications on top of Salesforce.com platform Case Study: Salesforce.com is Emerging as Web 2.0 & Service 2.0 company (Cont’d) 24

  29. Case Study: Salesforce.com is Emerging as Web 2.0 & Service 2.0 company (Cont’d) AppExchange Builder Enabling easy-to-use new SaS application development & deployment on top of Salesforce.com platform Produce,deploy,demo,integrate,evluate,share,trade AppExchange OS: “Windows” in SaS world AppExchange DB: “Oracle” in SaS world 25

  30. Software as Services has big advantage and potential to enter the long-tail application business, which can hardly be covered by the traditional service model that is propriety, labor-based, and heavy-weighted. New Business Models through Software as Services 26

  31. The model of Software as Services is nevertheless not a silver bullet. In order to better exploit it, the following three guidelines should be followed. Tips for Software as Services Model 27

  32. First, the platform owner needs to protect the IP rights of involved developers. Since the platform intends to support open community, it is possible that some participants may wish to protect their privacy. Tips for Software as Services Model 28

  33. Second, a Software as Services project needs to better manage its route to market and corresponding channels. Like any new business model, Software as Services is still a new type of service that demands a proper way to market. Tips for Software as Services Model 29

  34. Third, there is need for more killer applications. To date, CRM is still the most dominant Software as Services application that attracts most users. In order for it to be adopted by more users, the model Software as Services needs to take into consideration business requirements from various potential service requestors. Tips for Software as Services Model 30

  35. Conceptually, the solution to this issue is not that complicated. We can incorporate the experiences and knowledge of the professionals and experts into software, and leverage the software to help realize and manage consulting (or in general, business) workflow. 17.2 Services as Software 31

  36. 17.2 Services as Software Thus, a consulting process turns into a consulting service based upon computer software. Such a new form of service industry has a library of software components encapsulating knowledge and expertise of business consultants. 32

  37. These software components can be reused and integrated together into new reusable components. By rapidly constructing a workflow process using the re-configurable and reusable software components, the consulting services can be greatly facilitated. In this way, we can transform the original labor-based service industries into asset-based service businesses. 17.2 Services as Software 33

  38. Two Phases of Services As Software Model 34

  39. FIRST PHASE In the development phase, Services software models and implements the information architecture and processes extracted from the services practices, which include special matter experts’ knowledge, services governance processes, as well as other useful assets such as architecture, design documents, services delivery materials, training courses, sales materials. Two Phases of Services As Software Model 35

  40. SECOND PHASE Once the services software is developed, it can be shipped as a stand-alone software toolkit or delivered as an Internet service. Two Phases of Services As Software Model 36

  41. Efutong.com (http://www.efutong.com), a leading Services As Software service provider in China, integrates their years of consulting experiences, especially on Enterprise Performance Management services, into software, so as to deliver enterprise transformation and process improvement services more quickly. A Successful Case 37

  42. 17.3 A Successful Case 38

  43. Some work that originally took one month to finish now can be completed in days. It is worth noting that the consultants using the software do not have to be top-level consultants with dozens of years’ experience. A Successful Case 39

  44. 17.3.1 Healthcare under Transformation 40

  45. All of these medical inefficiencies put a huge financial burden on consumers, physicians, insurers, and the entire healthcare industry. 17.3.1 Healthcare Under Transformation 41

  46. Reform has a high demand in the healthcare industry. According to a 2005 survey, most patients still need to fill out paper forms when they visit doctors; sharing test results among a patient’s multiple doctors is still mostly through a manual process; medical mistakes (e.g., incorrect diagnosis and prescription) are still identified as the eighth leading cause of death. 17.3.1 Healthcare Under Transformation 42

  47. Taking innovative steps, healthcare organizations collaborate with software corporations to build ecosystems towards an adaptive health information infrastructure, which improves patient care and reduces medical error and costs while protecting patient privacy. 17.3.1 Healthcare Under Transformation 43

  48. Illustrates a typical medical ecosystem. The greatest medical minds are joined to treat illnesses and cure diseases. These ecosystems typically focus on the realm of patient histories. 17.3.1 Healthcare Under Transformation 44

  49. 17.3.2 Innovative Store 45

  50. A new business model emerges for the retail industry. Radio Frequency Identification (RFID) technology is exploited to enhance the shopping experience and sales. Real-time inventory monitoring can largely raise customer satisfaction. 17.3.2 Innovative Store 46

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