The Impact of Cloud-Based Digital Transformation on IT Service Providers

2020 ◽  
pp. 1495-1514
Author(s):  
Trevor Clohessy ◽  
Thomas Acton ◽  
Lorraine Morgan

Cloud-based digital transformation is having a profound impact on new and incumbent information technology service providers. In transitioning from traditional to cloud-based service provision, some IT service providers are experiencing substantial difficulties in realizing effective business models. Taking the perspective of 20 large business model mature and small and medium enterprise born-on-the-cloud multinational IT service providers, this focus group study contributes to the dearth of research examining the broader impact of cloud computing on IT service providers' business model. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Second, the study identifies a number of salient challenges which are impacting IT service providers' efforts to effectively leverage the benefits of cloud-based digital transformation.

2017 ◽  
Vol 7 (4) ◽  
pp. 1-19 ◽  
Author(s):  
Trevor Clohessy ◽  
Thomas Acton ◽  
Lorraine Morgan

Cloud-based digital transformation is having a profound impact on new and incumbent information technology service providers. In transitioning from traditional to cloud-based service provision, some IT service providers are experiencing substantial difficulties in realizing effective business models. Taking the perspective of 20 large business model mature and small and medium enterprise born-on-the-cloud multinational IT service providers, this focus group study contributes to the dearth of research examining the broader impact of cloud computing on IT service providers' business model. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Second, the study identifies a number of salient challenges which are impacting IT service providers' efforts to effectively leverage the benefits of cloud-based digital transformation.


2022 ◽  
pp. 124-148
Author(s):  
Ignitia Motjolopane ◽  
Tshinakaho Relebogile Seaba

In a digital arena, information technology services provision is shifting to a cloud computing ecosystem. Cloud computing is an enabler for digital transformation with cloud computing service providers central to the digital transformation of both companies and higher education. As cloud computing service providers play the role of an ‘architect' for companies as supply chain is digitised and in supporting higher education institutions striving to deliver user-focused services in the face of increasing competition, an understanding of successful characteristics of cloud computing service provider business models is of main interest for providers and may also be of value for companies and higher education institutions when selecting cloud computing service providers. Despite the importance of cloud computing service providers' business models, information systems literature has provided limited analysis on the characteristics of successful business models. As such, the chapter aims to contribute to the emerging research on characteristics of successful business models.


Organizacija ◽  
2017 ◽  
Vol 50 (3) ◽  
pp. 255-272 ◽  
Author(s):  
Kristina Bogataj Habjan ◽  
Andreja Pucihar

Abstract Background and Purpose: Bringing several opportunities for more effective and efficient IT governance and service exploitation, cloud computing is expected to impact the European and global economies significantly. Market data show that despite many advantages and promised benefits the adoption of cloud computing is not as fast and widespread as foreseen. This situation shows the need for further exploration of the potentials of cloud computing and its implementation on the market. The purpose of this research was to identify individual business model factors with the highest impact on cloud computing adoption. In addition, the aim was to identify the differences in opinion regarding the importance of business model factors on cloud computing adoption according to companies’ previous experiences with cloud computing services. Methodology: Based on literature review, prior research results, and interviews with cloud computing providers and users, a research model was developed. Statistical analysis focused on identification of factors’ importance on cloud computing adoption and differences in opinions according to respondents’ previous experiences with cloud computing services. The study was done among 80 companies and five major cloud computing providers in Slovenia. Results: The research results reveal statistically significant differences in opinions on the importance of cloud computing business model factors according to respondents’ previous experiences with cloud computing services. The results can provide orientation for redesign or innovation of existing business models towards the creation of a customer-oriented business model for the more successful exploitation of cloud computing services and business opportunities. For potential users, the findings represent guidelines for the successful adoption of cloud computing services. Conclusions: In our research, the investigated business model factors could be classified into so-called “business model organizational factors”, as they primarily need to be considered by cloud service providers when defining or innovating their business models. For future research, the model should also include the impact of environmental factors, such as Competition, Business Partners, Legislation, Economic Situation, in order to investigate their impact on cloud adoption.


2015 ◽  
Vol 760 ◽  
pp. 715-720
Author(s):  
Liviu Bozga ◽  
Marian Gheorghe

The importance of information technology service management, ITSM, is fully recognized today. All companies, regardless of their size, accept the role of IT services and products, as the main supports for decision and control activities. The present contribution aims to analyze the main steps in the evolution of ITSM and its evolvement as a well-defined domain. There are analyzed, also, the main economical and technical factors influencing its evolution - the increase of competition among the IT service providers, the technical progress in hardware and availability of digital technologies.


Author(s):  
Ramamurthy Venkatesh ◽  
Liju Mathew ◽  
Tarun Kumar Singhal

Despite the increasing pace of digital transformation initiatives across many industry verticals, lack of understanding among business leadership is cited as one of the major barriers for successful implementation of business transformation. This article explores the imperatives of business models and digital transformation from practical perspective and proposes an improvised business model framework with particular focus on digital services providers. Extant literature covering the trends of business models and digital transformation were reviewed qualitatively along with select reports pertaining to challenges faced by communications service providers. Key findings of this article suggest, a practical framework and business model representation to mitigate the challenges of business models and digital transformation. The authors believe, such an approach shall open up new and innovative opportunities for communication service providers to become true digital service providers which will help their business customers to plan and empirically progress with their business transformation efforts.


Author(s):  
Stuart Diaz Galup ◽  
Ronald Dattero ◽  
Jing Quan

Information Technology Service Management (ITSM) is a quality management approach for managing IT services that meet business needs. The most broadly accepted ITSM framework is ITIL® (Mann, 2012) and its adoption by organizations across the globe has grown over the past decade. A study conducted by Forrester and itSMF (2013) found that IT service providers that employ ITIL® enjoy better service quality and higher operational productivity as well as cost savings. Therefore, IT professionals with ITIL® knowledge and skills are likely valuable to organizations and earn a higher wage than their peers. This paper investigates whether or not there are salary benefits for IT professionals that possess ITIL® knowledge and skill and what are the estimated benefits, if any. Using a human capital model and employing data from an on-line survey of a large set of IT professionals (16,632 responses) conducted at the end of 2013 this benefit is confirmed and quantified.


Author(s):  
Luís Kalb Roses

The chapter explains the importance of taking the expectations of customers and service providers into account with regard to IT service quality management. To do this, the author uses the SERVPERF method, which identifies expectations regarding service performance from the point of view of both the customer and the provider. Based on an empirical study, the author demonstrates the importance of aligning IT staff with staff from the customer company as far as quality management is concerned.


10.31355/33 ◽  
2018 ◽  
Vol 2 ◽  
pp. 105-120
Author(s):  
Hamed Motaghi ◽  
Saeed Nosratabadi ◽  
Thabit Qasem Atobishi

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose................................................................................................................................................................................................. The main objective of the current study is to develop a business model for service providers of cloud computing which is designed based on circular economy principles and can ensure the sustainable consumption. Background Even though the demand for cloud computing technology is increasing day by day in all over the world, the current the linear economy principles are incapable to ensure society development needs. To consider the benefit of the society and the vendors at the same time, the principles of circular economy can address this issue. Methodology................................................................................................................................................................................................. An extensive literature review on consumption, sustainable consumption, circular economic, business model, and cloud computing were conducted. the proposed model of Osterwalder, Pigneur and Tucci (2005) is admitted designing the circular business model. Contribution................................................................................................................................................................................................. The proposed model of the study is the contribution of this study where provides the guidelines for the cloud computing service providers to achieve both their economic profits and the society’ needs. Findings Finding reveals that if the cloud computing service providers design their business model based on the “access” principle of circular economy, they can meet their economic profits and the society’ needs at a same time. Recommendations for Practitioners.............................................................................................................................................................. It is recommended to the startup and the existing businesses to utilize the proposed model of this study to reach a sustainable development. Recommendation for Researchers................................................................................................................................................................ It proposes a new circular business model and its linkages with community building. Impact on Society............................................................................................................................................................................................ The proposed model of the study provides guidelines to the cloud computing service providers to design a business model which is able not only to meet their economic profit, but also to meet the society’s and customers’ benefits. Future Research............................................................................................................................................................................................... Future researches can build on this research model which proposed in this study to examine the limitations of this model by using empirical researches.


2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.


Author(s):  
Abílio Cardoso ◽  
Fernando Moreira ◽  
Paulo Simões

Public and federal agencies from countries around the world are increasingly providing information technology based services via the Internet - known as e-government. Several of the general requirements of e-government services are satisfactorily met by the emerging Cloud Computing paradigm that promises a number of benefits such as service elasticity (the ability to handle peaks and troughs of demands); optimization of costs; capacity to handle large volumes of data; and a generalized model of Internet-based access for end-users. For this reason, it is no surprise that Cloud related technologies are gradually leveraging e-government platforms. In this chapter, a support framework is outlined that complies with and extends the well-known ITIL (Information Technology Infrastructure Library) set of best practices for IT (Information Technology) service management. It is suggested that the proposed framework can be usefully deployed to assist in the process of migrating e-government services provision to the Cloud Computing environment.


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