Studying The STOF Business Model Domains Information Technology Essay

Studying The STOF Business framework theaters Information Technology EssaySTOF regulate This framework for concern representative foc habituates on client look upon creation, the arrangements undeniable from the organisational, financial and techno logical allude of view, for creating a brisk wait on. These intravenous feeding dimensions reference book how esteem is delivered to the customer and as well as how the attend to of process provider can gain value from the returns offered.The four dimension of the framework atomic add up 18 do land, technology domain, organisational domain and pay domain. In the following sections, these dimensions give be explored in detail.STOF Business Model DomainsSince it is essential that the service offered by the sign of the zodiac should meet the demands of the customer, the rising service definition is used as the central reference for all early(a) domains. In customers viewpoint the technology is an enabler of the se rvice, from the firms perspective it is the driver. Organisational domain describes how the resources in the firm ordain made available and used. Financial domain, stress on the price model, enthronement and other cost based risks involved in providing the service.divine service Domain little victor F bringor and Critical instauration Issues for customer ValueChapter 3A successful business model should relaxation the value forced for the customer to that for the service provider. To achieve this there should a rest period among the antithetical domains of the business model. A critical flesh make do is variable which is of importance for the feasibility and sustainability of the business model. Understanding of critical institution issues (CDI) and its linkages is critical for designing reposed business model. service domain requirements contract the choice of technology to be used for the service delivery. Furthermore, it affects the organisational and financial d omain.Critical Design Issues in Designing Business ModelFor each business model domain, we identify the individual CDIs. The identification of different CDIs is based on the literature review. In typesetters case of service domain the CDIs are come in customers, value creating elements and customer retention.Target customers Service requirements and the customer need are different for each target group. The target group definition, whether it is B2C or B2B is necessary. And it is hence fundamental to have a clear segmentation of the customers to address respective value proposition.Value creating elements To provide a compelling value proposition to the targeted customers, factors wish well relevance, ease of accessibility, accuracy, note and devote are critical. It is therefore, the core service offering as well as support service organism offered to the customer.Branding (removed in the diagram) To get a better recognition for the clean service , scar image is essentia l. It can withal increase the trust and awareness of the service being offered.Customer Retention It defines the ways to go the customer loyal and satisfied. It is also need to develop recurrent use of the service by the customer.Critical design issues for Technology domainFactors like security department, integration of the existing dodge and accessibility are linchpin design criteria for the technology domain.Security The way information is stored in the technical architecture and how the access is granted to the customer is essential to avoid security breaches. The take off between ease of accessibility and data privacy should be addressed to issue the risk of improper use of the services.Quality of Service The ability to provide different priority to maintain a original level of performance based on the users, context and importance. The incurred cost in the expert infrastructure should be balanced with that of the quality of service. It can also be argued that the te chnological architecture or infrastructure influences the technical functionality, which in turn affects the customers perceived value of the service.System Integration The extent to which the new service offering can be integrated with that of the existing ones determines the variation of the service. Cost and flexibility of the new technology affects the system integration. In the case of ICT , firms with open standards bring down the level of integration required in the technical side. accessibility at that place two factors which affect the accessibility of a service by the customer, first preference of service platforms and second the architecture. If there is a closed or controlled environment, it can make way to a restricted access to a particular group of customers. This also increases the security at technology level.Critical Design Issue at Organisational DomainPartner Selection This design bill is based on the strategical interest that the firm has, based on it suitab le partners can be chosen. It is also vital, to get hold of the required resources and capabilities by the firm.Openness of electronic net It is the extent to which new business can link to the value interlock. There can be two scenarios, first a closed network and second an open network. The closed network is mostly used to seduce higher quality of service and new partners are chosen by certain set of rules. Open network, gives an opportunity to deliver services to a wider audience than the closed network. interlock Governance Establishment of set rules by which the partner businesses should operate and can be monitored. This is usually done by the most dominant actor in the value network. Access to the end-users is the key determinant of an actors dominant role in the collaboration.Network Complexity The number of relationships that has to be maintained with other businesses in providing the services act as the determinant of the network complexity. If the complexity is reduc ed , or in other words, less number relations increases the security and quality of service.Critical Design Issue in the Finance DomainPricing Pricing of the service run aways an critical role in the service adaptation and its use. The perceived value by the customer should be greater than or at least equal to the delivered value by the service provider. The pricing strategy should address whether the firm is aiming for maximising the market share or maximising the favorableness from delivering the service.Risk and Investment The uncertainty about return on investment funds is the fundamental risk involved in developing and delivering a new service to the market. A variableness of investment and risk among the actors can reduce the degree of impact to the actors involved.Cost and Revenue The division of cost and receipts between the businesses is not the same in all cases, it differ from case to case. For instance, the service provider can share the revenue with the other actors in the service delivery or it can be based on the subscription fee. The revenue sharing is based on the underlying business logic either value based or on cost basis. The division of cost and revenue depends on the division of risk and investment also.The CDIs play a significant role in the process of creating value to the customer as well as to the service provider therefore it act as the starting point. The next step is the identification of Critical supremacy Factors (CSFs). A minimum group of areas in which satisfactory outcome is required to make certain that the business model generates value for both the service provider and to the customer is called the Critical success Factor(Rockart and Bullen ,1981). Then the linkage between CDI and CSF , will aid for generating a feasible business model.Critical Success Factor and Critical Design Issues for Network ValueCritical Success Factors (CSF) For creating value to the customer Compelling value proposition It is associate to v alue creating element CDIs in the service domain and it is a critical criterion for creating value to the customer. Value proposition is the overall benefits that are delivered to the customer by the service provider. Bouwan et al (2008) argues that the value proposition should be based on the customer needs and requirements and not to be based on the technological possibilities. Customers perspective of value also depends on the pricing (CDI) of the service. Similarly, Kotler (2000) points out that brand (CDI) influences the customer perspective of value proposition.Defined target customer The CDI targeting is related to this CSF. Defined target customer will assistant the firm to centre on the targeted customers, as the customer needs are different for different customer group. The assumed customer needs by the service provider can be nullified by segmenting the customer base (Kotler, 2000). Accessibility CDI of technology domain also affects this CSF.Customer Retention Customis ed or personalized service delivery to the customers will help retain the customer, mainly influenced by customer loyalty and customer experience. The unconstructive occurrence in service can affect the experience and frustrate the customer(Strauss, Schmidt, Schoeler, 2005).Quality of Service Grnroos, 1994 suggests that the quality of service output and service process are equally important. CDIs from technology domain are closely related to QoS.CDIs in the technology domain demands an adequate level of quality, since the service being delivered is technology based. Security and system integrationTo summarize a high score in these CSFs will grantee that the service being provided will meet the customer expectations and create value to the customer.CSF for creating value to the networkThe actors in the value network will cooperate for generating value on mutual interest and also vie for value on individual interest (Brandenburg Nalebuff, 1996). Another framework, Porters five forc es model stress on competition between the actors (Porter, 1980). For creating value in the network, balance between financial and organisational domain is critical, mover over it should be acceptable by the collaborating actors.Profitability There should be a acceptable dinero for the firms, according to the division of cost and revenue (CDI). Other domain issues like customer group and pricing will affect the profitability.Risk An winning division of risk among the participating actors should result from the division of investment CDI. Since, there is a high uncertainty of service acceptance and due to the investment in IT infrastructure.Network Strategy This CSF is required to effectively manage the different relation in the value network, from the organisation domain perspective. Division of roles and Network Governance CDIs is directly related to the network strategy. Partner selection and network complexity is also interlinked with this CSF.To summarise a high score on thes e CSFs will create benefit for the firms that are involved in the service. Organisational CDIs help in allocation resources and capabilities, similarly the CDIs in finance domain is instrumental in directing to a profitable service.