XaaS: The Impact of the 11 “As a service” Business Model Patterns on the IT Landscape

“As a service” Business Model Patterns are a global trend across all industries. They offer an innovative and cost-effective way to do business, with customers paying for only what they need, when they need it. They are one of the top 10 discussed business model patterns since many years. They are attractive for many companies, because they enable organisations to focus on their core competencies and outsource non-core activities. They also allow organisations to be more agile and responsive to change. A company offering “as a service” can easily scale up or down their usage as required. This flexibility can be appealing to companies who have fluctuating demands.

For a company offering a “as a service” business model this is attractive because customers are often more willing to commit to a monthly contract than an outright purchase. This means that customer adoption is faster and customers are more likely to remain for the long-term as their needs persist.

But what is the impact of offering a XaaS to your customers for your organisation and your IT requirements?

The good news: We can show this in much detail in a tool based process where we derive the IT-impact of the 10+ XaaS Business Model Patterns for the entire value chain of a company.

Here is how: In our “Business-Driven IT Architecture Methodology” we have a library of Business Model Patterns. Here you see the list of such patterns that are variations of the “everthing as a Service” concept:

1. Fractional Ownership

2. Pay per use

3. Performance based contracting

4. Rent Instead of Buy

5. Revenue Sharing

6. Subscription

7. Two Sided Market

8. Virtualization

9. Object Self-Service

10. Object as Point-of-Sale

11. Sensor as a Service

We have mapped our Business Model Patterns library to the SAP Reference Business Architecture, which allows us to coherently define the business capabilities and their ranked relevance for particular business model patterns. These descriptions encompass hundreds of elements, precisely portraying all business areas such as Customer, HR, Manufacturing, Purchasing, Finance and Supply Chain with complete capabilities and end-to-end processes.

This is a high-level summary of the scoring of Business Areas towards XaaS Business Model Patterns

For that matter we can very precisely show the IT elements requiring most attention when planning to run these business model patterns.

Conclusion

What is the impact of offering a XaaS to your customers for your organisation and your IT requirements?

The good news: We can show this in much detail in a tool based process where we derive the IT-impact of the 10+ XaaS Business Model Patterns for the entire value chain of a company.

If you are interested in more details please feel free to contact us. Also, please share your feedback or thoughts in a comment below.

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