The document discusses various aspects of IT service value chains including capabilities, technology areas, and service providers. It analyzes the value expectations of current and future application service provider (ASP) clients, finding that the top expectations are enterprise software capabilities, increased flexibility, decreased investment needs, and guaranteed availability. Overall, ASPs aim to efficiently manage IT resources and costs through scalable, high-availability hosting and operations.

1. Value chain - Technology IT - Service Value chain - Service Capability items IT - Capability Value chain of Business ASP

2. IT – Decision Capability Flexible business environment Real value proposition focus Global market challenges Efficiency on cost and profit side Real time and accurate Information is the capability of making the right decision

3. Business IT areas Resource management ERP Finance, HR, Logistics, Production CRM Marketing, Sales, Service Administration Office Administration Collaboration B2B Automated Information Exchange Sell side eCommerce - Sales Buy side eCommerce - Procurement m-C ommerce Mobile Collaboration

4. Capability items - Application Software Best of suite flexible software with rich functionality and large client base Business solution Best practice processes separated by industry sectors, role based documentation and help Implementation On time and on budget projects with perfect adaptation of best practice process proposals, including change management and knowledge transfer Support User focused communication, structured application maintenance processes and tools, ongoing change tracking

5. Capability items - Hosting Hardware High availability capable configurations with on demand scalable capacities , load balancing, quick replacement, easy remote management Data Center UPS, backup, disaster recovery, security access control with 24x7 continuity on redundant locations Network Dedicated scalable bandwith capacities on multiply locations with industry standard communication security for affordable prices Operation Database and application monitoring, maintenance and tuning , professional tools, professional knowledge, evergreen technology levels

6. Value chain of Technology Infrastructure HSP ASP ============================================== Software X Business Solution X X Hardware X X X Data Center X X X Operation X Network X Implementation X X Appl. support X X HSP – Hosted (application) Service Provision, ASP – Application Service Provision

7. IT - Services High availability in 24x7 Quick response time in issue handling More integration, more change management Up to date technology know-how Intensive knowledge transfer need User focused communication Clear relation between business and IT

8. Different providers Inhouse IT resources Well known people provide to colleagues IT is controlled by business directly Deep running business knowledge Development knowledge of individual client functions or modifications Appl. Service Provider Professional infrastructure components Scaled assets based on large number of customers Intensive and continoues knowledge transfer for staff Large number of client/project cases No investment in evergreen capability Clear responsibilities No resource gap

9. ASP value expectation Enterprise software capabilities Increase flexibility Decrease investment need Guarantied availability Manage IT resource need Reduce implementation time Lower IT cost Security Other 66.1% 51.7% 51.7% 55.9% 57.6% 46.6% 49.2% 25.4% 1.7% 62.0% 62.0% 60.0% 57.0% 56.4% 52.6% 47.7% 21.6% 1.7% Current ASP clients Future ASP clients The ITAA ASP Customer Demand Survey - May 22, 2000