Value creation from the application service provider e‐business model: the experience of four firms

This paper embraces the e‐business model concept as the unit of analysis for investigating the ASP market. It develops three constructs of the ASP business model: strategic positioning; product/service portfolio; and customer value proposition. Using a case study method, it discusses the findings from four ASP firms; each having attempted to develop a unique ASP business model. The findings suggest the ASP business model is fundamentally flawed as ASP firms fail to provide the customer with an attractive value proposition.