A Conceptual Model for ASP Adoption

The much-heralded provision of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) applications via hosting houses has been deemed to have failed. Many investigations have taken place, most of which have analysed the failure from the customer perspective, trying to understand why the end user did not endorse the Application Service Provision (ASP) model. As the end user stands to gain substantial benefits from the ASP model these studies are perhaps not focusing on the correct component of the value chain. This paper critically examines the ASP value chain and identifies the winners and risk takers within it. A flaw in the supply of ASP is highlighted and a conceptual model for ASP adoption proposed.