Advanced

Investigating the business opportunities and impact of cloud technology a case study on maritime industry

Andersson, Filip and Spångö, Olof (2015) MIO920 20152
Production Management
Abstract
Background: New technologies and innovations have the power to swiftly
disrupt complete industries across the globe. This puts
pressure on companies to understand how new technologies
could change future product offerings and impact the
business model.
Purpose: The purpose of this study is to provide an example of how
new technology will generate new business models. This
study is done as a case study within the maritime software
market. To fulfill the purpose, the following questions will
be answered
What is expected from maritime software in five
years?
How can cloud technology enable improvements
satisfying the requirements for future maritime
software?
How should a business model for future maritime
software be... (More)
Background: New technologies and innovations have the power to swiftly
disrupt complete industries across the globe. This puts
pressure on companies to understand how new technologies
could change future product offerings and impact the
business model.
Purpose: The purpose of this study is to provide an example of how
new technology will generate new business models. This
study is done as a case study within the maritime software
market. To fulfill the purpose, the following questions will
be answered
What is expected from maritime software in five
years?
How can cloud technology enable improvements
satisfying the requirements for future maritime
software?
How should a business model for future maritime
software be designed?
Method: This study was conducted as a case study at ABB CRC in
Västerås, using an abductive approach. Mainly qualitative
data has been collected through secondary sources and
interviews with employees working at different BUs at ABB.
Theoretical The study’s frame of reference includes theory regarding
maritime software, Framework: cloud computing and big data.
The analysis model consists of three theoretical frameworks.
A framework named TAIDA was used to develop scenarios.
To help develop the future business model the theory of the
business model canvas by Osterwalder was used. In addition
to this, inspiration has been taken from blue ocean strategy
thinking.
Results: For the maritime software studied in this study, three key
areas were identified that future maritime software must
provide and deliver to its customers in order to meet future
expectations
Improving operational efficiency
Enabling centralized control and monitoring
Providing more data to use for strategic and operational
analytics
Cloud technology could likely be a part of this future;
however, internet connectivity could be a limiting factor that
needs to be taken into account. Therefore two futuristic
scenarios, showing how cloud technology could be
introduced, have been created.
A suggested business model for the future maritime software
is presented
Product: The core value proposition is to improve the
strategic and operational decision making for both single
ships as well as for entire fleets. Benefits include reduced
costs for the customer, increased safety, and improved ability
for customers to make decisions that are data-based.
Customer interface: The sales channel is not believed to
necessarily change from today. Cloud technology will not
remove the use of personal contact in sales.
As for how the software is deployed, parts of the product will
be delivered as a SaaS, whereas some functions will remain
on-premise.
Further investigation is necessary to determine whether to
use a public, hybrid or private cloud hosting solution.
Infrastructure management: ABB’s combination of
hardware and software is a key resource, making the
collaboration between different business units a key activity.
Furthermore, a key activity will also be to alter the software
design from being customized, towards modular and
configurable software architecture.
Financial aspect: The cost structure is highly dependent on
the selection of the deployment method of the cloud. It is
clear that a public cloud would create more variable costs
and considerably lower investment costs opposed to using a
private cloud. The revenue streams could be structured as a
combination of subscription and pay-per-use. The pay-peruse
should primarily focus on software functionalities with a
less frequent use. (Less)
Please use this url to cite or link to this publication:
author
Andersson, Filip and Spångö, Olof
supervisor
organization
course
MIO920 20152
year
type
M1 - University Diploma
subject
keywords
Maritime software, Scenario planning, TAIDA, Business model, Blue Ocean, Big data, Cloud computing
other publication id
15/5516
language
English
id
7452046
date added to LUP
2015-06-26 13:28:34
date last changed
2015-06-26 13:28:34
@misc{7452046,
  abstract     = {Background: New technologies and innovations have the power to swiftly
disrupt complete industries across the globe. This puts
pressure on companies to understand how new technologies
could change future product offerings and impact the
business model.
Purpose: The purpose of this study is to provide an example of how
new technology will generate new business models. This
study is done as a case study within the maritime software
market. To fulfill the purpose, the following questions will
be answered
What is expected from maritime software in five
years?
How can cloud technology enable improvements
satisfying the requirements for future maritime
software?
How should a business model for future maritime
software be designed?
Method: This study was conducted as a case study at ABB CRC in
Västerås, using an abductive approach. Mainly qualitative
data has been collected through secondary sources and
interviews with employees working at different BUs at ABB.
Theoretical The study’s frame of reference includes theory regarding
maritime software, Framework: cloud computing and big data.
The analysis model consists of three theoretical frameworks.
A framework named TAIDA was used to develop scenarios.
To help develop the future business model the theory of the
business model canvas by Osterwalder was used. In addition
to this, inspiration has been taken from blue ocean strategy
thinking.
Results: For the maritime software studied in this study, three key
areas were identified that future maritime software must
provide and deliver to its customers in order to meet future
expectations
Improving operational efficiency
Enabling centralized control and monitoring
Providing more data to use for strategic and operational
analytics
Cloud technology could likely be a part of this future;
however, internet connectivity could be a limiting factor that
needs to be taken into account. Therefore two futuristic
scenarios, showing how cloud technology could be
introduced, have been created.
A suggested business model for the future maritime software
is presented
Product: The core value proposition is to improve the
strategic and operational decision making for both single
ships as well as for entire fleets. Benefits include reduced
costs for the customer, increased safety, and improved ability
for customers to make decisions that are data-based.
Customer interface: The sales channel is not believed to
necessarily change from today. Cloud technology will not
remove the use of personal contact in sales.
As for how the software is deployed, parts of the product will
be delivered as a SaaS, whereas some functions will remain
on-premise.
Further investigation is necessary to determine whether to
use a public, hybrid or private cloud hosting solution.
Infrastructure management: ABB’s combination of
hardware and software is a key resource, making the
collaboration between different business units a key activity.
Furthermore, a key activity will also be to alter the software
design from being customized, towards modular and
configurable software architecture.
Financial aspect: The cost structure is highly dependent on
the selection of the deployment method of the cloud. It is
clear that a public cloud would create more variable costs
and considerably lower investment costs opposed to using a
private cloud. The revenue streams could be structured as a
combination of subscription and pay-per-use. The pay-peruse
should primarily focus on software functionalities with a
less frequent use.},
  author       = {Andersson, Filip and Spångö, Olof},
  keyword      = {Maritime software,Scenario planning,TAIDA,Business model,Blue Ocean,Big data,Cloud computing},
  language     = {eng},
  note         = {Student Paper},
  title        = {Investigating the business opportunities and impact of cloud technology a case study on maritime industry},
  year         = {2015},
}