Jamcracker Case Solution for Question 3 Essay

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3. What are the critical challenges for the business model to be sustainable? The following are the critical challenges faced by Jamcrackers’ business model in order to be sustainable: * Technical challenges: Since the ASP industry was young, there existed a lack of standardisation of procedures and this meant that each ASP integrated into the Jamcracker platform posed unique and difficult problems. For the business model, it is very critical to minimize the integration burden on the ASP. Also, there are many infrastructure issues since there are challenges involved in making the infrastructure more robust as the number of customers grow. The customer database would be huge and growing at a rapid rate and thus there should be adequate infrastructure to support this. In addition, the company would have to be upgrading its service and product portfolio. * Need for professional services: In the long run, applications integrated by this model would become more and more complex and thus customers would want professional services to assist them in setting up initial system configurations and transferring data from legacy systems to ASP-based systems. For complex applications, the user data may not be ready to go instantly. It would be a professional services job to get it ready and thus it is important for any company using this business model to get partners to provide professional services support. * Timing issue and knowledge transfer: The market needs to be ready for this new model of service delivery. For this, the company employing this business model must educate its customers about the details of this new approach since the customers would not have seen anything like this before since this model was not just a new product but was an entirely new market mechanism for distributing IT services. * Customer Concerns: Customers are always looking for

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