Software As A Service Model Innovation

Software industry is growing so rapidly worldwide, driven by various governments,enterprises, and consumers. Chinese government places strategic emphasis on softwareindustry, considering it as the core competency to drive the sustainable growth of China,only to be disappointed to find out that Chinese software industry represents less than 4%of the software industry in the world. The majority of Chinese software companies are stillin early stage of development and their management processes are immature. It has greatsignificance to improve the core competence of Chinese software industry.This paper analyzes the status of Chinese software industry and summarizes theobstacles that prevent the taking off of software industry at China. It points out theSoftware as a model of Service (SaaS), as the disruptive innovation today, can efficientlyand effectively help improve the competitiveness of Chinese software industry.Chapter 1 studied the current status of software industry at China, its challenges andobstacles. The author tried to solve these problems in the following chapters.Chapter 2 carefully and thoroughly studied SaaS, the disruptive innovation of today.It studied the evolution of SaaS, its working model, the driving force behind SaaS, and twocase studies, ADP and Salesforce.com.Chapter 3 described how SaaS can effectively solve, or partially solve the challengesfaced by Chinese software industry analyzed in Chapter 1. it presented the suggestions ofdeveloping SaaS to both Chinese government and software companies. It concluded thatSaaS presents a unique opportunity for Chinese software industry to take off.This paper is significant in that it carefully studied the challenges of Chinesesoftware industry and precisely identified the obstacles. It then described SaaS in detail asthe disruptive innovation today, and pointed out that SaaS can solve many of thechallenges and obstacles of Chinese software industry and it is relatively easy for Chinesesoftware companies to adopt SaaS in China and to improve the core competence ofChinese software industry.