Early adopters order up favorite technology solutions via the application service provider model.
ANNA M. HOEMEISTER, CERTIFLED PUBLIC ACCOUNTANT AND PARTNER, Tate & Tryon CPAs and Consultants, Washington, D.C., estimates that a mere 6--7 percent of association executives understand the term application service provider and what this hot technology trend means for their organizations. When queried as to their understanding of ASPs, the participants in ASAE's January knowledge network "Application Service Providers" at which Hofmeister was a presenter, substantiated by a show of hands that her estimate was on target.
Despite the minimal understanding of ASPs, association leaders are making their way up the learning curve. And, in some associations, earlier adopters are already realizing benefits of increased efficiency, lower cost, and added member value resulting from this new business model.
While migrating association management software systems to ASPs is being met with understandable reluctance and concern (see companion article "What's Up With ASPs?"), a number of single and bundled ASP solutions are gaining popularity, with the more extensive AMS system following suit in the not-so-distant future. Advanced Solutions International, Alexandria, Virginia, for example, recently announced the availability of CyberiMIS (www.imis.com/www/CyberiMIS/cyberimis_main.htm), a new application hosting service that gives associations the ability to run their iMIS association management software over the Internet.
ASP evolution
Ed Lang, vice president of strategic partnerships and technology for Cvent, a Web-based event management company headquartered in Arlington, Virginia, explains how these individual applications can allow associations to provide enhanced member service, save money, and streamline human resources--and do it all within a short time frame. Viewed by most industry experts as best for small-and mid-sized associations, "ASPs have gone through an evolution that began with companies merely hosting your organization's Internet-related activities," explains Lang, "to three basic business models today." ASP aggregators, says Lang, partner with other companies that specialize in delivering certain applications via the Internet. Lang notes, "These aggregators offer your organization the opportunity to bundle your business operations and processes together and run them through the ASP aggregator's system."
Other ASPs provide vertical industry solutions that serve particular needs. While they focus on a generic category, such as online education delivery or event management, they also tailor the application specifically to an association's individualized needs. "Roughly one third of the broader ASP market is of this vertical profile," says Lang. "The rest provide a horizontal solution--what people are calling a niche ASP--that provides business processes that are shared across associations, such as accounting and human resources services.
"The challenge with associations," continues Lang, "is the question about data. Because of concerns about security of data, the ASPs that will penetrate quickly and achieve firmer market traction are the ones that are not so centrally located with that core of membership data that associations protect. Distance learning, for example, has really taken hold. That's because distributing educational programs doesn't necessarily require a lot of data migration and integration with the AMS system. The ASP's software simply allows the education department to do what they do better, in a more efficient manner, and on a wider scope."
What ASPs are doing, explains Lang, is developing software that eliminates the need for association IT departments to figure out how to build, install, maintain, and update their solutions. In addition, he says, "ASPs can identify particular needs that large numbers of associations are indicating that they want, make the revisions, and roll them out so that everyone benefits. You don't have to wait for the next release--as you do when you license software. We continually upgrade the product based on customer feedback."
Other advantages Lang mentions mirror what the overall ASP industry promises: speed to market, cost savings, better customer service including more customer relationship marketing …
No comments:
Post a Comment