An Explorative Study on Business Models of the Information Service Industry in Taiwan
Date Issued
2004
Date
2004
Author(s)
Yu, Hung-Yang
DOI
zh-TW
Abstract
The IT industry in Taiwan has become an indispensable part of the global market after more than two decades of development. This is particularly true for the IT hardware sectors, which continue to play a strategic role in Taiwan’s economic development. However, the IT software sector has poorly performed despite its parallel development with respect to the IT hardware sector and its reception of significant policy support. As IT hardware sectors has experienced gradual profit erosion due to increasing competition, and increasing importance of knowledge-based competition, finding an effective strategy to revive the software sector becomes critical to the overall industry performance.
Focusing on the information service industry, the present research attempts to undertake an explorative study by analyzing the current situation and industry structure from which we could draw key successful factors of the industry and discuss the difference among various business models. In addition, the research will endeavor to perceive the potentials of Taiwanese makers from a global viewpoint. Our analysis will base on representative firms selected from the publicly listed companies from Taiwan’s OTC (over-the-counter) or TSE (Taiwan Stock Exchange). We identify various types of business positioning undertaken by these companies and key successful factors of the information services industry as a whole.
Overall, we argue that for players of this industry, relying upon hardware selling and system integration for specific industry context will prove to be unsustainable in the near term. Only by focusing on the development of software solution in product forms can a company achieve economies of learning, and then economies of scale and scope. Such a direction can be realized by making alliance with leading multinational corporations based on division of labor along the value activities. Implication of this business directions and suggestions for future research are discussed.
Subjects
商業模式
產業分析
Business Model
Information Service Industry
Industrial Analysis
SDGs
Type
thesis
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