A Case Study of Progressive Formation of Accounting Cloud Services in JAPAN

A Case Study of Progressive Formation of Accounting Cloud Services in JAPAN

Yutaka Mizuno (Graduate School of Engineering, Nagoya Institute of Technology, Nagoya, Japan) and Nobutaka Odake (Graduate School of Engineering, Nagoya Institute of Technology, Nagoya, Japan)
DOI: 10.4018/ijssmet.2015010101
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Abstract

The purpose of this study is to clarify the best practice of an accounting cloud service in Japan which has two-sided markets and freemium structure and how to formulate its service. The authors studied one specific accounting cloud service, as a case study. As results, the authors obtained the following three findings. First, the best accounting cloud service adopted Open & Close strategy. The Company specializes in accounting operations area and make open connections with other cloud services in non-accounting operations area. Second, the best accounting cloud service has a specific service formation along its market strategy. Third, the best accounting cloud service has an effective boarding strategy of its users' group onto its cloud service platform. Therefore, cloud service providers not only adopt Open & Close strategy, but also build up the coherent market strategy to formulate self-reinforcing mechanism before building up their business ecosystem in the two-sided markets and freemium structure.
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Literature Review

We attempt to answer the following questions, and thereby fill key research gaps in the existing literature: a) organization management; b) market strategy; c) Open Service Innovation; d) Open & Close strategy.

Organization Management

Gawer and Cusumano define that “Platforms are industry building blocks which attract other firms' investment and innovation on add-on products or services analyzed the competitive strategy of major enterprises” in the viewpoint of the platform formation and leadership with their case studies of Intel, Microsoft, and CISCO (Gawer and Cusumano 2002). Platform strategy discusses how to manage and how to integrate internal resources of enterprise. Iansiti and Levien examine competitive strategy with the framework of business ecosystem (Moore 1993; 1996) which connects seamlessly with various enterprises. Business ecosystem discusses how to manage and integrate external resources of enterprises (Iansiti and Levien 2004).

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