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

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.