Product based vs Service based copanies

Product Based Company:

· Product based company will develop a product for the global clients i.e. there is no specific client for such product.

· The requirements for such products are taken from the ‘market trends’ and analyzed with the ‘industry experts’.

· These product based companies develop the product for all end users and sell them in the market.

· These companies produce the products such a way that they meet the needs of customers which is available at a reasonable cost.

· The product based companies will analyze the future requirements which targets to all kind of people and they come up with the solution.

· They release the product into the market and accept the challenges from the customers or users to develop the efficiency of the product.

· Product based companies may face a high levels of risk and they may not have sufficient budget to develop the product.

· The product that is developed by the company should specify to meet their target customers.

· Some of the examples of the product based companies are

a. Google

b. Amazon

c. Sun

d. Microsoft

e. Yahoo

f. IBM

g. HP

h. SAP

i. CTS

Service Based Company:

· A Service Based Business is one where the management is focused on provision and consumption of services.

· Service based companies can be either product based or project based.

· These companies depend on the clients i.e. they will develop a product or an application according to the commercial business agreement.

· The Service oriented companies will employ the ‘Service Oriented Architecture’ to develop the application or product.

· Service Based Company will be involved in the development of Application which will used to serve the various sectors such as Insurance, Health care, Retail, Banking etc.

· Service based companies takes the requirements from the clients and they develop the product based on the specific client requirement.

· These companies will employ the ‘domain experts’ in order to analyze the client area of requirement.

· Services provided by these companies have the following principles of service-orientation:

1. abstraction

2. autonomy

3. composability

4. discoverability

5. formal contract

6. loose coupling

7. reusability

8. statelessness

· The following are different streams (areas) where the service oriented companies will contribute to

a) Web services

b) Tourism services

c) Advertising

d) Insurance services

e) Customer services

· The Service Oriented Software Systems are virtual peer-to-peer networks of autonomous software components behaving like the services in real world mass service systems.

· Some of the service oriented applications are listed below

E-business and E-commerce

E-learning

E-entertainment

E-government

E-health