Benefit model for distributed federated identity management in e-society using an intermediary

In the context of solutions for federated identity management (FIdM), questions about its benefits are raised time and again. It is not easy to check the benefits in question, particularly because it is unclear, for example, who in divided organisations profits from an FIdM system and in what way, and who simply bears the burden of it. In many cases, it is also unclear which business models apply to the various parties involved with the FIdM. Consequently, there are incentive-contribution problems. The frequently unknown costs of identity and access management (IAM) complicate the implementation or supply of an appropriate federated solution within administrative entities, companies and even beyond them. The benefit of instating an intermediary to confirm identity and attributes is also difficult to quantify because transaction costs are usually reduced through the use of intermediaries. It follows that the use of an intermediary leads to a reduction in the number of interfaces between the partners involved. Transaction costs in companies are typically not explicitly listed. This paper pursues the following goals based on a benefit model that has already been developed for an FIdM system (internal company perspective or company network perspective of FIdM system). An intermediary business architecture model for an expanded FIdM system is broken down into its constituent parts i.e. the stakeholders involved. Starting from the relevant stakeholder analysis of an intermediary-based FIdM system, costs and benefits from the perspective of the individual stakeholders are considered on the basis of the transaction cost approach. Finally, the focus is turned towards the various potential stakeholders’ business models.