The Economics of Service Level Engineering

Kieninger, Axel; Westernhagen, Jens; Satzger, Gerhard

doi:10.1109/hicss.2011.407

Cited by 17 publications

(10 citation statements)

References 14 publications

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“…The illustrations mounted with the set of incident data gathered also reinforce that during some periods, the customers require a higher level (and quality) of service, even if the cost for such a service is much higher, in the way that it minimizes the business loss that can be caused by incidents [9]. For example, during the Christmas, a retail customer may require a higher quality of IT service because any undesired event, like an outage, may result in severe losses to the customer, compromising business lines and strategies of future investments.…”

Section: The Dynamics Imposed By Peaksmentioning

confidence: 85%

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Investigating Business Needs Fluctuations on IT Delivery Operations

Cavalcante

Bianchi

Braz

et al. 2014

2014 Annual SRII Global Conference

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The management of IT services is increasingly driven by the necessity of cost reduction and quality improvement. As a result, new organizational models have been created and implemented aiming at achieving economies of scale, while improving customer satisfaction and experience has been one of the main focuses of recent research in Service Science. In this context, translating business elements and necessities of customers into IT components of service operations is a challenging and key task that can affect the long-term relationship between customers and IT provider. Further, market fluctuations and peaks that affect the business of customers of IT outsourcing shall, carefully, be taken into account by support teams in charge of managing customers' infrastructures. Thus, to incorporate it to the dynamics of IT support activities, service delivery teams of IT providers must develop abilities to understand and mechanisms to retain and use the knowledge of the core business of each customer. This paper addresses relevant aspects of service delivery affected by the peaks that impose variations on demands and levels of service expected by customers of IT outsourcing. Also, it proposes some insights to transform customer (business driven) needs into elements already existing inside IT support organizations and argue that this transformation may reduce substantially the overhead of translating customer business to support operations. In order to corroborate the argument and instantiate the discussion, incident data collected by an IT service delivery provider are presented and analyzed graphically in details.

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Section: The Dynamics Imposed By Peaksmentioning

confidence: 85%

“…The SLAs are often defined in ad-hoc heuristic way and often fails on defining metrics that are relevant to the business [9], [16]. They are specified as technical metrics, such as mean time to resolve the tickets, and they are charged as a fixed price during a time period like month or year.…”

Section: Introductionmentioning

confidence: 99%

Investigating Business Needs Fluctuations on IT Delivery Operations

Cavalcante

Bianchi

Braz

et al. 2014

2014 Annual SRII Global Conference

View full text Add to dashboard Cite

show abstract

“…The whole society, and especially the youth, is shifting towards a culture of non-ownership [46]. The desire for ownership decreases and owning is replaced by sharing [47,48]. This can be observed for books, music, videos, fashion, art, software, cars, and many other products.…”

Section: The Culture Of Non-ownershipmentioning

confidence: 99%

“…As a result, service levels are often stipulated according to "best guesses" of experts, which frequently result in suboptimal solutions [47]. As Kieninger et al [48] put it: [. .…”

Section: Problem Statementmentioning

confidence: 99%

“…In such a setting the definition of optimal service levels is highly important for service customers, as they cannot easily adjust service levels once an outsourcing agreement has been established. In this domain (though not limited to it), another promising approach to determine optimal or efficient service levels has been developed, which is service level engineering [48].…”

Section: Service Level Engineeringmentioning

confidence: 99%

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