A conceptual model to evaluate decisions for service profitability

• Main Authors: OUH, Eng Lieh, JARZABEK, Stan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: service provider; service profitability; service architecture; service variability; tenant base; service engineering; service provisioning; Computer Sciences; E-Commerce; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/4162; https://ink.library.smu.edu.sg/context/sis_research/article/5166/viewcontent/service_computation_2015_3_30_10019.pdf
• Institution: Singapore Management University

Service profitability depends on the cost of engineering a service for a given base of tenants, on service provisioning cost, and on the revenue gained from selling the service to that tenant base. The tenant base depends on the range of service variability, i.e., on Service Provider's ability to vary service requirements to meet tenant expectations. These various factors that have to do with service profitability form a complex web of information that makes it difficult to analyze and see the exact impact of decisions regarding the choice of service architecture or the use of service adaptation techniques. To make this analysis easier for Service Providers, we built a conceptual model that helps Service Providers identity factors affecting service profitability and the interplay among them. Based on that model, Service Providers can answer questions regarding how choices of the service architecture or tenant base affect service profitability.