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The Economics of Service Level Engineering

Dimension Value
  • Type of the Research Result
  • Model
    • Explanatory Model
  • Current Status of Development
  • In Progress
    • Without Pilot Application
  • Number of Cases
  • None
  • Functional Area
  • Core Processes
    • Core Processes First Level
      • Design and Implementation of Product-Service-Systems
    • Core Processes Second Level
      • Distribution of Product-Service-Systems
  • Company Size
  • Not Specified
  • Lifecycle Phase
  • Not Specified
  • Types of Customers of Value Bundles
  • Not Specified
  • Industry Sector
  • Transport and Telecommunication
  • Standardization
  • No Standardization

Today, the management of service quality poses a ma-jor challenge for many service providers and their business ustomers. The authors argue that the trade-off between ser-vice cost and benefit incurred by both parties is not suf-ficiently considered when service quality is stipulated.Up to now, neither in practice nor in academia a commonly accepted engineering approach exists to deter-mine business-relevant performance metrics and associ-ated cost-efficient target values to precisely identify ef-ficient service quality. It can be expected, though, thatsuch a systematically developed and economically well-founded Service Level Engineering approach — basedon the individual economic conditions of customer andprovider — can enhance the value generation in servicesystems formed by both these parties. In this work the authors lay the foundation for the field of Service Level Engi-neering discussing its constitutional concepts and ele-ments. After developing a generic framework for dif-ferent Service Level Engineering scenarios, we analyzeone scenario — the system view — in detail as a quanti-tative optimization problem: In particular, they aim at the derivation of cost-efficient target values given business-relevant performance-metrics.

This research result was described by Sanja Tumbas (5. July 2011 - 12:24)
This research result was last edited by Sanja Tumbas (22. November 2011 - 23:20)

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