2020
DOI: 10.1007/s12063-020-00148-x
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Enterprise IT service downtime cost and risk transfer in a supply chain

Abstract: In this paper we present an economic model for analyzing enterprise IT service downtime cost, first on a standalone basis and then in a supply chain setting. With a baseline probability model of Poisson arrival frequency with random downtime duration, we analyze optimal production of a firm's investments in reducing frequency and duration of downtime, and corresponding premiums for insuring against downtime cost. We also present a model for the spillover effect of downtime for interconnected firms in a supply … Show more

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Cited by 17 publications
(12 citation statements)
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“…For maintaining competitiveness, AFSC must consist of either operational flexibility or have safety stocks of agri-food even if there is shutting down of entire logistics and processing activities. Therefore a flexible AFSC network needs to be designed for aligning its strategies and practises to adjust natural disruption risks in term of both technological and other practises (Li and Zobel 2020 ; Wang and Franke 2020 ). Therefore, a digitised coordination system is required fordeveloping AFSC resilience.…”
Section: Discussion Of Findingsmentioning
confidence: 99%
“…For maintaining competitiveness, AFSC must consist of either operational flexibility or have safety stocks of agri-food even if there is shutting down of entire logistics and processing activities. Therefore a flexible AFSC network needs to be designed for aligning its strategies and practises to adjust natural disruption risks in term of both technological and other practises (Li and Zobel 2020 ; Wang and Franke 2020 ). Therefore, a digitised coordination system is required fordeveloping AFSC resilience.…”
Section: Discussion Of Findingsmentioning
confidence: 99%
“…Another example of how digital technologies may enhance resilience in the supply chain is mentioned by Gajek et al (2020) when arguing that Artificial Intelligence impacts the analysis and decision-making resources along the chain, consequently increasing confidence in resilience aspects. Wang and Franke (2020) and Dutta et al (2020) also point out the digital technologies to improve security in the supply chain. Belhadi et al (2021) highlight the importance of Big Data Analytics (BDA) in SCM, providing real-time information on various activities; regarding the pandemic, authors mention that BDA helped overcome challenges posed by COVID-19.…”
Section: Definition Of the Elements Associated With Resilience In Scmmentioning
confidence: 99%
“…Business-critical enterprise applications (EAs) hosted on cloud and on-premises in domains ranging from healthcare and finance to logistics and manufacturing require continuous availability to ensure that service delivery is undisrupted. If the availability of such applications is disrupted for even a short time, the consequences can be severe, such as significant financial loss 1,2,3,4,5 . The term high availability (HA) refers to how availability can be improved by providing continuous availability.…”
Section: Introductionmentioning
confidence: 99%