Towards the Consideration of Performance Risks for the Design of Service Offers

Fundamentals of Service Systems

“…Decomposition refers to the process by which a complex system is broken down into parts that are easier to understand, systematize, use, and maintain. The goal of this project is to select three familiar services (e.g., library loan, internal IT consulting, e-banking, or cloud services) and to use the capstone model [55] presented in Table 1.3 to identify their main components. The final report should constitute a precise service manual that can be used by managers for service operation, management, and improvement.…”

“…If services are provided in an outsourcing relationship, providers will have to think about which service levels they still offer without taking too much risk of violating service level agreements. In this context, methods from decision and insurance theory are needed to make sound decisions (see [55]). From a customer's point of view, approaches from auction theory and mechanism design can realize benefits when services are offered by multiple external providers and an optimal service price shall be achieved (see [53]).…”