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It-enabled excess capacity markets for services

Examining the economic potential in cost-driven service supply chains
: Dorsch, C.

Association for Information Systems -AIS-:
Hyperconnected world: Anything, anywhere, anytime. 19th Americas Conference on Information Systems, AMCIS 2013. Vol.3 : Chicago, Illinois, USA, 15 - 17 August 2013
Red Hook, NY: Curran, 2013
ISBN: 978-1-62993-394-8
Americas Conference on Information Systems (AMCIS) <19, 2013, Chicago/Ill.>
Fraunhofer FIT ()

Capacity planning is a major challenge for service providers facing volatile demand. Inefficiencies result from idle capacity or lost revenue caused by peak loads. Concerning IT-driven services, recent technological developments offering dynamic integration and information capabilities may help. They enable an on-demand exchange of excess capacity between business partners and create value through efficient capacity allocation within a supply chain. This paper aims at examining this economic potential of IT-enabled excess capacity markets. Therefore, we use the model setting of a three-stage IT-driven service supply chain and discuss different factors influencing the capacity optimization problem. With a discrete-event simulation we then evaluate a representative factor quantitatively. Thus, we provide deeper insights about the usefulness of excess capacity markets for capacity optimization in different settings and scenarios. The results serve as a guide for practitioners, build the basis for further quantitative evaluation and represent a starting point for empirical validation.