Investigating preconditions for a financially advantageous cloud usage

2016 ◽  
Vol 24 (2) ◽  
pp. 116-134 ◽  
Author(s):  
Andreas Jede ◽  
Frank Teuteberg

Purpose Information technology (IT) expenses constitute an important factor when choosing efficient IT systems. Especially with regard to cloud computing (CC), decision-makers tend to associate cost benefits. In this context, cloud providers present often undifferentiated sample calculations which aim to verify the financial favorability of their IT solutions. However, the scientific literature tries to encounter this by means of various total costs of ownership approaches. But science mostly neglects essential factors and does not provide an integrated approach involving factors, such as cost of capital, taxation effects, use intensity or duration of use. Hence, the purpose of this study is to involve these factors accordingly. Design/methodology/approach The paper uses a multi-method approach. First, existing literature is analyzed by a systematic literature review. Afterwards, the initial model is developed by means of a formal notation. Finally, the suitability of the formal model is evaluated by a real-life case study, where simulation software is used for investigating various scenarios. Findings The underlying paper discusses a formal model which integrates the four stated factors and enables decision-makers to compare cloud-based IT services on a comprehensive financial basis. Thus, the rational cost comparisons with traditional IT systems such as on-premise (OP) increase the transparency of the CC field significantly. Originality/value This paper shows impressively the importance of the four mentioned factors and their influence on the decision whether to implement cloud services or OP services. Herein, to the best of our knowledge and for the first time, a cash-flow-based comparison model is created for comparing cloud services and OP solutions.

2020 ◽  
Vol 27 (9) ◽  
pp. 2135-2161
Author(s):  
Hessa Almatroushi ◽  
Moncer Hariga ◽  
Rami As'ad ◽  
AbdulRahman Al-Bar

PurposeThis paper proposes an integrated approach that seeks to jointly optimize project scheduling and material lot sizing decisions for time-constrained project scheduling problems.Design/methodology/approachA mixed integer linear programming model is devised, which utilizes the splitting of noncritical activities as a mean toward leveling the renewable resources. The developed model minimizes renewable resources leveling costs along with consumable resources related costs, and it is solved using IBM ILOG CPLEX optimization package. A hybrid metaheuristic procedure is also proposed to efficiently solve the model for larger projects with complex networks structure.FindingsThe results confirmed the significance of the integrated approach as both the project schedule and the material ordering policy turned out to be different once compared to the sequential approach under same parameter settings. Furthermore, the integrated approach resulted in substantial total costs reduction for low values of the acquiring and releasing costs of the renewable resources. Computational experiments conducted over 240 test instances of various sizes, and complexities illustrate the efficiency of the proposed metaheuristic approach as it yields solutions that are on average 1.14% away from the optimal ones.Practical implicationsThis work highlights the necessity of having project managers address project scheduling and materials lot sizing decisions concurrently, rather than sequentially, to better level resources and minimize materials related costs. Significant cost savings were generated through the developed model despite the use of a small-scale example which illustrates the great potential that the integrated approach has in real life projects. For real life projects with complex network topology, practitioners are advised to make use of the developed metaheuristic procedure due to its superior time efficiency as compared to exact solution methods.Originality/valueThe sequential approach, wherein a project schedule is established first followed by allocating the needed resources, is proven to yield a nonoptimized project schedule and materials ordering policy, leading to an increase in the project's total cost. The integrated approach proposed hereafter optimizes both decisions at once ensuring the timely completion of the project at the least possible cost. The proposed metaheuristic approach provides a viable alternative to exact solution methods especially for larger projects.


2014 ◽  
Vol 25 (4) ◽  
pp. 476-490 ◽  
Author(s):  
Zhouhang Wang ◽  
Maen Atli ◽  
H. Kondo Adjallah

Purpose – The purpose of this paper is to introduce a method for modelling the multi-state repairable systems subject to stochastic degradation processes by using the coloured stochastic Petri nets (CSPN). The method is a compact and flexible Petri nets model for multi-state repairable systems and offers an alternative to the combinatory of Markov graphs. Design/methodology/approach – The method is grounded on specific theorems used to design an algorithm for systematic construction of multi-state repairable systems models, whatever is their size. Findings – Stop and constraint functions were derived from these theorems and allow to considering k-out-of-n structure systems and to identifying the minimal cut sets, useful to monitoring the states evolution of the system. Research limitations/implications – The properties of this model will be studied, and new investigations will help to demonstrate the feasibility of the approach in real world, and more complex structure will be considered. Practical implications – The simulation models based on CSPN can be used as a tool by maintenance decision makers, for prediction of the effectiveness of maintenance strategies. Originality/value – The proposed approach and model provide an efficient tool for advanced investigations on the development and implementation of maintenance policies and strategies in real life.


2019 ◽  
Vol 15 (1) ◽  
pp. 201-231
Author(s):  
Zoubida Chorfi ◽  
Abdelaziz Berrado ◽  
Loubna Benabbou

Purpose Evaluating the performance of supply chains is a convoluted task because of the complexity that is inextricably linked to the structure of the aforesaid chains. Therefore, the purpose of this paper is to present an integrated approach for evaluating and sizing real-life health-care supply chains in the presence of interval data. Design/methodology/approach To achieve the objective, this paper illustrates an approach called Latin hypercube sampling by replacement (LHSR) to identify a set of precise data from the interval data; then the standard data envelopment analysis (DEA) models can be used to assess the relative efficiencies of the supply chains under evaluation. A certain level of data aggregation is suggested to improve the discriminatory power of the DEA models and an experimental design is conducted to size the supply chains under assessment. Findings The newly developed integrated methodology assists the decision-makers (DMs) in comparing their real-life supply chains against peers and sizing their resources to achieve a certain level of production. Practical implications The proposed integrated DEA-based approach has been successfully implemented to suggest an appropriate structure to the actual public pharmaceutical supply chain in Morocco. Originality/value The originality of the proposed approach comes from the development of an integrated methodology to evaluate and size real-life health-care supply chains while taking into account interval data. This developed integrated technique certainly adds value to the health-care DMs for modelling their supply chains in today's world.


2014 ◽  
Vol 21 (6) ◽  
pp. 944-963 ◽  
Author(s):  
Dhanya Jothimani ◽  
S.P. Sarmah

Purpose – The purpose of the paper is to explore the applicability of the Supply Chain Operations Reference (SCOR) model and to identify the key performance indicators (KPIs) for the service-oriented sector – namely a third-party logistics (3PL) service provider. Design/methodology/approach – The performance attributes of SCOR model (reliability, responsiveness, flexibility, cost measures and asset management efficiency) are used as the basis for defining the KPIs. A questionnaire was sent to relevant decision makers. Findings – This paper illustrates the use of the integrated approach of SCOR, fuzzy analytic hierarchy process (FAHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for measuring the supply chain performance (SCP) in the light of a real life case study company. Research limitations/implications – This method forms the basis for performance measurement using the SCOR model to evaluate strategy. In this work, the performance of the company has been compared with its own previous performance. The work can be extended to external benchmarking and also to other sectors. Practical implications – The paper attempts to overcome the conflict between the top-down strategy and bottom-up implementation process. The paper links the strategic objective with operations which would aid managers at different levels of an organization with decision making. The KPIs, when implemented in a business intelligence (BI) tool, would result in real time performance measurement. Originality/value – The paper focusses on 3PLs. It provides a base for measuring the SCP using SCOR model. The paper also identified KPIs for three domains of 3PL, namely freight forwarding, customs and warehousing.


Author(s):  
Madjid Tavana ◽  
Debora Di Caprio ◽  
Francisco J. Santos-Arteaga

Purpose The current paper aims to present a formal model illustrating how payoff imbalances among the members of a team of decision makers (DMs) who must undertake a project condition the final outcome obtained. This result builds on the fact that payoffs imbalances would lead to different performance levels among the employees and managers who compose a team. The analysis is applied to a strategic environment, where a project requiring coordination among the DMs within the team must be developed. Design/methodology/approach The intuition behind the strategic framework on which the results are based is twofold. The authors build on the literature on social comparisons and assume that employees and managers acquire information on the payoffs received by other members of the team while being affected by the resulting comparisons, and they follow the economic literature on firm boundaries determined via incomplete contracts. In this case, employees and managers may underperform if they feel aggrieved by the outcome of the contract giving place to deadweight losses when developing the project. Findings The authors illustrate how a team-based performance reward structure may lead to a coordinated equilibrium even when team managers and employees receive different payoffs and exhibit shading incentives based on the payoff differentials between them. The authors will also illustrate how identical shading intensities by both groups of DMs imply that shading by the managers imposes a lower cost on the profit structure of the firm because it leads to a lower decrease in the cooperation incentives of the other members of the team. Finally, the authors show how differences in shading intensity between both types of DMs trigger a strategic defect mechanism within the team that determines the outcome of the project. Originality/value The novel environment of team cooperation and defection through shading introduced in this paper is designed to deal with the strategic decisions taken by DMs when undertaking a project within a group. In particular, the intensity of shading applied by the DMs will be endogenously determined by the relative payoffs received, which allows to account for different scenarios, where relative payoff differentials among DMs determine the outcome of the project.


2014 ◽  
Vol 20 (4) ◽  
pp. 409-433 ◽  
Author(s):  
Issam Kouatli

Purpose – The purpose of this paper is to classify and categorize the vulnerability types emerged with time as information technology (IT) systems evolved. This comparative study aims to compare the seriousness of the old well-known vulnerabilities that may still exist with lower possibility of happening with that of new technologies like cloud computing with Mobility access. Cloud computing is a new structure of IT that is becoming the main part of the new model of business environment. However, issues regarding such new hype of technology do not come without obstacles. These issues have to be addressed before full acceptability of cloud services in a globalized business environment. Businesses need to be aware of issues of concerns before joining the cloud services. This paper also highlights these issues and shows the comparison table to help businesses with appropriate decision-making when joining the cloud. Design/methodology/approach – A historical review of emerged vulnerabilities as IT systems evolved was conducted, then these vulnerabilities were categorized into eight different categories, each of which composed of multiple vulnerability types. Simple scoring techniques were used to build a “risk” analysis table where each vulnerability type was given a score based on availability of matured solution and the likeliness of happening, then in case of vulnerability type, another score was used to derive the impact of such vulnerability. The resulted weighted score can be derived from the multiplication of likeliness to happen score with that of its impact in case it did happen. Percentage of seriousness represented by the percentage of the derived weighted score of each of the vulnerabilities can then be concluded. Similar table was developed for issues related to cloud computing environment in specific. Findings – After surveying the historical background of IT systems and emerged vulnerabilities as well as reviewing the common malicious types of system vulnerabilities, this paper identifies 22 different types of vulnerability categorized in eight different categories. This comparative study explores amount of possible vulnerabilities in new technology like cloud computing services. Specific issues for cloud computing were also explored and a similar comparative study was developed on these issues. The result of the comparative study between all types of vulnerabilities since the start of IT system development till today’s technology of cloud computing, shows that the highest percentage vulnerability category was the one related to mobility access as mobile applications/systems are relatively newly emerged and do not have a matured security solution(s). Practical implications – Learning from history, one can conclude the current risk factor in dealing with new technology like cloud computing. Businesses can realize that decision to join the cloud requires thinking about the issues mentioned in this paper and identifying the most vulnerability types to try to avoid them. Originality/value – A new comparative study and new classification of vulnerabilities demonstrated with risk analysis using simple scoring technique.


2020 ◽  
Vol 5 (3/4) ◽  
pp. 359-365 ◽  
Author(s):  
Pasi Sahlberg

PurposeThis essay offers a perspective for practitioners and decision-makers to look beyond short-term recovery from the COVID-19 pandemic and consider longer-term consequences that it may have on schools.Design/methodology/approachIn this essay, I discuss some general observations about education during the pandemic and then provide a perspective to some issues related to educational inequalities and learning from home during the pandemic. The essay is informed by recent media articles and reports of national and international institutions.FindingsThis essay makes three claims: Despite high hopes, there is only a little chance schools will change as a consequence of this pandemic without bold and brave shifts in mindset in how that change happens. The COVID-19 pandemic has exacerbated the effects of preexisting social and educational inequalities; fixing these would be an important consequence of the pandemic. During school closures, learning from home has been mostly based on the old logic of consuming information and knowledge rather than creating or cocreating new ideas and solutions to real-life problems.Research limitations/implicationsThis is an essay that offers evidence-informed perspectives to current development in education, and it should not be treated as a research-based article.Originality/valueThis essay will contribute to the evolving public conversation and professional debate on the future of school education. It will be part of the series of essays that will support those who are seeking to not just adapt to meet the pandemic but also to step back and consider the medium to longer-term implications.


2018 ◽  
Vol 25 (1) ◽  
pp. 76-97 ◽  
Author(s):  
Rakesh Raut ◽  
Manoj Kharat ◽  
Sheetal Kamble ◽  
Chandra Shekhar Kumar

Purpose The purpose of this paper is to efficiently assist the decision makers in evaluating and selecting the most appropriate third-party logistics (3PL) provider from environmental sustainability perspective using a two-phase model based on data envelopment analysis (DEA) and analytic network process (ANP). Design/methodology/approach The study uses an integrated approach of DEA and ANP as an evaluation and selection methodology to select an efficient and requisite 3PL. The integrated model is a sound technique for 3PL evaluation and selection. DEA effectively screens the maximally efficient 3PLs, whereas ANP easily performs the cumbersome process of weighting diverse criteria and ranks various alternatives according to their performance on the basis of these criteria. This study lists the prominent evaluation and selection criteria taking into consideration the environmental sustainability. Finally, a real-life industrial application is presented to demonstrate the proposed method. Findings The current research work is devoted to the emerging research topic of environmental sustainability in logistics industry and supply chain management. The results of study indicate that eco-efficient transportation and 3PLs lead better transportation planning, better inventory and warehouse management, lower inventory cost and sustainable supply chain operations. Also, the applied approach enables the decision makers to better understand the complex relationships of the relevant criteria in the decision-making process. Research limitations/implications This study does not investigate the relationships between environmental performances and differentiation advantage from the perspective of 3PLs. Also, sensitivity analysis is not performed. Practical implications The developed integrated model enables decision analysts to better understand the complete evaluation process of 3PL evaluation and selection considering environmental sustainability perspective. Furthermore, the developed approach provides a more flexible, simple, accurate, effective, and systematic decision support tool for 3PL evaluation and selection. Originality/value The current study is first of its kind to use the integrated approach in evaluation and selection of 3PLs from environmental sustainability perspective considering the inter-dependencies among the evaluation and selection criteria.


2018 ◽  
Vol 31 (4) ◽  
pp. 595-611 ◽  
Author(s):  
Irem Otay ◽  
Embiye Senturk ◽  
Ferhan Çebi

Purpose The purpose of this paper is to propose a new integrated method for evaluating inventory of slow-moving items by introducing the application of fuzzy AHP method with interval Type-2 fuzzy sets (IT2FSs) and ABC analysis. Design/methodology/approach In the study, fuzzy analytic hierarchy process (AHP) method with IT2FSs is employed to set the importance of criteria. The weights obtained from IT2 fuzzy AHP are used to classify slow-moving items in ABC analysis. In the application part, a real-life case study is presented. Findings The result of this study indicates that an integrated approach utilizing IT2 fuzzy AHP and ABC analysis can be used as a supportive tool for classification of slow-moving items. The problem is solved under fuzzy environment to handle uncertainties and lack of information about slow-moving items. Practical implications Actual data are provided from an automotive company for prioritizing a various criteria to evaluate and classify stocks and a hypothetical model integrated with IT2 fuzzy AHP and ABC analysis is demonstrated. Originality/value Apart from inventory classification literature, the study integrates fuzzy AHP method by employing interval IT2FSs and ABC analysis to solve the real-life inventory classification problem.


2019 ◽  
Vol 27 (1) ◽  
pp. 166-191
Author(s):  
Mahamaya Mohanty ◽  
Ravi Shankar

Purpose Benchmarking is an approach to understand and evaluate the current position of different entities like third-party logistics (3PLs) service providers with respect to the best practices. The purpose of this paper is to develop an integrated approach to benchmark the 3PLs and minimize the transportation cost, operational cost, total carbon emissions and improve vehicle capacity utilization rate and demand management in an efficient manner. Design/methodology/approach Conventional data envelopment analysis (DEA) is extended to develop an integrated approach involving DEA and adaptive linear neuron network (ADALINE). The proposed methodology is dichotomized to the benchmarking of DMUs using Charnes, Cooper, Rhodes ratio and, in the process, helps to suggest ways to reduce inefficiencies. Findings The approach also supports the decision makers to understand ways to increase the efficiency of decision-making units (DMUs) that are relatively inefficient for a set of 3PLs considered in this study. This is one of the potential researches as it studies how to improve the efficiency of inefficient DMUs. Research limitations/implications The proposed approach would help the decision makers to better understand the complexities associated with the low-performing 3PLs. The application of the proposed DEA-ADALINE methodology is illustrated using a range of data set for 3PLs. Originality/value The paper examines and explains the value added to the conventional DEA model for obtaining the relative efficiencies with reference to the most efficient DMUs without any loss to the original characteristics of DEA and ADALINE.


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