Business & Information Systems Engineering
Document Type
Research Paper
Abstract
By means of service-oriented architectures the IT support of processes can be designed as a portfolio of individual IT services provided by different suppliers. The processes are designed based on selection decisions between IT services that potentially have to be included. Many companies formulate a multitude of requirements for investments in IT services at ever shorter intervals. However, the scope of the desired investments usually exceeds the available budget. Thus, companies face the challenge of allocating the limited budget to investments in the most promising combination of IT services. This is hardly possible without methodical support. In addition, the allocation is often done intuitively and subject to the decision-makers’ affinity with IT. Therefore, this paper develops a quantitative, multi-period procedure model for the purpose of maximizing the enterprise value in accordance with value based management, which considers the dependencies of the periodical selection decisions. In the following, a decision logic for the heuristic solution to the selection problem is presented and its application is demonstrated by means of an illustrative case example.
Recommended Citation
Probst, Florian and Buhl, Hans Ulrich
(2012)
"Supplier Portfolio Management for IT Services Considering Diversification Effects,"
Business & Information Systems Engineering:
Vol. 4: Iss. 2, 71-83.
Available at:
https://aisel.aisnet.org/bise/vol4/iss2/3