Skip to main content

Simulation-Based Quantification of Business Impacts Caused by Service Incidents

  • Conference paper
Book cover Exploring Services Science (IESS 2013)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 143))

Included in the following conference series:

Abstract

Today, business processes heavily depend on IT, so that business results are affected by the quality of supporting IT services. To gauge the quality of service from a business point of view, we need to consider the service incidents that occur over a reference period and evaluate the effect of each service incident individually. In this work, we address this problem by developing a procedure to monetarily quantify the negative impact of single service incidents on the service customer business.

We first review related literature to identify approaches to quantifying the negative consequences associated with a service incident. Based on our findings, we propose a simulation-based procedure for estimating the monetary impact. Contrary to existing approaches, we first apply business process simulation as a formal analysis technique to determine the effects of single service incidents on process performance. Then, the impact on process performance is translated into its monetary equivalent.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Sauvé, J., Moura, A., Sampaio, M., Jornada, J., Radziuk, E.: An introductory overview and survey of business-driven IT management. In: 1st IEEE/IFIP International Workshop on Business-Driven IT Management, Vancouver, pp. 1–10 (2006)

    Google Scholar 

  2. OGC: IT infrastructure library (ITIL): Service operation. The Stationary Office (TSO), London (2007)

    Google Scholar 

  3. Kieninger, A., Satzger, G., Straeten, D., Schmitz, B., Baltadzhiev, D.: Business Cost Budgets: A Methodology to Incorporate Business Impact into Service Level Agreements. International Journal of Service Science, Management, Engineering, and Technology 3(3), 49–64 (2012)

    Article  Google Scholar 

  4. Franke, U.: Optimal IT service availability: Shorter outages, or fewer? IEEE Transactions on Network and Service Management 9(1), 22–33 (2012)

    Article  Google Scholar 

  5. Kieninger, A., Straeten, D., Kimbrough, S., Schmitz, B., Satzger, G.: Leveraging Service Incident Analytics to Determine Cost-Optimal Service Offers. In: 11th International Conference on Wirtschaftsinformatik. AIS, Leipzig (forthcoming, 2013)

    Google Scholar 

  6. Webster, J., Watson, T.: Analyzing the past to prepare for the future: Writing a literature review. MIS Quarterly 26(2), xiii–xxiii (2002)

    Google Scholar 

  7. Wiedemann, J.: IT-Notfallvorsorge im betrieblichen Risikomanagement: Entwicklung eines Gestaltungsmodells unter Berücksichtigung ökonomischer Aspekte am Beispiel einer TK-Unternehmung. Ph. D. thesis, Bochum (2008)

    Google Scholar 

  8. Suh, B., Han, I.: The IS risk analysis based on a business model. Information and Management 41(2), 149–158 (2003)

    Article  Google Scholar 

  9. Moura, A., Sauvé, J., Jornada, J., Radziuk, E.: A quantitative approach to IT investment allocation to improve business results. In: 7th IEEE International Workshop on Policies for Distributed Systems and Networks, pp. 87–95. IEEE Computer Society, London (2006)

    Chapter  Google Scholar 

  10. Jin, L.-J., Machiraju, V., Sahai, A.: Analysis on service level agreement of web services. Technical report, HP Laboratories (2002)

    Google Scholar 

  11. Jakoubi, S., Tjoa, S., Goluch, S., Kitzler, G.: A formal approach towards risk-aware service level analysis and planning. In: International Conference on Availability, Reliability, and Security, pp. 180–187. IEEE Computer Society, Krakow (2010)

    Chapter  Google Scholar 

  12. Patterson, D.: A simple way to estimate the cost of downtime. In: 16th USENIX Conference on System Administration, pp. 185–188. ACM, Berkeley (2002)

    Google Scholar 

  13. Dübendorfer, T., Wagner, A., Plattner, B.: An economic damage model for large-scale internet attacks. In: 13th IEEE International Workshop on Enabling Technologies: Infrastructures for Collaborative Enterprises, pp. 223–228. IEEE Computer Society, Modena (2004)

    Chapter  Google Scholar 

  14. van Hee, K.M., Reijers, H.A.: Using Formal Analysis Techniques in Business Process Redesign. In: van der Aalst, W.M.P., Desel, J., Oberweis, A. (eds.) BPM 2000. LNCS, vol. 1806, pp. 142–160. Springer, Heidelberg (2000)

    Chapter  Google Scholar 

  15. Tumay, K.: Business process simulation. In: 28th Winter simulation conference, pp. 55–60. IEEE Computer Society Press, Crystal City (1995)

    Chapter  Google Scholar 

  16. Schwalbe, K.: Information technology project management. Thomson Course Technology, Cambridge (2006)

    Google Scholar 

  17. Hlupic, V., Robinson, S.: Business process modelling and analysis using discrete-event simulation. In: 30th Winter Simulation Conference, pp. 1363–1370. IEEE Computer Society Press, Los Alamitos (1998)

    Google Scholar 

  18. Kelton, W., Sadowski, R., Sturrock, D.: Simulation with Arena. McGraw-Hill Higher Education, Boston (2004)

    Google Scholar 

  19. Rosenkranz, F.: Geschäftsprozesse: Modell- und computergestützte Planung. Springer, Berlin (2006)

    Google Scholar 

  20. Greasley, A.: Using business process simulation within a business process reengineering approach. Business Process Management Journal 9(4), 408–420 (2003)

    Article  Google Scholar 

  21. Gaver Jr., D.P.: A waiting line with interrupted service, including priorities. Journal of the Royal Statistical Society 24(1), 73–90 (1962)

    Google Scholar 

  22. Banks, J.: Handbook of Simulation: Principles, Methodology, Advances, Applications, and Practice. Wiley, New York (1998)

    Google Scholar 

  23. Pang, G., Whitt, W.: Service interruptions in large-scale service systems. Management Science 55(9), 1499–1512 (2009)

    Article  Google Scholar 

  24. Bartholdi, J., Hackman, S.: Warehouse & distribution science: Release 0.95, http://www.warehouse-science.com

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Kieninger, A., Berghoff, F., Fromm, H., Satzger, G. (2013). Simulation-Based Quantification of Business Impacts Caused by Service Incidents. In: Falcão e Cunha, J., Snene, M., Nóvoa, H. (eds) Exploring Services Science. IESS 2013. Lecture Notes in Business Information Processing, vol 143. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36356-6_13

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-36356-6_13

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-36355-9

  • Online ISBN: 978-3-642-36356-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics