A Total Cost of Ownership Model for Cloud Computing Infrastructure

2023 | HICSS | Citations: 0

Authors: Heinrich, Simon; Schuster, Thomas; Kreft, Nils; Volz, Raphael

Abstract: A holistic cost assessment of cloud computing ar-chitectures is currently hamper ... Expand

Abstract: A holistic cost assessment of cloud computing ar-chitectures is currently hampered by the lack of assessment methods and the absence of a standardized and comprehensive total cost model. This creates uncertainty about cost developments of concrete scenarios and architectural changes. This article proposes a total cost of ownership model for cloud computing, covering the cost of adoption, procurement, migration, operation, usage, and exit. We evaluated our model in multiple application scenarios and against other models. Our model has shown to be substantially more comprehensive and applicable than other available models for cloud computing. Thus, our model can be useful both in practice and in research. We will demonstrate that our model can increase cost transparency and improve decision support. Collapse

Topics: cloud computing usability decision support on-premises software web application

Methods: case study qualitative interview literature study design artifact simulation

Theories: transaction cost economics

On the Effectiveness of Smart Metering Technology Adoption: Evidence from the National Rollout in the United Kingdom

2023 | Journal of the Association for Information Systems | Citations: 3

Authors: Sim, Jaeung; Lee, Junyeong; Cho, Daegon

Abstract: In response to the burgeoning threats of climate change to humanity, numerous go ... Expand

Abstract: In response to the burgeoning threats of climate change to humanity, numerous governments, such as those of the United States and most European countries, have launched rollout programs for the distribution of smart metering technology (SMT). Despite this notable recent investment, questions of whether and why SMT adoption facilitates the reduction of households’ energy demands remain relatively unexplored. Building on cognitive dissonance theory, we propose a research model for SMT adoption, residential energy-saving behaviors, and moderating factors. We then empirically test the model using a rich household dataset from the United Kingdom between 2012 and 2016. Our results show that SMT adoption is positively associated with energy-saving behaviors, while energysaving motivations substantially moderate this association—a lower level of concern about saving energy / a higher level of concern about climate change amplifies this effect. Importantly, we find that SMT usage positively moderates this relationship, but this marginal gain decreases in technology usage intensity. Our findings contribute to the information systems literature by showing a consequence of new technology adoption along with the role of cognitive dissonance in promoting intended objectives and identifying potential moderating effects. We discuss actionable insights for policymakers and utility firms. Collapse

Topics: climate change technology adoption information system use green IS web page

Methods: survey propensity score method data transformation exploratory factor analysis propensity score matching

Theories: cognitive dissonance theory

Minitrack: Smart Service Systems Design

2022 | HICSS | Citations: 0

Authors: Badinelli, Ralph D; Spohrer, Jim; Demirkan, Haluk

Abstract: The focus of the Minitrack for HICSS-55 is smart service systems in the AI era. ... Expand

Abstract: The focus of the Minitrack for HICSS-55 is smart service systems in the AI era. Smart service systems are a growing topic of study in both the information systems, systems science and service science literature. The coming decade will witness the innovation of smart service systems driven by AI and intelligent agents, both for automation and augmentation. Applying the appropriate management, organizational, architectural, technological and design methodologies related to this innovation of smarter and wiser service systems is much needed. The goal of this track is to explore the challenges, issues and opportunities related to innovation of smart service systems that enable value co-creation with artificial intelligence, people, analytics and organizations. We are interested in novel theories, approaches and applications for innovation of smart service systems. Collapse

Topics: innovation management cloud computing grid computing

Evaluating Information Technology Investments: Insights from Executives’ Trades

2022 | Management Information Systems Quarterly | Citations: 0

Authors: Havakhor, Taha; Sabherwal, Sanjiv; Sabherwal, Rajiv; Steelman, Zachary

Abstract: Performance impacts of investments in information technologies (ITs) are difficu ... Expand

Abstract: Performance impacts of investments in information technologies (ITs) are difficult to evaluate. External investors are further constrained by their lack of visibility into the firm’s intangible, complementary actions and capabilities, creating an information asymmetry between them and the firm’s executives. Building on signaling theory and the research on senior executives’ trades in a firm’s stock, this paper addresses the following question: How are the stock trades by a firm’s senior executives before a major IT investment by the firm associated with the future value to the firm from that IT investment? The results based on data on 2,898 publicly announced IT investments from 926 firms during 2002–2016 suggest that (1) the purchasing of a firm’s stock by its senior executives before a firm’s IT investment is associated with the investment’s longterm effect on firm value; (2) such stock purchases by a firm’s senior executives are associated with a stronger positive (negative) relationship between the IT’s newness and the long-term abnormal returns to firms emphasizing a revenue enhancement (cost reduction) IT strategy; (3) for firms pursuing a hybrid strategy, purchases by CIOs but not purchases by CEOs or the newness of IT are associated with firm value, and (4) purchases made by CIOs provide greater information about the IT investment’s impact on firm value than purchases made by CEOs. We further improve our predictive model’s accuracy from 75% for a model including the fit between IT newness and IT strategy to 80% and 91% when considering purchases by CEOs or CIOs, respectively, and 92% when considering purchases by both executives. Collapse

Topics: IT investment information systems strategy Chief Information Officer organizational value database system

Methods: descriptive statistic regression analysis method LexisNexis theoretical contribution statistical hypothesis test

Theories: lemon market theory signaling theory

Familiarity with digital twin totality: Exploring the relation and perception of affordances through a Heideggerian perspective

2022 | Information Systems Journal | Citations: 16

Authors: Osmundsen, Karen S.; Meske, Christian; Thapa, Devinder

Abstract: The concept of affordances has become central in information systems literature. ... Expand

Abstract: The concept of affordances has become central in information systems literature. However, existing perspectives fall short in providing details on the relational aspect of affordances, which can influence actors' perception of them. To increase granularity and specificity in this regard, researchers have suggested that it be supplemented with other concepts or theories. In this article, we argue that the Heideggerian concepts of ‘familiarity’ and ‘referential totality’ are well suited for increasing our understanding of the relational aspects of affordances in information systems research. To explore this idea, we conducted a case study of a project concerning the development of a digital twin (i.e., digital representation of a physical asset) in the Norwegian grid sector. We found that users' familiarity with the digital twin totality enabled them to perceive digital twin affordances, and that without this familiarity, affordances remained latent for the users. Through our study, we offer a nuanced perspective on the relational aspect of affordance perception, contributing to affordance theory in that regard. Further, we contribute to practice and information systems research by providing valuable insights into how digital twins are understood and applied in practice. Collapse

Topics: digital twin production management affordance user experience usability

Methods: qualitative interview case study archival research qualitative content analysis design artifact

Theories: theory of affordance

Uncovering the business value of the internet of things in the energy domain – a review of smart energy business models

2021 | Electronic Markets | Citations: 0

Authors: Paukstadt, Ute; Becker, Jörg

Abstract: In the energy industry, Internet of Things technologies emerge in the form of sm ... Expand

Abstract: In the energy industry, Internet of Things technologies emerge in the form of smart energy products, like smart meters, which are expected to reveal new business potentials and offer value for customers. Through attractive business models, such technologies can generate economic value. However, until now, the existing research has not comprehensively identified, analyzed, and grouped together smart energy business models. Moreover, the literature has not placed smart energy business models under the concept of smart products and services. To address this gap, we review the literature through an information systems lens and assess the status quo of research on smart energy business models, identify relevant business model types, and propose a research agenda for future research on Internet of Things-based business models in the energy sector. Collapse

Topics: mobile system business model internet of things smart home smart device

Methods: literature study literature sample synthesis design artifact mathematical model

A Switch in Time Saves the Dime: A Model to Reduce Rental Cost in Cloud Computing

2020 | Information Systems Research | Citations: 10

Authors: Hosseini, Leila; Tang, Shaojie; Mookerjee, Vijay; Sriskandarajah, Chelliah

Abstract: The goal to continually reduce operating costs while meeting computational needs ... Expand

Abstract: The goal to continually reduce operating costs while meeting computational needs is common to all modern organizations that use cloud computing. We study the problem of selecting computing resources with the goal of minimizing the total rental cost of completing a computing task in the presence of a time constraint. The problem is formulated as a scheduling problem that assigns computing resources to time periods of the planning horizon (time available to complete a single computing task). This (NP-hard) preemptive-resume type scheduling problem—new to the scheduling literature—has not been carefully addressed in practice to provide an implementable solution. Typically, the approach taken in practice is to use a single resource (a single virtual machine instance, or a cluster of identical virtual machine instances) to complete a computing task. The main insight of this study is that rather than completing a computing task using a single computing resource, rental costs can be significantly lowered by using a few resources (sometimes even just two) to complete the task. Thus, the computing task is switched from one resource to another to exploit the cloud provider’s price-performance schedule. Cloud computing has been recognized as an economically attractive computing environment whose adoption has been growing over time. However, providers (such as Amazon Web Services) offer a confusing and diverse set of computing resources with different configurations and unit rental costs. Our near-optimal solution is based on switching the computing task from one resource to another in way that leverages the relationship between the price and performance of the available computing resources. The performance of a given resource can vary randomly as well as be correlated with the performance of another (stronger or weaker) resource. We present a worst-case performance guarantee of the proposed solution. In addition, we study the performance using a detailed computational study and a real-world example of an actual company that can benefit from our proposed solution. In the computational study as well as the real-world example, the cost of our solution is usually about 15%–25% lower than the benchmark solution of using the best single computing resource to process the computing task. Practicing information technology managers can use our approach to migrate in-house solutions to the cloud in a cost-effective manner. Collapse

Topics: cloud computing cloud computing provider switching cost grid computing distributed system

Methods: computational algorithm experiment experimental design optimization model linear optimization

Microgrid Disaster Resiliency Analysis: Reducing Costs in Continuity of Operations (COOP) Planning

2019 | HICSS | Citations: 0

Authors: Abercrombie, Robert K; Ollis, T Benjamin; Sheldon, Frederick T; Jillepalli, Ananth A

Abstract: The electric grid serves a vital role in the supply chain of nearly all industri ... Expand

Abstract: The electric grid serves a vital role in the supply chain of nearly all industrial and commercial organizations. A Microgrid infrastructure can provide this service and beneficial non-emergency services including a variety of generation/energy sources. To demonstrate the applicability of microgrids for energy resiliency, we present a microgrid resiliency case study for United Parcel Service’s (UPS) three separate shipping facilities. The goal, to enhance energy security, minimize cost and prevent cascading losses within other related business units. The impacts and consequences of which are quantified in this study using a Mean Failure Cost (MFC) risk assessment measure. MFC accounts for the potential loses to identified stakeholders that may result from a set of identified failures due to a set of identified threats. In this case, our study uses a method we call All Hazards Econometric System (AHES). AHES incorporates the cost of COOP using a strategy that considers the payback period of microgrid installation as compared to other energy delivery strategies. Collapse

Topics: grid computing hurricane enterprise information system natural hazard

Methods: financial report econometric modeling case study

MANAGEMENT'S IT COMPETENCE IN TURBULENT MARKET ENVIRONMENTS

2019 | European Conference On Information Systems | Citations: 0

Authors: Albrecht, Simon; Gust, Gunther; StrÃ, Jens

Abstract: We analyze the effect of IT competence on management’s support for novel technol ... Expand

Abstract: We analyze the effect of IT competence on management’s support for novel technology when facing environmentally-induced pressures. We argue that competent managers are less prone to the effects of mimicry in turbulent environments. We aim to evaluate our hypotheses with a study on blockchain technology in the energy sector, which has recently been particularly affected by rapid changes and uncertainty. Apart from the theoretical contribution, this project has several potential implications for practice. For instance, organizations may be able to increase their resilience in turbulent environments by investing in management’s IT competence. Collapse

Topics: blockchain top management support innovation management digital innovation database system

Methods: survey partial least squares regression qualitative interview structural equation modeling paired t-test

Theories: dynamic capabilities theory

Multiple Vickrey Auctions for Sustainable Electric Vehicle Charging

2019 | International Conference on Information Systems | Citations: 0

Authors: Valogianni, Konstantina; Gupta, Alok; Ketter, Wolfgang; Sen, Soumya; van Heck, Eric

Abstract: Electric vehicles (EVs) are important contributors to a sustainable future. Howe ... Expand

Abstract: Electric vehicles (EVs) are important contributors to a sustainable future. However, uncontrolled EV charging in the smart grid is expected to stress its infrastructure, as it needs to accommodate extra electricity demand coming from EV charging. We propose an auction mechanism to optimally schedule EV charging in a sustainable manner so that the grid is not overloaded. Our solution has lower computational complexity, compared to state-of-the-art mechanisms, making it easily applicable to practice. Our mechanism creates electricity peak demand reduction, which is important for improving sustainability in the grid, and provides optimized charging speed design recommendations so that raw materials are not excessively used. We prove the optimal conditions that must hold, so that different stakeholder objectives are satisfied. We validate our mechanism on real-world data and examine how different trade-offs affect social welfare and revenues, providing a holistic view to grid stakeholders that need to satisfy potentially conflicting objectives. Collapse

Topics: economic surplus IS economics green IS resource allocation grid computing

Methods: simulation experiment literature study knapsack problem

Theories: complexity theory