Financial viability of offshore wind on the Texas Gulf Coast

Offshore wind is already a significant component of the electricity generation mix in Europe, and improvements in technology and cost are enabling increased offshore wind penetration in new markets around the world. Thus far, the US has struggled to materially participate in this industry, with only a single 30 MW offshore project in operation. Navigating a complicated regulatory framework, the lack of a coherent national policy, and facing local opposition, the industry has experienced some spectacular failures in recent years. However, the US now has an opportunity to take advantage of the lessons learned from years of (primarily) European development and combine them with excellent offshore wind resources close to transmission-constrained load centers. By far the leader of the US onshore wind industry, and with a long history of offshore oil and gas development, Texas has some major advantages when it comes to offshore wind. Wind resources in the Gulf of Mexico are more than adequate for economic production. With shallow depths and relatively calm seas, the Texas Gulf Coast is also well suited to offshore wind construction. These factors, coupled with a pro-development state regulatory scheme and extended jurisdiction over submerged lands, suggest that Texas is an ideal candidate for offshore wind development. With no currently active projects in the pipeline, this thesis examines the economic viability of offshore wind development on the Texas Gulf Coast at the project level. Using an ideal location and cost data from National Renewable Energy Laboratory (NREL), the Energy Information Administration (EIA), and industry sources, a hypothetical “test project” was developed and evaluated against three cost estimate cases and ten regulatory scenarios. These inputs were fed into a Discounted Cash Flow model to determine potential competitiveness in the Power Purchase Agreement (PPA) market in the ERCOT region. Results indicate that without significant cost reductions or major changes to either market conditions or federal/state incentive schemes, Texas Gulf Coast offshore wind cannot compete with other forms of onshore renewable generation. With ever-decreasing costs, it is not impossible that offshore wind could become viable at some point in the future, but given current conditions, it is not likely that any projects are on the near-term horizon.Energy and Earth Resource

Information Systems Skills Differences between High-Wage and Low-Wage Regions: Implications for Global Sourcing

Developing Information Systems (IS) skills for a company’s workforce has always been challenging, but global sourcing growth has caused the determination of needed IS skills to be more complex. The increased use of outsourcing to an IS service provider and from high-wage regions to low-wage regions has affected what IS skills are required globally and how to distribute the workforce to meet these needs. To understand what skills are needed in locations that seek and those that provide outsourcing, we surveyed IS service provider managers in global locations. Results from 126 reporting units provide empirical evidence that provider units in low-wage regions value technical skills more than those in high-wage regions. Despite the emphasis on commodity skills in low-wage areas, high- and low-wage providers value project management skills. Low-wage regions note global and virtual teamwork more than high-wage regions do. The mix of skills and the variation by region have implications for domestic and offshore sourcing. Service providers can vary their staffing models in global regions which has consequences for recruiting, corporate training, and curriculum

After-sales services optimisation through dynamic opportunistic maintenance: a wind energy case study

After-sales maintenance services can be a very profitable source of incomes for original equipment manufacturers (OEM) due to the increasing interest of assets’ users on performance-based contracts. However, when it concerns the product value-adding process, OEM have traditionally been more focused on improving their production processes, rather than on complementing their products by offering after-sales services; consequently leading to difficulties in offering them efficiently. Furthermore, both due to the high uncertainty of the assets’ behaviour and the inherent challenges of managing the maintenance process (e.g. maintenance strategy to be followed or resources to be deployed), it is complex to make business out of the provision of after-sales services. With the aim of helping the business and maintenance decision makers at this point, this paper proposes a framework for optimising the incomes of after-sales maintenance services through: 1) implementing advanced multi-objective opportunistic maintenance strategies that sistematically consider the assets’ operational context in order to perform preventive maintenance during most favourable conditions, 2) considering the specific OEMs’ and users’ needs, and 3) assessing both internal and external uncertainties that might condition the after-sales services’ success. The developed case study for the wind energy sector demonstrates the suitability of the presented framework for optimising the after-sales services.EU Framework Programme Horizon 2020, MSCA-RISE-2014: Marie Skłodowska-Curie Research and Innovation Staff Exchange (RISE) (grant agreement number 645733- Sustain-Owner-H2020-MSCA-RISE-2014) and the EmaitekPlus 2016-2017 Program of the Basque Government

A framework and tool to manage Cloud Computing service quality

Cloud Computing has generated considerable interest in both companies specialized in Information and Communication Technology and business context in general. The Sourcing Capability Maturity Model for service (e-SCM) is a capability model for offshore outsourcing services between clients and providers that offers appropriate strategies to enhance Cloud Computing implementation. It intends to achieve the required quality of service and develop an effective working relationship between clients and providers. Moreover, quality evaluation framework is a framework to control the quality of any product and/or process. It offers a tool support that can generate software artifacts to manage any type of product and service efficiently and effectively. Thus, the aim of this paper was to make this framework and tool support available to manage Cloud Computing service quality between clients and providers by means of e-SCM.Ministerio de Ciencia e Innovación TIN2013-46928-C3-3-RJunta de Andalucía TIC-578

Cloud Migration: A Case Study of Migrating an Enterprise IT System to IaaS

This case study illustrates the potential benefits and risks associated with the migration of an IT system in the oil & gas industry from an in-house data center to Amazon EC2 from a broad variety of stakeholder perspectives across the enterprise, thus transcending the typical, yet narrow, financial and technical analysis offered by providers. Our results show that the system infrastructure in the case study would have cost 37% less over 5 years on EC2, and using cloud computing could have potentially eliminated 21% of the support calls for this system. These findings seem significant enough to call for a migration of the system to the cloud but our stakeholder impact analysis revealed that there are significant risks associated with this. Whilst the benefits of using the cloud are attractive, we argue that it is important that enterprise decision-makers consider the overall organizational implications of the changes brought about with cloud computing to avoid implementing local optimizations at the cost of organization-wide performance.Comment: Submitted to IEEE CLOUD 201

Foreign Direct Investments in Business Services: Transforming the Visegrád Four Region into a Knowledge-based Economy?

Foreign direct investments (FDIs) in the service sector are widely attributed an important role in bringing more skill-intensive activities into the Visegrad Four (V4). This region—comprising Poland, the Czech Republic, Hungary and Slovakia—relied heavily on FDIs in manufacturing, which was often found to generate activities with limited skill content. This contribution deconstructs the chaotic concept of “business services” by analysing the actual nature of service sector activities outsourced and offshored to the V4. Using the knowledge-based economy (KBE) as a benchmark, the paper assesses the potential of service sector outsourcing in contributing to regional competitiveness by increasing the innovative capacity. It also discusses the role of state policies towards service sector FDI (SFDI). The analysis combines data obtained from case studies undertaken in service sector outsourcing projects in V4 countries. Moreover, it draws on interviews with senior employees of investment promotion agencies and publicly available data and statistics on activities within the service sector in the region. It argues that the recent inward investments in business services in the V4 mainly utilize existing local human capital resources, and their contribution to the development of the KBE is limited to employment creation and demand for skilled labour

Advancing Climate Change Research and Hydrocarbon Leak Detection : by Combining Dissolved Carbon Dioxide and Methane Measurements with ADCP Data

With the emergence of largescale, comprehensive environmental monitoring projects, there is an increased need to combine state-of-the art technologies to address complicated problems such as ocean acidifi cation and hydrocarbon leak detection

To Offshore or Nearshore IT services? An investigation using transaction cost theory

The phenomenon of offshoring, that is, the outsourcing of highly- qualified services into low wage countries was until now considered an economy-specific solution to counteract the constant rise in costs caused by the intensified global competition. At the same time, this form of cross-country division of labor had been prognosticated by various studies to lead to overall positive economic effects. Recently, however, there has been much discussion in the political and management ranks on the controversial issue of the advantageousness of offshoring. The trend, which has been enforced by numerous consultants, has led to a decline in domestic employment as well as not accomplishing cost savings thus intensifying doubt over its validity. The following paper deals with the advantageousness of offshoring in the case of IT services. In order to detach oneself from the limited account given by looking at wage costs, the analysis is conducted from the viewpoint of transaction cost theory. In doing so, it constantly distinguishes between offshoring and nearshoring strategies and the alternatives in examining specific costs are weighed out against each other. It will be shown that relevant motivation and coordination costs vary depending on not only geographical distance but also cultural difference. As such, the role of effective cooperation and interface management is clarified in order to be able to reduce known transaction costs.interational outsourcing, offshoring, nearshoring, transaction costs

Overcoming Managerial Challenges to Realize Growth Spurts: Insights from Cases of Three Enterprises

Organizations face several managerial challenges during their growth period. Growth spurts are realized when organizations overcome these challenges. Though the literature is full of studies on the enterprise growth, the knowledge about how these challenges facilitate or hinder growth is limited. We conceptualize and explain five challenges faced by an enterprise along its growth trajectory. For evidence, we then look at history of three organizations from different sectors and trace their strategies to overcome the challenges faced by them. The firm and the environment interact and make certain strategic choices, which in turn results in growth spurts in the organization. We draw insights from their growth stories and discuss the different strategies and interactions between the firm and the environment.