Pricing e-service quality risk in financial services

a b s t r a c t E-service quality is crucial for differentiating e-commerce offers and gaining competitive advantage. Eservice quality risk is the risk that a firm's e-service quality will drop, or improve, relative to competitors. There is evidence that benchmark ratings of e-service quality that are published regularly by third-parties can impact the market value of rated firms. Firms therefore continue investing in IT-related determinants of e-service quality. However, they do so without knowing: (1) the cost or return associated with a unit relative deterioration, or improvement in e-service quality ratings, and (2) how this cost or return may vary across firms. To answer these questions, we adapt a well-established financial risk pricing approach for the case of pricing a single idiosyncratic IT investment risk, where an event study is used to generate the market data needed to price ris

Business Integration as a Service

This paper presents Business Integration as a Service (BIaS) which enables connections between services operating in the Cloud. BIaS integrates different services and business activities to achieve a streamline process. We illustrate this integration using two services; Return on Investment (ROI) Measurement as a Service (RMaaS) and Risk Analysis as a Service (RAaaS) in two case studies at the University of Southampton and Vodafone/Apple. The University of Southampton case study demonstrates the cost-savings and the risk analysis achieved, so two services can work as a single service. The Vodafone/Apple case study illustrates statistical analysis and 3D Visualisation of expected revenue and associated risk. These two cases confirm the benefits of BIaS adoption, including cost reduction and improvements in efficiency and risk analysis. Implementation of BIaS in other organisations is also discussed. Important data arising from the integration of RMaaS and RAaaS are useful for management of University of Southampton and potential and current investors for Vodafone/Apple

A Case Study for Business Integration as a Service

This paper presents Business Integration as a Service (BIaaS) to allow two services to work together in the Cloud to achieve a streamline process. We illustrate this integration using two services; Return on Investment (ROI) Measurement as a Service (RMaaS) and Risk Analysis as a Service (RAaaS) in the case study at the University of Southampton. The case study demonstrates the cost-savings and the risk analysis achieved, so two services can work as a single service. Advanced techniques are used to demonstrate statistical services and 3D Visualisation services under the remit of RMaaS and Monte Carlo Simulation as a Service behind the design of RAaaS. Computational results are presented with their implications discussed. Different types of risks associated with Cloud adoption can be calculated easily, rapidly and accurately with the use of BIaaS. This case study confirms the benefits of BIaaS adoption, including cost reduction and improvements in efficiency and risk analysis. Implementation of BIaaS in other organisations is also discussed. Important data arising from the integration of RMaaS and RAaaS are useful for management and stakeholders of University of Southampton

The financial clouds review

This paper demonstrates financial enterprise portability, which involves moving entire application services from desktops to clouds and between different clouds, and is transparent to users who can work as if on their familiar systems. To demonstrate portability, reviews for several financial models are studied, where Monte Carlo Methods (MCM) and Black Scholes Model (BSM) are chosen. A special technique in MCM, Least Square Methods, is used to reduce errors while performing accurate calculations. The coding algorithm for MCM written in MATLAB is explained. Simulations for MCM are performed on different types of Clouds. Benchmark and experimental results are presented for discussion. 3D Black Scholes are used to explain the impacts and added values for risk analysis, and three different scenarios with 3D risk analysis are explained. We also discuss implications for banking and ways to track risks in order to improve accuracy. We have used a conceptual Cloud platform to explain our contributions in Financial Software as a Service (FSaaS) and the IBM Fined Grained Security Framework. Our objective is to demonstrate portability, speed, accuracy and reliability of applications in the clouds, while demonstrating portability for FSaaS and the Cloud Computing Business Framework (CCBF), which is proposed to deal with cloud portability

A proposed case for the cloud software engineering in security

This paper presents Cloud Software Engineering in Security (CSES) proposal that combines the benefits from each of good software engineering process and security. While other literature does not provide a proposal for Cloud security as yet, we use Business Process Modeling Notation (BPMN) to illustrate the concept of CSES from its design, implementation and test phases. BPMN can be used to raise alarm for protecting Cloud security in a real case scenario in real-time. Results from BPMN simulations show that a long execution time of 60 hours is required to protect real-time security of 2 petabytes (PB). When data is not in use, BPMN simulations show that the execution time for all data security rapidly falls off. We demonstrate a proposal to deal with Cloud security and aim to improve its current performance for Big Data

Towards Business Integration as a Service 2.0

Cloud Computing Business Framework (CCBF) is a framework for designing and implementation of Could Computing solutions. This proposal focuses on how CCBF can help to address linkage in Cloud Computing implementations. This leads to the development of Business Integration as a Service 1.0 (BIaS 1.0) allowing different services, roles and functionalities to work together in a linkage-oriented framework where the outcome of one service can be input to another, without the need to translate between domains or languages. BIaS 2.0 aims to allow full automation, enhanced security, advanced risk modelling and improved collaboration between processes in BIaaS 1.0. The benefits from adopting BIaS 1.0 and developing BIaS 2.0 are illustrated using a case study from the University of Southampton and several collaborators including IBM US. BIaS 2.0 can work with mainstream technologies such as scientific workflows, and the proposal and demonstration of BIaaS 2.0 will certainly benefit industry and academia

Towards business integration as a service 2.0 (BIaaS 2.0)

Cloud Computing Business Framework (CCBF) is a framework for designing and implementation of Could Computing solutions. This proposal focuses on how CCBF can help to address linkage in Cloud Computing implementations. This leads to the development of Business Integration as a Service 1.0 (BIaaS 1.0) allowing different services, roles and functionalities to work together in a linkage-oriented framework where the outcome of one service can be input to another, without the need to translate between domains or languages. BIaaS 2.0 aims to allow automation, enhanced security, advanced risk modelling and improved collaboration between processes in BIaaS 1.0. The benefits from adopting BIaaS 1.0 and developing BIaaS 2.0 are illustrated using a case study from the University of Southampton and several collaborators including IBM US. BIaaS 2.0 can work with mainstream technologies such as scientific workflows, and the proposal and demonstration of BIaaS 2.0 will be aimed to certainly benefit industry and academia. © 2011 IEEE

Integrated Delivery Networks: In Search of Benefits and Market Effects

Integrated Delivery Networks (IDNs) have very different stated purposes than mere collections of hospitals: to coordinate care across the continuum of health services and to manage population health. IDN advocates claim that these complex enterprises yield both societal benefits and performance advantages over less integrated competitors. The purpose of this analysis is to evaluate the evidence to support these claims.For the study, researchers performed a review of the academic literature on IDN performance, as well as an analysis of publicly available quality and financial data from 15 of the biggest not-for-profit IDNs in the U.S., including Sutter Health in Northern California. The authors compared the publicly available performance information on the IDNs' flagship hospital in its principal regional market with that flagship's most significant in-market competitor. The study found that it is possible for integrated delivery networks to offer meaningful benefits, but there is little evidence they have reduced costs or improved the quality of care. Findings include:Hospital-physician integration has raised physician costs, hospital prices and per capita medical care spending;Hospital integration into health plan operations and capitated contracting was not associated either with clinical efficiency or financial efficiencyProviders are likely to see a decrease in operating margins and return on capital as they invest in IDN developmen

Is it possible to incorporate quality into hospital pricing systems?

Australia has recently implemented an activity - based funding system for public hospitals. Policymakers and providers are keen to ensure that the price paid for health care services stimulates improvements in quality and safety , but some remain scept ical that this can be achieved through pricing mechanisms. There are four main ways of linking quality and safety to hospital pricing in the context of activity based funding: Best-practice pricing This involves making evidenced - based decisions on what constitutes ‘best-practice’ for the treatment of a particular condition, then paying health services a set price when they provide best-practice care. Normative pricing This involves using price to influence the delivery of care (for example, providing incentives to deliver more care in the home for certain conditions or to provide day surgery options where appropriate). Structural models of pricing quality This involves linking funding to meeting accreditation standards or participating in benchmarking activities or clinical quality registries. Payment for Performance (P4P) or quality pricing This involves using financial incentives and/or disincentives to encourage providers to behave in certain ways that will improve quality and safety. This paper briefly examines the strength of the evidence for each of these pricing models. It considers both peer-reviewed research as well as non peer-reviewed material, such as program evaluations and government reports

Assessing the value dimensions of outsourced maintenance services

Purpose - The purpose of this paper is to investigate the diverse nature of tangible and intangible value dimensions that contribute to customers' perception of value from outsourced maintenance services. Design/methodology/approach - A multiple case study approach has been adopted. Repertory grid, an in-depth structured interviewing technique, has been used in order to draw out the respondents' hidden constructs in evaluating outsourced maintenance services. Data have been collected from four customer organizations of outsourced maintenance services, and a total of 33 interviews have been undertaken. Findings - The paper has identified a range of tangible and intangible value dimensions that are of importance in maintenance outsourcing decision making. The most important value dimensions for maintenance outsourcing were found to be specialist knowledge, accessibility (of the service provider), relational dynamic, range of products and services, delivery, pricing and locality. Although the paper has identified the most important value dimensions the paper also emphasizes the need to take into account the full range of value dimensions in order to understand the whole value pattern in an organization. Practical implications - The results will be of use for maintenance service providers to help them to improve value-adding capacity of maintenance services. The results can also be applied by customers to help them assess the value they receive from outsourced maintenance services. Originality/value - A different perspective on maintenance outsourcing value is provided. The value patterns in different organizations and the viewpoints of respondents in different organizational roles are described. The dynamic nature of these tangible or intangible values over time and their interrelationships has also been explored