US2009018892A1PendingUtilityA1
Option framework for managing on demand service offerings
Est. expiryJul 11, 2027(~1 yrs left)· nominal 20-yr term from priority
G06Q 30/0202G06Q 30/0206G06Q 10/0631G06Q 10/0635G06Q 30/0283G06Q 10/08G06Q 10/06375G06Q 30/02
58
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Claims
Abstract
A method of and system for managing on-demand service offerings in a service delivery chain. The method comprises the steps of a service provider announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; a service distributor committing to upfront capacity and to units of on-demand options; and the service provider provisioning a number of resources to the collection of service distributors. Preferably, the upfront capacity pricing includes three components. A first component is a price structure for capacity or resources to be purchased for immediate use, a second component is an on-demand premium structure, and a third component is an on-demand usage fee structure.
Claims
exact text as granted — not AI-modified1 . A method of managing on-demand service offerings, wherein a service provider provides resources to a collection of service distributors, and said service distributors distribute said resources to end users, the method comprising the steps of:
the service provider announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; at least one of the service distributors committing to upfront capacity and to units of on-demand options; and the service provider provisioning a number of resources to the collection of service distributors with the goal of maximizing the expected profit based on the orders and options.
2 . A method according to claim 1 , wherein the provisioning step is done with the goal of maximizing the expected profit based on the orders and options.
3 . A method according to claim 1 , wherein the pricing includes three components:
a first component is a price structure for capacity or resources to be purchased for immediate use; a second component is an on-demand premium structure; and a third component is an on-demand usage fee structure.
4 . A method according to claim 3 , wherein said on-demand premium structure represents an immediate cost to the service distributor for the right to use the on-demand feature at some point any time in the future up to a specified date.
5 . A method according to claim 3 , wherein said on-demand usage fee structure represents the price the service provider charges a service distributor upon invocation of the on-demand feature.
6 . A method according to claim 3 , wherein said price structure for capacity is selected based on given estimates of the service distributor's response to the price structure.
7 . A method according to claim 1 , wherein said announcing upfront capacity is based on pricing of competitive offerings, forecasts of service and equipment costs, and expected response of distributors to price structure.
8 . A method according to claim 1 , wherein said committing to upfront capacity is based on at least one of: purchasing decisions of other service distributors, forecasts of technology change, forecasts of business need change, and changes in end users quality of service expectation.
9 . A method according to claim 1 , comprising the further step of reaching an agreement between the service provider and said one of the service distributors to guarantee that the service provider dedicates adequate resources.
10 . A system for managing on-demand service offerings, wherein a service provider provides resources to a collection of service distributors, and said service distributors distribute said resources to end users, said system comprising:
a memory device having embodied therein information relating to said resources; a service provider processor in communication with said memory device and configured for announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; and a service distributor processor in communication with said service provider processor and configured for committing to upfront capacity and to units of on-demand options; wherein said service provider processor is further configured for provisioning a number of resources to the collection of service distributors.
11 . A system according to claim 10 , wherein the upfront capacity pricing includes three components:
a first component is a price structure for capacity or resources to be purchased for immediate use; a second component is an on-demand premium structure; and a third component is an on-demand usage fee structure.
12 . A system according to claim 10 , wherein the committing to upfront capacity and to units of on-demand options is done by using the equation:
where
Π 2 ( Q,q )= E[r ·min( D,O )− w·Q−c·q−x ·min( q, ( D−Q ) + )]
where D is the random end user demand; r is the distributor's revenue per end customer demand satisfied. Note that the randomness D captures the demand risk. It can also be used to model the technology and market risk. The optimal amount of upfront capacity and “On-Demand” options
O
*
=
F
-
1
(
r
-
x
-
c
r
-
x
)
and the number amount of upfront capacity is
Q
*
=
F
-
1
(
x
+
c
-
w
w
)
.
where F is the estimated cumulative distribution function for the random demand D.
13 . A system according to claim 10 , wherein the provisioning of done by using the equation:
Π
3
(
θ
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=
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where
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.
14 . A system according to claim 10 , wherein said on-demand premium structure represents a cost to the service distributor for the right to use the on-demand feature at some point any time in the future.
15 . A system according to claim 10 , wherein said on-demand usage fee structure represents the price the service provider charges a service distributor for invocation of the on-demand feature.
16 . A program storage device readable by machine, tangibly embodying a program of instructions executable by the machine to perform a method of managing on-demand service offerings, wherein a service provider provides resources to a group of service distributors, and said service distributors distribute said resources to end users, the method comprising the steps of:
the service provider announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; at least one of the service distributors committing to upfront capacity and to units of on-demand options; and the service provider provisioning a number of resources to the collection of service distributors.
17 . A program storage device according to claim 16 , wherein:
the upfront capacity pricing includes three components: a first component is a price structure for capacity or resources to be purchased for immediate use, a second component is an on-demand premium structure, and a third component is an on-demand usage fee structure; said on-demand premium structure represents an immediate cost to the service distributor for the right to use the on-demand feature at some point any time in the future; and said on-demand usage fee structure represents the price the service provider charges a service distributor for invocation of the on-demand feature.
18 . A program storage device according to claim 17 , wherein:
the committing to upfront capacity and to units of on-demand options is done by using the equation:
Max
(
Q
,
q
)
Π
2
(
Q
,
q
)
where
Π
2
(
Q
,
q
)
=
E
[
r
·
min
(
D
,
O
)
-
w
·
Q
-
c
·
q
-
x
·
min
(
q
,
(
D
-
Q
)
+
)
]
and D is the random end user demand; r is the distributor's revenue per end customer demand satisfied. The optimal amount of upfront capacity and “On-Demand” options
O
*
=
F
-
1
(
r
-
x
-
c
r
-
x
)
and the number amount of upfront capacity is
Q
*
=
F
-
1
(
x
+
c
-
w
w
)
.
where F is the estimated cumulative distribution function for the random demand D; and
the provisioning of done by using the equation:
Max
0
≤
θ
≤
1
Π
3
(
θ
)
Π
3
(
θ
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=
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+
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=
1
N
q
i
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-
m
·
Y
(
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+
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[
x
·
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(
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=
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q
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,
∑
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=
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D
i
-
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i
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+
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·
∑
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=
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Q
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q
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(
D
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+
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·
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=
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min
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+
]
where
Y
(
θ
)
=
∑
i
=
1
N
Q
i
*
+
θ
·
∑
i
=
1
N
q
i
*
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