Network Management as a Service Concept - a study in the energy intensive industry

Abstract

A model for managing a network of outsourcing partners in the energy intensive industry is constructed in this study. The study focuses on one geographical area and it is done for one customer company that currently operates in the field.

The objectives of the study are: first, to define the factors that affect the success of the intended network concept, and second, to create a model of this network management concept. The first objective is further divided into sub objectives that describe the network concept and its success factors on a more detailed level.

The author reviews the relevant theoretical background in the third chapter of the study, where the body of knowledge in relation to services, outsourcing and networking is discussed. Relevant theoretical models and concepts are presented to facilitate the concept definition.

The modeled network consists of three network partners - the network manager, the customers, and the service providers - and the empirical part of the study is based on the interviews with them. All of the results of the interviews are illustrated with quotations from the interviewees. Next, the network as a whole is studied from the individual standpoints of these three partners, and the implications of the findings are discussed.

Based on the interests of all parties, the proposed network management model is built. The presented steps for constructing the network include, for instance, increased communication and better information exchange, definition of responsibilities of each partner, and providing increased financial stability for the service providers through improving the methods used for forecasting capacity utilization. Altogether eleven steps are suggested as a starting point for building the network.

In the last chapter, the findings of the study are summarized and the needs for further research are suggested. The constructed network management model requires additional studies before it can be applied to practice. In order to be successful, the network concept must be economically viable, and defining the pricing and the returns expected from the concept are among the most important issues to be studied further.