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Showing papers by "Helmut Krcmar published in 2018"


Journal ArticleDOI
TL;DR: An approach that aims to automate the extraction and transformation of workload specifications for load testing and model-based performance prediction of session-based application systems and shows that the extracted workloads match the measured workloads with high accuracy.
Abstract: The specification of workloads is required in order to evaluate performance characteristics of application systems using load testing and model-based performance prediction. Defining workload specifications that represent the real workload as accurately as possible is one of the biggest challenges in both areas. To overcome this challenge, this paper presents an approach that aims to automate the extraction and transformation of workload specifications for load testing and model-based performance prediction of session-based application systems. The approach (WESSBAS) comprises three main components. First, a system- and tool-agnostic domain-specific language (DSL) allows the layered modeling of workload specifications of session-based systems. Second, instances of this DSL are automatically extracted from recorded session logs of production systems. Third, these instances are transformed into executable workload specifications of load generation tools and model-based performance evaluation tools. We present transformations to the common load testing tool Apache JMeter and to the Palladio Component Model. Our approach is evaluated using the industry-standard benchmark SPECjEnterprise2010 and the World Cup 1998 access logs. Workload-specific characteristics (e.g., session lengths and arrival rates) and performance characteristics (e.g., response times and CPU utilizations) show that the extracted workloads match the measured workloads with high accuracy.

73 citations


Journal ArticleDOI
TL;DR: The aim of this research is to reduce the number of false positives by combining the red flag-based approach with process mining, which allows for identification and subsequent visualization of possible fraudulent process instances with the corresponding red flags.

62 citations


Journal ArticleDOI
TL;DR: A literature review is conducted to identify patterns and a cluster analysis to create an inductive structure, followed by a qualitative analysis, which develops a hierarchical taxonomy of BMPs including generalizations and specializations based on inheritance.
Abstract: Although business model innovation (BMI) is essential to remaining competitive, many firms fail at it. A promising approach is building on reoccurring successful solutions – business model patterns (BMP) – as a blueprint for BMI. However, existing patterns face constraints subject to a high diversity and overlaps among patterns. In addition, literature do not consider relations among BMPs, which limits their potential for BMI. This paper develops a hierarchical taxonomy of BMPs including generalizations and specializations based on inheritance. We conduct a literature review to identify patterns and a cluster analysis to create an inductive structure, followed by a qualitative analysis. The resulting hierarchical taxonomy includes 194 elements. It is the first hierarchical taxonomy of BMPs. The hierarchy addresses the diversity of patterns and overlaps with inheritance. It aids research to structure and understand BMPs. For practice, the taxonomy allows for the application of patterns and supports BMI.

57 citations


Journal ArticleDOI
TL;DR: Using a Delphi study, 16 professionals characterized by different cloud service models, company sizes, and industries identified and ranked QoS according to their relative importance and showed consensus on QoS.

47 citations


Proceedings Article
01 Jan 2018
TL;DR: A taxonomy to characterize I4.0 BMs and BMIs is developed and 13 archetypes of I 4.0 BM innovators are derived, including three identified super-archetypes, which are integration, servitization and expertise as a service.
Abstract: Industry 4.0 (I4.0) also known as the fourth industrial revolution has emerged for describing the digitalization of manufacturing industries. In practice, the transition to I4.0 is crucial for manufacturing firms to sustain competitive advantage and seize new opportunities. Most research focuses on the technological aspects of I4.0 in form of product and process innovations. Despite I4.0’s rising attention among both researchers and practitioners, there exists only little research about I4.0 business model innovation (BMI), even though business model (BM) innovators can be more successful than product or process innovators. To address this research gap, we analyze 15 case studies of I4.0 BM innovators. We develop a taxonomy to characterize I4.0 BMs and derive 13 archetypes of I4.0 BMIs that describe transitions towards I4.0 BMs. The three identified super-archetypes are integration, servitization and expertise as a service. Our study deepens the understanding and structure of I4.0 BMs and I4.0 BMIs.

42 citations


Journal ArticleDOI
TL;DR: An analysis of risk and benefit perception of self-driving cars from March 2015 until October 2016 is presented and two new metrics, risk rate (RR) and benefit rate (BR) are developed, which allow analyzingrisk and benefit perceptions on social media quantitatively.
Abstract: In an early stage of developing emerging technologies, there is often great uncertainty regarding their future success. Companies can reduce this uncertainty by listening to the voice of customers as the customer eventually decides to accept an emerging technology or not. We show that risk and benefit perceptions are central determinants of acceptance of emerging technologies. We present an analysis of risk and benefit perception of self-driving cars from March 2015 until October 2016. In this period, we analyzed 1,963,905 tweets using supervised machine learning for text classification. Furthermore, we developed two new metrics, risk rate (RR) and benefit rate (BR), which allow analyzing risk and benefit perceptions on social media quantitatively. With our results, we provide impetus for further research on acceptance of self-driving cars and a methodological contribution to acceptance of emerging technologies research. Furthermore, we identify crucial issues in the public perception of self-driving cars and provide guidance for the management of emerging technologies to increase the likelihood of their acceptance.

38 citations


Proceedings Article
01 Jan 2018
TL;DR: A use case taxonomy derived from multiple case studies employing literature search, ethnographies, interviews and focus groups from the domains of nursing, maintenance and logistics is presented and a framework of task-technology fit for smart glasses is proposed.
Abstract: The evolution of smart glasses and AR technology holds potential for support of mobile service processes. Yet, little research has focused on systematic identification of potential use cases. In this article, we present a use case taxonomy derived from multiple case studies employing literature search, ethnographies, interviews and focus groups from the domains of nursing, maintenance and logistics. Building upon the identified use cases we propose a framework of task-technology fit for smart glasses. The taxonomy in combination with the framework will allow researchers and practitioners to identify smart glass use cases that are of inter-domain relevance. Moreover, our artefacts enable a structured approach for identification and assessment of potential smart glass use cases without in-depth knowledge of the technology.

36 citations


Book ChapterDOI
01 Jan 2018
TL;DR: In this paper, the authors conducted a literature review to identify important platform governance mechanisms, and a multiple case analysis was carried out examining seven successful MSPs and how they governed their platform.
Abstract: Multi‐sided platforms (MSPs) continue to disrupt long‐established industries. Therefore, there is a growing popularity to scientifically examine how and why those platforms become more and more economically important. The centerpiece to orchestrate the interaction between the involved parties is the platform governance. While past studies concentrated on describing and identifying those mechanisms, this article aims to provide more detailed knowledge of the practical implications of implementing platform mechanisms differently. With this goal in mind, the article conducted a literature review to identify important platform governance mechanisms. Building on that, a multiple case analysis was carried out examining seven successful MSPs and how they governed their platform. The results indicate that platform governance mechanisms are incorporated in different shapes and characteristics. The governance structure, for example, ranged from a very centralistic and autocratic organization to a more split approach with empowerment on the user side. Also, the accessibility varies from a high degree of openness to detailed background checks users need to pass in order to participate in the platform. Out of these findings, different tradeoffs can be derived. A high degree of openness, for example, goes along with a greater quantity of products or services, but lacks in quality and indicates a higher perceived risk. Overall this article shows the practical implications and characteristics of different platform governance characteristics and helps practitioners and scientists to learn from successful MSPs.

32 citations



Journal ArticleDOI
TL;DR: In this article, a conceptualization of Digital Transformation (DT) is proposed to clarify the notion of DT in IS literature by providing a definition and constructs that differentiate the content, order, and improvement goals of DT from other organizational change philosophies.
Abstract: The widespread availability of digital technologies led to a disruption of well-established business models in many industries. Digital Transformation (DT) is organizations’ strategy to prevent this disruption. However, in IS literature there exists no common understanding about what is exactly meant by DT, ranging from the transformation of whole industries to single processes of digitization. Hence, this conceptual paper aims to address this gap by comparing DT to prior organizational change philosophies. Based on the comparison, we clarify the notion of DT in IS literature by providing a definition and constructs that differentiate the content, order, and improvement goals of DT from other organizational change philosophies. Scholars and practitioners may find this conceptualization helpful to understand the different facets of DT. We hope that our suggestion for the use of consistent terminology will be embraced and will help to consolidate this research area and move it forward.

25 citations


Proceedings ArticleDOI
18 Jun 2018
TL;DR: Surprisingly, reflexivity is seen to further exacerbate the negative effects of perceived subgroups on conflict and satisfaction, and elaboration of information significantly attenuates effects on conflict.
Abstract: This research explores the influence of the agile practices daily stand-ups and retrospectives on negative effects of subgroups, i.e. of having several smaller groups within a team, on group conflict, satisfaction, and performance. Based on extant literature in agile software development (ASD) and group research, a model of effects of ASD practices and the constructs elaboration, i.e. direct sharing, of information and team reflexivity, i.e. how much teams reflect on processes and outcomes, is developed and assessed using a survey of agile teams. Previous findings on negative effects of subgroups on conflict and satisfaction are corroborated in an agile setting. Retrospectives enhance team reflexivity and elaboration of information. As expected, elaboration of information significantly attenuates effects on conflict. Surprisingly, reflexivity is seen to further exacerbate the negative effects of perceived subgroups on conflict and satisfaction.

Book ChapterDOI
01 Jan 2018
TL;DR: This work proposes a concept for the architecture of an open platform for digital mobility services that enables co‐creation of value by making data sources and service modules available for developers and illustrated the concept by describing possible modular services and how they could be used to improve urban transportation.
Abstract: Due to the ubiquity of smartphones, the impact of digital mobility services on individual traffic behavior within cities has increased significantly over the last years. Companies, as for example Google, and city administrations or parastatal municipal transport providers issue digital mobility services. As a result, a heterogeneous landscape of digital mobility services has emerged. While the services serve different needs, they are based on similar service modules and data sources. By analyzing 59 digital mobility services available as smartphone applications or web services, we show that an integration of service modules and data sources can increase the value of digital mobility services. Based on this analysis, we propose a concept for the architecture of an open platform for digital mobility services that enables co‐creation of value by making data sources and service modules available for developers. The concept developed for the platform architecture consists of the following elements: data sources, layers of modular services, an integration layer and solutions. We illustrated the concept by describing possible modular services and how they could be used to improve urban transportation. Our work supports practitioners from industry and public administration in identifying potential for innovative services and foster co‐creation and innovation within existing systems for urban transportation.

Proceedings Article
01 Jan 2018
TL;DR: This work follows a design science research approach using two cases of digital innovation in health care and derives process learnings on applying Design Thinking methods to digital innovation projects in health health care.
Abstract: Digital innovation is described to harbor great potential to improve health care. Yet, much of this potential has not been realized. A number of context-specific factors are described to limit implementation of innovative digital solutions. To attenuate these limits in development, we propose a human-centric approach using elements of Design Thinking. We follow a design science research approach using two cases of digital innovation in health care. Based on qualitative and quantitative evaluations performed with care givers we used an iterative prototyping approach to create digital artifacts aimed at improving the underlying health care processes. We detail the research processes of an augmented reality smart glass application for documenting chronic wounds and a smartphone application to support dispensing medication. Based on the exemplary cases, we derive process learnings on applying Design Thinking methods to digital innovation projects in health care.

Book ChapterDOI
01 Jan 2018
TL;DR: The digitale transformation of Wirtschaft und Gesellschaft is eines der beherrschenden Themen in der praxisorientierten Managementliteratur as mentioned in this paper.
Abstract: Die digitale Transformation von Wirtschaft und Gesellschaft ist eines der beherrschenden Themen in der praxisorientierten Managementliteratur. Vier Eigenschaften sind charakteristisch fur digitale Transformationsprozesse: Unausweichlichkeit, Unumkehrbarkeit, ungeheure Schnelligkeit und Unsicherheit in der Ausfuhrung. Fur Unternehmen sollte nicht die Frage im Vordergrund stehen, wie sie sich von den auf sie zukommenden Veranderungen entkoppeln konnen, sondern, wie sie den Transformationsprozess aktiv mitgestalten konnen.

01 Jan 2018
TL;DR: In this article, the authors draw on two case studies in the form of ridesharing and accommodation plat-forms to illustrate how they transitioned through four evolutionary phases with the help of tight and loose coupling partnerships.
Abstract: The emergence of digital platforms changes the way how companies interact with their ecosystem. Successful platforms like Apple’s App Store utilize an ecosys-tem of third-party developers to drive innovation. Those platforms are expanding the sphere of influence beyond internal resources and capabilities by taking ad-vantage of a scalable ecosystem of external developers. However, until now it is unclear on how those companies establish a platform ecosystem. This article draws on two case studies in the form of ridesharing and accommodation plat-forms to illustrate how they transitioned through four evolutionary phases with the help of tight and loose coupling partnerships.

Proceedings ArticleDOI
03 Jan 2018
TL;DR: It is shown that research should consider subgroups and potential consequences when examining agile and traditional software development methods and that location and language lead to the formation of subgroups in both methods.
Abstract: This paper analyzes the formation of subgroups within project teams that apply agile methods and teams that apply traditional methods. Subgroups form based on faultlines, which are dividing lines regarding attributes of diversity of the team members. We conduct case studies of two agile projects and two projects with a traditional approach. We find that the formation of subgroups differs between the two methods. Task assignment is the dominant factor that leads to the formation of subgroups in traditional methods, whereas previous ties between team members is the dominant factor in agile projects. In addition, location and language lead to the formation of subgroups in both methods. Our analysis is exploratory and our data is limited to four teams. We contribute to the literature on team formation and groups in IT project teams and show that research should consider subgroups and potential consequences when examining agile and traditional software development methods.

Book ChapterDOI
18 Jul 2018
TL;DR: This article draws on two case studies in the form of ridesharing and accommodation platforms to illustrate how they transitioned through four evolutionary phases with the help of tight and loose coupling partnerships.
Abstract: The emergence of digital platforms changes the way how companies interact with their ecosystem. Successful platforms like Apple’s App Store utilize an ecosystem of third-party developers to drive innovation. Those platforms are expanding the sphere of influence beyond internal resources and capabilities by taking advantage of a scalable ecosystem of external developers. However, until now it is unclear on how those companies establish a platform ecosystem. This article draws on two case studies in the form of ridesharing and accommodation platforms to illustrate how they transitioned through four evolutionary phases with the help of tight and loose coupling partnerships.

Journal ArticleDOI
TL;DR: TRAILS is a novel software tool that joins the heterogeneous artefacts, such as process models, requirements specifications or diagrams of the systems structure, onto a semantic model integration ontology onto which various source formats can be mapped.

Proceedings Article
01 Jan 2018
TL;DR: In this article, the authors analyzed reoccurring product service system (PSS) business model patterns as well as innovation strategies to transform from one pattern to another, i.e., product-oriented manufacturing, use-oriented enabling and result-oriented service offering.
Abstract: In saturated, product-oriented markets, services provide the potential for differentiation and growth. Innovating a firm’s business model (BM) by adopting product service systems (PSSs) seems promising. However, research provides only limited insights on how manufacturing firms can innovate their BM towards offering PSSs. Literature lacks strategies not only to adopt PSSs, but also to further innovate existing PSS BMs. Therefore, this study analyzes reoccurring PSS BM patterns as well as innovation strategies to transform from one pattern to another. We use an explorative, qualitative study with interviews in 14 business units of large manufacturing corporations that are engaged in a PSS BM innovation initiative. Results show three PSS BM patterns, i.e. product-oriented manufacturing, use-oriented enabling and result-oriented service offering. We demonstrate their practical implementation and further derive a conceptual framework for PSS BM innovation describing six evolutionary or transformative innovation strategies. Evolutions, i.e. universalization, digitization and service expansion, change only modules of a BM, whereas transformations, i.e. servitization, integration and leapfrogging, affect the whole architecture. Limitations are the small number of interviews and related limited number of cases. Nevertheless, findings indicate transformation paths and extensions to existing research on PSS types regarding the customization and ownership of PSSs.

Proceedings Article
01 Jan 2018
TL;DR: This paper visualizes the current blockchain ecosystem using the e3-value method consisting of eleven generic roles and identifies three strategic implications where blockchain is fundamentally different from prior approaches: governance, trust, and openness.
Abstract: The emergence of blockchain technology, most known due to the hype around Bitcoin, has the potential to transform entire industries, such as banking, insurance, or the Internet of Things (IoT) Yet, parallel ecosystems like cryptocurrencies that substitute products and services of traditional financial institutions emerged However, literature does not provide a structured overview of the blockchain ecosystem By analyzing 479 blockchain companies reported in the Crunchbase database, this paper visualizes the current blockchain ecosystem using the e3-value method consisting of eleven generic roles Moreover, we identify three strategic implications where blockchain is fundamentally different from prior approaches: governance, trust, and openness Scholars can apply the generic ecosystem for future research, while practitioners can use the model to identify possible disruptive actors or potential business opportunities

Journal ArticleDOI
TL;DR: A prototype for support of wound care management in nursing was designed and five nurses used the application in a real world setting to perform a wound documentation and gave it an overall positive evaluation.
Abstract: Smart Glasses are a promising technology that can be leveraged to improve flexible service processes. Especially in the field of nursing where practitioners are facing complex tasks and challenges. Introducing such pervasive computing devices in service processes may have both positive and negative consequences. This leads us to the following research questions: How does the usage of the Smart Glass applications change the caring situation? Which ideas for future usage of Smart Glasses do nurses have? To answer these questions we followed a design science research approach to design a prototype for support of wound care management in nursing. We evaluated the prototype in a real life situation. Five nurses used the application in a real world setting to perform a wound documentation. Afterwards, we conducted semi-structured interviews with the nurses. The intent of the interviews was not only to get information on the current prototype, but to generate knowledge about dimensions of changing the caring situation which should be considered further. The nurses gave the application an overall positive evaluation. They stated that they would expect an improvement of the quality of the wound documentation when using the device. In addition, they mentioned a change in the communication structure with the patient would be necessary. Furthermore, opinions regarding further use cases did differ.

Proceedings ArticleDOI
03 Jan 2018
TL;DR: Results show that proxy and collective control influence cloud customers’ perceptions but personal control does not, and only external control agents, who can apply sanctions, are perceived as being able to effectively protect privacy.
Abstract: Cloud customers need to assess whether their cloud service provider offers high-quality services and handles sensitive information confidentially. Privacy protection is therefore a major challenge during cloud sourcing. Although cloud customers want control over their sensitive information, they have limited resources to do so. They therefore consider other control agents, such as certification authorities or collectives, but the effectiveness of these groups to ensure privacy protection is unknown. This study differentiates between three control agents (personal control, proxy control, and collective control) and investigates the influence of these agents on cloud customers’ perceived control over sensitive information to protect privacy during cloud sourcing. Results show that proxy and collective control influence cloud customers’ perceptions but personal control does not. Therefore, only external control agents, who can apply sanctions, are perceived as being able to effectively protect privacy.

Journal ArticleDOI
09 Jul 2018
TL;DR: In this paper, established companies across different industries have launched platform ecosystems, by collaborating with numerous third-party developers, these companies seek to benefit from the integration of their platforms into the platform ecosystem.
Abstract: In recent years, established companies across different industries have launched platform ecosystems. By collaborating with numerous third-party developers, these companies seek to benefit from inn...

Proceedings Article
01 Jan 2018
TL;DR: Light is shed on the usage and application of different platform constructs within the context of IoT platforms to help future scholars to use the term platform more precisely and reveals the interrelatedness of the identified constructs.
Abstract: This contribution aims to shed light on the usage and application of different platform constructs within the context of IoT platforms. The main motivation is that scholars and practitioners use the term platform frequently as an unspecific or vague construct. Different research streams shape and influence the concept of a platform. They range from economic practices like the Two-Sided Market (TSM), Multi-Sided Platform (MSP) or platform business models, over technical platform aspects including standardization and modularization, to the platform ecosystem and the concept of an IS platform fostering value co-creation. Within those concepts, the upcoming phenomenon of IoT platforms represents a specific case to analyze what constructs are used to which extent. Thus, the study helps future scholars to use the term platform more precisely and reveals the interrelatedness of the identified constructs. However, the literature review is only a first step towards demystifying the concept of a platform, due to the limited context of IoT platforms.

Proceedings Article
01 Jan 2018
TL;DR: The presented study contributes to theory by providing a starting point for further research regarding the teaching of BPC in the context of the digital transformation and further contributes to practice as the provided requirements can be used as basis to implement a simulation game to teach BPC.
Abstract: This paper analyzes requirements for a simulation game to teach Business Process Change (BPC) in the context of the digital transformation. First, the necessity of a simulation game to teach BPC as part of the digital transformation of enterprises is presented. Afterwards, a literature review and focus group discussions are conducted to analyze the requirements for teaching BPC. Finally, the resulting requirements are presented within a framework that describes the learner specification, pedagogy, context, and mode of representation for a simulation game to teach BPC. The presented study contributes to theory by providing a starting point for further research regarding the teaching of BPC in the context of the digital transformation. It further contributes to practice as the provided requirements can be used as basis to implement a simulation game to teach BPC.

Book ChapterDOI
01 Jan 2018
TL;DR: In this paper, the authors discuss the trend of big data, cloud-computing, das Internet and Dinge and Blockchain, and stellen sie aber auch erhebliche Herausforderungen an Unternehmen.
Abstract: Big Data, Cloud-Computing, das Internet und Dinge und Blockchain sind Trends, die die technologischen Grundlagen fur die digitale Transformation darstellen und sie entscheidend mitbestimmen. Ihre Anwendungsfalle erstrecken sich uber verschiedene Industriezweige und Fachabteilungen. Bei allen Vorteilen, die digitale Technologien mit sich bringen, stellen sie aber auch erhebliche Herausforderungen an Unternehmen. Insbesondere erfordert der Einsatz neuer Technologien die Vernetzung verschiedenster Fachabteilungen und die Entwicklung neuer Kompetenzen bei Fuhrungskraften und Mitarbeitern.

Proceedings Article
01 Jan 2018
TL;DR: This paper visualizes the 22 generic roles and value streams within the financial ecosystem using the e3-value method and identifies and discusses seven inter-organizational innovation patterns of the digital transformation in the financial industry.
Abstract: The emergence of financial technology companies (Fintechs) through the easy access of digital technologies is transforming the entire financial industry, heralding a new era of business models. With digital technologies like mobile payments, robo advisors, and distributed ledgers or blockchain, Fintechs are challenging the prevailing position of traditional financial institutions. However, literature does not provide a structured overview of the digital transformation in the financial industry, including inter-organizational innovation patterns. By analyzing 792 Fintechs, this paper visualizes the 22 generic roles and value streams within the financial ecosystem using the e3-value method. Moreover, we identify and discuss seven inter-organizational innovation patterns of the digital transformation in the financial industry. We contribute to literature by examining digital transformation in the financial industry from an inter-organizational perspective. Practitioners may apply the model to position themselves and to identify disruptive actors or potential business opportunities. We also analyze the influence of blockchain technology.

Proceedings Article
01 Jan 2018
TL;DR: A mobile nutrition assistance system that specifically makes use of personalized persuasive features based on nutritional intake that could help users to adapt their behavior towards healthier nutrition is proposed.
Abstract: A nutrition assistance system gives feedback on one’s dietary behavior and supports behavior change through diverse persuasive elements like self-monitoring, personalization, and reflection implemented e.g. with visual cues, recommendations or tracking. While an automated recommender system for nutrition could provide great benefits compared to human nutrition advisors, it also faces a number of challenges in the area of usability like efficiency, efficacy and satisfaction. In this paper, we propose a mobile nutrition assistance system that specifically makes use of personalized persuasive features based on nutritional intake that could help users to adapt their behavior towards healthier nutrition. In a pilot study with 14 participants using the application for 3 weeks we investigate how the different features of the overall system are used and perceived. Based on the measurements, we examine which functions are important to the users and determine necessary improvements.

Proceedings ArticleDOI
01 Jan 2018
TL;DR: This study proposes a framework that supports establishing a systematic solution for inconsistency identification during PSS development and proposes approaches for managing inconsistency among various type of models.
Abstract: Value shift towards services led to emergence of product-service systems (PSS) as intertwined products and services. PSS development requires collaborating teams with higher domain diversity to tackle service side as well as product side. Since every domain employs a particular set of tools and models, it is challenging to manage consistency among them. However, the PSS literature lacks approaches for managing inconsistency among various type of models. This study proposes a framework that supports establishing a systematic solution for inconsistency identification during PSS development.

Book ChapterDOI
01 Jan 2018
TL;DR: Based on 14 explorative interviews with cloud service experts, the relationship between cloud service provider profitability and value facilitation, which stands for the capability to build up resources in advance of future customer engagements, is investigated.
Abstract: With the increasing maturity of cloud technologies and the growing demand from customers, the cloud computing ecosystem has been expanding continuously with both incumbents and new entrants, whereby it has become more distributed and less transparent. For cloud service providers previously focusing on growth strategies, it is now necessary to shift the attention to providing service efficiently, as well as profitably. Based on 14 explorative interviews with cloud service experts, the relationship between cloud service provider profitability and value facilitation, which stands for the capability to build up resources in advance of future customer engagements, is investigated. The results indicate a positive relationship between cloud service profitability and value facilitation and deliver valuable insights for both researchers and practitioners. In particular, guidelines on how to design profitable cloud service offerings are discussed.