What is it about?
As capability management is becoming more and more important to organisations, so is capability sourcing. The paper presents a model-based approach to explore alternatives for capability sourcing (e.g., in-house development, outsourcing, insourcing, shared service center) and to evaluate them based on strategic and performance metrics.
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Why is it important?
In highly dynamic and competitive environments, capability-based planning makes organisations agile and allows them to cope with uncertainties. While capability maps might indicate which capabilities to source to close capability gaps, little guidance is available on how to best source lacking capabilities. The paper provides an easy-to-use language to model decisive factors in capability sourcing and to support capability sourcing decision-making.
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This page is a summary of: Value-Driven Strategic Sourcing Based on Service-Dominant Logic, Service Science, December 2017, INFORMS,
DOI: 10.1287/serv.2017.0190.
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