A performance-driven incentive-based approach for successful service delivery

Abstract

This paper proposes an appropriate incentive scheme design for service delivery systems to ensure service deliverability. We use proactive continuous performance monitoring to provide qualitative observations and data on how well services are being provided and whether desired service outcomes are being achieved as a result of interaction between two parties (service provider and service requester). The paper provides a general framework for analyzing the effectiveness of incentive and proactive continuous monitoring in ensuring successful service delivery. The objective of the incentive is to motivate the service provider to deliver service as agreed to by both parties. We show the robustness of the framework by running several simulations under various conditions. It is shown that proactive continuous monitoring and incentive are essential for increasing performance which will result in successful service delivery.