Service Innovation in Value-Network through Clusters Consolidation

Nowadays, the rapidly changing technology development and the demand to provide high-end solutions to customers needs increase the opportunity of networking various small enterprises, offering service oriented businesses. The existing value network should be, viewed as a fluid infrastructure, clustering together various enterprises (sub-networks). Based on the business scenario of individual enterprises' in a specified time interval, few subnets maybe underutilized and few subnets may be over-utilized, thereby necessitates periodic changes in the distribution of customers. Here we propose a number of redesign operations on the customers' clusters (enterprises), which are sub-networks in the value network, with the conscious to minimize the extra-traffic in the backbone network. Thus we have proposed an optimization re-design problem to reduce the extra-traffic at the value network and maximize the intra-traffic within the clusters (subnets) by considering customers' movement and clusters consolidation. We have utilized Simulated Annealing (SA) algorithm to search for the best solution to the re-clustering problem. Our simulation results show a better trade-off in minimizing the extra-traffic through clusters consolidation and improve efficiency in operations for the service providers.