University of Auckland Business School
In this paper, the authors contribute to the research on the valuation of business process flexibility. This flexibility provides the ability for companies to select the most appropriate execution path for each process instance at runtime from alternative execution paths. Therefore, they introduce a model to calculate the value of flexibility, which a company gains by embedding an external service provider that can execute arriving process instances. It is the flexibility to choose whether it is more lucrative to execute a process instance internally or externally depending on the current work load in the process.