IDEAS home Printed from https://ideas.repec.org/p/dar/wpaper/146709.html
   My bibliography  Save this paper

AI Strategy in Action: A Case Study on Make-or-Buy for AI-based Services

Author

Listed:
  • Gräf, Miriam
  • Mehler, Maren F.
  • Ellenrieder, Sara

Abstract

Organizations integrating artificial intelligence (AI) services to optimize their performance regularly face a make-or-buy (MoB) decision, whether they develop AI services internally, purchase from external providers, or decide on a combination of both. The literature lacks detailed knowledge on how MoB decisions for AI-based services are uniquely influenced. We conducted a case study in a large mobility and logistics organization to derive these factors. We interviewed 16 experts on AI and MoB decisions to validate existing factors regarding MoB for IT and identify additional factors specific to AI services. Our findings suggest that strategic importance and data security are particularly relevant when making MoB decisions for AI services. In addition, the latter and case differentiation are specific factors we identified for AI services. The guidelines derived from our study provide a framework for organizations and scholars to evaluate MoB for AI services for informed decisions that align with their strategy.

Suggested Citation

  • Gräf, Miriam & Mehler, Maren F. & Ellenrieder, Sara, 2024. "AI Strategy in Action: A Case Study on Make-or-Buy for AI-based Services," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 146709, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:146709
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/146709/
    as

    Download full text from publisher

    File URL: https://aisel.aisnet.org/pacis2024/track01_aibussoc/track01_aibussoc/8
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dar:wpaper:146709. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dekanatssekretariat (email available below). General contact details of provider: https://edirc.repec.org/data/ivthdde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.