Grid Computing as an Integrating Force in Virtual Enterprises

Constrained economics, globalization, competition, alliance, outsourcing, and network economy, all force enterprise IT applications to be reviewed from a new perspective. IT managers are frequently asked if the enterprises already have enough IT capacity; if IT departments should be outsourced; how long will it take to connect our ERP with our partners’ ERPs; if the real-time business process information across all partners are visible for decision makers, and other question of similar nature. This thesis investigates grid computing as an integrating platform for inter-enterprise IT applications. Grid computing provides a flexible infrastructure to share Internet-connected resources, including computers, data storages, software, sensors, instruments, and wireless equipment. It implements the model of on-demand resource sharing across administrative domains. Although the resource virtual market mechanisms are still under development, some pioneering enterprises have moved to implement intra-enterprise grid applications and have seen the benefits from such applications. After reviewing the development of enterprise computing, this thesis identifies the requirements of new virtual enterprises computing. Grid fundamental technologies are described based on Globus. Then, four kinds of grid applications are identified and analyzed in the virtual enterprise environment. Business practice case studies are presented after the respective individual application. This thesis also identifies that the key of virtual enterprises is dynamic relationship management. Contract Net, a high level protocol, is adapted to manage this relationship. The concluding section identifies key issues for further research. Thesis Supervisor: Dr. Amar Gupta, Sloan School of Management Thesis Reader: John R. Williams, Associate Professor of Civil and Environmental Engineering