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World Wide Value Web
      Automated Design of Real-World Multi-party Services on the Web


      Dr. Pieter De Leenheer




Tuesday 25 December 12
The Value Web is there already ...

      • Ever wondered what happens when you click these “links” ?




                                            [Right  to  make  tracks  public]        [MONEY]                                                    [Right  to  make  tracks  public]          [MONEY]

                                                                                                                      [Track]        [MONEY]




                                                                                                          [MONEY]                                                      [MONEY]
                                                                                                                                        [Right  to  make  tracks  public]




                                                     [Right  to  collect  fees]       [MONEY]                                                            [Right  to  collect  fees]        [MONEY]




                                            [Right  to  clear  a  track]       [MONEY]                                  [Right  to  clear  a  track]     [MONEY]                              [Right  to  clear  a  track]   [MONEY]
                                                                               [Right  to  clear  a  track]     [MONEY]                                   [Right  to  clear  a  track]       [MONEY]




                                                                                                    Value              Value           Value               AND      OR   Explosion
                                                             Legend                Actor          interface             port          Transfer            element element element

                                                                                  Market Activity Consumer Connect. Boundary Value
                                                                                  segment           need   element element object
                                                                                                                              [...]




Tuesday 25 December 12
The Value Web is there already ...

      • Ever wondered what happens when you click these “links” ?




                                            [Right  to  make  tracks  public]        [MONEY]                                                    [Right  to  make  tracks  public]          [MONEY]

                                                                                                                      [Track]        [MONEY]




                                                                                                          [MONEY]                                                      [MONEY]
                                                                                                                                        [Right  to  make  tracks  public]




                                                     [Right  to  collect  fees]       [MONEY]                                                            [Right  to  collect  fees]        [MONEY]




                                            [Right  to  clear  a  track]       [MONEY]                                  [Right  to  clear  a  track]     [MONEY]                              [Right  to  clear  a  track]   [MONEY]
                                                                               [Right  to  clear  a  track]     [MONEY]                                   [Right  to  clear  a  track]       [MONEY]




                                                                                                    Value              Value           Value               AND      OR   Explosion
                                                             Legend                Actor          interface             port          Transfer            element element element

                                                                                  Market Activity Consumer Connect. Boundary Value
                                                                                  segment           need   element element object
                                                                                                                              [...]




Tuesday 25 December 12
The Value Web is there already ...

      • Ever wondered what happens when you click these “links” ?




Tuesday 25 December 12
N+1 Tethered Value Webs
      • walls slowing down innovation
      • no matter what’s being purchased: 1 mediator who takes the cream




                                                                     http://www.statista.com/


Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London




Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London
      • OR


                 • purchase a water-proof wall to keep water
                   out




Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London
      • OR


                 • purchase a water-proof wall to keep water
                   out


                 • purchase a pump to dispense ground water
                   from the tunnel




Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London
      • OR


                 • purchase a water-proof wall to keep water
                   out


                 • purchase a pump to dispense ground water
                   from the tunnel


                         • new value object (i.e., asset): unlimited
                           water resource


                         • provided by “pumping service”




Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London
      • OR


                 • purchase a water-proof wall to keep water
                   out


                 • purchase a pump to dispense ground water
                   from the tunnel


                         • new value object (i.e., asset): unlimited
                           water resource


                         • provided by “pumping service”


                         • value integrator: the London Water
                           Authority (e.o.) in need of water
                           resources




Tuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London
      • OR


                 • purchase a water-proof wall to keep water
                   out


                 • purchase a pump to dispense ground water
                   from the tunnel


                         • new value object (i.e., asset): unlimited
                           water resource


                         • provided by “pumping service”


                         • value integrator: the London Water
                           Authority (e.o.) in need of water
                           resources


      • new service value network that turns a problem into
        opportunity is win-win for both parties




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee


                 • value objects: fee, certificate




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee


                 • value objects: fee, certificate


            • offer certified language course for free in return
              for written assessments via sentence
              translations


                 • new value object: language-to-language
                   sentence translations




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee


                 • value objects: fee, certificate


            • offer certified language course for free in return
              for written assessments via sentence
              translations


                 • new value object: language-to-language
                   sentence translations


                 • through text translating service




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee


                 • value objects: fee, certificate


            • offer certified language course for free in return
              for written assessments via sentence
              translations


                 • new value object: language-to-language
                   sentence translations


                 • through text translating service


            • value integrator: content providers




Tuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo
      • OR


            • offer certified online language courses in return
              for a subscription fee


                 • value objects: fee, certificate


            • offer certified language course for free in return
              for written assessments via sentence
              translations


                 • new value object: language-to-language
                   sentence translations


                 • through text translating service


            • value integrator: content providers


      • articulating tacit value objects hidden in existing
        service relationships creates new value for both
        parties.


Tuesday 25 December 12
More Examples of Successful Networked Value
      Propositions Cleverly Combine Web Relations
      • http://www.slideshare.net/boardofinnovation/10-business-models-that-rocked-2010-6434921


      • talent for the happy few, but how to automate this design process ?




Tuesday 25 December 12
Overview of the Claims




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.


      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness
         to devise new forms of value co-creation. To this end, enterprises must abandon value-chain
         thinking.




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.


      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness
         to devise new forms of value co-creation. To this end, enterprises must abandon value-chain
         thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent to these
         relationships that would lead them to gravitate towards unanticipated value propositions.




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.


      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness
         to devise new forms of value co-creation. To this end, enterprises must abandon value-chain
         thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent to these
         relationships that would lead them to gravitate towards unanticipated value propositions.


      4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks
         (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web.




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.


      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness
         to devise new forms of value co-creation. To this end, enterprises must abandon value-chain
         thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent to these
         relationships that would lead them to gravitate towards unanticipated value propositions.


      4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks
         (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web.

      5. (Service) Value Web technologies should embody generative principles similar to those that lead to
         the success of the Web itself. In other words, Internet-based SVN technologies should allow for
         unanticipated contribution of value (through service) to the Web by enabling anyone to share and
         trade their value objects, just like previous generations of the Web did for knowledge and social
         sharing.




Tuesday 25 December 12
Overview of the Claims

      1. Our world is a large-scale non-linear network of rich relationships between technologies, people,
         and organisations, emerging from the Web.




                           How come ?




Tuesday 25 December 12
Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
“By carefully excluding features that are not universally useful Internet
                technologies became easily adopted on a massive scale and gave the Web a
                         generative [i.e. self-reproductive] character” (Zittrain, 2009).




                          Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
“By carefully excluding features that are not universally useful Internet
                                                 technologies became easily adopted on a massive scale and gave the Web a
                                                          generative [i.e. self-reproductive] character” (Zittrain, 2009).


                                                                                                                                                                     Autonomic
                                                                                                                                                                                           Semantic Agent  Agent webs
                                                                   Artificial                                                Intelligent         Natural                                    Ecosystems
                                                                 Intelligence                                                  Agents           Language
                                                                                                                                                                     Intellectual                           That know,
                                                                                                                                                                      Property
                                                                                                                                                                                        Smart
                                                                                                                                                                                                        Learn & reason
                                                                                                             Personal
                                                                                                            Assistants
                                                                                                                                                                    Spime              Markets           As humans do
              Increasing Knowledge Connectivity & Reasoning




                                                                                                                                                 Blogjects
                                                                                                                                                                                                             Semantic
                                                                                     The Semantic Web                                                                 The Ubiquitous Web                    Communities
                                                                                      Connects Knowledge                                                                 Connects Intelligence          Semantic
                                                                Ontologies                                                        Semantic                                                              Enterprise
                                                                                                 Semantic                                       Semantic                        Semantic
                                                                                                                                 Website & UI
                                                                                                  Search                                          Blog                            Wiki        Semantic
                                                                                    Knowledge                                                                                               Social networks
                                                                                                                      Semantic
                                                                                      Bases                                                                   Semantic
                                                               Thesauri &                                              Desktop                                                          Context-Aware
                                                                                                                                                               Email
                                                              Taxonomies                                                                                                                   Games
                                                                                                        Bots

                                                                                                                                                                                       Multi-user
                                                                                                                                  Enterprise      Mash-ups                   Wiki                                Community
                                                                                                                                                                                        Gaming
                                                                                  Search Engines                                   Portals                                                                         Portals

                                                                                                                                                                                    Marketplaces
                                                                Content Portals
                                                                                                                             Web Sites                                   RSS         & Auctions
                                                                                                                                                      Blogs
                                                                                                                                                                                                               Social
                                                                                                                                                                                                            Bookmarking
                                                                                            The Web                         PIMS                                            The Social Web
                                                                                      Connects Information                                                                  Connects People

                                                                                                               Desktop                              Email
                                                                   Databases                                                                                                                              Social
                                                                                                      “Push”                                                 Conferencing                                Networks
                                                                                                Publish & Subscribe
                                                                                                                                      P2P
                                                                                                                                 File Sharing                                  Instant Messaging
                                                                   File Servers

                                                                                                                            Increasing Social Connectivity




                                                                                Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
“By carefully excluding features that are not universally useful Internet
                technologies became easily adopted on a massive scale and gave the Web a
                         generative [i.e. self-reproductive] character” (Zittrain, 2009).




                          Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
“By carefully excluding features that are not universally useful Internet
                technologies became easily adopted on a massive scale and gave the Web a
                         generative [i.e. self-reproductive] character” (Zittrain, 2009).




     Web Science: The Web’s relational
           patterns exhibit “long tail”
     distributions: “80% of sales goes to
             20% of the offerings”




                          Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org
Tuesday 25 December 12
Overview of the Claims


      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness
         to devise new forms of value co-creation. To this end, enterprises must abandon value-chain
         thinking.



                             Why is this not happening ?




Tuesday 25 December 12
From Chain to Network

                            value-in-exchange                                value-in-use

                               transaction                                   relationships

                         operand resource (goods)            operant resource (knowledge, consumer)

                             marketing push                                 consumer pull

                               technology                                service and content

                           customer acquisition                          customer retention




       Service = the applications of competences (knowledge and skills) for the benefit of a party

       Service = action; not object



Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture




                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture
      • believed to be core enabling technology, however no large-scale adoption for our service economy

            • a componential approach inspired by product innovation: “bill of materials” and “urban architecture”




                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture
      • believed to be core enabling technology, however no large-scale adoption for our service economy

            • a componential approach inspired by product innovation: “bill of materials” and “urban architecture”

                 ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and
                   coopetition




                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture
      • believed to be core enabling technology, however no large-scale adoption for our service economy

            • a componential approach inspired by product innovation: “bill of materials” and “urban architecture”

                 ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and
                   coopetition

            • biased by the enterprise-centric vision, hence electronic business implementations:

                 • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality

                 • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and
                   control flow




                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture
      • believed to be core enabling technology, however no large-scale adoption for our service economy

            • a componential approach inspired by product innovation: “bill of materials” and “urban architecture”

                 ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and
                   coopetition

            • biased by the enterprise-centric vision, hence electronic business implementations:

                 • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality

                 • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and
                   control flow

                 ➡ completely ignores aspects related to the exchange of value: e.g., strategy, proposition, roles, resourcing,
                   pricing, quality and regulatory compliance




                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
The Problem of SOA: Service-oriented Architecture
      • believed to be core enabling technology, however no large-scale adoption for our service economy

            • a componential approach inspired by product innovation: “bill of materials” and “urban architecture”

                 ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and
                   coopetition

            • biased by the enterprise-centric vision, hence electronic business implementations:

                 • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality

                 • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and
                   control flow

                 ➡ completely ignores aspects related to the exchange of value: e.g., strategy, proposition, roles, resourcing,
                   pricing, quality and regulatory compliance

      • complement SOA with value abstraction level: declare knowledge about what the business domain constitutes in
        terms of assets and relationships that allows to reactively adapt its role in changing value propositions.

      • Service-dominant logic: ontological analysis of “service” as a perdurant (“action”), rather than an endurant (“object”)....


                 Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships
                 among this constellation of actors in order to mobilise the creation of value in new forms and by
                 new players.”
Tuesday 25 December 12
Service Network Approaches: State of the Art
                                                                                             Wiki-                                                           (Becker,




                                         decentralised relationship-driven organisation
                                                                                            nomics                     Value                                  2009)
      • dotted circles:                                                                   (Tapscott,
                                                                                             2008)
                                                                                                                     Networks
                                                                                                                      (Allee,
                                                                                                                                               e3service
                                                                                                                                                  (de
                                                                                                                      2002)                    Kinderen,
                                                                                                                                   Servigu-
            • process-based                                                                                                         ration
                                                                                                                                   (Baida,
                                                                                                                                                 2009)         SNN
                                                                                                                                                             (Bitsaki,
                                                                                                                                                              2008)




                                                        Network-centric:
                                                                                                                                    2006)
            • planning problem
                                                                                                                     e3value
                                                                                            Digital                  (Gordijn,
                                                                                                                                                             METEOR
                                                                                            Capital                   2002)                                  -S (2005)

      • solid circles:
                                                                                          (Tapscott,
                                                                                            2000)
                                                                                                         Service                       u-                     Ontomat
                                                                                                       Architectu-
            • value-based
                                                                                                                                    Service                  (Agarwal,
                                                                                                       res (Booth,
                                                                                                                                     (Lee,                     2004)
                                                                                                          2004)
                                                                                                                       REA           2011)
                                                                                                                     (McCarthy,                                            Dynami-

            • design problem                                                                                           1982)                                  (Razo-
                                                                                                                                                             Zapata,
                                                                                                                                                                           CoS (Da
                                                                                                                                                                            Silva,
                                                                                                                                                             BUSITAL        2011)
                                                                                                                                                               2011)




      ➡ low tendency towards
        decentralised and automated                                                                                                                         (Gordijn et
                                         hierarchical process-driven organisation




                                                                                                                                                               al.,        (Traverso
                                                                                                                                     CPC
                                                                                                                                                             HICCS,         , 2004)
        approaches                                                                                                                  (Letia,
                                                                                                                                    2008)
                                                                                                                                                              2011)



      ➡ contamination of process-thinking
                                                    Enterprise-centric:




        in network-centric approaches                                                                                               (Kohl-
                                                                                                                                     born,
                                                                                                                                                              (Razo-
                                                                                                                                                             Zapata et
                                                                                                                                                                al.,
                                                                                                                                    2010)       GVP          BUSITAL,
      ➡ lonely at the top?                                                                                                                     (Zlatev,
                                                                                                                                                2007)
                                                                                                                                                               2010)




                                                                                                                                   O-WSP                        VBC
                                                                                                                                   (Omela-                   (Nakamu
                                                                                           Value          BMO
                                                                                                                                    yenko,                   ra, 2006 )
                                                                                           Chain         (Oster-
                                                                                                                                    2006)
                                                                                          (Porter,       walder,
                                                                                           1985)          2004)




                                       ICT support:                                        None         Design       Analysis     Bundling    Matching     Composition     Dynamic
                                                                                                                                                                          Composition

Tuesday 25 December 12
Overview of the Claims




Tuesday 25 December 12
Overview of the Claims
      1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and
         organisations, emerging from the Web.




Tuesday 25 December 12
Overview of the Claims
      1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and
         organisations, emerging from the Web.

      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to
         devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking.




Tuesday 25 December 12
Overview of the Claims
      1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and
         organisations, emerging from the Web.

      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to
         devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent
         to these relationships that would lead them to gravitate towards unanticipated value
         propositions.




Tuesday 25 December 12
Overview of the Claims
      1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and
         organisations, emerging from the Web.

      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to
         devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent
         to these relationships that would lead them to gravitate towards unanticipated value
         propositions.

      4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value
         Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value
         Web.




Tuesday 25 December 12
Overview of the Claims
      1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and
         organisations, emerging from the Web.

      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to
         devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking.


      3. One challenge is to articulate the structure and composition of value objects inherent
         to these relationships that would lead them to gravitate towards unanticipated value
         propositions.

      4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value
         Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value
         Web.

      5. (Service) Value Web technologies should embody generative principles similar to those that lead to
         the success of the Web itself. In other words, Internet-based SVN technologies should allow for
         unanticipated contribution of value (through service) to the Web by enabling anyone to share and
         trade their value objects, just like previous generations of the Web did for knowledge and social
         sharing.



Tuesday 25 December 12
Service Value Networks


  • service co- production, i.e. ”bundling”

       • in function of well-articulated needs.

       • reflects an acceptable trade-off between

             • value proposition (to maximize short-
               term profit) and

             • market accuracy (to minimize
               consumer sacrifice)

       • fractal system: the Value Web is a SVN in
         which every peer itself can be an SVN

             • thus SVN composition becomes a
               complex problem



Tuesday 25 December 12
Service Value Networks
              An SVN is a complex system of peers that establish the necessary relationships to collectively
              produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo-
              Zapata, De Leenheer, & Gordijn, 2011).

  • service co- production, i.e. ”bundling”

       • in function of well-articulated needs.

       • reflects an acceptable trade-off between

             • value proposition (to maximize short-
               term profit) and

             • market accuracy (to minimize
               consumer sacrifice)

       • fractal system: the Value Web is a SVN in
         which every peer itself can be an SVN

             • thus SVN composition becomes a
               complex problem



Tuesday 25 December 12
Service Value Networks
              An SVN is a complex system of peers that establish the necessary relationships to collectively
              produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo-
              Zapata, De Leenheer, & Gordijn, 2011).

  • service co- production, i.e. ”bundling”

       • in function of well-articulated needs.

       • reflects an acceptable trade-off between

             • value proposition (to maximize short-
               term profit) and

             • market accuracy (to minimize
               consumer sacrifice)

       • fractal system: the Value Web is a SVN in
         which every peer itself can be an SVN

             • thus SVN composition becomes a
               complex problem                                        teaching “introduction to databases”



Tuesday 25 December 12
Service Value Networks
              An SVN is a complex system of peers that establish the necessary relationships to collectively
              produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo-
              Zapata, De Leenheer, & Gordijn, 2011).

  • service co- production, i.e. ”bundling”
                                                                           ability to normalise a database
       • in function of well-articulated needs.

       • reflects an acceptable trade-off between

             • value proposition (to maximize short-
               term profit) and

             • market accuracy (to minimize
               consumer sacrifice)

       • fractal system: the Value Web is a SVN in
         which every peer itself can be an SVN

             • thus SVN composition becomes a
               complex problem                                        teaching “introduction to databases”



Tuesday 25 December 12
Service Value Networks
              An SVN is a complex system of peers that establish the necessary relationships to collectively
              produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo-
              Zapata, De Leenheer, & Gordijn, 2011).

  • service co- production, i.e. ”bundling”
                                                                           ability to normalise a database
       • in function of well-articulated needs.
                                                                                        certificate / diploma
       • reflects an acceptable trade-off between

             • value proposition (to maximize short-
               term profit) and

             • market accuracy (to minimize
               consumer sacrifice)

       • fractal system: the Value Web is a SVN in
         which every peer itself can be an SVN

             • thus SVN composition becomes a
               complex problem                                        teaching “introduction to databases”



Tuesday 25 December 12
SVN Composition Problem: Design vs. Planning
 • Composition is a Design- rather than
   Planning- problem
                                             4.1. SVN COMPOSITION                                    63
       • “service artifact”: what value is
         exchanged rather than how and
         when

       • value network analysis

            • patterns of exchange ?

            • causal effect of value within
              and on environment?

                  • value accuracy?

            • self-adaptation principles?




Tuesday 25 December 12                                  Figure 4.1: The SVN Composition Framework.
Articulating needs: from a long & happy life down to
      toothpaste
                                                                                          S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting



                                                                                          Problem              Information                                                    Post-
                                                                                                                                    Evaluation           Purchase
                                                                                          recognition          search                                                         purchase


                                                                                                         Fig. 1. The Customer Buying Behavior Model, cf. Kotler (2000)


                                                                             Most scholars refer to the above characteristics, but use them in different combinations to provide th
      • I.S. requirements engineering meets marketing interpretation of what a service is. Some emphasize one specific aspect, such as “services are dee
                                                   own theory:
                                                                    processes or performances” (see Bitner et al. (2008)) while others, most notably Vargo and Lusch (20
                                                                    conclude that everything is a service.
            • separation of structure                                  means-end chaining, quality function
                                                  and solution (e.g., For this article, we adopt a business science interpretation of the term service. Of particular importa
              deployment, problem                 frames, i*) reveals differentchallenging,aspects. Services have an attributes:produce valuable outcomes,
                                                                    for us are the following two
                                                                    about services is
                                                                                        functions of productproducts. Services therefore automated reason
                                                                                                    as opposed to physical
                                                                                                                              intangible nature,

                                                                    latter providing us with matchmaking capabilities with customer needs.
                  • product (toothpaste): attribute (minty) -> consequence (neat image, increase social
                                                          2.2. Customer needs
                    inclusion) -> value (sense of beloning) <= 3need for a happy life
                                                                 The e service ontology is unique in a way that it considers analysis of customer needs key. To ens
                                                              a needs-driven service bundling process, we require an understanding of the steps that a customer usua
                  • product (toothpaste): attribute(calcium;teeth strengthener) -> consequence (stay purchase a service offeri
                                                              takes to arrive from the goals that s/he wants to achieve, to the decision to healthy)
                                                              Marketers provide us with several buying behavior theories that help us understand the main steps t
                      <= need for a long life [note: attribute(minty) not relevant] prominent amongst these is the Customer Buying Behavior (CB
                                                              customers use in this process. Most
                                                              model, which we find in amongst others Kotler (2000); Solomon (2003); Loudon and Della-Bitta (199
                                                                 The CBB model consists of the five steps depicted in Fig. 1: (1) problem recognition, in which the c
            •   .... and semantically encode this in consequence aware of a needbasedbeon a customersearch, in which the customer se
                                                              tomer becomes ladders, that is to satisfied (2) information
                perspective ontology:                         out benefits required to satisfy this need (3) evaluation, in which the customer decides upon the prod
                                                              that maximizes the desired features and minimizes the negative features (4) product buying, in wh
                                                              the customer actually buys the product and finally (5) the post-purchase phase, in which the custom
                                                                                                      2
                       • Kinds of needs: physical good (house),the the stepsinofuse-situations. monetary resources, (1) separation betw
                                                              evaluates
                                                                 Following
                                                                            product
                                                                          human resource, (Kotler, 2000, p. 177-178), we discuss
                                                                                        the CBB model
                         information, capability (course), experience (museum customer seeks products, and (3) how products arecar by b
                                                              problems and solutions, (2) how a visit), state change (hair cut, evaluated
                                                              ancing positive and negative service features.
                           wash, a flight)
                                                                             2.2.1. Separation of problem and solution
                                                                               The CBB model sees problem recognition and information search (hence finding a solution) as t
                                                                             separate phases, hence emphasizing the explicit separation between problem specification and probl
Tuesday 25 December 12
Customer Perspective Ontology & Example (1) in the
      domain of Assisted Living for Dementia Patients                                              6                 S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier s


                                                                                                                                    nominal                                                                                                                 Scale                    Need

                                                                                                                                     ordinal                                                                                                                Has 0...1     Specified by 1…*
                                                                                                                                                                                                                                                                         Consists  of   Depends  on
                                                                                                                                     interval                                                                                   Has 0..1
                                                                                                                                                                                                                                Quality                                                    0…*
                                                                                                                                                                                                                                                                           0…*




                                                                                                                                                        S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting
       need                                                                   I cannot cope anymore,                                                                                                                         consequence
                                                                                  what can help?                                       ratio                                                                                                                                     Consequence
                                                                                                                                                                                                                              Functional  
       Want                                                                                                                                                                                                                  consequence                                      0…* Has 1…* 0…*
                                                                                                                                                                                                                                                                        Core  enhancing Optional  bundling
     Functional                                                                                                                                                                                                                                                            Contained  in 0…*
    consequence           ….                  Physical activities for   Practical support                Social support for       Social support
                                              person with dementia      for person with dementia       person with dementia       informal carer                                                                                                                                    Want
      Scales of                                                                                                                                                                                                                                                            0..*          0…*
       quality                                                                                                                                                                                                                                                          Core  enhancing Optional  bundling
    consequences                                     …..
                         ….
                                                                                                                                                 Fig. 2. The e3 service customer perspective ontology
                                                                                                                                       …..
                                                                                                             …..

                                                                                                    original social chart. Since the tool conforms exactly to the reasoning steps from e3 ser
           …..                                                                                      tion is that we can also validate the usefulness of e3 service through such a demonstrati
                                                                                                    involved scenario walkthroughs, where realistic consumer needs - such as a customer
     Handyman                      Loaningservice               Diningtable                         meal-preparationDinnerdeliverywere taken as starting points to show how the tool interacts
                                                                                                Transportation         service -
        Adjustments to              Possibility to         -                               OB       carer. For each scenario delivery
                                                                                                   Transportation        Meal walkthrough, the domain expert then commented to what exten
            home
                         OB    -
                                    loan eg. an                    Meal preparation -      OB       principles could constitute a useful addition to the existing social chart.
                                    (electrical)                                                                              Meal preparation
                                    wheelchair
                                                                    Social contacts
                                                                   dementia-patient
          Adjustment:
            Large, eg.
                                                                                                   4. The e3 service ontology
                                                                    Social contacts
            Stairlift                Duration:                      informal carer                                        ….
            Minor, eg.
            Ramps
                                           <= 6 Months                                    This section discusses the concepts and relationships of the e3 service ontology, e
                                          > 6 Months Contact type: In person
                                                     Preparation: Hot
                                                                                       running dementia-care case study. Section 5 shows how to reason with the ontology.
    Casemanagement        Dagsocieteit                                                    The e3 service ontology takes two perspectives on services: the customer perspective
                                                              Diet                          Contact type    Preparation
     Keeping informed C/E -
                             Recreational activities
                                                                  Sugar free
                                                                                       supplier perspective (Sect. 4.2). Additionally, there is a pricing ontology (see Sect. 4.
                                                                                                Internet       Frozen
      about dementia
          patient               Social contacts                   Kosher               the e3 service ontologyHot been published earlier, in de Kinderen (2010), de Kinderen
                                                                                                In person       have
                                                     …..          Flesh as main course
                               dementia-patient
                                                                  Meat as main course
                                                                                       de Kinderen et al. (2009).
                                                                                          We define the ontology in terms of UML class diagrams. The ontology is also av
       Kinderen, de S.; De Leenheer et al. An ontology for needs-driven service bundling inMoreover, the ontology In J. been implemented in RDF (static part) and Jav
                                                                                       specification. a multi-supplier setting. has of Applied Ontology, 2013 (to appear)
                                                                                       (see Sect. 6).
Tuesday 25 December 12
Customer Perspective Ontology & Example (1) in the
      domain of Assisted Living for Dementia Patients                                              6                 S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier s


                                                                                                                                    nominal                                                                                                                 Scale                    Need

                                                                                                                                     ordinal                                                                                                                Has 0...1     Specified by 1…*
                                                                                                                                                                                                                                                                         Consists  of   Depends  on
                                                                                                                                     interval                                                                                   Has 0..1
                                                                                                                                                                                                                                Quality                                                    0…*
                                                                                                                                                                                                                                                                           0…*




                                                                                                                                                        S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting
       need                                                                   I cannot cope anymore,                                                                                                                         consequence
                                                                                  what can help?                                       ratio                                                                                                                                     Consequence
                                                                                                                                                                                                                              Functional  
       Want                                                                                                                                                                                                                  consequence                                      0…* Has 1…* 0…*
                                                                                                                                                                                                                                                                        Core  enhancing Optional  bundling
     Functional                                                                                                                                                                                                                                                            Contained  in 0…*
    consequence           ….                  Physical activities for   Practical support                Social support for       Social support
                                              person with dementia      for person with dementia       person with dementia       informal carer                                                                                                                                    Want
      Scales of                                                                                                                                                                                                                                                            0..*          0…*
       quality                                                                                                                                                                                                                                                          Core  enhancing Optional  bundling
    consequences                                     …..
                         ….
                                                                                                                                                 Fig. 2. The e3 service customer perspective ontology
                                                                                                                                       …..
                                                                                                             …..
                                                                                                                                                                                                                                                                want (≠ consequence) is a
                                                                                                    original social chart. Since the tool conforms exactly to the reasoning steps from e3 ser
           …..
                                                                                                                                                    set of consequences at
                                                                                                    tion is that we can also validate the usefulness of e3 service through such a demonstrati
                                                                                                    involved scenario walkthroughs, where realistic consumer needs likes to a customer
                                                                                                                                                    least one party - such as
     Handyman                      Loaningservice               Diningtable                         meal-preparationDinnerdeliverywere taken as starting points to show etc.)the tool interacts
                                                                                                Transportation         service -                    offer (NAPCS, how
        Adjustments to              Possibility to         -                               OB       carer. For each scenario delivery
                                                                                                   Transportation        Meal walkthrough, the domain expert then commented to what exten
            home
                         OB    -
                                    loan eg. an                    Meal preparation -      OB       principles could constitute a useful addition to the existing social chart.
                                    (electrical)                                                                              Meal preparation
                                    wheelchair
                                                                    Social contacts
                                                                   dementia-patient
          Adjustment:
            Large, eg.
                                                                                                   4. The e3 service ontology
                                                                    Social contacts
            Stairlift                Duration:                      informal carer                                        ….
            Minor, eg.
            Ramps
                                           <= 6 Months                                    This section discusses the concepts and relationships of the e3 service ontology, e
                                          > 6 Months Contact type: In person
                                                     Preparation: Hot
                                                                                       running dementia-care case study. Section 5 shows how to reason with the ontology.
    Casemanagement        Dagsocieteit                                                    The e3 service ontology takes two perspectives on services: the customer perspective
                                                              Diet                          Contact type    Preparation
     Keeping informed C/E -
                             Recreational activities
                                                                  Sugar free
                                                                                       supplier perspective (Sect. 4.2). Additionally, there is a pricing ontology (see Sect. 4.
                                                                                                Internet       Frozen
      about dementia
          patient               Social contacts                   Kosher               the e3 service ontologyHot been published earlier, in de Kinderen (2010), de Kinderen
                                                                                                In person       have
                                                     …..          Flesh as main course
                               dementia-patient
                                                                  Meat as main course
                                                                                       de Kinderen et al. (2009).
                                                                                          We define the ontology in terms of UML class diagrams. The ontology is also av
       Kinderen, de S.; De Leenheer et al. An ontology for needs-driven service bundling inMoreover, the ontology In J. been implemented in RDF (static part) and Jav
                                                                                       specification. a multi-supplier setting. has of Applied Ontology, 2013 (to appear)
                                                                                       (see Sect. 6).
Tuesday 25 December 12
This reasoning step is performed by a human user who is guided by t
                  customer catalogue in Fig. 4.3 and the relationships defined in the e3 servi
      Customer ontology in Fig. 3.1. For instance,& Example customerthe “How can
                   Perspective Ontology in Fig. 4.3, the (2) in need
                  improve my programming skills?” can be refined into the FCs: Web Applicati
      Educational Domain
                  Development, Event Driven Programming and Data Analysis and Design, whi
                  can be refined into more detailed F Cs that better describe a customer ne
                  in terms of specific requirements [25, 76, 79]. In this case, if the custom
      • consequences generatedApplication databases: http:// be refined into three speci
                  chooses Web from open Developments, it can
        www.accreditedqualifications.org.uk
                  FCs: Designing and developing a web site (F C1 ), website management (F C
                  and web server scripting (F C3 ), as depicted in Fig. 4.3.




                         Figure 4.3: Customer catalogue designed with the ontology in Fig. 3.1.
Tuesday 25 December 12
Supplier Perspective Ontology




Tuesday 25 December 12
Supplier Perspective Ontology

       value activity




Tuesday 25 December 12
Supplier Perspective Ontology

       value activity



       value object




Tuesday 25 December 12
Supplier Perspective Ontology

       value activity



       value object



       value interface: reciprocity




Tuesday 25 December 12
suppliers but also between suppliers and enablers.
        By making use of the supplier ontology described in Sect. 3.2.1, service sup-
    pliers and enablers (actors) can describe their o↵erings in terms of functional
    consequences (FCs), i.e. what functionalities they can o↵er to the customers.

      Service Value Network for Edu Services
    This is an o↵-line inference since the service catalogue must be previously de-
    signed. In this way, when the composition starts, the service o↵erings can be
    retrieved from a service catalogue.




                                                                            3.2. SERVICE SUPPLIERS

                                                                            (in this case an educational service) by means of the generic service
                                                                            ontology explained in Sect. 3.2.2 and Sect. 3.2.3. We have harvested
                                                                            licly available database of educational services and selected only on
                                                                            to exemplify how the supplier ontology is used. The database is ava
                                                                            http://register.ofqual.gov.uk/, the website of the National Database of
                                                                            ited Qualifications (NDAQ) containing details of recognized awarding o
                                                                            tions and regulated qualifications in England, Wales and Northern Irel




         Figure 4.2: A service catalogue designed with the ontology in Fig. 3.3.

       The Fig. 4.2 depicts a sample of a service catalogue in which both service
    suppliers and enablers represent what they can o↵er to customers and service
    supplier respectively. The set of service suppliers and enablers is denoted by
    SC, and its cardinality is given by S = |SC| .

    4.1.1.2      Laddering


                                                                                               Figure 3.2: Example of a service profile.

Tuesday 25 December 12                                                         Fig. 3.2 depicts how The City and Guilds of London Institute (ac
Matching

      • generating the candidate       66                                             Interactive Composition of SVNs
        service space


      • explosive !




                                                                 Figure 4.4: Matching F Cs.


                                       MP contains the services A, B, C, D and E since A o↵ers F C1 , B o↵ers F C3 ,
                                       C o↵ers F C1 , D o↵ers F C3 and E o↵ers F C5 .
                                          The M P is actually a subset of SC, i.e. M P ✓ SC, where SC represents all
                         Defining M P   the services stored in the service catalogue as defined in Sect. 4.1.1.1. Once the
Tuesday 25 December 12                 M P has been computed, the next step is to find the combinations of services
FCs: Data analysis and data structure design (F C4 ), and Database Software
                         Use (F C3 ). As can be observed, it would be meaningless to o↵er both services
                         in the same bundle since they both provide Database Software Use.
                             Furthermore, if the customer need requires F C1 and F C4 , two incomplete
      Bundling           solutions must be presented to the customer, i.e. two bundles composed of one
                         service each: the first bundle composed of the service o↵ering the Diploma in
                         ICT and the second bundle composed of the service o↵ering the Certificate in
                         ICT Skills.
      • clustering
                                           Service ID   F C1   F C2   F C3   F C4
      • push heuristic                         S17       1      1      1      0
                                               S16       1      1      0      1
                                               S15       1      0      1      1
                                               S14       1      0      1      1
                                               S13       1      0      0      1
                                               S12       1      0      0      0
                                               S11       1      0      0      0
                                               S10       0      1      1      1
                                               S9        0      1      0      1
                                               S8        0      1      0      1
                                               S7        0      1      0      0
                                               S6        0      0      1      1
                                               S5        0      0      1      0
                                               S4        0      0      1      0
                                               S3        0      0      0      1
                                               S2        0      0      0      1
                                               S1        0      0      0      1


                         Table 4.1: Matrix representation for a matching pool (MP). S15 and S14 are
Tuesday 25 December 12   services, that might be provided by di↵erent suppliers, o↵ering exactly the
are assigned to the same cluster if they o↵er exactly the same F Cs. The purpose
                           of a cluster is to group services o↵ering exactly the same F Cs as well as to focus
earching focus on clusters the searching of possible bundles on the clusters , i.e. explore combinations of
                           clusters rather than combinations of a huge number of individual services. In
      Bundling             addition, since a cluster contains one or more services, it can be seen as a set of
                           partial solutions for a customer need.
                               We identify two types of clusters, upper and lower clusters. The Table 4.2
                           depicts the set of upper clusters. As can be observed, because all the upper
      • clustering         clusters provide F C1 , i.e. they are overlapped in F C1 , they cannot be combined
                           with each other. The name upper cluster comes from F C1 being the most
                           significant bit (msb) in the vector , i.e. they have the highest values.
      • push heuristic
                                     Cluster ID   Elements                Cluster.      Cluster.msb
                                  C14         {S17 }                      [1110]             8
                                  C           {S16 }                      [1101]             8
                           4.1. SVN 13
                                    COMPOSITION                                                            69
                                  C11         {S14 , S15 }                [1011]             8
                                  C9          {S13 }                      [1001]             8
                                   Cluster ID {S11 , S12 }
                                  C8          Elements                    [1000]
                                                                          Cluster.           8
                                                                                        Cluster.msb
                                   C7        {S10 }                 [0111]             4
                                   C5        {S8 , S9 }             [0101]             4
                                   C4        {S7 } Table 4.2: Upper Clusters.
                                                                    [0100]             4
                                   C3        {S6 }                  [0011]             2
                                   C2        {S4 , S5 }             [0010]             2
                           2) Cluster combinationS2 ,Contrary to the[0001] clusters, some of the lower
                                   C1        {S1 ,     S3 }          upper             1
                         clusters can be combined with each other. Two lower clusters (see Table 4.3) can
                         be combined if, and only if, their F Cs do not overlap. E.g., since C1 . = [0001]
                         and C2 . = [0010] do not Table 4.3: Lower C2 can be combined and added to
                                                     overlap, C1 and Clusters.
                         C3 ’s elements (C3 becoming a merging cluster, see Table 4.6 for the final result).
                         with higher msb. Moreover, we apply a bottom-up approach starting can the
                             We use the C1 C2 expression to denote that the services inside C1 at be
 to denote a combination combined with the services and sequentially simple words, it reaching the three
                         cluster with the lowest msb within C2 . In moving up until means that lower
 clustersDecember 12
  Tuesday 25             steps are performed. 1) take an element the heuristic take an element from of 2a
                         cluster with the highest msb. In short, from C1 , 2) is that the elements C ,
Bundling

      • clustering
                         70                                            Interactive Composition of SVNs
      • push heuristic
                                Clusters to be combined       Merging Cluster
                                C1    C2                  !   C3
                                C2    C4                  !   C6
                                C2    C5                  !   C7
                                C3    C4                  !   C7
                                C4    C8                  !   C12
                                C4    C9                  !   C13
                                C5    C8                  !   C13
                                C6    C8                  !   C14
                                C6    C9                  !   C15
                                C7    C8                  !   C15


                                                      Table 4.4: Operations.

                              C. ID   Elements                              Cluster.    Cluster.msb
                              C15     {C6 C9 , C7 C8 }                      [1111]           8
                              C14     {S17 , C6 C8 }                        [1110]           8
Tuesday 25 December 12
C5
                                2   C8
                                     5                       !    C13
                                                                   7

                               C6
                                3   C8
                                     4                       !    C14
                                                                   7
                               C6
                               C4   C9
                                    C8                       !
                                                             !    C15
                                                                  C12


      Bundling
                               C7
                                4   C8
                                     9                       !    C15
                                                                   13

                               C5   C8                       !    C13
                               C6   C8                    ! C Operations.
                                                       Table 4.4:14
                               C6   C9                       !    C15

      • clustering             C7
                            C. ID   C8
                                    Elements                 !    C15          Cluster.      Cluster.msb
                            C15     {C6 C9 , C7 C8 }                         [1111]               8
                            C14     {S17 , C6 C8 }                           [1110]               8
                            C13
                                                       Table 4.4: Operations.[1101]
                                    {S16 , C4 C9 , C5 C8 }                                        8
      • push heuristic      C12     {C4 C8 }                                 [1100]               8
                            C11ID
                            C.      Elements
                                    {S14 , S15 }                             Cluster.
                                                                             [1011]          Cluster.msb
                                                                                                  8
                            C9
                            C15     {S13 } C9 , C7 C8 }
                                    {C6                                      [1001]
                                                                             [1111]               8
                                                                                                  8
                            C8
                            C14     {S11 , S12 } C8 }
                                    {S17 , C6                                [1000]
                                                                             [1110]               8
                                                                                                  8
                            C13     {S16 , C4 C9 , C5 C8 }                   [1101]               8
                            C12     {C4 C8 }                                 [1100]               8
                            C11              Table 4.5: Upper Clusters - after merging.
                                    {S14 , S15 }                             [1011]               8
                            C9      {S13 }                                   [1001]               8
                            C8
                            C. ID   Elements}
                                    {S11 , S12                               [1000]
                                                                             Cluster.             8
                                                                                             Cluster.msb
                            C7      {S10 , C2 C5 , C3      C4 }                 [0111]            4
                            C6      {C2 C4 }                                    [0110]            4
                            C5      {S8 , S9 }
                                              Table 4.5:   Upper Clusters - after merging.
                                                                                [0101]            4
                            C4      {S7 }                                       [0100]            4
                            C3 ID
                            C.      Elements
                                    {S6 , C1 C2 }                               Cluster.
                                                                                [0011]       Cluster.msb
                                                                                                  2
                            C2
                            C7      {S4 , , C} C5 , C3
                                    {S10 S5 2              C4 }                 [0010]
                                                                                [0111]            2
                                                                                                  4
                            C1
                            C6      {S1 , S2CS}}
                                    {C2 , 4 3                                   [0001]
                                                                                [0110]            1
                                                                                                  4
                            C5      {S8 , S9 }                                  [0101]            4
                            C4      {S7 }                                       [0100]            4
                            C3      {S6 , C1 Table 4.6:
                                                 C2 }      Lower Clusters - after merging.
                                                                                [0011]            2
                            C2      {S4 , S5 }                                  [0010]            2
                            C1      {S1 , S2 , S3 }                             [0001]            1
                         combination of clusters such that their F Cs: 1) do not overlap, and 2) match
                         all the required consequences. E.g., if we combine C14 with C1 , we can ob-
                         serve that C14 . does not overlap with C1 . ,- besides C14 C1 provide all the
                                            Table 4.6: Lower Clusters after merging.
Tuesday 25 December 12
4.1. SVN COMPOSITION                                                                    71

      Bundling bundles provide all the required FCs. E.g. the bundle composed of the services
                         S4 , S7 and S13 is a complete solution since S4 provides F C3 , S7 provides F C2
                         and S13 provides F C1 and F C4 .
      • clustering
                                     Solution Clusters   Solution Bundles
                                     C6   C9             {C2 C4 } C9
      • push heuristic               C7   C8             {{S10 }, {C3 C4 }, {C2            C5 }}      C8
                                     C6   C9             {{S4 , S7 }, {S5 , S7 }} S13
                                     C7   C8             {{S10 }, {S1 , S4 , S7 }, {S1 , S5 , S7 },
                                                         {S2 , S4 , S7 }, {S2 , S5 , S7 },
                                                         {S3 , S4 , S7 }, {S3 , S5 , S7 },
                                                         {S4 , S8 }, {S4 , S9 },
                                                         {S5 , S8 }, {S5 , S9 }} {S11 , S12 }
                                     C6   C9             {S4 , S7 , S13 }, {S5 , S7 , S13 }
                                     C7   C8             {S10 , S11 }, {S10 , S12 },
                                                         {S1 , S4 , S7 , S11 }, {S1 , S5 , S7 , S11 },
                                                         {S2 , S4 , S7 , S11 }, {S2 , S5 , S7 , S11 },
                                                         {S3 , S4 , S7 , S11 }, {S3 , S5 , S7 , S11 },
                                                         {S4 , S8 , S11 }, {S4 , S8 , S12 },
                                                         {S4 , S9 , S11 }, {S4 , S9 , S12 }, {S5 , S8 , S11 },
                                                         {S5 , S8 , S12 }, {S5 , S9 , S11 }, {S5 , S9 , S12 }


                                     Table 4.7: The pools of solution clusters and bundles.
Tuesday 25 December 12
Animation of the Bundling
      • http://www.youtube.com/watch?v=sUnPs53F-cA




Tuesday 25 December 12
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web
World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web

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World Wide Value Web: Automated Design of Real-World Multi-party Services on the Web

  • 1. World Wide Value Web Automated Design of Real-World Multi-party Services on the Web Dr. Pieter De Leenheer Tuesday 25 December 12
  • 2. The Value Web is there already ... • Ever wondered what happens when you click these “links” ?  [Right  to  make  tracks  public]  [MONEY]  [Right  to  make  tracks  public]  [MONEY]  [Track]  [MONEY]  [MONEY]  [MONEY]  [Right  to  make  tracks  public]  [Right  to  collect  fees]  [MONEY]  [Right  to  collect  fees]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY] Value Value Value AND   OR   Explosion Legend Actor interface port Transfer element element element Market Activity Consumer Connect. Boundary Value segment need element element object [...] Tuesday 25 December 12
  • 3. The Value Web is there already ... • Ever wondered what happens when you click these “links” ?  [Right  to  make  tracks  public]  [MONEY]  [Right  to  make  tracks  public]  [MONEY]  [Track]  [MONEY]  [MONEY]  [MONEY]  [Right  to  make  tracks  public]  [Right  to  collect  fees]  [MONEY]  [Right  to  collect  fees]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY]  [Right  to  clear  a  track]  [MONEY] Value Value Value AND   OR   Explosion Legend Actor interface port Transfer element element element Market Activity Consumer Connect. Boundary Value segment need element element object [...] Tuesday 25 December 12
  • 4. The Value Web is there already ... • Ever wondered what happens when you click these “links” ? Tuesday 25 December 12
  • 5. N+1 Tethered Value Webs • walls slowing down innovation • no matter what’s being purchased: 1 mediator who takes the cream http://www.statista.com/ Tuesday 25 December 12
  • 6. Ex. 1: High-speed Train Station in Greater London Tuesday 25 December 12
  • 7. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water out Tuesday 25 December 12
  • 8. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water out • purchase a pump to dispense ground water from the tunnel Tuesday 25 December 12
  • 9. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water out • purchase a pump to dispense ground water from the tunnel • new value object (i.e., asset): unlimited water resource • provided by “pumping service” Tuesday 25 December 12
  • 10. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water out • purchase a pump to dispense ground water from the tunnel • new value object (i.e., asset): unlimited water resource • provided by “pumping service” • value integrator: the London Water Authority (e.o.) in need of water resources Tuesday 25 December 12
  • 11. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water out • purchase a pump to dispense ground water from the tunnel • new value object (i.e., asset): unlimited water resource • provided by “pumping service” • value integrator: the London Water Authority (e.o.) in need of water resources • new service value network that turns a problem into opportunity is win-win for both parties Tuesday 25 December 12
  • 12. Ex. 2: Learning Languages with DuoLingo Tuesday 25 December 12
  • 13. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee Tuesday 25 December 12
  • 14. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificate Tuesday 25 December 12
  • 15. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificate • offer certified language course for free in return for written assessments via sentence translations • new value object: language-to-language sentence translations Tuesday 25 December 12
  • 16. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificate • offer certified language course for free in return for written assessments via sentence translations • new value object: language-to-language sentence translations • through text translating service Tuesday 25 December 12
  • 17. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificate • offer certified language course for free in return for written assessments via sentence translations • new value object: language-to-language sentence translations • through text translating service • value integrator: content providers Tuesday 25 December 12
  • 18. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificate • offer certified language course for free in return for written assessments via sentence translations • new value object: language-to-language sentence translations • through text translating service • value integrator: content providers • articulating tacit value objects hidden in existing service relationships creates new value for both parties. Tuesday 25 December 12
  • 19. More Examples of Successful Networked Value Propositions Cleverly Combine Web Relations • http://www.slideshare.net/boardofinnovation/10-business-models-that-rocked-2010-6434921 • talent for the happy few, but how to automate this design process ? Tuesday 25 December 12
  • 20. Overview of the Claims Tuesday 25 December 12
  • 21. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. Tuesday 25 December 12
  • 22. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. Tuesday 25 December 12
  • 23. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. Tuesday 25 December 12
  • 24. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. 4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web. Tuesday 25 December 12
  • 25. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. 4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web. 5. (Service) Value Web technologies should embody generative principles similar to those that lead to the success of the Web itself. In other words, Internet-based SVN technologies should allow for unanticipated contribution of value (through service) to the Web by enabling anyone to share and trade their value objects, just like previous generations of the Web did for knowledge and social sharing. Tuesday 25 December 12
  • 26. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. How come ? Tuesday 25 December 12
  • 27. Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 28. Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 29. “By carefully excluding features that are not universally useful Internet technologies became easily adopted on a massive scale and gave the Web a generative [i.e. self-reproductive] character” (Zittrain, 2009). Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 30. “By carefully excluding features that are not universally useful Internet technologies became easily adopted on a massive scale and gave the Web a generative [i.e. self-reproductive] character” (Zittrain, 2009). Autonomic Semantic Agent Agent webs Artificial Intelligent Natural Ecosystems Intelligence Agents Language Intellectual That know, Property Smart Learn & reason Personal Assistants Spime Markets As humans do Increasing Knowledge Connectivity & Reasoning Blogjects Semantic The Semantic Web The Ubiquitous Web Communities Connects Knowledge Connects Intelligence Semantic Ontologies Semantic Enterprise Semantic Semantic Semantic Website & UI Search Blog Wiki Semantic Knowledge Social networks Semantic Bases Semantic Thesauri & Desktop Context-Aware Email Taxonomies Games Bots Multi-user Enterprise Mash-ups Wiki Community Gaming Search Engines Portals Portals Marketplaces Content Portals Web Sites RSS & Auctions Blogs Social Bookmarking The Web PIMS The Social Web Connects Information Connects People Desktop Email Databases Social “Push” Conferencing Networks Publish & Subscribe P2P File Sharing Instant Messaging File Servers Increasing Social Connectivity Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 31. “By carefully excluding features that are not universally useful Internet technologies became easily adopted on a massive scale and gave the Web a generative [i.e. self-reproductive] character” (Zittrain, 2009). Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 32. “By carefully excluding features that are not universally useful Internet technologies became easily adopted on a massive scale and gave the Web a generative [i.e. self-reproductive] character” (Zittrain, 2009). Web Science: The Web’s relational patterns exhibit “long tail” distributions: “80% of sales goes to 20% of the offerings” Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.org Tuesday 25 December 12
  • 33. Overview of the Claims 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. Why is this not happening ? Tuesday 25 December 12
  • 34. From Chain to Network value-in-exchange value-in-use transaction relationships operand resource (goods) operant resource (knowledge, consumer) marketing push consumer pull technology service and content customer acquisition customer retention Service = the applications of competences (knowledge and skills) for the benefit of a party Service = action; not object Tuesday 25 December 12
  • 35. The Problem of SOA: Service-oriented Architecture Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 36. The Problem of SOA: Service-oriented Architecture • believed to be core enabling technology, however no large-scale adoption for our service economy • a componential approach inspired by product innovation: “bill of materials” and “urban architecture” Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 37. The Problem of SOA: Service-oriented Architecture • believed to be core enabling technology, however no large-scale adoption for our service economy • a componential approach inspired by product innovation: “bill of materials” and “urban architecture” ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and coopetition Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 38. The Problem of SOA: Service-oriented Architecture • believed to be core enabling technology, however no large-scale adoption for our service economy • a componential approach inspired by product innovation: “bill of materials” and “urban architecture” ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and coopetition • biased by the enterprise-centric vision, hence electronic business implementations: • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and control flow Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 39. The Problem of SOA: Service-oriented Architecture • believed to be core enabling technology, however no large-scale adoption for our service economy • a componential approach inspired by product innovation: “bill of materials” and “urban architecture” ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and coopetition • biased by the enterprise-centric vision, hence electronic business implementations: • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and control flow ➡ completely ignores aspects related to the exchange of value: e.g., strategy, proposition, roles, resourcing, pricing, quality and regulatory compliance Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 40. The Problem of SOA: Service-oriented Architecture • believed to be core enabling technology, however no large-scale adoption for our service economy • a componential approach inspired by product innovation: “bill of materials” and “urban architecture” ➡ clever idea but with lack of appreciation of inherent traits of service co-production: variety, intangibility, and coopetition • biased by the enterprise-centric vision, hence electronic business implementations: • rely on hierarchy of functional components, i.e.: Web services for exchange of data and functionality • enforce how to execute a certain business operation in a fixed pre-defined manner: time dependency and control flow ➡ completely ignores aspects related to the exchange of value: e.g., strategy, proposition, roles, resourcing, pricing, quality and regulatory compliance • complement SOA with value abstraction level: declare knowledge about what the business domain constitutes in terms of assets and relationships that allows to reactively adapt its role in changing value propositions. • Service-dominant logic: ontological analysis of “service” as a perdurant (“action”), rather than an endurant (“object”).... Norman & Ramirez (1993): “the key strategic task is the reconfiguration of roles and relationships among this constellation of actors in order to mobilise the creation of value in new forms and by new players.” Tuesday 25 December 12
  • 41. Service Network Approaches: State of the Art Wiki- (Becker, decentralised relationship-driven organisation nomics Value 2009) • dotted circles: (Tapscott, 2008) Networks (Allee, e3service (de 2002) Kinderen, Servigu- • process-based ration (Baida, 2009) SNN (Bitsaki, 2008) Network-centric: 2006) • planning problem e3value Digital (Gordijn, METEOR Capital 2002) -S (2005) • solid circles: (Tapscott, 2000) Service u- Ontomat Architectu- • value-based Service (Agarwal, res (Booth, (Lee, 2004) 2004) REA 2011) (McCarthy, Dynami- • design problem 1982) (Razo- Zapata, CoS (Da Silva, BUSITAL 2011) 2011) ➡ low tendency towards decentralised and automated (Gordijn et hierarchical process-driven organisation al., (Traverso CPC HICCS, , 2004) approaches (Letia, 2008) 2011) ➡ contamination of process-thinking Enterprise-centric: in network-centric approaches (Kohl- born, (Razo- Zapata et al., 2010) GVP BUSITAL, ➡ lonely at the top? (Zlatev, 2007) 2010) O-WSP VBC (Omela- (Nakamu Value BMO yenko, ra, 2006 ) Chain (Oster- 2006) (Porter, walder, 1985) 2004) ICT support: None Design Analysis Bundling Matching Composition Dynamic Composition Tuesday 25 December 12
  • 42. Overview of the Claims Tuesday 25 December 12
  • 43. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. Tuesday 25 December 12
  • 44. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. Tuesday 25 December 12
  • 45. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. Tuesday 25 December 12
  • 46. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. 4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web. Tuesday 25 December 12
  • 47. Overview of the Claims 1. Our world is a large-scale non-linear network of rich relationships between technologies, people, and organisations, emerging from the Web. 2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations should harness to devise new forms of value co-creation. To this end, enterprises must abandon value-chain thinking. 3. One challenge is to articulate the structure and composition of value objects inherent to these relationships that would lead them to gravitate towards unanticipated value propositions. 4. Presuming service-centric thinking, and non-linear patterns of the Web, Service Value Networks (SVNs) lie at the center of this gravitation; forming the hubs of the Value Web. 5. (Service) Value Web technologies should embody generative principles similar to those that lead to the success of the Web itself. In other words, Internet-based SVN technologies should allow for unanticipated contribution of value (through service) to the Web by enabling anyone to share and trade their value objects, just like previous generations of the Web did for knowledge and social sharing. Tuesday 25 December 12
  • 48. Service Value Networks • service co- production, i.e. ”bundling” • in function of well-articulated needs. • reflects an acceptable trade-off between • value proposition (to maximize short- term profit) and • market accuracy (to minimize consumer sacrifice) • fractal system: the Value Web is a SVN in which every peer itself can be an SVN • thus SVN composition becomes a complex problem Tuesday 25 December 12
  • 49. Service Value Networks An SVN is a complex system of peers that establish the necessary relationships to collectively produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo- Zapata, De Leenheer, & Gordijn, 2011). • service co- production, i.e. ”bundling” • in function of well-articulated needs. • reflects an acceptable trade-off between • value proposition (to maximize short- term profit) and • market accuracy (to minimize consumer sacrifice) • fractal system: the Value Web is a SVN in which every peer itself can be an SVN • thus SVN composition becomes a complex problem Tuesday 25 December 12
  • 50. Service Value Networks An SVN is a complex system of peers that establish the necessary relationships to collectively produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo- Zapata, De Leenheer, & Gordijn, 2011). • service co- production, i.e. ”bundling” • in function of well-articulated needs. • reflects an acceptable trade-off between • value proposition (to maximize short- term profit) and • market accuracy (to minimize consumer sacrifice) • fractal system: the Value Web is a SVN in which every peer itself can be an SVN • thus SVN composition becomes a complex problem teaching “introduction to databases” Tuesday 25 December 12
  • 51. Service Value Networks An SVN is a complex system of peers that establish the necessary relationships to collectively produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo- Zapata, De Leenheer, & Gordijn, 2011). • service co- production, i.e. ”bundling” ability to normalise a database • in function of well-articulated needs. • reflects an acceptable trade-off between • value proposition (to maximize short- term profit) and • market accuracy (to minimize consumer sacrifice) • fractal system: the Value Web is a SVN in which every peer itself can be an SVN • thus SVN composition becomes a complex problem teaching “introduction to databases” Tuesday 25 December 12
  • 52. Service Value Networks An SVN is a complex system of peers that establish the necessary relationships to collectively produce (hence co-produce) value (in terms of a real-world service) for their environment (Razo- Zapata, De Leenheer, & Gordijn, 2011). • service co- production, i.e. ”bundling” ability to normalise a database • in function of well-articulated needs. certificate / diploma • reflects an acceptable trade-off between • value proposition (to maximize short- term profit) and • market accuracy (to minimize consumer sacrifice) • fractal system: the Value Web is a SVN in which every peer itself can be an SVN • thus SVN composition becomes a complex problem teaching “introduction to databases” Tuesday 25 December 12
  • 53. SVN Composition Problem: Design vs. Planning • Composition is a Design- rather than Planning- problem 4.1. SVN COMPOSITION 63 • “service artifact”: what value is exchanged rather than how and when • value network analysis • patterns of exchange ? • causal effect of value within and on environment? • value accuracy? • self-adaptation principles? Tuesday 25 December 12 Figure 4.1: The SVN Composition Framework.
  • 54. Articulating needs: from a long & happy life down to toothpaste S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting Problem Information Post- Evaluation Purchase recognition search purchase Fig. 1. The Customer Buying Behavior Model, cf. Kotler (2000) Most scholars refer to the above characteristics, but use them in different combinations to provide th • I.S. requirements engineering meets marketing interpretation of what a service is. Some emphasize one specific aspect, such as “services are dee own theory: processes or performances” (see Bitner et al. (2008)) while others, most notably Vargo and Lusch (20 conclude that everything is a service. • separation of structure means-end chaining, quality function and solution (e.g., For this article, we adopt a business science interpretation of the term service. Of particular importa deployment, problem frames, i*) reveals differentchallenging,aspects. Services have an attributes:produce valuable outcomes, for us are the following two about services is functions of productproducts. Services therefore automated reason as opposed to physical intangible nature, latter providing us with matchmaking capabilities with customer needs. • product (toothpaste): attribute (minty) -> consequence (neat image, increase social 2.2. Customer needs inclusion) -> value (sense of beloning) <= 3need for a happy life The e service ontology is unique in a way that it considers analysis of customer needs key. To ens a needs-driven service bundling process, we require an understanding of the steps that a customer usua • product (toothpaste): attribute(calcium;teeth strengthener) -> consequence (stay purchase a service offeri takes to arrive from the goals that s/he wants to achieve, to the decision to healthy) Marketers provide us with several buying behavior theories that help us understand the main steps t <= need for a long life [note: attribute(minty) not relevant] prominent amongst these is the Customer Buying Behavior (CB customers use in this process. Most model, which we find in amongst others Kotler (2000); Solomon (2003); Loudon and Della-Bitta (199 The CBB model consists of the five steps depicted in Fig. 1: (1) problem recognition, in which the c • .... and semantically encode this in consequence aware of a needbasedbeon a customersearch, in which the customer se tomer becomes ladders, that is to satisfied (2) information perspective ontology: out benefits required to satisfy this need (3) evaluation, in which the customer decides upon the prod that maximizes the desired features and minimizes the negative features (4) product buying, in wh the customer actually buys the product and finally (5) the post-purchase phase, in which the custom 2 • Kinds of needs: physical good (house),the the stepsinofuse-situations. monetary resources, (1) separation betw evaluates Following product human resource, (Kotler, 2000, p. 177-178), we discuss the CBB model information, capability (course), experience (museum customer seeks products, and (3) how products arecar by b problems and solutions, (2) how a visit), state change (hair cut, evaluated ancing positive and negative service features. wash, a flight) 2.2.1. Separation of problem and solution The CBB model sees problem recognition and information search (hence finding a solution) as t separate phases, hence emphasizing the explicit separation between problem specification and probl Tuesday 25 December 12
  • 55. Customer Perspective Ontology & Example (1) in the domain of Assisted Living for Dementia Patients 6 S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier s nominal Scale Need ordinal Has 0...1 Specified by 1…* Consists  of Depends  on interval Has 0..1 Quality   0…* 0…* S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting need I cannot cope anymore, consequence what can help? ratio Consequence Functional   Want consequence 0…* Has 1…* 0…* Core  enhancing Optional  bundling Functional Contained  in 0…* consequence …. Physical activities for Practical support Social support for Social support person with dementia for person with dementia person with dementia informal carer Want Scales of 0..* 0…* quality Core  enhancing Optional  bundling consequences ….. …. Fig. 2. The e3 service customer perspective ontology ….. ….. original social chart. Since the tool conforms exactly to the reasoning steps from e3 ser ….. tion is that we can also validate the usefulness of e3 service through such a demonstrati involved scenario walkthroughs, where realistic consumer needs - such as a customer Handyman Loaningservice Diningtable meal-preparationDinnerdeliverywere taken as starting points to show how the tool interacts Transportation service - Adjustments to Possibility to - OB carer. For each scenario delivery Transportation Meal walkthrough, the domain expert then commented to what exten home OB - loan eg. an Meal preparation - OB principles could constitute a useful addition to the existing social chart. (electrical) Meal preparation wheelchair Social contacts dementia-patient Adjustment: Large, eg. 4. The e3 service ontology Social contacts Stairlift Duration: informal carer …. Minor, eg. Ramps <= 6 Months This section discusses the concepts and relationships of the e3 service ontology, e > 6 Months Contact type: In person Preparation: Hot running dementia-care case study. Section 5 shows how to reason with the ontology. Casemanagement Dagsocieteit The e3 service ontology takes two perspectives on services: the customer perspective Diet Contact type Preparation Keeping informed C/E - Recreational activities Sugar free supplier perspective (Sect. 4.2). Additionally, there is a pricing ontology (see Sect. 4. Internet Frozen about dementia patient Social contacts Kosher the e3 service ontologyHot been published earlier, in de Kinderen (2010), de Kinderen In person have ….. Flesh as main course dementia-patient Meat as main course de Kinderen et al. (2009). We define the ontology in terms of UML class diagrams. The ontology is also av Kinderen, de S.; De Leenheer et al. An ontology for needs-driven service bundling inMoreover, the ontology In J. been implemented in RDF (static part) and Jav specification. a multi-supplier setting. has of Applied Ontology, 2013 (to appear) (see Sect. 6). Tuesday 25 December 12
  • 56. Customer Perspective Ontology & Example (1) in the domain of Assisted Living for Dementia Patients 6 S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier s nominal Scale Need ordinal Has 0...1 Specified by 1…* Consists  of Depends  on interval Has 0..1 Quality   0…* 0…* S. de Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier setting need I cannot cope anymore, consequence what can help? ratio Consequence Functional   Want consequence 0…* Has 1…* 0…* Core  enhancing Optional  bundling Functional Contained  in 0…* consequence …. Physical activities for Practical support Social support for Social support person with dementia for person with dementia person with dementia informal carer Want Scales of 0..* 0…* quality Core  enhancing Optional  bundling consequences ….. …. Fig. 2. The e3 service customer perspective ontology ….. ….. want (≠ consequence) is a original social chart. Since the tool conforms exactly to the reasoning steps from e3 ser ….. set of consequences at tion is that we can also validate the usefulness of e3 service through such a demonstrati involved scenario walkthroughs, where realistic consumer needs likes to a customer least one party - such as Handyman Loaningservice Diningtable meal-preparationDinnerdeliverywere taken as starting points to show etc.)the tool interacts Transportation service - offer (NAPCS, how Adjustments to Possibility to - OB carer. For each scenario delivery Transportation Meal walkthrough, the domain expert then commented to what exten home OB - loan eg. an Meal preparation - OB principles could constitute a useful addition to the existing social chart. (electrical) Meal preparation wheelchair Social contacts dementia-patient Adjustment: Large, eg. 4. The e3 service ontology Social contacts Stairlift Duration: informal carer …. Minor, eg. Ramps <= 6 Months This section discusses the concepts and relationships of the e3 service ontology, e > 6 Months Contact type: In person Preparation: Hot running dementia-care case study. Section 5 shows how to reason with the ontology. Casemanagement Dagsocieteit The e3 service ontology takes two perspectives on services: the customer perspective Diet Contact type Preparation Keeping informed C/E - Recreational activities Sugar free supplier perspective (Sect. 4.2). Additionally, there is a pricing ontology (see Sect. 4. Internet Frozen about dementia patient Social contacts Kosher the e3 service ontologyHot been published earlier, in de Kinderen (2010), de Kinderen In person have ….. Flesh as main course dementia-patient Meat as main course de Kinderen et al. (2009). We define the ontology in terms of UML class diagrams. The ontology is also av Kinderen, de S.; De Leenheer et al. An ontology for needs-driven service bundling inMoreover, the ontology In J. been implemented in RDF (static part) and Jav specification. a multi-supplier setting. has of Applied Ontology, 2013 (to appear) (see Sect. 6). Tuesday 25 December 12
  • 57. This reasoning step is performed by a human user who is guided by t customer catalogue in Fig. 4.3 and the relationships defined in the e3 servi Customer ontology in Fig. 3.1. For instance,& Example customerthe “How can Perspective Ontology in Fig. 4.3, the (2) in need improve my programming skills?” can be refined into the FCs: Web Applicati Educational Domain Development, Event Driven Programming and Data Analysis and Design, whi can be refined into more detailed F Cs that better describe a customer ne in terms of specific requirements [25, 76, 79]. In this case, if the custom • consequences generatedApplication databases: http:// be refined into three speci chooses Web from open Developments, it can www.accreditedqualifications.org.uk FCs: Designing and developing a web site (F C1 ), website management (F C and web server scripting (F C3 ), as depicted in Fig. 4.3. Figure 4.3: Customer catalogue designed with the ontology in Fig. 3.1. Tuesday 25 December 12
  • 59. Supplier Perspective Ontology value activity Tuesday 25 December 12
  • 60. Supplier Perspective Ontology value activity value object Tuesday 25 December 12
  • 61. Supplier Perspective Ontology value activity value object value interface: reciprocity Tuesday 25 December 12
  • 62. suppliers but also between suppliers and enablers. By making use of the supplier ontology described in Sect. 3.2.1, service sup- pliers and enablers (actors) can describe their o↵erings in terms of functional consequences (FCs), i.e. what functionalities they can o↵er to the customers. Service Value Network for Edu Services This is an o↵-line inference since the service catalogue must be previously de- signed. In this way, when the composition starts, the service o↵erings can be retrieved from a service catalogue. 3.2. SERVICE SUPPLIERS (in this case an educational service) by means of the generic service ontology explained in Sect. 3.2.2 and Sect. 3.2.3. We have harvested licly available database of educational services and selected only on to exemplify how the supplier ontology is used. The database is ava http://register.ofqual.gov.uk/, the website of the National Database of ited Qualifications (NDAQ) containing details of recognized awarding o tions and regulated qualifications in England, Wales and Northern Irel Figure 4.2: A service catalogue designed with the ontology in Fig. 3.3. The Fig. 4.2 depicts a sample of a service catalogue in which both service suppliers and enablers represent what they can o↵er to customers and service supplier respectively. The set of service suppliers and enablers is denoted by SC, and its cardinality is given by S = |SC| . 4.1.1.2 Laddering Figure 3.2: Example of a service profile. Tuesday 25 December 12 Fig. 3.2 depicts how The City and Guilds of London Institute (ac
  • 63. Matching • generating the candidate 66 Interactive Composition of SVNs service space • explosive ! Figure 4.4: Matching F Cs. MP contains the services A, B, C, D and E since A o↵ers F C1 , B o↵ers F C3 , C o↵ers F C1 , D o↵ers F C3 and E o↵ers F C5 . The M P is actually a subset of SC, i.e. M P ✓ SC, where SC represents all Defining M P the services stored in the service catalogue as defined in Sect. 4.1.1.1. Once the Tuesday 25 December 12 M P has been computed, the next step is to find the combinations of services
  • 64. FCs: Data analysis and data structure design (F C4 ), and Database Software Use (F C3 ). As can be observed, it would be meaningless to o↵er both services in the same bundle since they both provide Database Software Use. Furthermore, if the customer need requires F C1 and F C4 , two incomplete Bundling solutions must be presented to the customer, i.e. two bundles composed of one service each: the first bundle composed of the service o↵ering the Diploma in ICT and the second bundle composed of the service o↵ering the Certificate in ICT Skills. • clustering Service ID F C1 F C2 F C3 F C4 • push heuristic S17 1 1 1 0 S16 1 1 0 1 S15 1 0 1 1 S14 1 0 1 1 S13 1 0 0 1 S12 1 0 0 0 S11 1 0 0 0 S10 0 1 1 1 S9 0 1 0 1 S8 0 1 0 1 S7 0 1 0 0 S6 0 0 1 1 S5 0 0 1 0 S4 0 0 1 0 S3 0 0 0 1 S2 0 0 0 1 S1 0 0 0 1 Table 4.1: Matrix representation for a matching pool (MP). S15 and S14 are Tuesday 25 December 12 services, that might be provided by di↵erent suppliers, o↵ering exactly the
  • 65. are assigned to the same cluster if they o↵er exactly the same F Cs. The purpose of a cluster is to group services o↵ering exactly the same F Cs as well as to focus earching focus on clusters the searching of possible bundles on the clusters , i.e. explore combinations of clusters rather than combinations of a huge number of individual services. In Bundling addition, since a cluster contains one or more services, it can be seen as a set of partial solutions for a customer need. We identify two types of clusters, upper and lower clusters. The Table 4.2 depicts the set of upper clusters. As can be observed, because all the upper • clustering clusters provide F C1 , i.e. they are overlapped in F C1 , they cannot be combined with each other. The name upper cluster comes from F C1 being the most significant bit (msb) in the vector , i.e. they have the highest values. • push heuristic Cluster ID Elements Cluster. Cluster.msb C14 {S17 } [1110] 8 C {S16 } [1101] 8 4.1. SVN 13 COMPOSITION 69 C11 {S14 , S15 } [1011] 8 C9 {S13 } [1001] 8 Cluster ID {S11 , S12 } C8 Elements [1000] Cluster. 8 Cluster.msb C7 {S10 } [0111] 4 C5 {S8 , S9 } [0101] 4 C4 {S7 } Table 4.2: Upper Clusters. [0100] 4 C3 {S6 } [0011] 2 C2 {S4 , S5 } [0010] 2 2) Cluster combinationS2 ,Contrary to the[0001] clusters, some of the lower C1 {S1 , S3 } upper 1 clusters can be combined with each other. Two lower clusters (see Table 4.3) can be combined if, and only if, their F Cs do not overlap. E.g., since C1 . = [0001] and C2 . = [0010] do not Table 4.3: Lower C2 can be combined and added to overlap, C1 and Clusters. C3 ’s elements (C3 becoming a merging cluster, see Table 4.6 for the final result). with higher msb. Moreover, we apply a bottom-up approach starting can the We use the C1 C2 expression to denote that the services inside C1 at be to denote a combination combined with the services and sequentially simple words, it reaching the three cluster with the lowest msb within C2 . In moving up until means that lower clustersDecember 12 Tuesday 25 steps are performed. 1) take an element the heuristic take an element from of 2a cluster with the highest msb. In short, from C1 , 2) is that the elements C ,
  • 66. Bundling • clustering 70 Interactive Composition of SVNs • push heuristic Clusters to be combined Merging Cluster C1 C2 ! C3 C2 C4 ! C6 C2 C5 ! C7 C3 C4 ! C7 C4 C8 ! C12 C4 C9 ! C13 C5 C8 ! C13 C6 C8 ! C14 C6 C9 ! C15 C7 C8 ! C15 Table 4.4: Operations. C. ID Elements Cluster. Cluster.msb C15 {C6 C9 , C7 C8 } [1111] 8 C14 {S17 , C6 C8 } [1110] 8 Tuesday 25 December 12
  • 67. C5 2 C8 5 ! C13 7 C6 3 C8 4 ! C14 7 C6 C4 C9 C8 ! ! C15 C12 Bundling C7 4 C8 9 ! C15 13 C5 C8 ! C13 C6 C8 ! C Operations. Table 4.4:14 C6 C9 ! C15 • clustering C7 C. ID C8 Elements ! C15 Cluster. Cluster.msb C15 {C6 C9 , C7 C8 } [1111] 8 C14 {S17 , C6 C8 } [1110] 8 C13 Table 4.4: Operations.[1101] {S16 , C4 C9 , C5 C8 } 8 • push heuristic C12 {C4 C8 } [1100] 8 C11ID C. Elements {S14 , S15 } Cluster. [1011] Cluster.msb 8 C9 C15 {S13 } C9 , C7 C8 } {C6 [1001] [1111] 8 8 C8 C14 {S11 , S12 } C8 } {S17 , C6 [1000] [1110] 8 8 C13 {S16 , C4 C9 , C5 C8 } [1101] 8 C12 {C4 C8 } [1100] 8 C11 Table 4.5: Upper Clusters - after merging. {S14 , S15 } [1011] 8 C9 {S13 } [1001] 8 C8 C. ID Elements} {S11 , S12 [1000] Cluster. 8 Cluster.msb C7 {S10 , C2 C5 , C3 C4 } [0111] 4 C6 {C2 C4 } [0110] 4 C5 {S8 , S9 } Table 4.5: Upper Clusters - after merging. [0101] 4 C4 {S7 } [0100] 4 C3 ID C. Elements {S6 , C1 C2 } Cluster. [0011] Cluster.msb 2 C2 C7 {S4 , , C} C5 , C3 {S10 S5 2 C4 } [0010] [0111] 2 4 C1 C6 {S1 , S2CS}} {C2 , 4 3 [0001] [0110] 1 4 C5 {S8 , S9 } [0101] 4 C4 {S7 } [0100] 4 C3 {S6 , C1 Table 4.6: C2 } Lower Clusters - after merging. [0011] 2 C2 {S4 , S5 } [0010] 2 C1 {S1 , S2 , S3 } [0001] 1 combination of clusters such that their F Cs: 1) do not overlap, and 2) match all the required consequences. E.g., if we combine C14 with C1 , we can ob- serve that C14 . does not overlap with C1 . ,- besides C14 C1 provide all the Table 4.6: Lower Clusters after merging. Tuesday 25 December 12
  • 68. 4.1. SVN COMPOSITION 71 Bundling bundles provide all the required FCs. E.g. the bundle composed of the services S4 , S7 and S13 is a complete solution since S4 provides F C3 , S7 provides F C2 and S13 provides F C1 and F C4 . • clustering Solution Clusters Solution Bundles C6 C9 {C2 C4 } C9 • push heuristic C7 C8 {{S10 }, {C3 C4 }, {C2 C5 }} C8 C6 C9 {{S4 , S7 }, {S5 , S7 }} S13 C7 C8 {{S10 }, {S1 , S4 , S7 }, {S1 , S5 , S7 }, {S2 , S4 , S7 }, {S2 , S5 , S7 }, {S3 , S4 , S7 }, {S3 , S5 , S7 }, {S4 , S8 }, {S4 , S9 }, {S5 , S8 }, {S5 , S9 }} {S11 , S12 } C6 C9 {S4 , S7 , S13 }, {S5 , S7 , S13 } C7 C8 {S10 , S11 }, {S10 , S12 }, {S1 , S4 , S7 , S11 }, {S1 , S5 , S7 , S11 }, {S2 , S4 , S7 , S11 }, {S2 , S5 , S7 , S11 }, {S3 , S4 , S7 , S11 }, {S3 , S5 , S7 , S11 }, {S4 , S8 , S11 }, {S4 , S8 , S12 }, {S4 , S9 , S11 }, {S4 , S9 , S12 }, {S5 , S8 , S11 }, {S5 , S8 , S12 }, {S5 , S9 , S11 }, {S5 , S9 , S12 } Table 4.7: The pools of solution clusters and bundles. Tuesday 25 December 12
  • 69. Animation of the Bundling • http://www.youtube.com/watch?v=sUnPs53F-cA Tuesday 25 December 12