Developing e-Negotiation support with a meta-modeling approach in a Web services environment Sherina Y. Y. Chiu K. K. Chun...
To be learned from this case <ul><li>Capture and abstract various business process requirements  </li></ul><ul><li>General...
Introduction <ul><li>e-Contract  </li></ul><ul><ul><li>computerized facilitation or automation of a contract </li></ul></u...
Classification of Negotiation <ul><li>Our Meta-model covers the following types of negotiation </li></ul><ul><li>Bidding  ...
Project Background <ul><li>D.K.W. Chiu, S.C. Cheung, P.C.K. Hung, S.Y.Y. Chiu* and K.K. Chung*.  Developing e-Negotiation ...
Contract Templates <ul><li>Reference document based on which a new contract is created </li></ul><ul><li>Contains a set of...
Motivation and Objectives <ul><li>e-Contract template and template variables facilitate negotiation by avoiding uncontroll...
Overall Meta-modeling Approach <ul><li>Based on business experience and requirements, contract templates (with variables) ...
Meta-Model of an e-Contract Template e-Contract Template * 1 1..* Template Variable 2..* involves * refines Obligation Per...
A Sales e-Contract Template as an  Instance of the Meta-model  insurance premium :Template Variable freight :Template Vari...
Conceptual Model of e-Negotiation  and e-Contract consists of specializes
A Meta-Model of e-Negotiation Process in UML Activity Diagram  select e-Contract template derive variable relations define...
System Architecture
Bargaining e-Negotiation Process (1) <ul><li>Decide your offers </li></ul><ul><li>Select E-contract Template / Define Issu...
Web Services for Bargaining - Offer <ul><li>Service Name: placeNewBargainOffer  </li></ul><ul><ul><li>Input: Item Descript...
Web Services for Bargaining –  Contract Template <ul><li>Service Name: searchContractTemplate  </li></ul><ul><ul><li>Input...
Bargaining e-Negotiation Process (2) <ul><li>Formulate Plan and Make Offer and Counter Offer </li></ul><ul><li>Based on of...
Derivation of Negotiation Plan lease period facilities provision basic rent start date additional  fee1 mgt fee inclusion ...
Web Services for Bargaining –  Contract Template & Negotiation Plan <ul><li>Service Name: downloadNegotiationPlan  </li></...
Make Offer and Counter Offer Identify the  issue(s) to be next  negotiated in the plan Prepare reservation  prices Make of...
Web Services for Bargaining –  Make Offer and Counter Offer <ul><li>Service Name: initNegotiationSession  </li></ul><ul><u...
Auction Process (1) <ul><li>Decide your offers </li></ul><ul><li>Select E-contract Template / Define Issues and Criteria  ...
Auction Process (2) <ul><li>Formulate Plan (specify the rules and parameter for the bidding process) </li></ul><ul><ul><li...
Auction Process (3) <ul><li>Organize Task  </li></ul><ul><ul><li>Important factor for the success of an action  </li></ul>...
Auction Process (4) <ul><li>Make Offer and Counter Offer (i.e. the bidding race) </li></ul>Compare with  Reservation Price...
Web Services for Auctions  that are different <ul><li>Service Name: placeNewAuctionOffer  </li></ul><ul><ul><li>Input: Ite...
Request for Proposals (RFP) (1) <ul><li>Select E-contract template / Define Issues and Criteria  </li></ul><ul><ul><li>cus...
Request for Proposals (RFP) (2) <ul><li>Decide your offer </li></ul><ul><li>Formulate Plan  </li></ul><ul><ul><li>Identifi...
Request for Proposals (RFP) (2)  <ul><li>Organize Tasks  </li></ul><ul><ul><li>Similar to auction… </li></ul></ul><ul><li>...
Web Services for RFP <ul><li>Service Name: placeNewRFP </li></ul><ul><ul><li>Input: Item Description, Contract Template ID...
Monitoring - Session Manager
NSS – Create Contract Template <ul><li>System administrator create new contract template by entering different contract te...
NSS - Grouping & Auxiliary Variables <ul><li>System administrator then input grouping and auxiliary variables  </li></ul>
NSS - Input Dependencies <ul><li>System administrator then input dependencies among groups / issues </li></ul>
Negotiation Based on Different Contract Templates GUI (1)
Negotiation Based on Different Contract Templates GUI (2)
UDDI Registry for the Prototype Access URI
Sample Web Service
Conclusions <ul><li>An novel application of computer science techniques for a management problem </li></ul><ul><li>A novel...
Continuing and Future Work <ul><li>Contract template dependencies (Cheung et al 2002)  </li></ul><ul><li>One-to-many contr...
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  1. 1. Developing e-Negotiation support with a meta-modeling approach in a Web services environment Sherina Y. Y. Chiu K. K. Chung Dept. of Computer Science & Engineering, Chinese University of Hong Kong Shing-Chi CHEUNG Patrick C.K. Hung Dept. of Computer Science Hong Kong University of Science & Technology [email_address] Dickson Chiu Senior Member, IEEE [email_address]
  2. 2. To be learned from this case <ul><li>Capture and abstract various business process requirements </li></ul><ul><li>Generalize them into an organized framework and model </li></ul><ul><li>Application of IT and CS to solve a business problem </li></ul><ul><li>Novelty - process support for NSS is much less studied (as compared with decision models for negotiation) </li></ul><ul><li>Extend a traditionally human centric application </li></ul><ul><ul><li>into a Web service based platform </li></ul></ul><ul><ul><li>to support growing need for programmatic interface </li></ul></ul><ul><ul><li>for B2B </li></ul></ul><ul><ul><li>support negotiating agents – autonomous intelligent programs act on behalf of a user </li></ul></ul><ul><li>Architecture and Web service design </li></ul>
  3. 3. Introduction <ul><li>e-Contract </li></ul><ul><ul><li>computerized facilitation or automation of a contract </li></ul></ul><ul><ul><li>cross-organizational business process </li></ul></ul><ul><li>Negotiation </li></ul><ul><ul><li>a decision process in which two or more parties make individual decisions and interact with each other for mutual gain </li></ul></ul><ul><ul><li>negozio = shop in Italian … </li></ul></ul><ul><li>e-Negotiation </li></ul><ul><ul><li>perform negotiation activities over the Internet </li></ul></ul><ul><li>Web Services and Grid technologies and infrastructures </li></ul><ul><li>=> Context: extended e-Marketplace </li></ul>
  4. 4. Classification of Negotiation <ul><li>Our Meta-model covers the following types of negotiation </li></ul><ul><li>Bidding </li></ul><ul><ul><li>Multilateral distributive negotiation </li></ul></ul><ul><ul><li>Formal, competitive procurement procedure </li></ul></ul><ul><li>Bargaining </li></ul><ul><ul><li>Usually involves two parties </li></ul></ul><ul><ul><li>Each party has a single but opposing objective </li></ul></ul><ul><ul><li>Each fights for the best value that opponent would still accept </li></ul></ul><ul><li>Request for Proposals (RFP) </li></ul><ul><ul><li>Extended form of bargaining </li></ul></ul><ul><ul><li>Has a prelude phase of requirement & candidate identification </li></ul></ul>
  5. 5. Project Background <ul><li>D.K.W. Chiu, S.C. Cheung, P.C.K. Hung, S.Y.Y. Chiu* and K.K. Chung*. Developing e-Negotiation Process Support with a Meta-modeling Approach in a Web Services Environment , Decision Support Systems , 40:51-69, 2005 . (*FYP students) </li></ul><ul><ul><li>Peliminary Version at ICWS'03, June 2003 </li></ul></ul><ul><ul><li>6th Pacific Asia Conference on Information Systems, Sept 2002 </li></ul></ul><ul><li>D.K.W. Chiu, S.C. Cheung, P.C.K. Hung, and H.F. Leung. Constraint-based Negotiation in a Multi-Agent Information System with Multiple Platform Support , HICSS37 , Jan 2004. </li></ul><ul><li>S.C. Cheung, P.C.K. Hung and D.K.W. Chiu. On e-Negotiation of Unmatched Logrolling Views , HICSS36 , Jan 2003 ( best paper nominee ). (journal version under revision for JMIS ) </li></ul><ul><li>S.C. Cheung, P.C.K. Hung and D.K.W. Chiu. A Meta-model for e-Contract Template Variable Dependencies Facilitating e-Negotiation, ER2002, Oct 2002 </li></ul>
  6. 6. Contract Templates <ul><li>Reference document based on which a new contract is created </li></ul><ul><li>Contains a set of template variables whose values are to be negotiated </li></ul><ul><li>Particularly applicable to standard business interactions that could be taken place over the Internet </li></ul><ul><li>Such as real-estate transactions, purchase and sale of goods, etc. </li></ul><ul><li>New e-Contracts for these business interactions can be defined based on standard contract templates </li></ul><ul><li>Specific business interactions not covered by the clauses in standard contract templates can be provided as contract variations or contract escalations </li></ul>The PURCHASER shall send a Letter of Credit for the GOODS to the SUPPLIER in the currency of [ ] within [ ] days of the invoice date. The SUPPLIER shall on receipt of the Letter of Credit ships the GOODS to the PURCHASER within [ ] days and provides the PURCHASER with shipment details.
  7. 7. Motivation and Objectives <ul><li>e-Contract template and template variables facilitate negotiation by avoiding uncontrolled openness of issues </li></ul><ul><li>Address specific semantic requirement of contracts for supporting B2B applications </li></ul><ul><li>Reduce cost and improve effectiveness of negotiation (avoid combinatorial explosion of issues) </li></ul><ul><li>Development of an effective and efficient negotiation plan in a natural way </li></ul><ul><li>Rapid development and deployment of a flexible negotiation support system (NSS) through reuse in a e-Marketplace </li></ul><ul><li>A reference model for future research </li></ul>
  8. 8. Overall Meta-modeling Approach <ul><li>Based on business experience and requirements, contract templates (with variables) are abstracted from previous contracts </li></ul><ul><li>Administrator models a contract template as an e-Contract template </li></ul><ul><li>Suitable e-Negotiation processes are designed based on our meta-model for e-Negotiation processes </li></ul><ul><ul><li>Such as bargaining, auctions and RFP </li></ul></ul><ul><ul><li>Determine template variable relations (dependencies) </li></ul></ul><ul><ul><li>These designed processes are most likely repeatable and reusable for a business. </li></ul></ul><ul><ul><li>NSS derive e-Negotiation plan </li></ul></ul><ul><li>Designed e-Negotiation processes are executed with the support of a NSS (e.g., exchange bids via Web Services) </li></ul><ul><li>Each successful e-Negotiation will lead to an e-Contract </li></ul>
  9. 9. Meta-Model of an e-Contract Template e-Contract Template * 1 1..* Template Variable 2..* involves * refines Obligation Permission Prohibition * * depends e-Contract Party Contract Clause references
  10. 10. A Sales e-Contract Template as an Instance of the Meta-model insurance premium :Template Variable freight :Template Variable quantity :Template Variable delivery date :Template Variable return policy :Template Variable unit price :Template Variable deposit :Template Variable depends Purchaser :Party Supplier :Party involves involves Sales :e-Contract Template Shipping & Insurance :Contract Clause Pricing :Contract Clause Delivery :Contract Clause Deposit Payment :Contract Clause consists of
  11. 11. Conceptual Model of e-Negotiation and e-Contract consists of specializes
  12. 12. A Meta-Model of e-Negotiation Process in UML Activity Diagram select e-Contract template derive variable relations define issues and criteria for each collection of co-related issue make offers & counter offers validate consistency formulate plan organize tasks all issues have been mapped [consistent] [inconsistent] creation of e-Contract [reach consensus on all variables] [quit] How we carry out e-Negotiation in general … Pre-negotiation phase Negotiation phase
  13. 13. System Architecture
  14. 14. Bargaining e-Negotiation Process (1) <ul><li>Decide your offers </li></ul><ul><li>Select E-contract Template / Define Issues and Criteria </li></ul><ul><ul><li>business experience </li></ul></ul><ul><ul><li>formally from its old sale contracts </li></ul></ul><ul><ul><li>informally from quotations, purchase orders, invoices </li></ul></ul><ul><ul><li>other correspondences with its customers </li></ul></ul><ul><ul><li>typical contract template variables - product for sale, price, quantity, delivery date, freight, payment terms, deposit, etc. </li></ul></ul>select e-Contract template derive variable relations define issues and criteria for each collection of co-related issue make offers & counter offers validate consistency formulate plan organize tasks all issues have been mapped [consistent] [inconsistent] creation of e-Contract [reach consensus on all variables] [quit]
  15. 15. Web Services for Bargaining - Offer <ul><li>Service Name: placeNewBargainOffer </li></ul><ul><ul><li>Input: Item Description, Contract Template ID, Proposed Template Variable Values, Additional Requirement List </li></ul></ul><ul><ul><li>Response: Offer ID </li></ul></ul><ul><li>Service Name: withdrawOffer </li></ul><ul><ul><li>Input: Offer ID </li></ul></ul><ul><ul><li>Response: Confirmation </li></ul></ul><ul><li>Service Name: searchOffer </li></ul><ul><ul><li>Input: Search Criteria </li></ul></ul><ul><ul><li>Response: List of Offer ID and Descriptions </li></ul></ul>
  16. 16. Web Services for Bargaining – Contract Template <ul><li>Service Name: searchContractTemplate </li></ul><ul><ul><li>Input: Search Criteria </li></ul></ul><ul><ul><li>Response: XML Contract Template Summaries </li></ul></ul><ul><li>Service Name: downloadContractTemplate </li></ul><ul><ul><li>Input: Contract Template ID </li></ul></ul><ul><ul><li>Response: XML Contract Template </li></ul></ul><ul><li>Service Name: uploadContractTemplate </li></ul><ul><ul><li>Input: XML Contract Template </li></ul></ul><ul><ul><li>Response: Contract Template ID </li></ul></ul>
  17. 17. Bargaining e-Negotiation Process (2) <ul><li>Formulate Plan and Make Offer and Counter Offer </li></ul><ul><li>Based on offers and contract template </li></ul><ul><li>Evaluation of several variables and of several values per variable </li></ul><ul><li>Need to take in account of the dependencies among the issues </li></ul><ul><ul><li>Deciding the order of negotiation </li></ul></ul><ul><ul><li>Trade-off evaluation of inter-dependent issues </li></ul></ul>Negotiate: Who pay freight / insurance Negotiate: Unit price, Quantity, Delivery date Compute Freight Check Insurance Premium Negotiate: Return policy Negotiate: Payment terms, Deposit
  18. 18. Derivation of Negotiation Plan lease period facilities provision basic rent start date additional fee1 mgt fee inclusion additional fee2 Landlord Tenant rent deposit numOfMonths {facilities provision, lease period, basic rent} {start date, additional fee1} {management fee inclusion, additional fee2} {rent} {numOfMonths} {deposit} Partial ordering of variables (sets)
  19. 19. Web Services for Bargaining – Contract Template & Negotiation Plan <ul><li>Service Name: downloadNegotiationPlan </li></ul><ul><ul><li>Input: Contract Template ID </li></ul></ul><ul><ul><li>Response: XML Negotiation Plans in the Repository for the specified contract template </li></ul></ul><ul><li>Service Name: uploadNegotiationPlan </li></ul><ul><ul><li>Input: Contract Template ID, XML Negotiation Plan </li></ul></ul><ul><ul><li>Response: Negotiation Plan ID </li></ul></ul>
  20. 20. Make Offer and Counter Offer Identify the issue(s) to be next negotiated in the plan Prepare reservation prices Make offer / counter-offer Evaluate offer / counter-offer [offer received] [counter-offer received] Notify counterparty of failure Quit? Revise reservation prices [false] [true] [unacceptable prices] Have all issues been negotiated? [false] Successful negotiation [true] [acceptable prices] Notify counterparty of acceptance [acceptance received] [failure received] start a new negotiation cycle [ready to make an offer]
  21. 21. Web Services for Bargaining – Make Offer and Counter Offer <ul><li>Service Name: initNegotiationSession </li></ul><ul><ul><li>Input: Offer ID Responded to, Negotiation Plan ID, Counteroffer Template Variable Values, Comments </li></ul></ul><ul><ul><li>Response: Session ID </li></ul></ul><ul><li>Service Name: updateNegotiationSession </li></ul><ul><ul><li>Input: User ID, Session ID, Counteroffer Template Variable Values, Comments </li></ul></ul><ul><ul><li>Response: Outstanding Variables Not Agreed or Successful Negotiation </li></ul></ul><ul><li>Service Name: abortNegotiationSession </li></ul><ul><ul><li>Input: Session ID </li></ul></ul><ul><ul><li>Response: Confirmation </li></ul></ul>
  22. 22. Auction Process (1) <ul><li>Decide your offers </li></ul><ul><li>Select E-contract Template / Define Issues and Criteria </li></ul><ul><ul><li>price is usually the main and only issue for negotiation </li></ul></ul><ul><ul><li>quantity - when a lot of same items are sold </li></ul></ul><ul><ul><li>occasionally may involve multiple issues, using a scoring rule (formula) </li></ul></ul><ul><ul><li>auction service or marketplace provider </li></ul></ul>select e-Contract template derive variable relations define issues and criteria for each collection of co-related issue make offers & counter offers validate consistency formulate plan organize tasks all issues have been mapped [consistent] [inconsistent] creation of e-Contract [reach consensus on all variables] [quit]
  23. 23. Auction Process (2) <ul><li>Formulate Plan (specify the rules and parameter for the bidding process) </li></ul><ul><ul><li>Format – Dutch or English auction, maximum rounds of bidding (if any), deadline for last bid (if any), maximum time between each bid (if any), whether bids are sealed or open, etc. </li></ul></ul><ul><ul><li>Rules of bidding – starting price, (minimum) price increment for each bid (if any), reserve price (sealed or open), etc. </li></ul></ul><ul><ul><li>Administration – start time and location (physical location, or URL in the case of electronic auction) of the bidding, entry fee (if any), deposit (if any), penalty for bidder default (if any), who may bid, etc. </li></ul></ul>
  24. 24. Auction Process (3) <ul><li>Organize Task </li></ul><ul><ul><li>Important factor for the success of an action </li></ul></ul><ul><ul><li>Potential bidders have to be identified </li></ul></ul><ul><ul><li>Announcements and publicity to attract potential bidders </li></ul></ul><ul><ul><li>Carry out the planned admission procedures, such as admitting and registering valid bidders, charging entry fee and deposit (if any) </li></ul></ul>
  25. 25. Auction Process (4) <ul><li>Make Offer and Counter Offer (i.e. the bidding race) </li></ul>Compare with Reservation Price Fail Received Valid Bid Time Out Received Valid Bid Time Out or Exceeding Max. round (if any) Success [Price too low] [Valid Final Price] Wait for Next Bid
  26. 26. Web Services for Auctions that are different <ul><li>Service Name: placeNewAuctionOffer </li></ul><ul><ul><li>Input: Item Description, Contract Template ID, Proposed Template Variable Values, Additional Requirement List, Auction Parameters </li></ul></ul><ul><ul><li>Response: Offer ID </li></ul></ul><ul><li>Service Name: placeAuctionBid </li></ul><ul><ul><li>Input: User ID, Session ID, Counteroffer Template Variable Values, Comments </li></ul></ul><ul><ul><li>Response: Valid | Invalid </li></ul></ul><ul><li>Consider the following services could be the same as bargaining – withdrawOffer, seachOffer, those regarding templates, etc. </li></ul>
  27. 27. Request for Proposals (RFP) (1) <ul><li>Select E-contract template / Define Issues and Criteria </li></ul><ul><ul><li>customer has some requirements, but with a lot of open issues </li></ul></ul><ul><ul><li>rest of the contract template is to be constructed based on the information from potential suppliers </li></ul></ul>select e-Contract template derive variable relations define issues and criteria for each collection of co-related issue make offers & counter offers validate consistency formulate plan organize tasks all issues have been mapped [consistent] [inconsistent] creation of e-Contract [reach consensus on all variables] [quit]
  28. 28. Request for Proposals (RFP) (2) <ul><li>Decide your offer </li></ul><ul><li>Formulate Plan </li></ul><ul><ul><li>Identifies which issues and criteria to be disclosed to RFP candidates </li></ul></ul><ul><ul><li>Identify specific candidates from directories, or identify some criteria for open advertisement </li></ul></ul><ul><ul><li>Determine various administration procedures, such as deadline, submission procedures, etc. </li></ul></ul>
  29. 29. Request for Proposals (RFP) (2) <ul><li>Organize Tasks </li></ul><ul><ul><li>Similar to auction… </li></ul></ul><ul><li>Make Offers and Counter Offers </li></ul><ul><ul><li>Candidate proposals before the deadline </li></ul></ul><ul><ul><li>Evaluates them according to the criteria previously defined </li></ul></ul><ul><ul><li>May need further interaction with the candidates for clarifications </li></ul></ul><ul><ul><li>Shortlist / rank candidates, or directly select a successful one </li></ul></ul><ul><ul><li>By this time, the customer will have much more understanding on the details of product/service requirements, their issues, and thus also in the potential contract </li></ul></ul><ul><ul><li>Can negotiate further issues and criteria by following the detail procedures of scenario 1 – bargaining </li></ul></ul>
  30. 30. Web Services for RFP <ul><li>Service Name: placeNewRFP </li></ul><ul><ul><li>Input: Item Description, Contract Template ID, Proposed Template Variable Values, Additional Requirement List </li></ul></ul><ul><ul><li>Response: Offer ID </li></ul></ul><ul><li>Service Name: replyRFP </li></ul><ul><ul><li>Input: OfferID, Contract Template ID, Proposed Template Variable Values, Additional Requirement List </li></ul></ul><ul><ul><li>Response: Accept | Reject | RevisedOfferID </li></ul></ul>
  31. 31. Monitoring - Session Manager
  32. 32. NSS – Create Contract Template <ul><li>System administrator create new contract template by entering different contract template variables </li></ul>
  33. 33. NSS - Grouping & Auxiliary Variables <ul><li>System administrator then input grouping and auxiliary variables </li></ul>
  34. 34. NSS - Input Dependencies <ul><li>System administrator then input dependencies among groups / issues </li></ul>
  35. 35. Negotiation Based on Different Contract Templates GUI (1)
  36. 36. Negotiation Based on Different Contract Templates GUI (2)
  37. 37. UDDI Registry for the Prototype Access URI
  38. 38. Sample Web Service
  39. 39. Conclusions <ul><li>An novel application of computer science techniques for a management problem </li></ul><ul><li>A novel approach of e-Negotiation of contracts based on e-contract template </li></ul><ul><li>A meta-model for e-Contract templates with the notion of template variables and their dependencies </li></ul><ul><li>A flexible meta-model for e-Negotiation processes </li></ul><ul><li>Feasibility of designing various practical e-Negotiation processes (viz., bargaining, auctions and request for proposals) </li></ul><ul><li>Derivation of effective and efficient negotiation plan </li></ul><ul><li>Application of contemporary Web Services technologies </li></ul><ul><ul><li>Facilitate rapid implementation for e-Marketplaces supporting the cross-organizational process </li></ul></ul><ul><ul><li>NSS supporting both human and computer access </li></ul></ul>
  40. 40. Continuing and Future Work <ul><li>Contract template dependencies (Cheung et al 2002) </li></ul><ul><li>One-to-many contract negotiation </li></ul><ul><li>Ranking of different types of issues and criteria for tradeoff issues </li></ul><ul><li>Decision making to reach an optimal and stable state for negotiators (Nash equilibrium) </li></ul><ul><li>Ontology support for negotiation </li></ul><ul><ul><li>D.K.W. Chiu, S.C. Cheung, P.C.K. Hung and H.F. Leung. Facilitating e-Negotiation Process with Semantic Web Technologies, HICSS38 , Jan 2005. </li></ul></ul><ul><li>E-marketplace </li></ul><ul><ul><li>D.K.W. Chiu, J.K.M. Poon, W.C. Lam, C.Y. Tse, W.H.T. Siu, W.S. Poon. How Ontologies Can Help in an E-marketplace, ECIS 2005, to appear. </li></ul></ul><ul><ul><li>Anonymity and Security </li></ul></ul><ul><li>Real-life negotiation practice </li></ul><ul><ul><li>Integration of NSS / e-Marketplace with EIS </li></ul></ul><ul><ul><li>Request for proposals (particularly with semantic support) </li></ul></ul>

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