World Wide Value Web      Automated Design of Real-World Multi-party Services on the Web      Dr. Pieter De LeenheerTuesda...
The Value Web is there already ...      • Ever wondered what happens when you click these “links” ?                       ...
The Value Web is there already ...      • Ever wondered what happens when you click these “links” ?                       ...
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...
Ex. 1: High-speed Train Station in Greater LondonTuesday 25 December 12
Ex. 1: High-speed Train Station in Greater London      • OR                 • purchase a water-proof wall to keep water   ...
Ex. 1: High-speed Train Station in Greater London      • OR                 • purchase a water-proof wall to keep water   ...
Ex. 1: High-speed Train Station in Greater London      • OR                 • purchase a water-proof wall to keep water   ...
Ex. 1: High-speed Train Station in Greater London      • OR                 • purchase a water-proof wall to keep water   ...
Ex. 1: High-speed Train Station in Greater London      • OR                 • purchase a water-proof wall to keep water   ...
Ex. 2: Learning Languages with DuoLingoTuesday 25 December 12
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
Ex. 2: Learning Languages with DuoLingo      • OR            • offer certified online language courses in return            ...
More Examples of Successful Networked Value      Propositions Cleverly Combine Web Relations      • http://www.slideshare....
Overview of the ClaimsTuesday 25 December 12
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.orgTuesday 25 December 12
Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.orgTuesday 25 December 12
“By carefully excluding features that are not universally useful Internet                technologies became easily adopte...
“By carefully excluding features that are not universally useful Internet                                                 ...
“By carefully excluding features that are not universally useful Internet                technologies became easily adopte...
“By carefully excluding features that are not universally useful Internet                technologies became easily adopte...
Overview of the Claims      2. Web relationships are a catalyst for innovation, i.e., a Value Web, that organisations shou...
From Chain to Network                            value-in-exchange                                value-in-use            ...
The Problem of SOA: Service-oriented Architecture                 Norman & Ramirez (1993): “the key strategic task is the ...
The Problem of SOA: Service-oriented Architecture      • believed to be core enabling technology, however no large-scale a...
The Problem of SOA: Service-oriented Architecture      • believed to be core enabling technology, however no large-scale a...
The Problem of SOA: Service-oriented Architecture      • believed to be core enabling technology, however no large-scale a...
The Problem of SOA: Service-oriented Architecture      • believed to be core enabling technology, however no large-scale a...
The Problem of SOA: Service-oriented Architecture      • believed to be core enabling technology, however no large-scale a...
Service Network Approaches: State of the Art                                                                              ...
Overview of the ClaimsTuesday 25 December 12
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Overview of the Claims      1. Our world is a large-scale non-linear network of rich relationships between technologies, p...
Service Value Networks  • service co- production, i.e. ”bundling”       • in function of well-articulated needs.       • r...
Service Value Networks              An SVN is a complex system of peers that establish the necessary relationships to coll...
Service Value Networks              An SVN is a complex system of peers that establish the necessary relationships to coll...
Service Value Networks              An SVN is a complex system of peers that establish the necessary relationships to coll...
Service Value Networks              An SVN is a complex system of peers that establish the necessary relationships to coll...
SVN Composition Problem: Design vs. Planning • Composition is a Design- rather than   Planning- problem                   ...
Articulating needs: from a long & happy life down to      toothpaste                                                      ...
Customer Perspective Ontology & Example (1) in the      domain of Assisted Living for Dementia Patients                   ...
Customer Perspective Ontology & Example (1) in the      domain of Assisted Living for Dementia Patients                   ...
This reasoning step is performed by a human user who is guided by t                  customer catalogue in Fig. 4.3 and th...
Supplier Perspective OntologyTuesday 25 December 12
Supplier Perspective Ontology       value activityTuesday 25 December 12
Supplier Perspective Ontology       value activity       value objectTuesday 25 December 12
Supplier Perspective Ontology       value activity       value object       value interface: reciprocityTuesday 25 Decembe...
suppliers but also between suppliers and enablers.        By making use of the supplier ontology described in Sect. 3.2.1,...
Matching      • generating the candidate       66                                             Interactive Composition of S...
FCs: Data analysis and data structure design (F C4 ), and Database Software                         Use (F C3 ). As can be...
are assigned to the same cluster if they o↵er exactly the same F Cs. The purpose                           of a cluster is...
Bundling      • clustering                         70                                            Interactive Composition o...
C5                                2   C8                                     5                       !    C13             ...
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
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

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Massive digitization and globalisation force enterprises to abandon the idea that a value chain should be enterprise-centric; controlled by hierarchical processes. They instead should embrace a network-centric perspective on value co-creation that cleverly harnesses the general connectivity between knowledge, organisations, and people brought forward earlier by the Social and Semantic Web. The result of this massive resource dynamics would a genuine "Value Web" on which - presuming real-world services to be its main economic currency - Service Value Networks (SVNs) form the hubs of innovation.

An SVN is a complex system of peers that establish the necessary relationships to collectively produce value, in terms of a real-world service, for their environment. The service co-production, i.e. "bundling", reflects an optimal trade-off between value proposition and market accuracy. In this talk, I introduce e3service, a set of ontologies and propose-critique-modify (PCM) methods for the automated componential design and representation of service needs and service value network propositions. This design approach is in strong contrast with planning problems - typically solved with AI methods - such as the functional composition of control-flow elements and temporal dependencies to articulate the execution of (software / Web) services. We illustrate with a number of case studies in the domains of education, assisted living, and IPR clearing.

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

  1. 1. World Wide Value Web Automated Design of Real-World Multi-party Services on the Web Dr. Pieter De LeenheerTuesday 25 December 12
  2. 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. 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. 4. The Value Web is there already ... • Ever wondered what happens when you click these “links” ?Tuesday 25 December 12
  5. 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. 6. Ex. 1: High-speed Train Station in Greater LondonTuesday 25 December 12
  7. 7. Ex. 1: High-speed Train Station in Greater London • OR • purchase a water-proof wall to keep water outTuesday 25 December 12
  8. 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 tunnelTuesday 25 December 12
  9. 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. 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 resourcesTuesday 25 December 12
  11. 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 partiesTuesday 25 December 12
  12. 12. Ex. 2: Learning Languages with DuoLingoTuesday 25 December 12
  13. 13. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription feeTuesday 25 December 12
  14. 14. Ex. 2: Learning Languages with DuoLingo • OR • offer certified online language courses in return for a subscription fee • value objects: fee, certificateTuesday 25 December 12
  15. 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 translationsTuesday 25 December 12
  16. 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 serviceTuesday 25 December 12
  17. 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 providersTuesday 25 December 12
  18. 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. 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. 20. Overview of the ClaimsTuesday 25 December 12
  21. 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. 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. 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. 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. 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. 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. 27. Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.orgTuesday 25 December 12
  28. 28. Sources: Nova Spivack, John Breslin, Mills Davis, www.opte.orgTuesday 25 December 12
  29. 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.orgTuesday 25 December 12
  30. 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.orgTuesday 25 December 12
  31. 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.orgTuesday 25 December 12
  32. 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.orgTuesday 25 December 12
  33. 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. 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 objectTuesday 25 December 12
  35. 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. 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. 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. 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. 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. 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. 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 CompositionTuesday 25 December 12
  42. 42. Overview of the ClaimsTuesday 25 December 12
  43. 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. 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. 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. 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. 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. 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 problemTuesday 25 December 12
  49. 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 problemTuesday 25 December 12
  50. 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. 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. 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. 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. 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 problTuesday 25 December 12
  55. 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. 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. 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
  58. 58. Supplier Perspective OntologyTuesday 25 December 12
  59. 59. Supplier Perspective Ontology value activityTuesday 25 December 12
  60. 60. Supplier Perspective Ontology value activity value objectTuesday 25 December 12
  61. 61. Supplier Perspective Ontology value activity value object value interface: reciprocityTuesday 25 December 12
  62. 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. 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 theTuesday 25 December 12 M P has been computed, the next step is to find the combinations of services
  64. 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 areTuesday 25 December 12 services, that might be provided by di↵erent suppliers, o↵ering exactly the
  65. 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 focusearching 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. 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] 8Tuesday 25 December 12
  67. 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

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