How social computing and IT developments enable the Enterprise of the Future.

1. Service science – business
activities supported by IT services
Octobre 2nd 2009
Wout J. Hofman, senior innovator

2. The five core areas of TNO
TNO Quality of TNO Defence, TNO Science TNO Built TNO Informa-
Life Security and and Industry Environment tion and
Safety and Communication
Geosciences Technology
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3. TNO offices in the Netherlands
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4. The strength of TNO
From concept to innovation
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5. Three development lines feed into the concept of
‘enterprise of the future’
Globa
lizatio
n of b
usine
ss Enterprise
Internet / social computing of the
ment Future
lop
ce deve
eb servi
IT/ w
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6. Enterprise of the future (source IBM):
• Adapted to change
• Quickly changing
• Shaping and leading trends
• Innovative
• Collaborative relationships
• Beyond customer imagination
• Globally integrated
• Access to best capabilities, knowledge and assets
• Disruptive by nature
• Shifting value proposition
• constantly reinventing
• Genuine concern for society
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7. In a business network organizations have to collaborate for
service delivery.
Each actors has its drivers, e.g.:
- cost reduction
- profit increasing
- sustainability
- quality of service
- increase customer service
- circles: organizations/ software
platform
- dotted lines: potential business
collaborations
- red lines and red circles with
letters: business transaction
tree of cooperating actors
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8. Globalization – the bigger picture
• 24x7 global economy
• Compliance issues
• SOX/Basel II – financial
• Secure trade (>911) – global supply chains and logistics
• Customs – import and export restrictions
• Kyoto – sustainability
• International and national laws and regulations
• Interoperability perspective
• exchange of business document based a variety of standards (XML,
EDI, etc.)
• communities, e.g. PortBase for the Dutch ports
• based on modeling secure business chains (time consuming, static
structures)
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9. Internet / social computing
• Growing bandwidth, fiber to the home
• Increasing demand of Internet addresses (IPv6)
• Internet of things
• New devices with easy to implement functionality (e.g. iPhone with Appstore and
Google Android)
• Growing adoption by individuals
• Growing market for multimedia products (the Long Tail)
• Social communities (Facebook, Hyvess, LinkedIn, massive online gaming, etc.)
• New, graphical platforms for social interaction from gaming environments (e.g.
SecondLife)
• Co-creation by individuals (Twitter, Google Earth, blogs, supplier/product ratings, etc.)
• Mash-up – rapid information disclosure using available services like Yahoo Pipes
• Used by business, mainly from a marketing perspective
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10. Still a lot of issues need to be solved with two sides:
• Identity:
• easy to imposter as someone else
• leads to other patterns of criminality
• Privacy:
• lots of private information swarming on the web
• no ability to remove the information
• data mining technology used for customer specific offerings
(including spam), but also criminal actions
• Research in areas of data mining based on search technology to
detect criminal behavior.
• From a business perspective:
• a global system for identity and authentication based on open
standards (e.g. SAML)
• trust and reputation management
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11. IT / web service developments are twofold
• Technology
• Suppliers
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12. Web service development is mostly an IT matter, focusing
on solving a technical issue of mashed systems.
Promises:
• flexibility
• adaptability
broker
• etc.
Technology:
• XML Schema
• WSDL
• UDDI
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13. Web service development basically is adapting systems to
offer services. New challenges arise beyond the horizon.
composed
application service
Enterprise Service Bus
(routing, service directory, authentication/identity mngt, business process support)
application service application service application service application service
Application service: an externally
visible unit of functionality, provided
by one or more application
components, exposed through well-
application function application function application function application function
defined interfaces, and meaningful to
the environment. A web Service is
an example of the implementation of
an application service.
Disclosing more systems with services raises issues like granularity,
service directory, same data in different applications (Master Data
Management), etc.
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14. New concepts, languages and tools are introduced to
cater for this challenge:
• Semantics:
• Semantic Annotation of WSDL (SAWSDL)
• Semantic and conceptual models for web service choreography
(WSMO)
• Mediation:
• Customer goal versus provider capability
• Different levels of mediation (services, semantics, interaction
sequencing called choreography)
• However, questions are:
• alignment of business and IT (service)
• business case for a technical implementation
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15. In the meantime the IT suppliers offer:
• Cloud computing services (Google, IBM, etc.) to optimize
hardware utlization (also from a sustainability perspective -
greenIT)
• Software as a Service (SaaS):
• transaction based payment
• rapid service delivery based on semifinished products
• impact on IT suppliers
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16. What do we want to describe? An example – BeerLL.
Fraud prevention for excise payment is the basic issue.
Two innovations: a smart container seal and web services.
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17. The detailed scenario for direct delivery includes the
following organizations
shipper selling/buying of products consignee
forwarder forwarder
shipping
line
liner agent liner agent
carrier stevedore stevedore carrier
retailer
plant terminal terminal
store
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18. One of the business scenarios is direct delivery from a
Dutch plant.
Dutch Tax Heineken NL Carrier Heineken UK UK Tax Retailer UK Supermarket
Order
Order
Order
Transport instruction
Declaration Planning
Delivery schedule
Shipment Authorisation Delivery schedule
Excise movement Delivery schedule
Transport report Arrival report
Arrival report (exc. payment)
Approval
Arrival report
Arrival report
Arrival report
The question is: how to model all scenarios?
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19. Service systems ….
• .. constitute of several business scenarios
• .. have to be flexible in collaboration
• .. are based on trust and reputation management
• .. require underlying concepts that specify these requirements
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20. Basic concepts for service systems:
• Business activity:
• a real world effect on subjects/objects performed by an enterprise
• specified by its semantics and business documents with their sequence
• supported by IT (technical details)
• stored in for instance a business registry (e.g. maintenance by Chamber of Commerce)
• described by a number of parameters
• generic for a business domain, e.g. logistics, insurance, government/municipalities
• examples: transport, produce, insure risk, building permission
• business activities for organizations are published and can be discovered
• Business service
• actual conditions under which a business activity is performed (including prices)
• specific to each enterprise, not necessarily published
• mediation of customer goal with provider service at runtime
• Business transaction
• actual exchange of a business service
• all relevant information to perform that business service is exchanged by IT according to
specification given by the business activity
• Business transaction management
• composition of a business process based on outsource policies for delivery of a business
service
• internal to each service provider
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21. Semantics of business activities in a business domain
can be specified by ontology.
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22. Ontology is a different technique to express data
requirements
• consists of:
• semantic concepts
• association between those concepts
• rules govern the associations and instances (consistency rules)
• is able to express more functionality than data modeling techniques:
• consistency rules
• independent of technical solutions (mapping to XML Schema, database schema)
• can also be used to model user interfaces (additional open standards are available)
• understandable
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23. A business collaboration protocol needs to be implemented
by a customer and a service provider
business
service
customer collaboration
provider
protocol
business collaboration business collaboration
protocol execution - protocol execution -
customer provider
1. Both parts can be implemented by a BPEL document
generated from the UML state chart.
2. A business transaction is used to synchronize processes and
data of business service consumer and producer (‘state
synchronization’).
3. All possible states are expressed by the protocol and all data
that can be exchanged.
4. A business interaction is therefore of a particular type (to
trigger a state transition of the protocol) and contains data.
5. These protocols have to express normal behavior, but also
exceptions and errors.
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24. Examples of a state and sequence diagram – order example
business interaction type
business interaction of
path expressed by a a type
sequence diagram
business collaboration
protocol
The state diagram supports functionality:
• to reject an order
• to cancel an order (as long as it is not
dispatched)
• to delay delivery and either accept that
delay or cancel the order
It needs to express aspects like:
• conditions
• periods business transaction according
to a business collaboration
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protocol

25. Relation between business collaboration protocol and
ontology and mapping to standards
design mode
‘technical’ mode
semantic
model
view
adding standards
business activity specific requirements
business view
collaboration view
protocol
interaction type view
WSDL, XML Schema, etc.
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26. These mechanism support realtime construction of
hierarchical relations in business networks (chains).
• We don’t want to model all business
transaction trees in a network.
• The dynamic construction of a business
transaction tree is governed by rules:
• outsourcing rules (these are specific to each actor)
• business rules that govern the internal relation
between business transactions
• this internal relation is governed by resource
allocation: a business service provider needs to
allocate resources to provide a business service to
a business service consumer
• implies a type of two-phase commit relation: allocate
resources and use those resources
• the sequencing or parallelism of resource allocation
of outsourced task is specific to each actor (critical
path analysis)
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27. A possible use case: import of Dutch beer by Heineken UK.
• Select sea carrier and negotiate transport:
• failure: select and negotiate an alternative
• Ok, port of loading and discharge/stevedores are known
• Select transport to the port and negotiate one or more options
• failure: select and negotiate an alternative
• Ok, transport to port of discharge can be arranged
• Arrange transport to port of discharge with pre-carriage and sea
transport
• Select transport to the final destination and negotiate one or more
options
• Wait for reports and/or exceptions
retailer
plant terminal terminal
store
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28. Further steps are in business intelligence
Business Intelligence
feedback
monitor Business network
control
Real world
(people, resources (trucks, vessels, etc.),
sensors, etc.)
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29. Why apply these concepts?
• They specify collaboration at a business level
• They can be supported by different technical solutions
• They can be used by business persons to configure IT based on
known outsourcing relations
• Monitoring behavior according to laws and regulations will
become simplified (less administrative burden)
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30. What we have tried to show is the support of business
activities/services by IT/web services
Business/government service: a IT/web service: an externally
coherent piece of functionality that visible unit of functionality,
offers added value to the provided by one or more
environment, independent of the way business service IT/web service application components,
this functionality is realized internally. exposed through well-defined
Examples: permits, transport. interfaces, and meaningful to
the environment. A web Service
is an example of the
implementation of an application
business process application function service.
Business transaction: the ordered Business interaction: behavior
set of interactions as an instance of performed by two business roles,
a business service, e.g. all e.g. purchase order, transport
interactions between two business instruction, permit request.
roles to plan, execute, and report
transport of goods.
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31. We are not yet there.
We distinguish:
• Those aspects that are common to a business domain:
• business activities
• business registry
• semantics and business collaboration protocols
• technical solutions for actual collaboration
• Those aspects that are in the domain of each enterprise:
• business services (business activities with conditions and prices)
• outsourcing strategies that govern the construction of business processes
These can be specified in such a way that:
• they meet the requirements of the enterprise of the future
• can be extended with other policies (e.g. security, sustainability, etc.)
• can be supported by different technologies
Issues for future research are in trust, reputation management, and identity.
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32. Questions?
Wout Hofman
Wout Hofman
Ph.D., M.Sc.
Ph.D., M.Sc.
TNO Information and
TNO Information and
Communication Technology
Communication Technology
Brasserplein 2
Brasserplein 2
P.O. Box 5050
P.O. Box 5050
2600 GB Delft
2600 GB Delft
The Netherlands
The Netherlands
T
T +31 15 285 71 29
+31 15 285 71 29
M
M +31 6 224 998 90
+31 6 224 998 90
F
F +31 15 285 73 49
+31 15 285 73 49
wout.hofman@tno.nl
wout.hofman@tno.nl
http://www.linkedin.com/in/whofman
http://www.linkedin.com/in/whofman
See also ‘EDI, Web Service en ebXML – interactie in
organisationetwerken’ for the underlying concepts.
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