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Value-based requirements engineering in decentralized value networks Roel Wieringa University of Twente The Netherlands 2nd June 2006 UPV 1 Contents 1. 2. 3. 4. VITAL/COOP project description Coordination and value modeling Trust Discussion 2nd June 2006 UPV 2 1. Two projects • Value-Based IT ALignment (VITAL) – Goal: Find techniques to align IT to networked business • Network of profit-and-loss responsible partners • Examples: RSI Monitoring, on-line selling, product development – www.vital-project.org • Cooperation process correctness and trust assumptions (COOP) – Goal: Find techniques to check that coordination process is “correct’’ w.r.t. networked business model 2nd June 2006 UPV 3 Project resources • Total budget about € M1,5 • Free university of Amsterdam & University of Twente • 3 senior researchers • 6 PhD students • 10 companies in advisory board (growing) 2nd June 2006 UPV 4 Project organization • Subprojects – Value modeling – Coordination process design – IT architecture design – Process maturity • Monthly researcher’s meetings • Biannual board meeting • Case study research at companies 2nd June 2006 UPV 5 Problem structure Value model •Who delivers what to whom •Goods, services, money •Manager’s view •Net Present Value computations of cash flow Process model •Coordination process •Internal business processes IT model •Coordination IT •Internal IT • When one model changes, the other usually do too 2nd June 2006 UPV 6 Contents 1. 2. 3. 4. VITAL/COOP project description Coordination and value modeling Trust Discussion 2nd June 2006 UPV 7 Coordination modeling • Many coordination languages: BPEL4WS, WSCI, BPSS, BPMN, ... • Coordination language design is similar to design of business process languages • Coordination process design is very different from business process design 2nd June 2006 UPV 8 The problem • The businesses being coordinated make their decisions independently – .... based on expected revenue • do not want to support each other’s business processes • do not want to reveal all their secrets to each other • may behave differently as specified in the coordination process – (dis)trust assumptions 2nd June 2006 UPV 9 Our solution • Coordination proces design must be based on a value model • The value model is a model of cash flow • Businesses agree on value model that is expected to generate positive revenue for each of them • Design coordination process that is “correct” w.r.t. this value model. • Coordination process makes trust assumptions about business actors • Risk analysis 2nd June 2006 UPV 10 Example value model Dependency path • Exchanges of commercial value • No data flows, no flow of goods, no behavior • Instructions for a revenue computation 2nd June 2006 UPV 11 Meaning of value model • Arrows present commercial services – Service provider does something that service consumer finds useful • Service of A to B may even be realized as interaction between A and C! – E.g. buyer (consignee) provides security to seller by buying a letter of credit from a bank • Value model is not a process model 2nd June 2006 UPV 12 2nd June 2006 UPV 13 Coordination process 2nd June 2006 UPV 14 2nd June 2006 UPV 15 Coordination process 2nd June 2006 UPV 16 Correctness: First hypothesis • For each value exchange, the value model designer must give an operational definition – Observable process • Correct coordination process: – on succesful termination all value exchanges on a dependency path occurred – on unsuccessful termination none of them occurred 2nd June 2006 UPV 17 Correctness: Second hypothesis • Some values are only created by large numbers of process executions. – E.g. reputation, trust • Improved definition: – The cash flow computations over a period of time must correspond with some set of coordination process executions over the same period of time • This is where we are now ... need to work this out 2nd June 2006 UPV 18 Contents 1. 2. 3. 4. VITAL/COOP project description Coordination and value modeling Trust Discussion 2nd June 2006 UPV 19 3. Trust • Shipper does not want to ship before he is paid – Introduce a bank who buys the goods from the shipper – and sells them to the consignee – The bank is trusted by all – The bank takes the risk that the consignee will not pay for the goods – The bank is paid for that by the consignee 2nd June 2006 UPV 20 2nd June 2006 UPV 21 2nd June 2006 UPV 22 4. Discussion • We are elaborating consistency definitions by means of examples taken from our business partners • We test them by doing action research (free consultancy) • Need to include cost/benefit estimates of alternative IT implementations • Risk analysis • Business goal modeling 2nd June 2006 UPV 23 2nd June 2006 UPV 24 NPV This is the risk-free increase • If you have $10 000 now, you can invest it • This is worth more than having $10 000 over three years • Even assuming there is no inflation 2nd June 2006 UPV 25