Presentation negotiation process management

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					       A Web Services-enabled marketplace
        architecture for negotiation process
                    management
               Baek Kim, Jin; Segev, Arie
               Decision Support Systems Volume: 40,
               Issue: 1, July, 2005, pp. 71-87




                                       Instructor: Lee, Fu-Ming
                                         Speaker: Wang, Ta-Wei




2012/6/14                                                         1
Outline
    Introduction
    Web Services
    BPEL4WS
    Web Services-enabled marketplace
     architecture
    Conclusion
    Comment
                    A WS-enabled marketplace
                architecture for negotiation process
2012/6/14                  management                  2
Introduction
   Negotiation is an essential business activity for
    establishing trade relationship and fine tuning
    terms and condition.
   Previous studies on negotiation systems have
    heavily focused on strategies and decision
    making
   Authors focused on B2B negotiation from
    process management perspective

                       A WS-enabled marketplace
                   architecture for negotiation process
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Web Services
    Web Services is a software component, through
     open standard web communication protocol and
     data format (ex: HTTP, XML and SOAP)
     provide the service for other application。




                      A WS-enabled marketplace
                  architecture for negotiation process
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Web Services Architecture




                                資料來源:資策會數位教育研究所

                A WS-enabled marketplace
            architecture for negotiation process
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BPEL4WS
      BPEL4WS (Business Process Execution
       Language for Web Services):
               Supports design and implementation of Web
                Services-based process by providing mechanisms to
                preserve the sate of Web Services by properly
                correlating messages exchanged between Web
                Services.
               Supports Long-Running (Business) Transactions
                (LRTs) by providing a mechanism for flexible
                control of the reversal operation. Ability to define
                fault handling and compensation.

                                 A WS-enabled marketplace
                             architecture for negotiation process
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Negotiation in Business Process
   An inter-organizational business process, involves
    at least two companies
   Process interleaved with many other internal and
    external business process such as sales or
    procurement
   Negotiation involves collaborative decision
    making by many stakeholder with the
    organization such as accounting, marketing,
    production, shipping and warehouse department
                      A WS-enabled marketplace
                  architecture for negotiation process
2012/6/14                    management                  7
                A WS-enabled marketplace
            architecture for negotiation process
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Web Services Technology for
Negotiation Process Management
   Web Services are distributed application
    components
   Provide services through open standard
    based interface
   BPEL4WS can clearly define negotiation
    process and process can independently
    understood and deployed

                    A WS-enabled marketplace
                architecture for negotiation process
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Workflow Management System
Architectures Classified
   Production-oriented
   Message-based
   Document-centric




                    A WS-enabled marketplace
                architecture for negotiation process
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Four Functional Groups of a Marketplace
for Negotiation Process Management

   Shared ontology and message formats
   Negotiation process definition
   Negotiation process execution and control
   Interoperable system interfaces



                    A WS-enabled marketplace
                architecture for negotiation process
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Shared Ontology and Message
Formats
   Negotiation partners may have different
    business practices confusion in mean of the
    term (Price, Tax price, Unit price)
   Shared understanding of the term, the
    marketplace can provide negotiation formats
    and templates (Unit price, quantity, delivery date, freight
    mode, payment term, deposit requirement, insurance premium,
    maintenance terms, etc.)


                            A WS-enabled marketplace
                        architecture for negotiation process
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Negotiation Process Definition
   System supported negotiation to established
    shared understanding of the rules of the
    negotiation
   Negotiation process must be clearly defined and
    easily interpreted
   Checking the correctness of the defined process
    (e.g. deadlock-free)



                               A WS-enabled marketplace
                           architecture for negotiation process
2012/6/14                             management                  13
Negotiation Process and Control
   Negotiation process need to be instantiated,
    controlled, and monitored
   The marketplace execute and control the
    negotiation process by invoking and scheduling
    activities according to the process definition
    and provide a neutral third-party’s perspective



                       A WS-enabled marketplace
                   architecture for negotiation process
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Interoperable System Interfaces
    Buyers and sellers with heterogeneous systems,
     marketplace platform-independent system
     interfaces are a critical requirement
    Web Services enabled-marketplace system
     mediate negotiation partner’s through Web
     Services as fig 1.



                      A WS-enabled marketplace
                  architecture for negotiation process
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                A WS-enabled marketplace
            architecture for negotiation process
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                                                                                     Accept(seller_id, message_type,
                                                                                     reference_message_id, Accept_message)
                                                                                     [message_type==accept]
                                                                                     /message_to(seller_id,
  RFQ_send(Seller_id, RFQ_message)                                                   reference_message_id, Accept_ message)
  [nogo_process_agreement(sell_id)]
                                         Seller_offer(buyer_id, message_type,
  /message_to(seller_id,RFQ_message)
                                         reference_message_id, Offer)
                                         [message_type==offer]
                                         /message_to(buyer_id, message_id, reference_id, Offer)




                                          Buyer_offer(seller_id, message_type,
                                          reference_message_id, Offer)
                                          [message_type==offer]
                                          /message_to(seller_id, message_id, reference_id, Offer)
                                                                                        Reject(seller_id, message_type,
                                                                                        reference_message_id, Reject_message)
                                                                                        [message_type==accept]
                                                                                        /message_to(seller_id,
                                                                                        reference_message_id, Reject_ message)
Accept(buyer_id, message_type,           Reject(buyer_id, message_type,
reference_message_id, Accept_message)    reference_message_id, Reject_message)
[message_type==accept]                   [message_type==reject]
/message_to(buyer_id,                    /message_to(buyer_id, reference_message_id, Reject_
reference_message_id, Accept_ message)   message)



                                                 A WS-enabled marketplace
                                             architecture for negotiation process
           2012/6/14                                    management                                                         17
                                                            Initiate Process (Receive RFQ)
                                                            Send RFQ                         Invoke




        Invoke                    Send Offer                Receive Quote
                                                            Receive Quote              Asyno Callback

                                                                                        Synchronous
                                                                            Get Ack     Invocation
        Async                Receive Offer                  Accepted ?
        Callback             Response
                                                          Counter-Offer?           Place P.O


                                                                                                 Invoke

                                                            Send Offer
               Synchronous
               Invocation             Get Ack              Receive Offer                     Asyno Callback
                                                           Response

        Invoke                                            Counter-Offer?

                                             Send Offer

                                                                                               Synchronous
            Asyno Callback                                                  Get Ack            Invocation
                                                              Accepted ?




                                           A WS-enabled marketplace
                                       architecture for negotiation process
2012/6/14                                         management                                                  18
Seller Offer Example in Practice
VALIDITY : With 30 days from the date we quoted.
QUOTATION/ TERMS: F.O.B. TAIWAN
PAYMENT : By irrevocable. L/C at sight in our favor or T/T before shipment.
PACKING : By Standard export carton with sea worth.
REMARK: 1.This offer is quoted basing on our own designed and standard
                 packing , customers own designed products and logo will be on buyers account.
              2. The unit price is not including quota cost.
              3. This offer is quoted basing on purchasing one 20 container per order, if the quantity isn't
                  enough for one 20', you are asked for more 5% as handling charge from our quotation.
              4. Minimum Qty: 500 PCS / each color / per order.
-------------------------------------------------------------------------------------------------------
ITEM NO.          DESCRIPTION                         UNIT PRICE
-------------------------------------------------------------------------------------------------------
100% spun polyester sewing thread                     F.O.B TAIWAN.

     50/2        6,000 Yards          WHITE           USD 0.53/CONE
     50/2        6,000 Yards          BLACK           USD 0.65/CONE
     50/2        6,000 Yards          COLOR           USD 0.68/CONE
-------------------------------------------------------------------------------------------------------
Resource from: My corporation real case

                                                      A WS-enabled marketplace
                                                  architecture for negotiation process
 2012/6/14                                                   management                                        19
Five Issue in Management
Workflow
     Ease of generating new process
     Flexibility
     Understandability
     Information sharing
     Process for decision support and collaboration




                         A WS-enabled marketplace
                     architecture for negotiation process
    2012/6/14                   management                  20
Table 2
Attributes and patterns of negotiation processes
Attributes            Pattern

Initiation            Buyer initiated
                      Seller initiated
Number of Parties     Bilateral
                      Multi-parties                    BUYER:SELLER
                                                        one:many
                                                        many:one
                                                        Inter-mediated
Purpose               Selection
                      Coordination
                      Hybrid
Stages                Single stage
                      Multi-stage                     Offer Exchange Rules
                                                       Alternating offer
                                                       One-side offer
                                                       Arbitrary



                                     A WS-enabled marketplace
                                 architecture for negotiation process
    2012/6/14                               management                       21
Table 2
Attributes and patterns of negotiation processes
Attributes              Pattern
Commitment              Binding
                        Non-binding
                        Penalty                         Penalty Calculation Scheme
                                                         Time based
                                                         Commitment amount based
                                                         Etc.
                        Contingent                      Contingency condition
                                                         Offer from other parties
                                                         Time
                                                         External events
                                                         Etc.
Information            Transparent
sharing with other     Non-transparent
negotiation process    Partly transparent               Information Revelation Rule
                                                          Profile-based
                                                          Offer-based
                                                          Etc.



                                      A WS-enabled marketplace
                                  architecture for negotiation process
    2012/6/14                                management                               22
                A WS-enabled marketplace
            architecture for negotiation process
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                A WS-enabled marketplace
            architecture for negotiation process
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Conclusion
      Web Services enabled-marketplace architecture
       for a solution to the problem in negotiation
       process management
      The architecture provide clearly define and
       quickly deployable negotiation process including
       open standard, shared ontology and message
       format
      The biggest advantage of the Web Services-
       enabled marketplace is the increased size of the
       pool of potential negotiation partners.
                          A WS-enabled marketplace
                      architecture for negotiation process
    2012/6/14                    management                  25
Comment
     BPEL4WS only supports 11 out of 18
      commonly required workflow patterns
     Business negotiation process may
      included many industry rules and
      different countries law in practices
     It’s have some problem with the while
      loop in figure 3, because buyer may
      terminated negotiation process.
                      A WS-enabled marketplace
                  architecture for negotiation process
    2012/6/14                management                  26

				
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