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Value-based requirements engineering in decentralized value networks

Value-based requirements engineering in decentralized value networks. Roel Wieringa University of Twente The Netherlands. Contents. VITAL/COOP project description Coordination and value modeling Trust Discussion. 1. Two projects. Value-Based IT ALignment (VITAL)

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Value-based requirements engineering in decentralized value networks

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  1. Value-based requirements engineering in decentralized value networks Roel Wieringa University of Twente The Netherlands UPV

  2. Contents • VITAL/COOP project description • Coordination and value modeling • Trust • Discussion UPV

  3. 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 UPV

  4. 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) UPV

  5. 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 UPV

  6. Problem structure • Value model • Who delivers what to whom • Goods, services, money • Manager’s view • Net Present Value computations of cash flow • When one model changes, the other usually do too • Process model • Coordination process • Internal business processes • IT model • Coordination IT • Internal IT UPV

  7. Contents • VITAL/COOP project description • Coordination and value modeling • Trust • Discussion UPV

  8. 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 UPV

  9. 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 UPV

  10. 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 UPV

  11. Example value model • Exchanges of commercial value • No data flows, no flow of goods, no behavior • Instructions for a revenue computation Dependency path UPV

  12. 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 UPV

  13. UPV

  14. Coordination process UPV

  15. UPV

  16. Coordination process UPV

  17. 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 UPV

  18. 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 UPV

  19. Contents • VITAL/COOP project description • Coordination and value modeling • Trust • Discussion UPV

  20. 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 UPV

  21. UPV

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  23. 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 UPV

  24. UPV

  25. NPV • 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 This is the risk-free increase UPV

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