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Business Service Semantics
       Ontological Representation & Governance of Business Semantics in
       Compliant Service Networks

       Pieter De Leenheer, Jorge Cardoso, Carlos Pedrinaci




Thursday 7 February 13
Overview

       • Analyse problems with conceptual (software / business) service modelling


       • Set ontological and governance requirements for Business Service Semantics


       • Proposal for an SDL-compliant upper model


       • Application of the ontology in Flanders Research Information Space


       • Implementation in Collibra Data Governance Center product




Thursday 7 February 13
The Problem of Service-oriented Architecture (SOA)
       • 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

                  ➡ good for automating EXECUTION but not for TRADING or INNOVATION

                  ➡ 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 marketing 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.”
Thursday 7 February 13
The Problem with Business Modelling / Service
       Network Approaches
                                                                                                        Razo-Zapata, I.; De Leenheer, P.; Gordijn, J.; Akkermans, H. (2012) Service
                                                                                                        Network Approaches. In Barros, A.; Oberle, D. Handbook of Service Description:
                                                                                                        USDL and its Methods, Springer, pp. 45-74


                                                                                              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)




       ➡ slow 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,
       ➡ tacit business semantics                                                                                                                   (Zlatev,
                                                                                                                                                     2007)
                                                                                                                                                                   2010)




       ➡ no governance                                                                                                                 O-WSP                        VBC
                                                                                                                                       (Omela-                   (Nakamu
                                                                                            Value             BMO
       ➡ Service Network Approaches                                                         Chain
                                                                                           (Porter,
                                                                                                             (Oster-
                                                                                                             walder,
                                                                                                                                        yenko,
                                                                                                                                        2006)
                                                                                                                                                                 ra, 2006 )


         lonely at the top?                                                                 1985)             2004)




                                        ICT support:                                        None            Design       Analysis     Bundling    Matching     Composition     Dynamic
                                                                                                                                                                              Composition

Thursday 7 February 13
Service Value Networks Perspective
               An Service Value Network 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 => a service is a function f : Needs -> SVNs

             • reflects an acceptable trade-off between

                  • value proposition (to maximize short-term profit) and

                  • market accuracy (to minimize consumer sacrifice)

       • evaluating other value aspects (quality and compliance) requires “business service domain” semantics that:

             • provide intended - natural - interpretation of the “real world”: divergence/convergence

             • makes common sense, hence is declarative and grounded in upper SDL ontology

             • are agreed and shared by the right arrangement of roles and responsibilities (i.e., governance)


                                                             Business Semantics Management
Thursday 7 February 13
SDL-Compliant Upper-level Model
                                                  Resource
                                                                         • inspired by Poels, FRISCO, Maglio

                                    Operant                Operand
      controlled by /
                                    Resource               Resource              governance
                                                                                 governance
         controlling
                                                                                                                                                      execution
                                        Service                                        acted upon by / acting upon
                                                        Competency
                                        System
                                                                          Operand
                                                                          Resource
      part of /                                                                                                                           guarded by / guarding
   having part                                                                            "Operant In Action"                                                         Circumstance
                                                                                                                           Action
                                                                                       acting in / acted upon by
                         Organisation         Individual              Operant
                                                                      Resource                                                                          part of /
                                                                                                                                                        having part

                                                                       Actor
                                                                                     role of / playing role of        Elementary         Composite
                                                                                                                        Action            Action



                                                                                                           integrating / integrated by



                                            value creation
                                                                                                 Service                                                      requiting
                                                                                                                                          Service
                                                                                                 System                                                       / requited by


                                                                                                            providing / provided by



Thursday 7 February 13
Flanders Research Information Space
       http://www.researchportal.be/

• Boost innovation through
   • aggregating data and make it
     publicly available
        •   19683 projects
        •   1976 organisations
        •   13982 researchers
        •    ...
   • multiple parties deliver
• Enterprise Info. Mgt.
   • SOA (Attira)
   • Business Semantics (EuroCRIS,
     Collibra)
   • Business Artefacts (IBM Research,
     Collibra)
• CERIF standard
• Linked Data Approaches

Thursday 7 February 13
Characteristics of the FRIS Ecosystem

  • Participatory
       • Equally privileged
       • Act autonomously
       • Interdependence
       • Distributed
  • Long Life Cycles
  • Governance Levels
  • Variability
  • Authentic Resources

                                       project mgt.
                                 funding programme mgt.

                                              © courtesy of G. Van Grootel, EWI
Thursday 7 February 13
FRIS Ontology Instantiation
                                                                          Service
                                                                          System




                                         Organisation




                   Semantic                                       Speech
                  Community                                                                                Individual:
                                                                 Community
                   "FRIS"           having part / part of         "VUB"       having part / part of        "John"
                                                                                                                                  "Individual in Service"


                                                                               providing / provided by
            controlling /                        controlling /                                                                          acting in /
           controlled by                        controlled by                                                                           acted upon by
                                   expressed by / expressing


                                                                                                                    Service:
                         Concept                            Vocabulary                                                                                             playing role of /
                      "Project"                                                                              "Define Project
                                                            "Project"                                                                                              role of
                                                                                                              Vocabulary"

                                                                                                                                             Actor:
                                                                             acted upon by / acting upon                                  "Business
                                                                                                                                             Steward"
                                         Operand
                                         Resource                                                                                                  Circumstance:
                                                                                                                                                "Define Proposal
                                                       providing / provided by                                       guarded by / guarding     Vocabulary Ended"




Thursday 7 February 13
Data Governance Center




Thursday 7 February 13
Further Reading
       • SDL-compliant upper-level model highlighting extension points for


             • value creation: Razo-Zapata, I.; De Leenheer, P.; Gordijn, J.; Akkermans, H. (2012) Fuzzy Verification of Service
               Value Networks. In Proc. of the International Conference on Advanced Information Systems Engineering (CAiSE
               2012), Springer LNCS 7328, pp. 95-110


             • execution: Limonad, L.; De Leenheer, P.; Linehan, M.; Hull, R.; Vaculín, R. (2012) Ontology of Dynamic Entities. In
               Proc. of 31st International Conference on Conceptual Modeling (ER 2012), LNCS, Springer


       • more on FRIS: Debruyne, C.; De Leenheer, P. (2012) Insights in Business Semantics Management: Case Studies
         drawn from the Flemish Public Administration. In Aufaure, M.-A.; Zimanyí, E. (eds.) Handbook for the Second
         European Business Intelligence Summer School (eBISS 2012), LNBIP, Springer


       • can we automatically reconfigure Actor role played by Operant that acts in a Services in response to quality or
         compliance issues ?


             • De Leenheer, P. and Debruyne, C. (2009) Towards Social Performance Indicators for Community-based Ontology
               Evolution. In Proc. of ISWC Workshop on Collaborative Construction, Management and Linking of Structured
               Knowledge (CK2009)




Thursday 7 February 13

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Business Service Semantics: Ontological Representation & Governance of Business Semantics in Compliant Service Networks

  • 1. Business Service Semantics Ontological Representation & Governance of Business Semantics in Compliant Service Networks Pieter De Leenheer, Jorge Cardoso, Carlos Pedrinaci Thursday 7 February 13
  • 2. Overview • Analyse problems with conceptual (software / business) service modelling • Set ontological and governance requirements for Business Service Semantics • Proposal for an SDL-compliant upper model • Application of the ontology in Flanders Research Information Space • Implementation in Collibra Data Governance Center product Thursday 7 February 13
  • 3. The Problem of Service-oriented Architecture (SOA) • 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 ➡ good for automating EXECUTION but not for TRADING or INNOVATION ➡ 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 marketing 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.” Thursday 7 February 13
  • 4. The Problem with Business Modelling / Service Network Approaches Razo-Zapata, I.; De Leenheer, P.; Gordijn, J.; Akkermans, H. (2012) Service Network Approaches. In Barros, A.; Oberle, D. Handbook of Service Description: USDL and its Methods, Springer, pp. 45-74 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) ➡ slow 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, ➡ tacit business semantics (Zlatev, 2007) 2010) ➡ no governance O-WSP VBC (Omela- (Nakamu Value BMO ➡ Service Network Approaches Chain (Porter, (Oster- walder, yenko, 2006) ra, 2006 ) lonely at the top? 1985) 2004) ICT support: None Design Analysis Bundling Matching Composition Dynamic Composition Thursday 7 February 13
  • 5. Service Value Networks Perspective An Service Value Network 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 => a service is a function f : Needs -> SVNs • reflects an acceptable trade-off between • value proposition (to maximize short-term profit) and • market accuracy (to minimize consumer sacrifice) • evaluating other value aspects (quality and compliance) requires “business service domain” semantics that: • provide intended - natural - interpretation of the “real world”: divergence/convergence • makes common sense, hence is declarative and grounded in upper SDL ontology • are agreed and shared by the right arrangement of roles and responsibilities (i.e., governance) Business Semantics Management Thursday 7 February 13
  • 6. SDL-Compliant Upper-level Model Resource • inspired by Poels, FRISCO, Maglio Operant Operand controlled by / Resource Resource governance governance controlling execution Service acted upon by / acting upon Competency System Operand Resource part of / guarded by / guarding having part "Operant In Action" Circumstance Action acting in / acted upon by Organisation Individual Operant Resource part of / having part Actor role of / playing role of Elementary Composite Action Action integrating / integrated by value creation Service requiting Service System / requited by providing / provided by Thursday 7 February 13
  • 7. Flanders Research Information Space http://www.researchportal.be/ • Boost innovation through • aggregating data and make it publicly available • 19683 projects • 1976 organisations • 13982 researchers • ... • multiple parties deliver • Enterprise Info. Mgt. • SOA (Attira) • Business Semantics (EuroCRIS, Collibra) • Business Artefacts (IBM Research, Collibra) • CERIF standard • Linked Data Approaches Thursday 7 February 13
  • 8. Characteristics of the FRIS Ecosystem • Participatory • Equally privileged • Act autonomously • Interdependence • Distributed • Long Life Cycles • Governance Levels • Variability • Authentic Resources project mgt. funding programme mgt. © courtesy of G. Van Grootel, EWI Thursday 7 February 13
  • 9. FRIS Ontology Instantiation Service System Organisation Semantic Speech Community Individual: Community "FRIS" having part / part of "VUB" having part / part of "John" "Individual in Service" providing / provided by controlling / controlling / acting in / controlled by controlled by acted upon by expressed by / expressing Service: Concept Vocabulary playing role of / "Project" "Define Project "Project" role of Vocabulary" Actor: acted upon by / acting upon "Business Steward" Operand Resource Circumstance: "Define Proposal providing / provided by guarded by / guarding Vocabulary Ended" Thursday 7 February 13
  • 11. Further Reading • SDL-compliant upper-level model highlighting extension points for • value creation: Razo-Zapata, I.; De Leenheer, P.; Gordijn, J.; Akkermans, H. (2012) Fuzzy Verification of Service Value Networks. In Proc. of the International Conference on Advanced Information Systems Engineering (CAiSE 2012), Springer LNCS 7328, pp. 95-110 • execution: Limonad, L.; De Leenheer, P.; Linehan, M.; Hull, R.; Vaculín, R. (2012) Ontology of Dynamic Entities. In Proc. of 31st International Conference on Conceptual Modeling (ER 2012), LNCS, Springer • more on FRIS: Debruyne, C.; De Leenheer, P. (2012) Insights in Business Semantics Management: Case Studies drawn from the Flemish Public Administration. In Aufaure, M.-A.; Zimanyí, E. (eds.) Handbook for the Second European Business Intelligence Summer School (eBISS 2012), LNBIP, Springer • can we automatically reconfigure Actor role played by Operant that acts in a Services in response to quality or compliance issues ? • De Leenheer, P. and Debruyne, C. (2009) Towards Social Performance Indicators for Community-based Ontology Evolution. In Proc. of ISWC Workshop on Collaborative Construction, Management and Linking of Structured Knowledge (CK2009) Thursday 7 February 13