Creating a best fit between Business Strategy and Web

Creating a best fit between
Business Strategy and Web
Services Capabilities using
Problem Frames Modeling
approach
Anju Jha1, Karl Cox2 & Keith T. Phalp3
1 School of Computer Science and Engineering
University of New South Wales, [email protected]
2 Empirical Software Engineering
National ICT Australia
Sydney, Australia, [email protected]
3 School of Design, Engineering and Computing
Bournemouth University, UK, [email protected]
User/Customer
People:
Environment
Products:
Needs
Requirements
Engineer
Problem Space
Specification
Software
Architect/
Developer
Solution
Space
Design/
Architecture
1
Problem Description
•
Much of Requirements engineering for Web services
research concentrates on the ‘late-phase’
requirements engineering and focuses on producing
a specification document to pass on to the
developers.
•
Less attention has been paid to describe the real
world problems and the business objectives of
an organisation deploying Web services.
•
Requirements engineering community has not
realized the importance of aligning Web services
initiative with business strategy, business goals
and business objectives as much as it should be.
What do we Propose?
We propose a strategy-oriented
methodology that:
1)
2)
3)
4)
Is designed to support the business strategy of a
firm that is leveraging Web services initiative.
Provides a roadmap from business strategy to the
strategic objectives in four dimensions: service
innovation, customer relationship
management, infrastructure management
and financials.
Uses Progression of Problems to understand the
strategic objectives, business needs and business
context of Web services from strategy to
implementation.
Uses Problem frames to describe the operational
needs and the Web services context.
2
Research Questions
• RQ1: Is it possible to describe a business to IT problem in the
context of requirements for Web services?
• RQ 2: Is it possible to describe the business context, business
requirements and problem domain of an organisation adopting
Web Services through appropriate requirements engineering
framework?
This research question leads to a sub research question:
• Is it necessary to describe the business and problem context for
Web services?
- Industry Research shows that a good grasp of the business
context and domain context of Web services is needed
before describing the specifications.
- There are several requirements engineering frameworks that
could be used but not all are appropriate to describe the
business context, business requirements and problem
domain for Web services adequately.
An Overview
• A requirement is a condition or
capability needed by the user to solve a
problem or achieve an objective.
• A Web service is a capability that an
organization would deploy to meet its
business objective.
3
Overview of problem Frames
Problem frames classify software
developments problems.
– It describes what is in the real world and how the
intended software will change or guarantee real
world conditions in accordance with the
requirements.
– The real world problem context provides
information about the structure, processes and
tasks that are true of the problem domain.
– Requirements states which properties we wish to
be true given a built software solution, which is
the machine.
Progression of Problems
DA
DB
DC
DD
MM
RA
B u s in e s s
S tr a te g y
RB
RC
RD
RM
IT C a p a b ilitie s
4
RE Methodology
S t e p 1 : U n d e r s ta n d
O r g a n iz a t i o n a l S t r a t e g y /
B u s in e s s O b je c t iv e
C u s to m e r
R e l a t io n s h i p
M a nag em ent
S e rv ic e
I n n o v a t io n
Feed back
Fo r
Target
C u s to m e r s
T a r g e te d
To
V a lu e
P r o p o s i ti o n
B e tt e r
C u s to m e r
R e la t i o n s h ip
Feed s
M a rk e t e d
T h ro u g h
N ew C h ann el
C o n tr ib u te
s to
R e q u ir e s
B a sed
on
C a p a b il it y
W h y?
W h a t?
In fra s tru c tu r e
M an age m ent
B as ed o n
R e s o u rc e s
H ow ?
R e s o u rc e
F or
R e s o u rc e
fo r
T ru s t &
l o y a lt y
Cos t For
d e c re a s e s
L ow C o st
M od el
How?
W hy?
H o w M uch ?
p r o f i ta b i li t y
F u lfill
N e tw o rk o f
P a rtn e rs
In c o m e
fo r
R evenu e
M o del
i n c re a s e s
B as ed on
V a lu e
A c t iv i t ie s
W h a t?
W h o?
F i n a n c i a ls
S te p 2 : U s e
P ro g r e s s i o n o f
P r o b le m s to
d e s c r i b e th e
O r g a n iz a tio n ' s
b u s in e s s
o b je c tiv e a n d
b u s in e s s
c o n te x t fr o m
s tr a te g y to
i m p le m e n t a tio n
H o w M uch ?
C a p a b ilit ie s o f f e r e d
a s P o r tf o lio o f
S e rv ic e s
W ho?
S t e p 3 : D e s c r ib e
t h e C a p a b i li t i e s
u s in g p ro b le m
fr a m e s
RE Methodology..(cont)
1) This methodology provides constant
support to the business strategy and
helps understand what capabilities the
firm holds, how can it innovate,
improve customer relationship and
profitability goals.
2) This methodology helps align Web
services capabilities to the business
strategy.
5
An example of our analysis : Amazon Web services
• Amazon Web services is a business unit within
Amazon.com that exposes the service capabilities to
its business partners for a commission.
• Some of the Amazon’s WS capabilities offered to the
associates are:
• Product details and pricing information for virtually all
products in the Amazon catalog.
• Extended Search: Associates can use Amazon’s ‘Advanced
Search’ functionality to search by multiple attributes like
brand, price and category.
• Remote Shopping Cart: Amazon allows associates to add
Amazon’s Shopping Cart functionality to their own
website.
Step 1: Understand Amazon’s Business strategy
• Amazon’s mission is to increase market
share by exposing their products to
end-customer.
• Amazon has created a Web API that
allows associates(business partners) to
incorporate Amazon’s features into
their website.
6
From eBMO to Progression of Problems
S tr a t e g ic O b j e c t i v e s / O p e r a t i o n a l
o b je c ti v e s
D i m e n s io n s
1 ) S e r v ic e I n n o v a ti o n
2 ) C u s t o m e r R e la ti o n s h i p
M an agem e nt
S t r a t e g i c O b j e c t iv e s :
1 ) S e r v i c e In n o v a ti o n
2 ) T a rg e t in n o v a tiv e s e rv ic e s to th e
t a r g e t c u s to m e r .
3 ) V a l u e p r o p o s it i o n t o th e c u s t o m e r s
4 ) V a lu e c a p a b il i ti e s o ff e r e d t o t h e
A s s o c ia te s .
O p e r a t i o n a l O b j e c t iv e s :
E m b e d W e b s e r v i c e c a p a b i l it i e s in to th e
A s s o c i a t e s h o p fr o n t
S t r a t e g i c O b je c ti v e s :
1 ) I m p r o v e C u s to m e r R e l a t io n s h ip
2 ) N e w c h a n n e ls a r e o ff e r e d b y A m a z o n
w e b s e r v ic e s .
3 ) T r u s t a n d lo y a l t y b e t w e e n P a r t n e r s
4 ) N e w B u s i n e s s O p p o rt u n i ti e s t o th e
A s s o c ia te s .
O p e r a t io n a l O b je c ti v e s :
E m b e d W e b s e r v i c e c a p a b i l it i e s in to t h e
A s s o c ia te
s h o p fro n t
S tr a t e g ic O b j e c t i v e s :
1 ) In fra s tru c tu re M a n a g e m e n t
2 ) R e s o u rc e s o f f e r e d b y A m a z o n W e b
s e r v ic e s .
3 ) R e s o u r c e s m a d e a v a il a b le t o
N e tw o r k o f P a rt n e r s .
4 ) V a l u e a c ti v i ti e s t o m a k e c a p a b i l it i e s
a v a il a b l e
O p e ra tio n a l O b je c tiv e s :
E m b e d W e b s e r v ic e c a p a b il i ti e s i n t o
t h e A s s o c ia te s h o p f r o n t
3 ) In f r a s t r u c t u re
M an age m ent
S tr a t e g ic O b j e c t i v e s :
1 ) In c r e a s e p r o fi t a b i l it y
2) H ave a Lo w co st M o del
N e w re v e n u e s tre a m s to th e
a s s o c ia te s .
4 ) L o w c o s t c a p a b i li t ie s o f fe r e d to t h e
c u s t o m e rs
O p e ra tio n a l O b je c tiv e s :
E m b e d W e b s e r v ic e c a p a b il i ti e s i n t o
t h e A s s o c ia te s h o p f r o n t
4 ) F in a n a c ia ls
3)
C o n te x t
P ro g re s s io n o f
P ro b le m s
1 ) A m a z o n .c o m
2 ) A m a z o n W e b s e rv ic e s .
3 ) A s s o c ia te
4 ) W e b S e r v ic e s
5 ) A s s o c ia te S h o p fro n t
P O P (1 )
1 ) A m a z o n .c o m
2 ) A m a z o n W e b s e rv ic e s .
3 ) A s s o c ia te
4 ) W e b S e r v ic e s
5 ) A s s o c ia te S h o p fro n t
1 ) A m a z o n .c o m
2 ) A m a z o n W e b s e rv ic e s .
3 ) A s s o c ia te
4 ) W e b S e r v ic e s
5 ) A s s o c ia te S h o p fro n t
1 ) A m a z o n .c o m
2) A m azon W e b
s e rv ic e s .
3 ) A s s o c ia te
4 ) W e b S e r v ic e s
5 ) A s s o c ia te S h o p fro n t
P O P (2 )
P O P (3 )
P O P (4 )
Step 2: Understand Amazon’s business objective and business context from
strategy to implementation
Customer Relationship Management
Progression of Problems (2)
Service Innovation
Progression of Problems (1)
Business Strategy
Business Strategy
Service
Innovation
Amazon.com
Value
Proposition
Amazon Web
services
Amazon.com
DA
Customer
Relationship
Strategy Level
Strategy Level
Strategic Alignment
Amazon Web
DB
services
NewChannels
Strategic Alignment
Target
Customers
Associate
Associate
DC
Trust & Loyalty
Capabilities
Web
Services
Web
DD
Services
Business
opportunities
Associate
Shop Front
Associate
M
Shop Front
Machine Level
IT Capabilities
IT Capabilities
Associate
Shop Front
IT Capabilities
Embed Web
service
Capabilities
IT Capabilities
Associate
Shop Front
Machine Level
Machine Level
Value activities
Strategic Alignment
Strategy Level
Machine Level
Web
Services
Network of
Partners
Associate
Resources
Amazon Web
services
Infrastructure
management
Amazon.com
Web
Services
Associate
Lowcost
capabilities
Generate
Revenue
Stream
Amazon Web
services
LowCost
Model
Amazon.com
Increase
Profitability
Strategic Alignment
Strategy Level
Business Strategy
Business Strategy
Infrastructure Management
Progression of Problems (3)
Financials
Progression of Problems (4)
7
Step 3: Describe the capabilities as portfolio of services
using Problem Frames
•
Once the associate accepts Amazon web service’s
value proposition it is all set to select appropriate
capability at the 4th layer of Progressions diagram.
•
We use Problem frames to explicitly
describe:
– The business service capability provided.
– Application-to-Application interaction.
– The problem context and the domain in which
the service operates.
– The outward description of the interfaces
between the problem domain and the software
that will integrate the interfaces.
– How the service consumer will use the
capability.
– We describe Amazon’s capability using Problem
frames.
Example of Amazon-Associate relationship
A m a z o n .c o m
p r o b le m
su b
R e q u e st D a ta
d
c
a
A W S
A m a zo n .
co m
b
A s s o c ia te
e
P r o d u c t D a ta
f
P
P r o d u c t D a ta
R
W S
g
h
In p u t
D a ta
j
i
P ro g ra m
O u tp u t
D a ta
F o r m a ttin g
R u le s
k
A s s o c ia te S h o p s u b
p r o b le m
S h a re d P h e n o m e n a:
a : A W S ! { Id e n tific a tio n _ v e rific a tio n }
b : A S ! { Id e n tific a tio n _ d e ta ils , d a ta _ re q u e s t}
c : A W S ! { D a ta _ se n t} ;
d : A S ! { D a ta _ re c e iv e d }
e : A S ! { P ro d u c t_ D a ta } ;
f: P D (p )! { P ro d u c t_ D a ta }
g : P D (r)! { P ro d u c t_ D a ta }
h : ID ! { P ro g ra m _ C o d e } ;
i: P ! { O u tp u t_ C o d e }
j: ID ! { P ro g ra m _ D e sc rip tio n }
k : O D ! { S c re e n _ O u tp u t}
8
Which quality features are addressed by the paper?
•
This research proposes a strategy-oriented methodology that creates a best fit between the
business strategy and the Web service capabilities
•
It captures Web services as capabilities using Problem frames.
•
It aims to capture the strategy/business objectives of an organization using Progression of
Problems.
•
It provides a roadmap from business strategy, to the strategic objectives in four dimensions:
innovation, customer relationship management, infrastructure management and financials to
implementation.
What is the main novelty/contribution of the paper?
•
Progression of Problem is used to describe the alignment between Amazon’s strategy and IT
capabilities it chooses to offer to to the outside world.
•
We also show how Web Services context and requirements can be described as Problem
Frames.
How will this novelty/contribution improve RE practice or RE
research?
The fundamentally important purpose of this work is to realize the significance of aligning Web
services initiative with the strategic objectives.
The requirements engineers need to take a deeper look at the firm’s business strategy, business
needs and how to create alignment between the firms business strategy and the Web service
capabilities.
Can the proposed approach be expected to scale to real-life
problems?
Application on a live project is the next step in testing the idea’s scalability.
9