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Semantic Methods for Electronic Markets

Semantic Methods for Electronic Markets. Rudi Studer 1,2,3 , Anupriya Ankolekar 1,2 , Nenad Stojanovic 2 Institute AIFB, University of Karlsruhe www.aifb.uni-karlsruhe.de/WBS FZI Research Center for Information Technologies www.fzi.de Ontoprise GmbH www.ontoprise.de SRI, Menlo Park

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Semantic Methods for Electronic Markets

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  1. Semantic Methods for Electronic Markets Rudi Studer1,2,3, Anupriya Ankolekar1,2, Nenad Stojanovic2 Institute AIFB, University of Karlsruhe www.aifb.uni-karlsruhe.de/WBS FZI Research Center for Information Technologies www.fzi.de Ontoprise GmbH www.ontoprise.de SRI, Menlo Park August 10, 2006

  2. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching: Discovery and Selection • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  3. Application-orientedResearch Know-how Transfer Realizing new Scenarios Application-orientedResearch Product Development Innovative Solutions Basic Research Application-orientedResearch AIFB Karlsruhe: Location for Semantic Technologies Semantic Web Infrastructure Ontology Management Data and Text Mining Peer-to-Peer Semantic Web Services Knowledge Management Community Support Electronic Markets eGovernment August 10th, 2006, SRI

  4. Knowledge Management Community Support Electronic Markets eGovernment Ontology Management Data/Text Mining Peer-to-Peer Semantic Web Services Who are we? … Semantic Technologies Research Group AIFB FZI Sudhir Agarwal Anupriya Ankolekar Andreas Abecker Rudi Studer Stephan Bloehdorn Sebastian Blohm Simone Braun Saartje Brockmans Stephan Grimm Philipp Cimiano Peter Haase Heiko Haller Jens Hartmann Pascal Hitzler Markus Krötzsch Hans-Jörg Happel Steffen Lamparter Holger Lewen Mark Hefke York Sure Sebastian Rudolph Ljiljana Stojanovic Julien Tane Nenad Stojanovic Christoph Tempich Duc Thanh Tran Max Völkel Johanna Völker Tuvshintur Tserendorj Valentin Zacharias Yimin Wang Denny Vrandecic & ~40 people at Ontoprise August 10th, 2006, SRI

  5. Semantic Web Services Projects SmartWebMediating mobile, intelligent access to Web services, such as weather, route information etc. DIP Data, Information, and Process Integration with Semantic Web Services Reasoning infrastructure for Semantic Web services SESAMSemantic matching of energy products and legal contracts in P2P electricity markets IME Graduate school of information management and market engineering • Ontology-based policies for buyer preferences and seller pricing • Mapping between different ontology and rule formalisms and their visual modelling via meta-modeling Billing the GridAccounting and pricing resource usage in Grid environments based on negotiation and policies FITFostering self-adaptive e-government service Improvement using semantic Technologies SAKESemantic-enabled Agile Knowledge-based e-government SAPCooperation projectsin the context of SOA August 10th, 2006, SRI

  6. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching: Discovery and Selection • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  7. The vision of a service-oriented world • Automated B2B commerce • Electronic trading marketplaces • Business process outsourcing and integration on the Web • Resource sharing, distributed computation • Company eco-systems August 10th, 2006, SRI

  8. Challenges • How to discover the right services? • For my business needs and objectives • UDDI common solution, but insufficient: need programmer agreement, search through keywords • How to compose services (automatically)? • Create plan or template with unknown and/or unreliable services (planning operators) • Service composition needs to go beyond functional composition for real business needs • How to select the services to invoke or serve? • Multi-attributive services with differing QoS August 10th, 2006, SRI

  9. Challenges • How can services talk to each other? • Interoperability of data, protocols, processes, applications • Common standards help, but manual agreement still required • How to establish trust among the participants of a transaction? • legal responsibilities of participants August 10th, 2006, SRI

  10. Our approach: Semantic Services Semantic annotations and reasoningto address several challenges: • How to discover the right services? • semanticsfor richer descriptions of services for automated, more accurate service discovery • How to compose services (automatically)? • semantic service descriptions for automated composition, incl. preconditions and effects • semantic descriptions of constraints and goals • How to select the services to invoke or serve? • Semantic description of multi-attribute services and preferences used for selection decision August 10th, 2006, SRI

  11. Our approach: Semantic Services • How can services talk to each other? • Semantic interoperability via the use of shared expressive ontologies for modelling services • How to establish trust among the participants of a transaction? • On-the-fly contracting using semantic contract descriptions • Reputation mechanisms August 10th, 2006, SRI

  12. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching: Discovery and Selection • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  13. Which service can I use to generate optimal routing as part of my Order-To-Cash business process? Service Discovery Need service that can fit in existing workflows Real business needs go beyond functional matching of services, e.g. for Business Process Outsourcing Scenario: Matchmaking Sales order Provider 1 Delivery Routing Provider 2 Picking Packing Provider n Shipment August 10th, 2006, SRI

  14. functional context-driven Approach • Model services (offers) and requests declaratively in terms of • Functionaland temporalattributes • Service configurations • Preconditions and desired effects/actions of services • Business policies, access control policies etc. • Matchmaking answers include conditions under which a service is a match [see publications by Agarwal, Ankolekar, Lamparter] August 10th, 2006, SRI

  15. Modelling Web Services • Describe temporal structure of a web service with -calculus • Composition is a central aspect of -calculus • Typed communication channels can capture relationships between input and output activities • Describe involved objects (-calculus names) semantically with description logics • Embed access control policies as -calculus conditions August 10th, 2006, SRI

  16. Which service can I use to generate optimal routing as part of my Order-To-Cash business process? Service Selection How to choose which service to use? Select best service from set of matching services Preference-based selection for configurable services Auctions for globally optimal service allocation Take business contextinto account Scenario: Matchmaking Sales order Provider 1 Delivery Routing Provider 2 Picking Packing Provider n Shipment August 10th, 2006, SRI

  17. Service Selection • Automatic selection and negotiation of configurable Web services requires: • Preference information within the admissible range • Cardinal preferences to make multi-attributive decisions encryption key ≤ 512 bits response time = 5sprice = 3 Euro WS Provider I Agent “I need a service with encryption key ≥ 128 bits, response time < 10s andprice < ´5 Euro” encryption key = 128 bits response time = 3sprice = 4 Euro WS Provider II What key length should be chosen? Is a 2 sec. improvement in response time worth 1 Euro of additional cost? August 10th, 2006, SRI

  18. Policies for Service Selection We distinguish between • Scoring Policies: Rules determine which configurations are admissible and the willingness to pay for a certain configuration • Pricing Policies: Rules that determine what configurations are provided and their actual price Pricing Policy minPrice(key,rt) = 0.05*key+0.04rt WS Provider I Agent Scoring Policy:maxPrice(key,rt) = 0.1*key+0.7*rt encryption key = 128 bits response time = 3sprice = 4 Euro WS Provider II Challenge: How can we model scoring and pricing policies using Web standards and use them in the decision making process. August 10th, 2006, SRI

  19. Preference-based Selection • Matchmaker needs to know • How does the price depend on service properties? (Pricing Policies) • How does requester’s willingness to pay depend on service properties? (Scoring Policies) • Matchmaker ranks, e.g., services according to scoring policy  Encode these policies in requests and offers Our Approach: Policy Ontology • Utility Function Policies (Allows deriving rankings, assess absolute suitability, conflict resolution) • Declarative approach based on a foundational ontology (high degree of axiomatization)  Internet standards: XML, OWL-DL, SWRL (DL-safe subset) • Policy enforcement based on logical reasoning using KAON2 reasoner August 10th, 2006, SRI

  20. PatternBasedFunction patternIdentifier : String patternParameter1 : Float . patternParameterN : Float valuation valuation valuation 1 1 Attribute PointBasedFunction Function Policy Point policyValue : Datatype valuation : Float PiecewiseLinearFunction 1 policyValue yes no policyValue policyValue 5s 10s 5s 10s 0 0 Modeling Utility Functions How to model a utility function with ontologies? defines defines isEvaluatedWRT constitutedBy constitutedBy next August 10th, 2006, SRI

  21. Evaluation August 10th, 2006, SRI

  22. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  23. Business goal: “High quality of the process“ “Sell low quality for low price“ Sales order Provider 1 Delivery Routing Provider 2 Picking Packing Provider n Shipment Matchmaking using the business context contextual requirements Pricing policy: “Pay no more than 1K EURO“ August 10th, 2006, SRI

  24. Vertical information integration business goals Policies business strategy business innovation business rules business collaboration Big picture: Contextualized Business business process August 10th, 2006, SRI

  25. Policies SemBPM Prototype August 10th, 2006, SRI

  26. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching: Discovery and Selection • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  27. Compliance Management • „Through 2008, investigation of new technologies will slow as discretionary budgets divert to regulatory compliance.… in many case, discretionary IT budgets are entirely consumed by compliance efforts …“ Source: Gartner's Top Predictions for 2006 and Beyond • e.g. Sarbanes Oxley, Basel II • Drawbacks of existing solutions for the automation of ComplMgm • non-flexibility due to hard coding of regulations • non-reusability due to lack of a formal description • possible inconsistencies due to an isolated view on the regulations A formal approach is needed August 10th, 2006, SRI

  28. Semantic Compliance Management: general approach Policies Semantic policy model Target domain Semantic business process model Automatic Compliance check August 10th, 2006, SRI

  29. Compliance Management for Internal Controls • Sarbanes Oxley (SOX) and related Compliance Requirements are an Implementation for Management of Internal Controls forced by Law • COBIT (Control Objectives for Information and related Technology) serves as conceptual framework • Example for an Application Control (AC): „Each Purchase Order (PO) with an amount higher than 5000 Euros must be approved by two different Purchasers (Double Check Control)“ • Main Idea: Express Application Controls (ACs) as SWRL-Statements (DL-Safe-Rules) and guard semantic instances of Business Processes during runtime August 10th, 2006, SRI

  30. Guarded Sequence (GS) . . . bp . . . 1a 2a Knowledge Base Logs GS(bp) 3 Facts(bp) Inference 4 Semantic Mirror of bp Logs(bp) CS(bp) 1b 2b GA = Guarded Activity is an activity which is in scope of an Application Control (AC) on a Business Process (bp) GS = Guarded Sequence is a sequence of guarded activities CS = Control Statement is a logical expression which defines an AC and the reaction on its violation in the form of Compliance Management for Internal Controls August 10th, 2006, SRI

  31. Semantic Compliance Management: Example August 10th, 2006, SRI

  32. Outline • Semantic Technologies and Services @ Karlsruhe • Services Vision and its Challenges • Semantic Services • Service Matching • Semantic Business Process Management • Semantic Compliance Management • Conclusion August 10th, 2006, SRI

  33. Conclusion Future Work: • Composition of services • Sound theoretical basis for combining description logics and process algebras • Contract modelling and monitoring • Semantic business process management • Modeling of strategic knowledge • Semantic monitoring of BPs August 10th, 2006, SRI

  34. Open Questions • What level of semantic annotation is required • Scalable semantic reasoning • Business value of semantic services • Who will provide the semantic annotations? • To which extent will business knowledge be formalized • Business rules, strategy, goals • How to elicit the utility functions? August 10th, 2006, SRI

  35. Main EU Semantic Web Projects in KA SEKT: Semantically-enabled Knowledge Technologies • €12.5M, 3 year project, 11 European partners (Techn. Coordinator) • http://www.sekt-project.org/ DIP: Data, Information, and Process Integration with Semantic Web Services • €16.3 M, 3 year project, 17 European partners • http://dip.semanticweb.org/ Knowledge Web • Network of Excellence, €8M, 4 year project, 18 European partners • http://knowledgeweb.semanticweb.org/ X-Media: Knowledge Sharing and Reuse across Media • €13M, 4 year project, 15 European partners • http://nlp.shef.ac.uk/X-Media/index.html NeOn: Networked Ontologies • €10M, 4 year project, 14 European partners (Techn. Coordinator) • http://www.neon-project.org/ Nepomuk: The Social Semantic Desktop • €11 M, 3 years project, 16 european partners • http://nepomuk.semanticweb.org/ August 10th, 2006, SRI

  36. The Open University (co-ordinator)University of Sheffield Universitaet Karlsruhe, Software AG, ontoprise, Universitaet Koblenz-Landau INRIA Alpes Institut ‘Jozef Stefan’ Universidad Politecnica Madrid,iSOCO, pharmaInnova, Atos Origin United Nations FAO, CNR-LOA Lifecycle Support for Networked Ontologies “Shaping the future infrastructures for semantic applications” • EU IST Integrated Project (FP6) • Start date: March 2006 • Duration: 4 year project • Funding: € 10M • http://www.neon-project.org/ • Key outcomes from NeOn • Open, scalable and service-centred reference architecture • The NeOn toolkit – for engineering contextualized networked ontologies and semantic applications • Industry-strength documentation and reference material • Three case studies in two sectors:pharmaceuticals and agriculture/fisheries August 10th, 2006, SRI

  37. Semantic MediaWiki • MediaWiki used for Wikipedia • Semantic MediaWiki introduces some additional markup into the wiki-text which allows users to add ”semantic annotations”. • Structured Knowledge Representation (with RDF export) • Extensions • for typed Links • Previously: … Karlsruhe is located in [[Germany]] … • New: … Karlsruhe is located in [[LocatedIn::Germany]] … • for Annotations • Previously: … Karlsruhe has 280.000 inhabitants … • New: … Karlsruhe has [[Inhabitants:=280000]] … August 10th, 2006, SRI

  38. More information at http://wiki.ontoworld.org/ August 10th, 2006, SRI

  39. References • Specification of Invocable Semantic Web Resources, Sudhir Agarwal, ICWS 2004 • Automatic Matchmaking of Web Services, Sudhir Agarwal, Anupriya Ankolekar, WWW2006 Poster • A Policy Framework for Trading Configurable Goods and Services in Open Electronic Markets. Steffen Lamparter, Anupriya Ankolekar, Rudi Studer, Christof Weinhardt, ICEC 2006 • Specification of Access Control and Certification Policies for Semantic Web Services, Sudhir Agarwal, Barbara Sprick, EC-Web 2005 • Towards a Formal Verification of OWL-S Process Models. Anupriya Ankolekar, Massimo Paolucci, Katia Sycara, ISWC 2005 • Automatic Matchmaking of Web Services. Sudhir Agarwal and Rudi Studer. International Conference on Web Services (ICWS 2006) • Approximating Service Utility from Policies and Value Function Patterns. Steffen Lamparter, Andreas Eberhart, Daniel Oberle, 6th IEEE International Workshop on Policies for Distributed Systems and Networks (POLICY 2005) • Specification of Policies for Automatic Negotiations of Web Services, Steffen Lamparter, Sudhir Agarwal, Proceedings of the Semantic Web and Policy Workshop at ISWC 2005 August 10th, 2006, SRI

  40. Thanks! Prof. Dr. Rudi Studer studer@aifb.uni-karlsruhe.de www.aifb.uni-karlsruhe.de www.fzi.de www.ontoprise.de August 10th, 2006, SRI

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