Web Services: Enabling Dynamic Business Networks

Abstract

A Dynamic Business Network is a distinct system of participants (customers, suppliers, complimentors, competitors, service providers) that use the network to achieve customer satisfaction and profitability and where participants and relationships evolve over time. However, unpredictability and rapid change in a Dynamic Business Network creates a significant challenge in implementing and supporting business application software. Traditional information systems implementation methods require an a priori design and are built for a particular purpose for use over an extended period of time. Loosely coupled business networks change interrelationships between nodes both quickly and frequently, thus providing little or no notice for planning, implementing, or changing the supporting applications. The dynamic sourcing capabilities of the emerging Web Services framework provide a key to enabling these complex eco-systems. We explore the strategic and technological dimensions of Web Services and describe how they can be used to support dynamic business networks.

SOA adoption in business networks: do service-oriented architectures really advance inter-organizational integration?

“…In contrast, the service-oriented paradigm is introducing more flexible forms of electronic integration. The SOA proposition (P5) holds that loosely coupled network platforms can be realized through the combination of modular, reusable, dynamically discoverable, and complementary services (Demirkan et al 2008;Iyer et al 2003). Our case material reveals that many SOA implementations still heavily rely on stable, pre-defined arrangements, whereas dynamic coupling is still rare.…”

“…Dynamically discoverable business services are said to increase the flexibility of inter-enterprise collaboration (Demirkan et al 2008) and allow for quick connect and disconnect relationships (Merrifield et al 2008). Consequently, a large number of conceptual papers elaborate on the dynamic sourcing capabilities of the emerging Web services framework and posit that they will be crucial to enabling loosely coupled business networks (Iyer et al 2003;Van Heck and Vervest 2007). Another stream of research suggests Web servicebased reference models for B2B collaboration (Chen et al 2007;Huang and Chung 2003;Li et al 2006), whereas other authors apply SOA concepts to particular domains or industries, resulting in platform designs or reference models for distributed SOAs (Baida et al 2008;Reitbauer et al 2008).…”

“…Empirical studies emphasize that prior forms of IOSnotably EDI -are mostly used in stable and long-term connected relationships (Daniel and White 2005;Gosain et al 2004;Malone 1987;Reimers 2001). In contrast, SOA literature proposes (P1) flexible SOA infrastructure and dynamically discoverable business services support dynamic business network configurations (Iyer et al 2003;Van Heck and Vervest 2007). However, this proposition (P1) is not supported by our empirical data.…”

“…They extend however the scope of electronic collaboration to include a larger number of business partners from different tiers of the business network, such as customers and whole- Business networks evolve around focal company with hierarchical and central control (Christiaanse and Venkatraman 2002;Clemons et al 1993;Malone et al 1987) (P2): SOA will foster network orchestration with distributed control and decision-making through interoperable platforms, based on open standards (Legner and Vogel 2008;Papazoglou and Georgakopoulos 2003) (P2) is only partly supported: focal arrangements still predominate and only few examples of polycentric networks have been found. But SOA extends the scope of focal arrangements by including a larger number of business partners from different tiers of the business network Tight supply chain process integration with existing partners (Daniel and White 2005;Gosain et al 2004;Son et al 2008;Zhu et al 2006) (P3): SOA maintains customer-facing demand chain integration, through business services that can be called up and executed on demand (Zhao et al 2007 (Demirkan et al 2008;Iyer et al 2003) (P5) is only partly supported: first steps into the loosely coupled network platform direction through process activity and data services in larger network settings (D3) Information Systems Silo applications and customized systems are a hindering factor in external integration (Zhu et al 2006) (P6): SOA can expose an organization's private computing assets as services for inter-enterprise collaboration (Demirkan et al 2008;Hagel and Brown 2001) (P6) is supported: companies expose services to provide external partners access to internal applications and data salers and sales agents as members of distribution channel. Given that IOS can affect the efficiency of a channel (Robey et al 2008), former IOS were more often used to integrate supply chain processes with existing partners (Daniel and White 2005;Gosain et al 2004;Son et al 2008;Zhu et al 2006).…”

Does SOA Improve the Supply Chain? An Empirical Analysis of the Impact of SOA Adoption on Electronic Supply Chain Performance

“…In addition, research focusing on the technical details provides insight into the architectural options and the related operational benefits [2], [10], [11]. This third stream of research provides a context for understanding the role of enterprise and web technologies in adding value to supply chain systems.…”