Web services I. Business to business e-business • How does it work?

1. Web services I. Business to business e-business • How does it work? II. What are web services? IIII. Examples of web services • Data mining and warehousing • Online analytical processing (OLAP) • Business intelligence

2. I. Business-to-business e-business What is b-to-b ebusiness? The buying and selling of goods and services between companies online Facilitating the procurement of goods and services Includes activities related to the supply chain Manufacturers, distributors,wholesalers, dealers, franchisees, retailers Provision of business infrastructure Adserver networks, content syndicators, content delivery, data mining, order fulfillment and logistics, payment processing

3. I. Business-to-business e-business B2B e-commerce differs from “e-tailing” Flexibility in pricing Transactions require variability in the pricing of products between purchasers Haggling is rare in the B2C marketplace Integration of business systems To realize increased productivity and savings, businesses integrate their internal systems, reducing human intervention Pan-Western E-Business Team. (2005) Business-to-Business E-Commerce Basics. http://www.e-bc.ca/media/ebizguides/b2b_basics.pdf

4. I. Business-to-business e-business B2B e-commerce take place throughout the economy Sector Total Ecommerce All manufacturing 4.2 trillion 996 billion (23.4%) Transportation equipment 663 billion 346 billion (52.2%) Beverage and tobacco 111 billion 53 billion (47.2%) All service 5.4 trilllion 59 billion (1.15) Travel 28 billion 6 billion (22.2%) Online information 32 billion 4 billion (13.6%) US Census (2004). 2004 E-Commerce multi-sector data tables.http://www.census.gov/eos/www/papers/2004/2004finaltables.pdf

5. I. Business-to-business e-business B2B marketplaces Vertical e-marketplace Spans vertically across all segments of an industry Each level can access all other levels, increasing collaboration Advantages: increases operating efficiency, decreases supply chain costs, inventories, and cycle times Buying/selling items in a similar industry is standardized, reducing need for outsourcing Oil: PennEnergy Equipment exchange http://www.pennenergy.com/

6. I. Business-to-business e-business Horizontal e-marketplace Connects buyers and sellers across many industries Example: maintenance, repair, and operations materials These are crucial to the daily operation of all businesses In many corporations the maintenance department buys directly on-line Dovebid Industrial auctioneers http://www.dovebid.com/default.asp?bhcp=1

7. I. Business-to-business e-business B2B supply chain A linked set of resources and processes that begins with the sourcing of raw material and ends with the delivery of goods and services to the final customer Includes vendors, manufacturing facilities, logistics providers, internal distribution centers, distributors, wholesalers and others “Push” model: suppliers and vendors push products or services through the supply chain to the end consumer Costs are accumulated through the chain and the consumer typically pays

8. I. Business-to-business e-business B2B changes the supply chain “Pull” model: the consumer has the most power in the supply chain, and suppliers must react to their demands The linear nature of the chain may be broken as customers circumvent middlemen and resellers Pressure on resellers to add value to keep customers Suppliers respond to consumer demand limiting excessive inventory and storage costs Shipping logistics are easier to control and costs are reduced as customers handle shipping tracking, etc.

9. I. Business-to-business e-business Types of B2B exchanges Type Pricing Orientation Examples Many to many Dynamic Neutral www.altra.com.sg (market) (matching) Static www.assetsmart.com (aggregation) Few-to-few Negotiated Neutral www.ctspace.com (dyadic) Few-to-many Posted Biased www,granger.com (monopoly) (supplier) Many-to-few Static Biased www.covisint.com (monopsony) (buyer) Palvou and El Sawy (2002). A classification scheme for B2B exchanges and implications for interorganizational ecommerce. p15.

10. Web services I. Business to business e-business • How does it work? II. What are web services? IIII. Examples of web services • Data mining and warehousing • Online analytical processing (OLAP) • Business intelligence

11. II. What are web services? Web services are a new breed of web application They are self-contained, self-describing, modular applications that can be published, located, and used across the Web Web services perform functions, which can be anything from simple requests to complicated business processes... Once a web service is deployed, other applications (and other web services) can discover and use the deployed service Vasudevan, V. (2001). A Web Services Primer. XML.com. http://webservices.xml.com/pub/a/ws/2001/04/04/webservices/index.html

12. II. What are web services? A web service is a set of applications that standardize communication of of information across systems, business partners, and customers They provide a standard means of interoperating between different software applications, running on a variety of platforms and/or frameworks They can then be combined in a loosely coupled way in order to achieve complex operations Programs providing simple services can interact with each other to deliver sophisticated added-value service W3C. (2004). Web Services. http://www.w3.org/2002/ws/Activity

13. II. What are web services? Official definition: A web service is a software system designed to support interoperable machine-to-machine interaction over a network It has an interface described in a machine-processable format (specifically WSDL) Other systems interact with the service in a manner prescribed by its description using SOAP messages These are conveyed using HTTP with XML serialization in conjunction with other Web-related standards W3C. (2004). Web Services Architecture. http://www.w3.org/TR/2004/NOTE-ws-arch-20040211/

14. II. What are web services? Sun Microsystem’s web services model java.sun.com/developer/technicalArticles/WebServices/WSPack/webservices_model.gif

15. II. What are web services? A software system identified by a URI, whose public interfaces and bindings are defined and described using XML When properly configured, web services can be found by other software systems These systems interact with the service in a manner prescribed by its definition, using XML based messages conveyed by net protocols They are loosely coupled, reusable software components that semantically encapsulate discrete functionality They are distributed and programmatically accessible over standard Internet protocols

16. II. What are web services? Enterprise applications that exchange data, share tasks, and automate processes over the Internet The logical successor to EDI Net-native applications that increase interoperability and lower the costs of software integration and data-sharing with partners Based on simple and non-proprietary standards and designed to allow computer programs to communicate directly with one another They exchange data regardless of location, operating systems, or languages

17. II. What are web services? Web services use reusable application components that dynamically interact with each other using net standard protocols Services include: Formatting messages using XML Invoking via simple object access protocol (SOAP) Publishing in Web services description language (WSDL) Location through universal description discovery and integration (UDDI) Everett, D. (2002). Web Services: Fulfilling a Spectrum of Business Intelligence Needs. DM Review http://www.dmreview.com/master.cfm?NavID=55&EdID=5242

18. II. What are web services? One view of web service architectures eXMLsystems.com. (2003). Microsoft.Net. http://www.exmlsystems.com/ TechnologyInsight.htm

19. II. What are web services? Formatting messages using XML It is a “meta-language” for creating markup languages that describe structured data It is a subset of SGML, and allows “generalized markup” It is useful for storing structured and semi-structured text that will be published in a variety of media It is extensible, which means that it describes a way of defining a set of tags and attributes By itself, XML does not define any tags This means that you create your own tags, effectively creating your own markup language

20. II. What are web services? Simple object access protocol: invoking services via SOAP It is an XML syntax for exchanging messages It is both language and platform independent A SOAP message consists of an “Envelope”, an optional “Header”, and a mandatory “Body” Envelope Identifies an XML document as being a SOAP message and encapsulates all the other parts of a message It contains the version information about the message Identifies the rules used by the application to serialize data

21. II. What are web services? This is a graphic version of a SOAP message www.c-sharpcorner.com/UploadFile/jgodel/SOAPNETCOMIntroductionpartI11162005042800AM/Images/soap1.gif

22. II. What are web services? SOAP Header: optional and used to extend the message syntax independently from a particular application Information can be inserted to add authorization or transaction information Body: carries application-specific contents including method name and serialized values of the methods’ input or output parameters Serializing a web services message in XML format allows the SOAP XML to pass through firewalls

23. II. What are web services? <SOAP:Envelope xmlns:SOAP='http://schemas.xmlsoap.org/soap/envelope/’ SOAP:encodingStyle='http://schemas.xmlsoap.org/soap/encoding/' xmlns:v='http://www.topxml.com/soapworkshop/'> <SOAP:Header> <v:From SOAP:mustUnderstand='1'> cdix@soapworkshop.com </v:From> </SOAP:Header> <SOAP:Body> <v:DoCreditCheck> <ssn>123-456-7890</ssn> </v:DoCreditCheck> </SOAP:Body> </SOAP:Envelope> TopXML. (2004). SOAP Workshop. http://www.vbxml.com/soapworkshop/articles/intro/page2.asp www.germes-online.com/direct/dbimage/50297131/Sell_Color_Lined_Soap.jpg

24. II. What are web services? Publishing services in WSDL An XML-based language to describe a business’ services Allows businesses to access the services electronically Basis of the Universal Description, Discovery, and Integration (UDDI) initiative Derived from Microsoft's SOAP and IBM's Network Accessible Service Specification Language (NASSL) Replaces NASSL and SOAP as the means of expressing business services in UDDI registry WebServices.com. (2004). Web Services Description Language. http://searchwebservices.techtarget.com/gDefinition/0,294236,sid26_gci521683,00.html

25. II. What are web services? WSDL provides information about how web services can be located and operated It contains “service definitions” for distributed systems Support the automatic creation of client-side stubs or proxies, and the binding to the Web services It describes interfaces to a web services implementation How messages should be formatted Bind the abstract message to a concrete protocol What the correct address of the endpoint is It is a "take-it-or-leave-it" technical contract offered by a web services provider to web services consumer

26. II. What are web services? Web services process with WDSL Requestor: person or company looking to run a web service To run the service, a requestor locates the WSDL document that details how to run the services Once the document is found, it's downloaded It is then examined, and based on what is found in it, a SOAP request or requests is sent out to the Web service provider The service sends the information requested - in essence the Web service itself - using the SOAP protocol Gralla. P. (2002). An inside look at WSDL. The Web Services Advisor. http://searchwebservices.techtarget.com/tip/1,289483,sid26_gci811272,00.html

27. II. What are web services? Typical WSDL elements <type> and <message> Describes information to be passed in the web service <message> element is the web service itself - the information that is going to be exchanged or requested <binding> Details how information will be passed between the requestor and the web service Includes information such as the protocol and data format

28. II. What are web services? Typical elements <portType> Describes a web service, operations that can be performed, and messages that are involved Can be compared to a function library (or a module, or a class) in a programming language <service> Location of the web service

29. This is what WSDL looks like II. What are web services? <?xml version="1.0"?> <definitions name="StockQuote" targetNamespace="http://example.com/stockquote.wsdl" xmlns:tns="http://example.com/stockquote.wsdl" xmlns:xsd1="http://example.com/stockquote.xsd" xmlns:soap="http://schemas.xmlsoap.org/wsdl/soap/" xmlns="http://schemas.xmlsoap.org/wsdl/"> <types> <schema targetNamespace="http://example.com/stockquote.xsd" xmlns="http://www.w3.org/2000/10/XMLSchema"> <element name="TradePriceRequest"> <complexType> <all> <element name="tickerSymbol" type="string"/> </all> </complexType> </element> </schema> </types> <message name="GetLastTradePriceInput"> <part name="body" element="xsd1:TradePriceRequest"/> </message>

30. II. What are web services? <portType name="StockQuotePortType"> <operation name="GetLastTradePrice"> <input message="tns:GetLastTradePriceInput"/> <output message="tns:GetLastTradePriceOutput"/> </operation> </portType> <binding name="StockQuoteSoapBinding" type="tns:StockQuotePortType"> <soap:binding style="document" transport="http://schemas.xmlsoap.org/soap/http"/> <operation name="GetLastTradePrice"> <soap:operation soapAction="http://example.com/GetLastTradePrice"/> <input> <soap:body use="literal"/> </input> <output> <soap:body use="literal"/> </output> </operation> </binding> <service name="StockQuoteService"> <documentation>My first service</documentation> <port name="StockQuotePort" binding="tns:StockQuoteBinding"> <soap:address location="http://example.com/stockquote"/> </port> </service> </definitions> More of the WSDL message Gralla. P. (2002). An inside look at WSDL. The Web Services Advisor.

31. II. What are web services? Universal description discovery and integration: locating services through UDDI An XML-based registry for businesses to list on the web and publish information about their web services Goal: to streamline online transactions and allow companies to find each other and make their systems interoperable for e-commerce Used to search for web services Can store company information, its services, and specific technical information for binding with a service UDDI.org http://www.uddi.org/ www.openves.org/images/uddi.gif

32. II. What are web services? UDDI has: White pages: business name, business type, services used and technologies supported Green pages: details on technologies supported, documents accepted and transaction interfaces. Yellow pages: business type codes, geographical areas and technical or international keywords Allows a service requester to locate businesses, their web services and the means through which they do business Providers can publish their business information, services, and methods of transacting business

33. II. What are web services? UDDI repository structure is defined in XML schemas with four entity types Business entity: information about a company (white pages) Business services: provided by a business entity with types of services offered (yellow pages) Binding templates: implement business services and connect to and make use of them (green pages) Models: metadata about technical specifications for services (green pages

34. II. What are web services? The following query returns details on Microsoft <find_business generic="1.0" xmlns="urn:uddi-org:api"> <name>Microsoft</name> </find_business> Result: detailed listing of <businessInfo> elements registered for Microsoft <businessList generic="1.0” operator="Microsoft Corporation" truncated="false" xmlns="urn:uddi-org:api"> <businessInfos> <businessInfo businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3"> <name>Microsoft Corporation</name> <description xml:lang="en"> Empowering people through great software - any time, any place and on any device is Microsoft's vision…. </description>

35. More of the message II. What are web services? <serviceInfo businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3" serviceKey="1FFE1F71-2AF3-45FB-B788-09AF7FF151A4"> <name>Web services for smart searching</name> </serviceInfo> <serviceInfo businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3" serviceKey="8BF2F51F-8ED4-43FE-B665-38D8205D1333"> <name>Electronic Business Integration Services</name> </serviceInfo> <serviceInfo businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3" serviceKey="A8E4999A-21A3-47FA-802E-EE50A88B266F"> <name>UDDI Web Sites</name> </serviceInfo> </serviceInfos> </businessInfo> </businessInfos> </businessList> Vasudevan, V. (2001). A Web Services Primer. XML.com.

36. II. What are web services? Where web services fit in a business’ infrastructure Geniant. (2003). Web services. http://www.geniant.com/img/web-services-XML-diagram2.gif

37. II. What are web services? Typical web services architecture Gottschalk, K. et al. (2002). Introduction to Web services architecture. http://www.research.ibm.com/journal/sj/412/gotts1.gif

38. II. What are web services? Web services in action http://www.business2.com/articles/mag/0,1640,38627|3,00.html

39. Web services I. Business to business e-business • How does it work? II. What are web services? IIII. Examples of web services • Data mining and warehousing • Online analytical processing (OLAP) • Business intelligence

40. III. Examples of web services Data mining It is a process of knowledge discovery in databases It involves the extraction of interesting information, patterns, or rules from data in large databases These data are non-trivial, implicit, previously unknown and potentially useful It is a search for valuable information in large volumes of data It uses statistical techniques to explore and analyze large quantities of data in order to discover meaningful patterns and rules www.liacs.nl/home/edegraaf/img/datamining.jpg

41. III. Examples of web services Data mining can be directed Goal: to use the available data to build a model that describes a variable of interest in relation to the data set Given what we know about people in Bloomington, which types of people are likely to subscribe to DSL? Data mining can also be undirected There is no variable of interest Goal: to search through the available data to look for patterns and relationships What can we learn about IU students who default on student loans?

42. III. Examples of web services Data mining and BI It provides an organization with “memory” and “intelligence” Noticing: uses on-line transaction processing systems (OLTP) Remembering: capturing as much of the transaction process as possible Phone records, communications, CRM exchanges Learning: the records must be organized into “data warehouses” Data mining is used to analyze these data Intelligence involves patterns, rules, and predictions

43. III. Examples of web services Data mining typically involves six activities 1. Classification: examining features of a data instance and assigning it to a predefined class Uses a “training set” to sort unclassified data into discrete classes Records are updated by filling in fields with “class code Stored data is used to locate data in predetermined groups Sorting credit card applicants according to risk levels

44. III. Examples of web services 2. Estimation: sorts continuously valued outcomes Using new data to predict whether a given data instance is above or below a threshold Requires a model to determine the threshold level Making predictions and determining churn rates 3. Prediction: similar to estimation but with expectation that there will be some check in the future Uses a training set with historical data and a known predictor variable Predicting the size of a balance likely to be transferred when a person accepts a credit card offer

45. III. Examples of web services 4. Affinity grouping or association rules: goal is to explore an available data set to determine which data instances should be grouped together This involves discovering relationships among data Which items should be placed near each other in a supermarket? What items do customers buy together 5. Clustering: sort undifferentiated data into like groups This does not begin with predefined classes What do the book and music purchases tell us about our customers?

46. III. Examples of web services 6. Description and visualization: developing a preliminary understanding of the data This is a first step in developing an explanation What do we know about people who shop for food online? Visualization is the graphic representation of the data Directed data mining: classification, estimation, prediction Undirected data mining: affinity grouping, clustering, description

47. III. Examples of web services Classes of data mining activity Information Discovery, Inc. (2001). A Characterization of Data Mining Technologies and Processes. http://www.datamining.com/dm-tech.htm

48. III. Examples of web services Transform data into useful information with DM The virtuous cycle of data mining Identify problems where DM can provide value Act on the information Measure the results to reuse the data

49. III. Exampls of web services III. Examples of web services In business applications, data mining does not seek to replicate previous efforts Goal is to discover new markets, not saturate old ones In science, replication of results is more important Data mining is a creative activity Many patterns will be found, but the art is in focusing on the meaningful ones Data mining results can change over time Models can become less useful over time as data change and markets change

50. If a new segmentation improves performance III. Examples of web services Add derived variables If data are not available If values don’t look correct Create a model set Identify data requirements If a new technique improves performance Choose modeling technique Obtain data If improvements, obtain more data Train model Validate, explore, clean data Check model performance If new derived variable improves performance Transpose data If values don’t look correct Building a DM model Choose best model