Technology for Open International Trade Electronic Trade Scenarios PART II

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Technology forOpen International
TradeElectronic Trade ScenariosPART II
Erasmus University P.O. Box 1738 3000 DR
Rotterdam, The Netherlands tel. [phone]
01 fax [phone] www.euridis.fbk.eur.nl/Eu
ridis/
Ronald M. Lee email R.Lee_at_fac.fbk.eur.nl EURIDIS
Erasmus University Research Institute for
Decision and Information Systems
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Outline
Scenario Representation Automated Auditing Audit
Daemons Automated Generation Scenario
Grammars Distributed Regulations Messenger Model
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Scenario Representation
Documentary Petri Nets
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Graphical Representations
Abstract State Transition Diagrams
Applied DecisionTrees

• different node types
• agency of choice
• (endogenous, exogenous)

nodes states arcs transitions
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Graphical Representations
Abstract Marked Graphs
Applied PERT Diagrams
install bath
do plumbing
do electrical
finish walls

• arcs activities, tasks (sub-states)
• nodes transitions
• total state of system set of active tasks

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Graphical Representations
Abstract Petri Nets
circle nodes places (sub-states) bar nodes
transitions tokens mark active places

• Combines
• choice, contingency (STN)
• concurrency (marked graph)

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Graphical Representations
from Buyer purchase_order
Seller decide_accept
Applied Documentary Petri Nets
accept_order
reject_order
null

• circles control nodes
• boxes document nodes
• cube physical goods
• bar action
• triangle decision node

Seller deliver_goods
Seller send_invoice
to Buyer goods
to Buyer invoice
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Auditing Scenarios
Audit Daemons
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Designing Business Procedures

• Doing tasks -- get the job done efficiently
• Control tasks -- ensure
• agents have sufficient authority for task
• agents do not exceed/misuse their authority
• Auditing verify adequacy of controls
• under control
• over control

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Control Task Requirements

• identify where control tasks are needed
• proper authority for control task
• input requirements
• documentary evidence of doing task
• other info available to doing task
• output evidence that control was performed

Detective examine evidence of doing tasks after
their effect Preventive verification of doing
task prior to its effect
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Audit Daemons

• Formal representation of procedures
• enables computer analysis ...
• Audit daemons pattern-matching rules for
  documentary petri nets (DPNs
• Basic syntax
• if ltconditionsgt
• warning lttextgt
• because lttextgt.

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Example ... (from Bons, 1997, p. 170-188)
WARNING Someone should testify the completion of
the primary activity send_doc(the_sea_carrier, tra
nsport_instruction( the_consignee, Goods)) of
the_shipper otherwise the_shipper, is not able to
prove that it executed its obligation.
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Extract from audits rule base ...
/------------------------------------------------
-------------------------/ / audit daemon rule
/ /---------------------------------------------
----------------------------/ 'Audit Rule Ia'
if core_activity(Role1, PA, A1) and not
testify(Role1, Role2, Role1, PA, IP, A2)
warning Someone should testify the completion
of the primary activity, PA, of, Role1,
otherwise, Role1, is not able to prove that it
executed its obligation. . /------------------
--------------------------------------------------
-----/ / testify / /--------------------------
-----------------------------------------------/
testify(Role1, Role3, Role2, PA, IP, A1) if
testify_table(Role2, PA, IP, Role3) and not
equal(Role2, Role3) and not socially_close(Role
2, Role3) and witness(Role3, Role2, PA, A2)
and issue_ip(Role3, IP, A4) and
match(follow(Role3, A3, Role3, A4)) and
match(dpn_receive_ip(Role1, RoleX, IP, A1)).
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Concluding Remarks

• Uses
• somewhat useful for auditing manual procedures
• main purpose design and development of
  electronic procedures
• audit rules/patterns as a means of distributing
  control policy in procedure development

For more information see Bons, Roger
W.H. Designing Trustworthy Trade Procedures for
Open Electronic Commerce PhD Dissertation,
Euridis and Faculty of Business, Erasmus
University, September, 1997.
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Automated Generation Of Control Procedures
Scenario Grammars
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Re-usability of control knowledge
Trade scenario consists of Doing tasks -- depend
on goals of contracting parties Control tasks --
depend on level of trust among
parties requirements of legal
system available communication
technologies Would like to automate expertise of
designing control tasks input set of doing
tasks output electronic trade scenario
(DPNs) System asks for additional parameters, as
needed. Goal re-usability of control
knowledge encapsulate control aspects in
re-usable chunks
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Scenario Grammars
Consist of chain pattern -- recognize patterns
of doing tasks scenario grammar rules --
(linear) scenario grammar templates --
(graphical) -- role grammar templates --
linked, multi-role templates
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Example Chain Patterns
chain_pattern prepaid_sale if link(money,
buyer(B), seller(S)), link(goods, seller(S),
buyer(B)) then S,B prepaid_sale.
chain_pattern postpaid_sale if link(goods,
seller(S), buyer(B)), link(money, buyer(B),
seller(S)) then S,B postpaid_sale.
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Example Scenario Rules
scenario_grammar Buyer, Seller prepaid_sale
gt Buyer, Seller payment(money(_at_amount,
_at_currency)) Seller, Buyer
send_docs(pay_receipt(_at_amount, _at_currency))
Seller, Buyer delivery(goods(_at_kind, _at_id)
Buyer, Seller send_docs(goods_receipt(_at_kin
d, _at_id)) end.
scenario_grammar Buyer, Seller postpaid_sale
gt Seller, Buyer delivery(goods(_at_kind, _at_id)
Buyer, Seller send_docs(goods_receipt(_at_kin
d, _at_id)) Buyer, Seller payment(money(_at_amou
nt, _at_currency)) Seller, Buyer
send_docs(pay_receipt(_at_amount, _at_currency)) end.
Notes Variables (beginning with Capital letter)
are resolved at scenario generation Parameters
(_at_ltparmgt) are resolved at scenario execution time.
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Example Templates (as Linked DPNs)
X,Y payment(Money)gt
Money
X send_payment
Y recv_payment
X, Y delivery(Goods) gt
Goods
X deliver_goods
Y recv_goods
X, Y send_doclist(Docs) gt
Docs
X send_docs
Y recv_docs
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Example 1 Chain Diagram (PostPay)
seller_jones
buyer_smith
goods(horse, 'Molly')
money(200, euro)
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Example 1 Result Scenario (as Linked DPN)
goods(horse, 'Molly')
seller_jones deliver_goods
buyer_smith recv_goods
goods_receipt(horse, 'Molly')
buyer_smith send_docs
seller_jones recv_docs
money(200, euro)
buyer_smith send_payment
seller_jones recv_payment
pay_receipt(200, euro)
buyer_smith recv_docs
seller_jones send_docs
PostPay
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Example 2 Chain Diagram (Escrow)
seller_philips
buyer_fiat
bank_abn
money(5000, euro)
goods(headlites, 10000)
money(5000, euro)
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Example 2 Result Scenario (as Linked DPN)
money(5000, euro)
escrow_advice(5000, euro)
bank_abn recv_payment
buyer_fiat send_payment
seller_philips recv_docs
bank_abn send_docs
goods(headlite, 10000)
buyer_fiat recv_goods
seller_philips deliver_goods
escrow_release
bank_abn recv_docs
buyer_fiat send_docs
seller_philips recv_payment
bank_abn send_payment
Escrow
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Example 2. RuleBase (Excerpt)
chain_pattern escrow_sale if link(money,
buyer(B), bank(K)), link(goods, seller(S),
buyer(B)) link(money, bank(K),
seller(S)), then S,K,B escrow_sale(S,K,B).
scenario_grammar Buyer, Bank, Seller
escrow_sale(S,K,B) gt Buyer, Bank
payment(money(_at_amount, _at_currency)) Bank,
Seller send_docs(escrow_advice(_at_amount,
_at_currency)) Seller, Buyer
delivery(goods(_at_kind, _at_id) Buyer, Bank
send_docs(escrow_release(_at_kind, _at_id))
Bank, Buyer payment(money(_at_amount,
_at_currency)) end.
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Example 3 Steveadore as TTP
Consignee
Carrier
Shipper
Goods
Goods
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Example 3RuleBase
Chain Pattern
chain_pattern steveadore_as_ttp if link(goods,
shipper(S), carrier(T)), link(goods, carrier(T),
consignee(C)) then Shipper, Steveadore1,
Carrier, Steveadore2, Consignee steveadore_as_t
tp(Goods, bill_lading, title_doc).
Scenario Grammar
Shipper, Steveadore1, Carrier, Steveadore2,
Consignee steveadore_as_ttp(Goods, bill_lading,
title_doc) gt Shipper, Steveadore1, Carrier
dispatch_and_receipt(Goods, bill_lading)
Carrier transport_goods(Goods)
Carrier, Steveadore2, Consignee
dispatch_and_receipt(Goods, title_doc) end.
Note this scenario grammar demonstrates
re-usability of templates
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Example 3 Template
Sender,Receiver,TTP dispatch_and_receipt(Goods,
DocList) gt
Sender send_goods
Receiver send_docs
TTP transfer
Receiver recv_goods
Sender recv_docs
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Example 3 Result Scenario (as Linked DPN)
Goods
bill_lading
arrival_notice
Consignee recv_docs
Shipper send_goods
Carrier send_docs
Carrier send_docs
Steveadore1 transfer
title_doc
Goods
Consignee send_docs
Carrier recv_goods
Shipper recv_docs
Carrier send_goods
Goods
bill_lading
Steveadore2 transfer
Carrier transport_goods
Carrier recv_goods
Carrier recv_docs
Goods
bill_lading
steveadore_as_ttp
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Example 4 Documentary Credit
Consignee
Carrier
IssueBank
Shipper
CorresBank
Goods
Money
Money
Money
Goods
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Example 4. Scenario Grammar
Shipper, Consignee, IssueBank, CorresBank,
Carrier documentary_credit() gt ShipDocs
bill_lading, commerc_invoice, gsp_a A
Consignee, Shipper send_docs(purchase_orde
r) ltlt Shipper, Consignee send_docs(p_o_ackno
wledgement) ltlt Consignee, IssueBank
send_docs(lc_request) ltlt IssueBank,
Consignee, CorresBank send_docs(lc) /
concurrency / B CorresBank, Shipper
send_docs(lc) ltlt Shipper, Carrier
dispatch_goods(Goods) ltlt Carrier, Shipper
send_docs (bill_lading) ltlt Shipper,
CorresBank send_docs(ShipDocs)
ltlt CorresBank, IssueBank, Shipper
eval_lc(ShipDocs) C Carrier, Consignee
send_docs (arrival_notice) ltlt Consignee,
IssueBank send_docs(money) ltlt IssueBank,
Consignee send_docs(ShipDocs) ltlt Carrier,
Consignee phys_transfer (Goods) A ltlt B, A
ltlt C.
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Example 4 Rulebase (continued)
CorresBank, IssueBank, Shipper
eval_lc(ShipDocs) gt CorresBank, IssueBank,
Shipper corres_bank_eval_lc(ShipDocs) IssueBan
k, CorresBank issue_bank_eval_lc(ShipDocs) Shi
pper, CorresBank shipper_receive_eval_lc(ShipDoc
s) end.
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Example 4 Template
X, Y, Z send_doclist_2party(DocList) gt
DocList
Y recv_docs
X send_docs
DocList
Z recv_docs
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Example 4 RoleTemplate, IssueBank
IssueBank, CorresBank issue_bank_eval_lc(ShipDo
cs) gt
From CorresBank ShipDocs
IssueBank recv_docs
reject
accept
IssueBank send_docs
IssueBank send_payment
to CorresBank money(Amt, Curr)
to CorresBank rejection_notify ShipDocs
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Example 4 Role Template, Shipper
Shipper, CorresBank shipper_receive_eval_lc(Shi
pDocs) gt
from CorresBank rejection_notify ShipDocs
from CorresBank money(Amt, Curr)
Shipper recv
Shipper recv
end
end
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Example 4Role Template, CorresBank
IssueBank, CorresBank issue_bank_eval_lc(ShipDo
cs, Money) gt
accept
reject
CorresBank send_docs
CorresBank send_docs
to Shipper rejection_notify ShipDocs
to IssueBank ShipDocs
CorresBank recv_payment
CorresBank recv_docs
from IssueBank rejection_notify ShipDocs
end
to Shipper rejection_notify ShipDocs
CorresBank send_payment
to Shipper Money
end
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Example 4 ResultingDocumentary Credit
Scenario(as before)
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NavigatingDistributedRegulations
Messenger Model
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Challenge

• Transactions constrained by regulations by
  foreign governmental agencies
• e.g. import/export duties
• e.g. trade boycotts, embargos
• e.g. dangerous goods regulations
• Subject to change by agency
• Must be checked before doing the transaction
• Note centralized copies may be out of date.
• approach Messenger Model ...
• automated agents
• heuristic search
• regimes (formalized regulations)

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Anatomy of a digital agency (or company)
Back Office
Front Office

• Regime way of doing business (rules,
  procedures)
• Inbox performative communications
• Database performative record

Information System
Queries
Regime
Illocutions Out
Illocutions In
Database
Inbox
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What can a messenger do?

• messenger can search the environment
• -- the marketplace
• (shopping messengers)
• -- bureaucratic requirements
• messenger makes deliveries
• -- of messages
• -- of other information objects
• e.g. audio, video recordings
• e.g. books, articles
• e.g. software
• -- of promisory objects
• e.g. titles
• e.g. licenses
• messenger can collect (same things)
• messenger has limited signature authority
  (performative function)

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Referral of messengers

• Search of a messenger is based on referrals
• These are addresses of further regimes to search
• Referrals obtained by ...
• suggestions of a regime
• e.g. bureaucracy
• e.g. vendor
• collected sources
• e.g. shopping mall
• e.g. yellow pages

Note referrals implemented on Web as URL's
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Two main aspects of the problem

• A. Navigation and discovery among requirements
• the client does not know what is required, and
  has some difficulty in finding out
• in nasty cases, the standard solution is somehow
  frustrated an alternative must be found.
  Sometimes, this is discovering flexibility within
  the requirements (e.g. fax, official copy) other
  times, it might be navigating around the
  bureaucracy (e.g. via alternate route).
• B. Transaction execution
• once a solution path is found, one actually
  performs the transaction.

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Modes of operation
Front Office
Query Messenger
Regime

• Query messenger
• manual queries -- user interacts with regime
• automated queries -- messenger pursues goal
• Transaction messengers -- execute the transaction

Transaction Messenger
Inbox
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• Example Scenario
• SOVAM Teleport
• first commerical data communications company in
  Russia, starting in 1986
• began as a joint venture with American company,
  San Francisco Teleport
• now, clients include SWIFT, major banks,
  international news agencies, etc.
• CEO Vladimir Teremetsky
• 1992
• decided to expand their satellite
  communications was necessary
• negotiated a favorable deal with NORCO, a
  company in Anchorage, Alaska
• item 6 meter satellite dish
• payment as a documentary credit
• transport
• by ship from Anchorage to Vladivostok
• by rail Vladivostok to Moscow
• Vladimir recounts the experience as a "labyrinth
  of bureaucracy".
• In addition to the usual trade documents,
  additional requirements were imposed from both
  the export (US) and import (RU) side.

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Request for procedure export military goods
Norco to US-Customs request proc (export)
NORCO
US Customs Office
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Request for procedure export military goods
Norco to DOD request proc (miliary goods)
DOD Office of Export Controls
NORCO
Norco to US-Customs request proc (export)
US Customs Office
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Request for procedure export military goods
Norco to DOD Telecomm request proc (inspection)
DOD Military Telecomm
NORCO
Norco to DOD request proc (miliary goods)
DOD Office of Export Controls
Norco to US-Customs request proc (export)
US Customs Office
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DOD Telecom Office
Nordco
Request Non-military Certification
NorCo request cert
DOD Telecom certify specs
Non-military Certification
DOD Export Controls
NorCo dispatch goods
NorCo to DOD Export Controls Physical Inspection
Goods
Inspection Report
Generated Procedure NORCO
US Customs
Customs Release
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Request for procedure import of telecomm
SOVAM
Sovam to Rus Trade Office request proc (import)
Russia Trade Office
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Request for procedure import of telecomm
SOVAM
Sovam to Rus Telecomm request proc (operating
permit)
Russia Telecomm
Sovam to Rus Trade Office request proc (import)
Russia Trade Office
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Request for procedure import of telecomm
SOVAM
Sovam to Domestic Security request proc (permit)
Domestic Security
Sovam to Rus Telecomm request proc (operating
permit)
Russia Telecomm
Sovam to Rus Trade Office request proc (import)
Russia Trade Office
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Request for procedure import of telecomm
Sovam to KGB request proc (operating permit)
SOVAM
International Police
Sovam to Domestic Security request proc (permit)
Domestic Security
Sovam to Rus Telecomm request proc (operating
permit)
Russia Telecomm
Sovam to Rus Trade Office request proc (import)
Russia Trade Office
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Sovam
International Security
null
Request, Specs
Int'l Security grant permit
Int'l Security Permit
Sovam request permit
Domestic Security
Domestic Security Permit
Request, Specs
Domestic Security grant permit
Sovam request permit
Russia Telecomm
Russ Telecom certification
Request, Specs
Sovam request permit
Telecomm Standards Certification
Russian Trade Office grant import permit
Generated Procedure SOVAM
Russia Trade Office
Import Permit
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The Satellite Dish Installed an SOVAM in Moscow