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a business plan, a vision/mission top-down ap-
proach, and is combined with the evaluation of
other competing or relevant business models. A
set of strategic objectives (focusing on delivering
customer outcomes) is developed. These strategic
objectives are then mapped. Using a learning
curve position/movement and knowledge ap-
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performance-based measures. These measures,
in-turn, are tapped to deliver new initiatives, such
as targeting different customer groups, offering
different products and services, increasing the
product and service relevance, and the like. The
selected pharmacy product and services mixes
(to be marketed) are automated by incorporating
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delivery of the internal processes (in a cascading
series of process requirements). This ultimately
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results including increased customer numbers and
new revenue streams; greater cultural understand-
ing and improved community involvement; up-
skilling of the operational staff and the business
itself; enhanced local, regional, and international
focus; and the like.
When tangible (physical) and intangible
(virtual) balanced scorecard measures are as-

sessed against previous strategies, new strategic
improvements are often generated. For example,
joint cluster marketing, sharing of customer activi-
ties (and feedback), incremental improvements
in processes, disruptive (total new pathways)
improvements in target marketing and approaches
used, and new funding mechanisms may be op-
erationalized into the strategic model.
A strategic, nine-step, learning spiral and
growth pattern emerges from the balanced
scorecard nine-step model. The second learning
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occurs, and over time, faster learning along with
Figure 13. Balanced scorecard—nine-step strategy development cycle model (Source: Rohm, 2002)
365
Building and Managing Modern E-Services
Figure 14. Balanced scorecard—nine-step strategic learning spiral
Second Balanced Sc orecard
Strat egic Nine Step Learning
Cy cl e Sp i ral
Start for each
strategy init iative
Second Balanced Sc orecard
Strat egic Nine Step Learning
Cy cl e Sp i ral
Start for each
strategy init iative
Figure 15. Balanced scorecard—strategic services components
Customers
B2B & B2C

e-Buyers
Is everyone doing things
correctly to drive this strategy?
Output OutcomeActionsActionsActions
Information
Systems &
Communic-
ations
Business e-
Supply
Systems
Is everyone doing the right
things to drive this strategy?
Inputs
Results
Process actions
Input
Measures
Results
Measures
Process
Measures
Performance Measures
Actions
Actions
Customers
B2B & B2C
e-Buyers
Is everyone doing things
correctly to drive this strategy?

Output OutcomeActionsActionsActions
Information
Systems &
Communic-
ations
Business e-
Supply
Systems
Is everyone doing the right
things to drive this strategy?
Inputs
Results
Process actions
Input
Measures
Results
Measures
Process
Measures
Performance Measures
Actions
Actions
366
Building and Managing Modern E-Services
more complex, better targeted, multifaceted ap-
proaches to business intelligence and knowledge
capture arise. This growth and learning cycle is
modeled in Figure 14.
The strategic components delivering the e-ser-
vices balanced scorecard outcomes are displayed in

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objective is to broaden the pharmacy revenue mix,
all inputs related to this objective are drawn together
into the required common process blocks that deliver
this desired outcome. The relevant measures are then
determined, delivered, and monitored.
Figure 11 considers the case of a pharmacy
solution. Here, the four balanced scorecard sec-
tors as displayed in Figure 12 are linked within
the one scorecard. Using a procedure such as that
outlined for Figure 13 above, and considering
the relevant measures as developed via a Figure
15 approach, a series of achievable, measurable,
targeted, cost related initiatives can be developed
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for the service value network.
The balanced scorecard model is a highly
useful tool that can assist with the focusing,
targeting, and delivery of ‘optimized’ growth
approaches for an industry block like the phar-
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sector, accounting services, and legal services.
Figure 16 displays how this tool may be used to
tease out service strategies, e-service strategies,
or a combination of the two strategic blocks into
a pharmacy network balanced scorecard model.
This delivers strategies that may ensure necessary
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an e-service industry.

Modern business managers may use a balanced
scorecard approach to monitor their business’s
Figure 16. Pharmacy network scorecard (from Hamilton, 2004a)
Cust omer ed. & t raining
Cu s to mer l i f e s tyl e s u p p o r t
Customer expect ed benefits
exceeded
Regional and nat ional know ledge
library
100% to all pharmacies
Well informed - a ll
participants and
leadership (100%)
Training delivered
Understanding &
know ledge
grow th
New s trat egic
skills
Learning curve
Learning
and
Growth
R&D – sourc ing markets
Dy n a mi cweb s i te
Target ed mailing of doct ors and
other suppliers sourced
Direct market ing
’0 5/’06 – int egrated
regional approach, lead

pharmac ies
’0 6 – additional
pharm acies added
% revenue new
products &
services
% uptake
%approval
New produc ts
New services
New ac cess &
deliveries
Differentiation
Regional
and
Internal
Business
Intelligent integrated database
interpretation and support
Customer intelligenc e support
Know ledge and learning pathw ays
Servic e value netw ork delivery
Value adds and peripheral
alliances
24hr customer service/ connection
’0 5/’06 – 200%
‘0 6/’07 – 300%
‘0 7/’08 – 1000%
Customer
evaluat ions

Niche grow th
Customer
targeting
Customer
recognition
Customer value
&performance
Customer
satisfaction
Customer
(Local
Persons)
Classifying target users
Channel mark eting measures
Fuzzy logic/ Artificial Int elligence
measures
Target ed sales focus, layout,
qualit y & learning curve effects
65% St d Pharmacy
24% New products,
services & delivery
4% Upskilled staff
6% E-services
1% Inform ation sharing
Re v e n u e m i xBroaden the
revenue mix
E-Pharmacy
option
Local delivery
Financial

InitiativesTargetMeasureObjective
How success
measured
and traced?
Pe r f o r ma n ce
expectation
Key action program
required to achieve
objectives
St rategy t o
be achieved,
and how ?
Cust omer ed. & t raining
Cu s to mer l i f e s tyl e s u p p o r t
Customer expect ed benefits
exceeded
Regional and nat ional know ledge
library
100% to all pharmacies
Well informed - a ll
participants and
leadership (100%)
Training delivered
Understanding &
know ledge
grow th
New s trat egic
skills
Learning curve
Learning

and
Growth
R&D – sourc ing markets
Dy n a mi cweb s i te
Target ed mailing of doct ors and
other suppliers sourced
Direct market ing
’0 5/’06 – int egrated
regional approach, lead
pharmac ies
’0 6 – additional
pharm acies added
% revenue new
products &
services
% uptake
%approval
New produc ts
New services
New ac cess &
deliveries
Differentiation
Regional
and
Internal
Business
Intelligent integrated database
interpretation and support
Customer intelligenc e support
Know ledge and learning pathw ays

Servic e value netw ork delivery
Value adds and peripheral
alliances
24hr customer service/ connection
’0 5/’06 – 200%
‘0 6/’07 – 300%
‘0 7/’08 – 1000%
Customer
evaluat ions
Niche grow th
Customer
targeting
Customer
recognition
Customer value
&performance
Customer
satisfaction
Customer
(Local
Persons)
Classifying target users
Channel mark eting measures
Fuzzy logic/ Artificial Int elligence
measures
Target ed sales focus, layout,
qualit y & learning curve effects
65% St d Pharmacy
24% New products,
services & delivery

4% Upskilled staff
6% E-services
1% Inform ation sharing
Re v e n u e m i xBroaden the
revenue mix
E-Pharmacy
option
Local delivery
Financial
InitiativesTargetMeasureObjective
How success
measured
and traced?
Pe r f o r ma n ce
expectation
Key action program
required to achieve
objectives
St rategy t o
be achieved,
and how ?
367
Building and Managing Modern E-Services
strategy. The manager may quantify each tangible
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outcome-related activities, and each delivering a
component of the desires strategy. All activities

may be costed (allocated to cost centers and with
economic values), and incorporated into one of
four measurable strategic areasthe customer
(including business and end user); the internal
business processes (like the business’s e-supply
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income and expenditure); and the innovation,
learning, and growth sectors (like research and
development). These four key balanced scorecard
business perspectives encapsulate deliverable
economic value, and each is normally directly tied
into the business’s common strategic vision. Thus
the balanced scorecard remains a key strategic
management and monitoring tool for the man-
ager operating in the modern e-service business
arena. It is also a useful strategic measurement
tool in the building and maintenance of service
value networks.
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and agile e-services has been driven by businesses
constantly seeking new ways to improve their
performance, to deliver products and services in
a more cost-effective and productive manner, and
to deliver enhanced perceived customer value.
This focus has driven the business beyond the
e-service model and into the realm of the service
value network. Industry-wide strategic manage-
ment control and monitoring tools like the bal-
anced scorecard have ready application in such
business network approaches.

The service value network integrates the sup-
ply-side alliance partners and their associated
peripheral partners into a highly competitive
cohesive unit, striving to deliver operational and
service innovation, cost savings, and value-add-
ing solutions to its diverse customer-demanded
business encounters, while the balanced scorecard
delivers a set of strategic management control
functions.
CONCLUSION
Today industry is seeking new pathways to com-
petitive positioning and ways to driving business
models forward. Currently, many models exist,
and new additions like the e-services built around
e-supply chain networks are increasingly target-
ing meeting customer needs. These models still
lack a customerization (one-on-one business-to-
individual-customer relationship) approach, and
consequently need further enhancements. Service
value networks offer a comprehensive pathway
towards enhanced competitiveness.
To develop a service value network approach, a
detailed understanding of business developments
is required. Four strategic areas are requireda
tactical understanding of the external business
environment and its effectors on the business;
a strategic, data-mined, intelligent understand-
ing of all internal and peripheral e-supply chain
networks and their information channels; an ac-
cessible business-customer interface that delivers

desired information across the network and up
to the targeted customer; and an alert, customer-
centric solution set delivering the required service
at an acceptable cost. The balanced scorecard
offers a strategic measurement agenda allowing
management to monitor tangible and intangible
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The mechanisms underpinning these service
value networks and their strategic measurement
areas allow the industry and its management to
cohesively move forward towards an enhanced
competitive positiondelivering a ‘glocal’
(global and local) solution.
368
Building and Managing Modern E-Services
THE FUTURE
Within the services arena, a fully operationalized
e-supply chain network structure presents the
participating business with an expanded array of
competitive position tools. Strategic positioning
and extended customer value may be utilized
to develop measures and to frame new business
models (Hamilton & Selen, 2003a, 2003b, 2004).
Further tools like quality functional deployment
may be used to establish e-quality dimensions
(Hamilton & Selen, 2002, 2004) and the suitability
of the customer directed e-service products, while
strategic e-marketing may be used to develop stra-
tegic target market areas and measures (Gunesh
& Hamilton, 2003). Additional e-supply chain-

related areas including 4PL logistics solutions
(Hamilton, Hughes, & Selen, 2003; Gunesh &
Hamilton, 2004a) and learning across e-demand
chain systems (Hamilton & Selen, 2002a, 2002b)
may offer additional measurement tool features.
Such areas, when incorporated into e-supply
chain networks, move the basic e-supply chain
solutions towards comprehensive, highly agile
service value networks industry-wide solutions.
The early stages of industry-wide service value
n e t w o r k s a r e e m e r g i n g i n t o u r i s m ( b u i l t a r o u n d l o -
cal-business to national-database systems). When
built into an intelligently managed (by information
technology systemsincorporating fuzzy logic
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constructed as a global, dynamic, living business
network, a high degree of customer targeting and
resultant customer satisfaction is deliverable. E-
supply chain networks will continue to improve
their capabilities in this regard, and will form an
integral part of service industry business solutions
into the future.
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Chapter 2.4
A Context-Based and
Policy-Driven Method to Design
and Develop Composite Web
Services
Zakaria Maamar
Zayed University - Dubai, UAE
Djamal Benslimane
University of Lyon -Lyon, France
ABSTRACT
Web services are nowadays attracting the atten-
tion of both academia and industry. However, a
very little has so far been accomplished in terms
of design and development methods that assist
those who are responsible for specifying and

running applications based on Web services. For
this purpose, we developed CP4WS that stands for
Context and Policy for Web Services. CP4WS is
a context-based and policy-driven method for de-
signing and developing composite Web servicfes.
Policies manage various aspects related to Web
services like participation in composition and
adjustment due to changes in the environment,
and context provides the necessary information
that enables for instance to trigger the appropriate
policies and to regulate the interactions between
Web services according to the current state of
the environment. CP4WS consists of several
VWHSVVXFKDVXVHUQHHGVLGHQWL¿FDWLRQDQG:HE
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DVSHFL¿FJUDSKLFDOQRWDWLRQWKDWIDFLOLWDWHVWKH
representation, description, and validation of the
composition operations of Web services. A run-
ning scenario that illustrates the use of CP4WS
is presented in the chapter as well.
INTRODUCTION
For the World Wide Web Consortium (W3C), a
:HEVHUYLFH³LVDVRIW ZDUHDSSOLFDWLRQLGHQWL¿HG
by a URI, whose interfaces and binding are ca-
SDEOHRIEHLQJGH¿QHGGHVFULEHGDQGGLVFRYHUHG
by XML artifacts and supports direct interactions
with other software applications using XML-
based messages via Internet-based applications”.
In a short period of time, the development pace
of Web services has been spectacular (Dustdar,

2005). On the one hand, several standards related
to Web services description, discovery, etc., have