Service Oriented Enterprise and Contracted Profit Sharing

Abstract

Service Oriented Enterprises (SOEs) outsource their functionalities via third party web services. Therefore, there is a need for a systematic approach to manage the cooperation of the services. SOEs perform their functionalities in an extremely dynamic environment. Changes that happen to a SOE are categorized in two types: top-down changes and bottom-up changes. This paper considers top-down changes which are initiated by SOE’s management. In order to manage a top-down change, the SOE’s management should consider the possible conflicting interests of the different parties. This study finds a situation in which none of the services have to incur losses. Consequently, this paper proposes ex-ante contracted profit sharing principles that can attract the services to the change. The problem is modeled and Security improvement is discussed as an example to describe this approach.