364 Building and Managing Modern E-Services YLVLRQDU\VWUDWHJ\LVUH¿QHGDQGGHYHORSHGYLD 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- S U R D F K W K H V W U D W H J L F R EMHFW LYHVD U H T X D Q W L ¿ H G L Q W R 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 DQHV\VWHPVDSSURDFKWKDWDOORZHGWKHHI¿FLHQW delivery of the internal processes (in a cascading series of process requirements). This ultimately GHOLYHUVHI¿FLHQWSURGXFWLYHRXWFRPHV6XFKEXVL- QHVVUHODWHGRXWFRPHVSURYLGHUHOHYDQW¿QDQFLDO 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 F\FOHEXLOGVRQWKH¿UVWOHDUQLQJF\FOHDVOHDUQLQJ 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 )LJXUH+HUHVSHFL¿FSHUIRUPDQFHPHDVXUHVPD\ EHLGHQWL¿HGDQGWKHQWUDFNHG)RUH[DPSOHLIWKH 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 WRGHOLYHUWKLVVSHFL¿FSDUWRIWKHEXVLQHVVVWUDWHJ\ 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- PDF\LQGXVWU\WKHWRXULVPLQGXVWU\WKH¿QDQFLDO 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 ¿QDQFLDOUHZDUGVDQGVDYLQJVDUHGHOLYHUDEOHWR 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 DQG LQWDQJLEOH EXVLQHVV IHDWXUH LQWR D GH¿QHG DQGTXDQWL¿DEOHPHDVXUH(DFKPHDVXUHFDQEH DVVHVVHGDQGVSHFL¿FWDUJHWSHUIRUPDQFHH[SHFWD- WLRQVFDQEHGHYHORSHGHDFKOLQNHGWRVSHFL¿FNH\ 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 areasthe customer (including business and end user); the internal business processes (like the business’s e-supply FKDLQ QHWZRUNV WKH ¿QDQFLDO DUHD LQFOXGLQJ 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. 7KXVWKHSURJUHVVLRQWRZDUGVKLJKO\HI¿FLHQW 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 requireda 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 VHUYLFHIDFWRUVDFURVVWKHLUVSKHUHRILQÀXHQFH 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 positiondelivering 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 systemsincorporating fuzzy logic DQGDUWL¿FLDOLQWHOOLJHQFHHVHUYLFHVLQGXVWU\DQG 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. REFERENCES $NNHUPDQV+9RV%$PSOL¿FDWLRQ in service supply chains: An exploratory case study from the telecom industry. Production and Operations Management, 12(2), 204-223. Al-Mudimigha, A., Zairi, M., & Ahmed, A. (2004). Extending the concept of supply chain: The effective management of value chains. In- ternational Journal of Production Economics, 87, 309-320. An, C., & Fromm H. (Eds.). (2005). Supply chain man- agement on demand. New York: Computer Books. Andersson, D., & Jockel, O. (2002). Logistics competence provided and required in third-party logistics relationships. In M. Andersen & M. Marelli (Eds.), Business Logistics and Interor- ganizational Electronic Networks, Proceedings of NOFOMA (pp. 569-587). Retrieved July 31, 2003, from http://inforge.unil.ch/cimre96/pa- pers/paper.htm Barlow-Hills, S., & Sarin, S. (2003). From market driven to market driving: An alternative paradigm for marketing in high technology industries. Journal of Marketing Theory and Practice, 11(3), 13-24. Beck, J. (2002). The services value chain provides framework for joint ventures. Gartner Group Research Note (AV16-2271). Beech, J. (1998). The supply demand nexus. In I. Gattorna (Ed.), Strategic supply chain alignment. Aldershot, UK: Gower Press. Berry, L., & Parasuraman, A. (1991). Marketing services: Competing through quality. New York: The Free Press. Bowen, J., & Shoemaker, S. (2003). Loyalty: A strategic commitment. Cornell Hotel and Restau- rant Administration Quarterly, 44(5/6), 31-46. Brown, S., & Vashistha, A. (2002). Igniting the ser- vices value chain. Services Marketing, 11(1), 12-13. Carothers, G., & Adams, M. (1991). Competitive advantage through customer value: The role of value based strategies. In M. Stahl & G. Bounds 369 Building and Managing Modern E-Services (Eds.), Competing globally through customer value (pp. 32-66). New York: Quorum Books. Chaffey, D., Mayer, R., Johnston, K., & Ellis- Chadwick, F. (2004). Internetmarketing (2 nd ed.). Essex, UK: Pearson Education. &KDVH57KHPDLOLVP\IDFWRU\5HÀHF- tions of a service junkie. Production and Opera- tions Management, 5(4), 298-308. Chase, R., Jacobs, R., & Aquilano, N. (2005). Operations management (10 th ed.). New York: McGraw-Hill/Irwin. Chen , I., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Manage- ment, 22, 119-150. Childerhouse, P., Aiken, J., & Towill, D. (2002). Analysis and design of focused demand chains. Journal of Operations Management, 20, 675-689. Choi, T., Dooley, K., & Rangtusanatham, M. (2001). Conceptual note: Supply networks and complex adaptive systems: Control versus emergence. Jour- nal of Operations Management, 19, 351-366. Clark, C. (1940). The conditions of economic progress. London: Macmillan. Comergent. (2003). Demand chain management. Retrieved May 20, 2004, from www.comergent. com/elibrary.cfm & http://www.comergent.com/ products/architecture.cfm &RPPLWWHHRQ'H¿QLWLRQV$PHULFDQ0DUNHWLQJ Association. (1960). 0DUNHWLQJGH¿QLWLRQV(p. 21). Chicago: American Marketing Association. Cook, D., Goh, C., & Chung, C. (1999). Service topologies: A state of the art survey. Production and Operations Management, 8(3), 318-338. Czinkota, M., Ronkainen, I., & Moffett, M. (2005). International business (7 th ed.). Mason, OH: Thompson/South-Western. de Waart, D. (2003, October 6). Service supply chain management: A great untapped resource. EBN, 21-23. Retrieved March 20, 2004 from http://www.ebnonline.com de Waart, D., & Kemper, S. (2004, January/Feb- ruary). 5 steps to service supply chain excellence. Supply Chain Management Review, 28-35. Deise, M., Nowikow, C., King, P., & Wright, A. (2000). Executive’s guide to e-business. From tac- tics to strategy. New York: John Wiley & Sons. Docherty, M. (2001). Managing the supply chain: i to I. Logistics Inc., (Newsletter No. 1), 1-4. Retrieved June 10, 2003, from http://www. ilogistics.com Fisher, M. (1997). What is the right supply chain for your product? Harvard Business Review, 75(3), 105-116. France, N., Da Rold, C., & Young, A. (2002). Services value chain reshapes IT services in- dustry (pp. 1-4). Gartner Group Research Note, (AV-21-3090). Frohlich, M., & Westbrook, R. (2002). Demand chain management in manufacturing and services: Web- based integration, drivers and performance. Journal of Operations Management, 20, 729-745. Gunesh, K., & Hamilton, J. (2003a). Logisticsa pathway towards ‘sustainable’ competitive advantage for the multinational enterprise. In Proceedings of the 3 rd International Conference on Electronic Business, Singapore (Vol. 3, no. 1, pp. 1-10, 597-599). Gunesh, R., & Hamilton, J. (2003). Incorporating customer interface marketing design elements to leverage strategic positioning in the online real estate industry. In Proceedings of the 3 rd Inter- national Conference on Business, Honolulu, HI (Vol. 3, no. 1, pp. 1-9). 370 Building and Managing Modern E-Services + D P L O W R Q - 0R G H O L Q J L Q I RU P D W LRQÀRZ V performance, strategy and competitiveness across the service value network. Journal of New Busi- ness Ideas and Trends, 2(2), 29-53. Hamilton, J. (2004a). Service value networks: Value, performance and strategy for the services industry. Journal of Systems Science and Systems Engineering, 13(4), 469-489. Hamilton, J., Hughes, K., & Selen, W. (2003). E-business enabled networks and fourth party logistics (4PL) providers: An overview. In Pro- ceedings of the 3 rd International Conference on Electronic Business, Singapore (Vol. 3, no. 1, pp. 1-7, 331-333). Hamilton, J., & Selen, W. (2002). Integrating Web site design features for ‘one-on-one’ mar- keting: A QFD framework. Proceedings of the 7 th International Conference on ISO9000 and TQM, Melbourne, Australia (vol. 7, no. 1, pp. 1-8, 93-94). Hamilton, J., & Selen, W. (2002a). The develop- ment of the dynamic Web interface between the online e-customer and the e-business. In Pro- ceedings of the 6 th ANZAM/IFSAM International Conference, Gold Coast, Australia (pp. 1-12). Hamilton, J., & Selen, W. (2002b). Learning in a demand chain management framework: Direc- tions for business education. In Proceedings of the 33 rd Decision Sciences Institute Conference, San Diego, CA (pp. 1-16). Hamilton, J., & Selen, W. (2003). Development of a strategic positioning matrix for the Internet-en- abled real estate industry: An Australian perspec- tive. The E-Business Review, 3(1), 57-61. Hamilton, J., & Selen, W. (2003a). Development of a regional real estate portal exhibiting an extended customer value proposition. In Spina, Vinelli, Cagliano, Kalchschmidt, Romano, & Salvador (Eds.), One world? One view of OM? (pp. 903-912). Italy: SGE, Pavova. Hamilton, J., & Selen, W. (2003b). A strategic path to competitive advantage for the online, small-to-medium enterprise within the service sector. Journal of New Business Ideas and Trends, 1(1), 20-37. Hamilton, J., & Selen, W. (2004). Enabling real estate service chain management through person- alized Web interfacing using QFD. International Journal of Operations and Production Manage- ment, 24(3), 270-288. Hanson, W. (2000). Principles of Internet market- ing. Cincinnati, OH: Thompson Learning. Heikkila, J. (2002). From supply to demand chain PDQDJHPHQW(I¿FLHQF\DQGFXVWRPHUVDWLVIDFWLRQ Journal of Operations Management, 20, 747-767. Houlihan, J. (1987). International supply chain man- agement. International Journal of Physical Distribu- tion and Materials Management, 17(2), 51-66. Hughes, J., Mitchell, P., & Ramson, W. (Eds.). (1993). Australian concise Oxford dictionary. New York: Oxford University Press. Ismail, H., & Khatibi, A. (2004). Study of the relationship between perception of value and price and customer satisfaction: The case of Malaysian telecommunications industry. Journal of Ameri- can Academy of Business, 4(1/2), 309-313. -XGG57KHFDVHIRUUHGH¿QLQJVHUYLFHV Journal of Marketing, 28(1), 58-59. Kalakota, R., & Robinson, M. (2001). E-business 2.0: Roadmap for success. Upper Saddle River, NJ: Addison-Wesley/Longman. Kamarkar, U. (2002). Integrative research in marketing and operations management. Journal of Marketing Research, 33(2), 125-133. Kaplan, R., &. Norton, D. (1992). The balanced scorecardmeasures that drive performance. Harvard Business Review, 70(1), 71-79. 371 Building and Managing Modern E-Services Kaplan, R., &. Norton, D. (1996). The balanced scorecard: Translating strategy into action. Bos- ton: Harvard Business School Publishing. Kassim, N., & Zain, M. (2004). Assessing and measurement of organizational agility. Journal of American Academy of Business, 4(1/2), 174-177. Kathawala, Y., & Abdou, K. (2003). Supply chain evaluation in the services industry: A framework development compared to manufacturing. Mana- gerial Accounting Journal, 18(1/2), 140-149. Kuglin, F. (1998). Customer-centered supply chain management. New York: American Management Association, AMACOM. Lawrence, E., Newton, S., Corbitt, B., Braithwaite, R., & Parker, C. (2002). Technology of Internet business. New York: John Wiley & Sons. Lee, H. (2002). Aligning supply chain strategies with product uncertainties. California Manage- ment Review, 44(3), 105-119. Levitt, T. (1972). Production line approach to service. Harvard Business Review, 50(5), 41-52. Low, J. (2000). The value creation index. Journal of Intellectual Capital, 1(2), 252-262. McAlexander, J., Kim, S., & Roberts, S. (2003). /R\DOW\7KHLQÀXHQFHVRIVDWLVIDFWLRQDQGEUDQG community integration. Journal of Marketing Theory and Practice, 11(4), 1-11. McLarty, R. (2003). The attitudes of British managers in small and medium sized enterprises to the imple- mentation of the value chain concept. International Journal of Management, 20(4), 430-442. Murdick, R., Render, B., & Russell, R. (1990). Service operations management. Boston: Allyn and Bacon. New, S. (1996). A framework for analyzing sup- ply chain improvement. International Journal of Operations and Production Management, 16(4), 19-36. Nie, W., & Kellogg, D. (1999). How professors of operations management view service opera- tions. Production and Operations Management, 8(3), 339-355. Peters, L. (1997). IT enabled marketing: A frame- work for value creation in customer relationships. Journal of Marketing Practice, 3(4), 213-229. Poole, K. (2003). Seizing the potential of the service supply chain. Supply Chain Management Review, (July/August), 54-61. Porter, M. (1985). Competitive advantage: Creat- ing and sustaining superior performance. New York: The Free Press. Porter, M. (2001). Strategy and the Internet. Har- vard Business Review, 79(3), 63-78. Preis, M. (2003). The impact of interpersonal satisfaction on repurchase decisions. Journal of Supply Chain Management, 39(3), 30-38. Quinn, J., Baruch, J., & Paquette, P. (1987). Technology in services. 6FLHQWL¿F $PHULFDQ 257(6), 50-58. Rathmell, J. (1974). Marketing in the service sec- tor. Cambridge, MA: Winthrop Publishing. Rayport, J., & Sviokla, J. (1996). Exploiting the virtual value chain. The McKinsey Quarterly, 1, 20-37. Reid, D., & Sanders, N. (2005). Operations manage- ment (2 nd ed.). Hoboken, NJ: John Wiley & Sons. Rohm, A., & Sultan, F. (2004 January/February). The evolution of e-business. Marketing Manage- ment, 32-37. Roth, A., & Menor, L. (2003). Insights into service operations management: A research agenda. Jour- nal of Operations Management, 12(2), 145-164. Rust, R., & Metters, R. (1996). Mathematical models of service. European Journal of Opera- tions Research, 91(3), 427-439. 372 Building and Managing Modern E-Services Sampson, S. (2000). Customer-supplier duality and bidirectional supply chains in service organi- zations. International Journal of Service Industry Management, 11(2), 348-364. Sarner, A., & Desisto, P. (2004). MarketScope: Sell-side electronic commerce, Gartner Group Research Note, (M21-9772), 1-4. Schonberger, R. (1990). Building a chain of cus- tomers. New York: The Free Press. Selen, W., & Soliman, F. (2002). Operations in today’s demand chain management framework. Journal of Operations Management, 20(6), 667-673. Tsikriktsis, N., & Heineke, J. (2004). The impact of process variation on customer dissatisfaction: Evidence from the U.S. domestic airline industry. Decision Sciences, 35(1), 129-142. U.S. Bureau of Labor Statistics. (2002/2004). Re- trieved May 25, 2004, from http://www.bls.gov/ Verma, R., & Boyer, K. (2000). Service classi- ¿FDWLRQDQGPDQDJHPHQWFKDOOHQJHVJournal of Business Strategies, 17(1), 5-24. Zeithaml, A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22. This work was previously published in E-Supply Chain Technologies and Management, edited by Q. Zhang, pp. 54-79, copyright 2007 by Information Science Reference (an imprint of IGI Global). 373 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. 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 VWHSVVXFKDVXVHUQHHGVLGHQWL¿FDWLRQDQG:HE VHUYLFHVEHKDYLRUVSHFL¿FDWLRQ(DFK VWHS KDV DVSHFL¿FJUDSKLFDOQRWDWLRQWKDWIDFLOLWDWHVWKH 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 :HEVHUYLFH³LVDVRIW ZDUHDSSOLFDWLRQLGHQWL¿HG by a URI, whose interfaces and binding are ca- SDEOHRIEHLQJGH¿QHGGHVFULEHGDQGGLVFRYHUHG 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 . 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. 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. & 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