**4. Decision Support Systems for Virtual Enterprise (DSS – VE)**

A typical DSS-VE system should contain tools, applications and models that can be efficient‐ ly used during the formation and operation of VEs but also courses which offer guidelines that indicate how these tools, applications and models should be used in practice (Zweger, 2002; Tolle, 2002). The main subsystems are: modeling (analyze, preparation and (re)-design of the VE's business processes, partner roles, contracts); applications and infrastructures (the components that perform or support the processes in order to provide the technological re‐ alization of the VE); methodology (guidelines on modeling); contingency factors ("situation‐ al factors" or conditions which affect the set up of the VE and "design parameters" which describe different set- ups for VEs). Other authors have proposed software agents and DAI in order to support the dynamism of VEs, for example multi agent systems (MAS) for SCM (Fox, 1993)

The Distributed Business Process (DBP) is represented by a set of business processes (BP), which emphasize the VE. Since one assumes that BP is carried out by various enterprises, the entity that has started the VE occurrence will coordinate the accurate and efficient func‐ tioning of the new business (Rabelo, 1996). In this case, VE signifies an optimal supply chain management (SCM) equipped with extended possibilities of analyses: a better response in the situation of a reduced level of coordination that covers activities carried out on the pro‐ duction flow systems, capable to react; in the situation of a mean coordination level, which emphasizes advanced coordination functions or high level of coordination (based on intelli‐ gent coordination functions).

flexibility). From the perspective of MSA, VE/ VO represents a group of agents which coop‐

Regarding the state of the art in the field of formation/ operation of VEs (Kazi, Hannus, 2002; Zweger, 2002) we should mention different types of architectures which support the formation and operation of VEs and capable to optimize the cooperative functioning of the key components of VEs such as elements that support modeling, set up management, ICT support, reference models, and infrastructures, like GERAM (Generic Enterprise Reference Architecture and Model) and Virtual Enterprise Reference Architecture and Methodology

The modeling of these types of architectures are based on the following features: the lifecy‐ cle view (the phases in the lifecycles); genericity (generic, particular and partial levels); mod‐ eling strategies (a view which comprise function, information, organization and resources).

The basic steps in the life cycle of a VE are: preliminary configuration of the VE and design phases of the lifecycle; the build of a detailed design and implementation of the phases in the lifecycle; service/ maintenance; decommission VEs during the decommission phase of

The phases of the development of VEs (Parunak, 1997) are: creation (establishes the goal/ ob‐ jectives of the future VE according to the market conditions); management/ operation (fo‐ cused on how to achieve the goals/ objectives); dissolution (ending the relationship among partners and evaluation of the results of this partnership). The design of VE could be divid‐ ed in four stages: identification of the market opportunity; identification of the core compe‐ tencies required for taking advantage of the market opportunity; the selection of the partner companies capable of delivering the required core capabilities, and the formation of the VE by operating an intelligent integration of the core capabilities of the partners. In Tolle (2004) the design is subdivided into five phases: identification, concept, requirements, preliminary

**4. Decision Support Systems for Virtual Enterprise (DSS – VE)**

A typical DSS-VE system should contain tools, applications and models that can be efficient‐ ly used during the formation and operation of VEs but also courses which offer guidelines that indicate how these tools, applications and models should be used in practice (Zweger, 2002; Tolle, 2002). The main subsystems are: modeling (analyze, preparation and (re)-design of the VE's business processes, partner roles, contracts); applications and infrastructures (the components that perform or support the processes in order to provide the technological re‐ alization of the VE); methodology (guidelines on modeling); contingency factors ("situation‐ al factors" or conditions which affect the set up of the VE and "design parameters" which describe different set- ups for VEs). Other authors have proposed software agents and DAI in order to support the dynamism of VEs, for example multi agent systems (MAS) for SCM

erates in order to realize a unique objective.

(VERAM).

106 Decision Support Systems

the lifecycle.

(Fox, 1993)

design and detailed design.

The VE coordinator should understand the aims and capabilities of each enterprise in‐ volved, but also the interconections. The new logistics imposed by this new architecture has determined the transformation/ evolution of the logistics toward an integrated flow of mate‐ rials/ information that should be managed as a single entity, starting from the raw material up to the final consumer. Using the Integrated Logistics (IL), as a basic concept needed to meet the distributed relationships requirements, permits a better understanding of the in‐ volvements into the real integration of VE because it focuses on the global level of perform‐ ance, and not on individual performance (Christopher, 1994; Moeller, 1994; Slats, 1995; Bowersox, Closs, 1996).

The VE functioning can be affected by the occurrence of some unforeseen, but critical events, such as: delaying or modification within the BP chain, changing the BP priorities, communi‐ cation deficiencies and/or network overloading or falling. In the case of such a critical event, the VE coordinator should take all the measures in order to solve quickly the issue locally, and if such aspect is not reached, the coordinator will not comply with the provisions fore‐ seen in the DBP contract; in this way, a conflict will occur, with impact on the information on DBP, thus affecting the entire production chain. The DBP assumes the existence of inter‐ dependencies between subsystems in order to take into account the entire network.

Depending upon the issue's seriousness, the solution might need more throughout and complex analysis. It is essential to take into consideration more evaluations and more fac‐ tors, especially if we think that usually, an enterprise can carry out more DBP contracts, which can be indirectly affected by the BP under discussion. The complexity of a VE will make almost impossible the individual solving of each issue by a user, meaning that a single user will not have the necessary knowledge and capabilities (regarding from the necessary time and technical experience point of view), or solving each issue by the system, meaning this will not benefit from the experience and "flexibility in business" of the human factor, in order to perform an accurate analysis or to take the optimal decisions.

In other words, DSS should offer the capability to: identify the issue situation; collect and analyze data; establish the causes of an issue; redefine the objectives; generate alter‐ native solutions; compare and to evaluate alternative solutions; chose the optimal solu‐ tion. DSS should also offer to decision matters the information stored together with a description of both the external competition environment, as well as the way enterprise caries out activities.

The subsystem of underlying the decision and simulating the alternative solutions should respond on the automatic reprogramming, basing on conflict analysis and by using one of the planning-reprogramming strategies. The decision should take into account the execution delays, and should be able to anticipate the potential distortions that might influence the re‐ quirement's concluding. The protocol includes a series of interactive steps, by sending mes‐ sages of recommendation towards providers, by issuing new solutions of making efficient the production process, of selecting partners and of reprogramming the procedures of main‐ taining the delivering data, as well as real time evaluation of the partial results. There are various possibilities of reprogramming, as following: automatic, semi-automatic and man‐ ual. A potential conflict should affect at the very most the BP, under the responsibility of provider under discussion, and only slightly the other VE members.

**5. Conclusions and future work**

most important issues in VEs.

cation for an optimal use of resources.

ance on mixing with DSS.

The current situation in the aftermath of the global crisis and the European debt crisis, mar‐ kets are highly volatile and very sensitive to the social, political, economical, business, tech‐ nical, organizational but also other factors dealing with the workforce. The success of a VE solution depends heavily on innovation (including innovation on management) since they are market-oriented organizations. These vehicles should react quickly and reconfigure to

Emerging Applications of the New Paradigm of Intelligent Decision Making Process: Hybrid Decision Support Systems

for Virtual Enterprise (DSS-VE) http://dx.doi.org/10.5772/3371 109

Although ontologies specifically for VEs have not been addressed, we believe that ontolo‐ gies for enterprises, in general, will address issues that need to be addressed by VE ontolo‐ gies too. It is important to highlight that the need for ontology is mostly due to information exchange among people and computers and to support interoperability, which is one of the

The modern business environment has been characterized by the networking interconnec‐ tion, the cooperation related to disrupted technologies, where one might emphasize the in‐ terest growth on intelligent platforms of common architecture, able to provide valuable elements. The intelligent coordination will require taking into account the entire SCM, with‐

The modern enterprise should benefit from new, intelligent, adaptive instruments of deci‐ sion, capable to: solve complex problems; to realize efficient interconnection/ interoperation (modularity); to offer efficient/ quick solutions for the distributed problems in a more and more complex environment with highly volatile markets; to integrate, fuse and filter infor‐ mation from different, distributed informational sources; to offer better performances (speed, security, expandability to operate with information and knowledge); to offer better clarity and simplicity in analysis; to offer scalability and, in general adaptability of the appli‐

DSS is more than informational product that implement a method for decision making. DSS is based on multitude components in interaction and it integrates informatics modules but also specific techniques for decisions, and communications. The main characteristics of DSS are: applicability, expected benefits, utility and relevance, addressability. The AI ingredi‐ ents, such as the expert systems, the knowledge based systems, learning abilities networks have been underlying on different types of AI technologies and coul offer better perform‐

The DSS-VE/VO offers advanced coordination facilities, able to support the means of achiev‐ ing, providing and managing the information related to production within VE/ VO. This system will embed the SCM and ILM concepts in the context of Integrated Logistics Man‐ agement (ILM). This system should be modular, allowing to enterprises to operate better within an integrated virtual environment, underlying on subsystems of supervision or mon‐ itoring the DBP and DSS execution, meaning the configuration of the supervising provision. The DSS-VE/VO systems will allow efficient tasks regarding: the supervision of SCM de‐ mands, underlying on the supervision clauses associated to contracts; the interactive sup‐

satisfy new market demands and customer trends in an agile manner.

in an intelligent organizational environment (Pereira, Klen, 2000).

The Conflict Detection Subsystem is an entity which receives information regarding the pro‐ duction, and it is permanently supervised, in order to check the information accuracy on planning or established terms on deliveries, as well as the execution stages. In the case a conflict is detected, this will be identified and transferred towards the module of taking de‐ cisions as answer on those detected.

The control subsystem performs a series of actions as regards the carrying into effect a deci‐ sion chosen as alternative solution. The user of the VE coordination website will work to‐ gether with DBPM (regarded as DSS, also) and will be able to simulate an extended set of alternative decisions.

The contract provided within a VE scenario will specify the rights and obligations within the relationships established by enterprises (clauses including the judicial, technical and finan‐ cial information) and moreover, the responsibilities towards conventional systems, the clauses of supervision (access to information, in the view of monitoring it). The cooperation between enterprises regards the agreement or consensus over the set of information to be provided, so that the remote supervision will be enabled.

Customizing the supervision clauses signifies one of the first procedures than a user should apply immediately after a VE is formed. The user should specify periodically reported infor‐ mation (for instance, the manufacturing data, the produced quantities, the demands status, the information transparency, transferring decisions and in parallel, supplementary docu‐ mentations or sending the supervision data).

It is important to give some examples of Virtual Breeding Environments (VBEs) as the fol‐ lowing: Virtuelle Fabrik (consortium in machine building sector between Switzerland and Germany); Swiss Microtech (micromechanics, collaboration with China); ISOIN (aeronauti‐ cal cluster); CeBeNetwork (integrated portfolio for aeronautical engineering between France, UK and Germany); ConSEN Euro – Group (cluster of European SMEs in Informa‐ tion Society Technologies); Infranet – Partners (network of SMEs in Internet solution do‐ main). As Professional Virtual Communities (PVCs) we can take into consideration the following examples: Projectwerk (4000 freelancers and SMEs); Elance; freelancer; associa‐ tions of professionals etc.
