Method and system for generating and using value functions for users

Abstract

Methods for generating and using a value function include inputting at least one variable parameter, inputting at least one environmental parameter, defining a relationship between the at least one input variable parameter and the at least one input environmental parameter, and generating a value function based on the input parameters and the defined relationship, the value function returning a real number. Systems for generating and using a value function include a variable parameter database including variable parameters, an environmental parameter database including environmental parameters, a processing component configured to receive at least one variable parameter from the variable parameter database; receive at least one environmental parameter from the environmental parameter database; define a relationship between the at least one input variable parameter and the at least one input environmental parameter; and generate a value function based on the input parameters and the defined relationship, the value function returning a real number.

Claims

1. A method for generating and using a value function for a user, the method comprising: inputting at least one variable parameter; inputting at least one environmental parameter; defining a relationship between the at least one input variable parameter and the at least one input environmental parameter; and generating a value function based at least in part on the input parameters and the defined relationship, the value function returning a real number.

2. The method according to claim 1, wherein the value function is generated at least in part by combining the plurality of input parameters and by assigning dependencies to the input parameters.

3. The method according to claim 1, wherein the value function is generated at least in part by applying a series of constraints to the input parameters.

4. The method according to claim 1 further comprising forecasting time development of the generated value function by analyzing at least one of the environmental parameters.

5. The method according to claim 1, further comprising, in response to receiving user feedback, updating the generated value function by modifying at least one relationship between the at least one variable parameter and environmental parameter.

6. The method according to claim 1, further comprising: using at least one of the variable parameters to generate a virtual template for a user; evaluating the value function based on the filled variable parameters of the virtual template; and comparing a plurality of virtual templates by evaluating the value function based on the filled variable parameters of each virtual template.

7. The method according to claim 1, further comprising using the generated value function to conduct a virtual negotiation by communicating with a third party on behalf of the user, receiving third party inputs and estimating a third party value function based on them.

8. The method according to claim 7 further comprising iteratively updating the estimated third party value function based on further third-party inputs.

9. The method according to claim 7, further comprising simultaneously optimizing against the generated value function and the estimated third party value function.

10. The method according to claim 7, further comprising automatically triggering the virtual negotiation based on a predetermined threshold.

11. The method according to claim 1, further comprising building up a virtual negotiation by selecting predetermined negotiation submodules and wherein the selection is performed by evaluating a third party input in the virtual negotiation against the generated value function.

12. The method according to claim 6 further comprising filling out the virtual template during the virtual negotiation, wherein the virtual template is filled based on third party input in the virtual negotiation evaluated against the generated value function.

13. A system for generating a value function, the system comprising: a variable parameter database comprising variable parameters; an environmental parameter database comprising environmental parameters; and a processing component configured to: receive at least one variable parameter from the variable parameter database; receive at least one environmental parameter from the environmental parameter database; define a relationship between the at least one input variable parameter and the at least one input environmental parameter; and generate a value function based at least in part on the input parameters and the defined relationship, the value function returning a real number.

14. The system according to claim 13, further comprising: a user terminal configured to receive user feedback relating to the generated value function and transmit it to the processing component; wherein the processing component is further configured to update the generated value function by modifying at least one variable parameter.

15. The system according to claim 13, further comprising a negotiation interface configured to conduct a virtual negotiation and wherein the processing component is configured to use the generated value function as part of a virtual negotiation performed via the negotiation interface.

16. The system according to claim 15, wherein the negotiation interface is configured to establish communication at least between the processing component and a third party, to receive third party inputs, and to transmit the third party inputs to the processing component.

17. The system according to claim 16, wherein the processing component is configured to estimate a third party value function based on the third party inputs, to iteratively update the estimated third party value function based on further third-party inputs and to simultaneously optimize the generated value function and the estimated third-party value function.

Description

BRIEF DESCRIPTION OF THE DRAWINGS

[0131] FIG. 1 depicts an embodiment of a method for generating a value function according to one aspect of the invention;

[0132] FIG. 2 depicts another embodiment of a method including using the value function according to one aspect of the invention;

[0133] FIG. 3 depicts an embodiment of a system with some optional components according to one embodiment of the invention;

[0134] FIG. 4 schematically depicts an embodiment of a system including different layers and structures according to one aspect of the invention;

[0135] FIG. 5 depicts an exemplary embodiment of a user interface according to one aspect of the invention;

[0136] FIG. 6 schematically depicts and embodiment of a virtual negotiation according to one aspect of the invention

[0137] FIG. 7 depicts an embodiment of a negotiation interface according to one aspect of the invention.

DESCRIPTION OF EMBODIMENTS

[0138] FIG. 1 schematically depicts an embodiment of a method for generating a value function. The method comprises inputting at least one variable and one environmental parameter. The parameters may be stored in databases, such as separate variable parameter and environmental parameter databases. The parameters may be input to a processing component that can comprise a server, a collection of servers or the like. The word “input” may also refer to the processing component accessing the parameters in the respective databases and extracting them.

[0139] The variable and environmental parameters may correspond to user-associated parameters. In one concrete example, a user may correspond to a company that is interested in automating contract negotiations. The variable and environmental parameters may correspond to historical and current data on various fees or transactions that the company has paid or performed. Further, the parameters may correspond to resources such as monetary, time or the like, geographical limitations or region-specific value assessments or the like.

[0140] The variable parameters generally reflect parameters associated with the user that can be varied depending on a situation. More specifically, variable parameters may reflect terms of a contract or an agreement that are not fixed, but can be negotiated. For example, variable parameters may comprise “amount of compensation”, “percentage of revenue”, “exclusive rights to a particular product” or the like.

[0141] The environmental parameters can generally reflect parameters that are fixed or not easily varied. For example, such parameters may comprise “total revenue in a region in a month”, “past number of licensing agreements”, “typical salary for a given position” or the like. These parameters may also reflect terms from existing contracts with various third parties or partners that are in force. Furthermore, the environmental parameters may also comprise parameters related to various partners or third parties that are known (such as “yearly revenue”, “number of employees” or the like). The environmental parameters may also comprise market conditions such as “inflation in a region”, “historical market gains” or the like.

[0142] Once the variable and environmental parameters are input, a relationship is defined between them. In other words, there is a dependency established between at least some of the input variables. Such dependency may be a functional relationship, a constraint, or the like. For example, if one variable parameter comprises “amount of compensation”, and one environmental parameter comprises “average salary in a given region”, the established relationship between the two may be “amount of compensation” is between half and thrice of an “average salary in a given region”. The relationship between the variables may be established pairwise or not. Furthermore, multiple relationships may be established between multiple input parameters, and relationships may be established between two or more variable parameters, one or more variable and one or more environmental parameters and/or one or more environmental parameters.

[0143] The method then comprises generating a value function that returns a real number. In other words, the value function may have a plurality of inputs some of which may be variable and some of which may be fixed, and some of the inputs may be interdependent. The output of the value function generally comprises, however, a real number. This allows for easy comparison between two different outputs of the value function based on different input parameters. The value function can be generated based at least in part on the input parameters and the defined relationship between them.

[0144] The value function can generally correspond to an explicit and preferably numerical representation of a user's priorities and interests as they relate to negotiations. The variable and environmental variables can relate to specific variable parts of contracts that the user is generally entering into. For example, some further variable parameter can comprise “percentage of revenue given as part of a license fee”, “percentage of transactions cancelled”, or “cost for exclusivity for selling a particular product”.

[0145] The parameters may be interrelated in a functional way and may affect the overall value of the value function as they are varied. For example, the above two mentioned exemplary parameters may be dependent, so that “cost for exclusivity” decreases with increased “percentage of revenue”. The relationship may be linear or otherwise, and can be determined as part of generating the value function.

[0146] Once the value function for a user is generated, it can be used as a backbone for automatically negotiating on behalf of the user. The processing component conducting the negotiation may then evaluate possible offers or contract terms against the value function to quantifiably determine the worth of a certain contract term (corresponding to variable parameters).

[0147] The present method allows to quantify user values in a concrete entity of the value function. In this way, value alignment of a user can be captured and used to optimize use of resources, save time and simplify complex processes that the user may be engaged in.

[0148] FIG. 2 depicts another embodiment of a method for generating and using a value function. The first four steps correspond to those of FIG. 1. Following the generating of the value function, it can then be used to conduct a virtual negotiation between a user and a third party (with the user represented by a processing component using the generated value function). That is, while negotiating different terms with the third party, the processing component conducting the negotiation may compare the resulting benefits or detriments based on the value function and particularly on the user-tailored variables. In this way, the specific effect of each negotiable term (corresponding to variable parameter) can be evaluated based on its effect on the value function. Note, that the third party may also be referred to as “partner” or “partner of a user”.

[0149] The value function can be further used to fill out a virtual template. The virtual template can correspond to a contract. The virtual contract can be generated independently of the value function, but can comprise some or all of the variable parameters also input into the value function. There may be a plurality of different virtual template that can be used by a user for different situations or as part of a contract with different partners or third parties. Filling out the template can be done as part of conducting the virtual negotiation. The processing component may evaluate responses of a third party negotiating with the user, and, based on those responses, gradually arrive at a filled virtual template that can correspond to an optimal contract for both parties.

[0150] FIG. 3 schematically depicts an embodiment of a system for generating and using a value function. Some components of the system are optional.

[0151] Processing component 10 can correspond to a server, a collection of servers, a virtual server or the like. The processing component 10 can generally perform all computations and coordinate the functioning of the system.

[0152] Variable parameter database 20 may comprise variable parameters, specifically related to the user. For example, the database 20 may comprise parameters such as “licensing fee for an exclusive use of a product”.

[0153] Environmental parameter database 30 may comprise various environmental parameters that may be related to the user, to various third parties (partners) associated with the user and/or to auxiliary data.

[0154] Sub-databases 32, 34 and 36 reflect different types of environmental parameters that may be stored in the environmental parameter database 30. User state database 32 may store data related to current and/or past contract terms that the user has entered into. For example, such data may be related to past contract terms that the user preferred, such as e.g. between 5% and 10% license fee for exclusive use of a product.

[0155] Third party state database 34 may comprise data related to past transactions, agreements and/or contracts that various third parties have entered into, as well as various fixed parameters that may be associated with the third parties. For example, size, revenue, regional distribution of third parties or the like may be stored in third party state database 34. When using the value function 50 as part of a virtual negotiation with a third party or to fill a virtual template with a third party, it can be particularly advantageous to compare the third party in question to other similar third parties and contract terms that were agreed with them. Therefore, benchmarking by known and/or past data associated with various similar third parties can be useful as part of understanding the needs and values of a specific third party. The similarity may be established regionally, based on a business model or the like.

[0156] Auxiliary database 36 may comprise data related to general market situation, specific geographic or geopolitical data or the like.

[0157] The processing component 10 may have free access to the databases 20, 30 (and the respective sub-databases 32, 34, 36) to receive (and/or extract) the corresponding parameters.

[0158] Based on the extracted parameters and optionally other data, the processing component 10 can generate the value function 50. The value function 50 can correspond to a virtual object with a plurality of variable parameters 52.

[0159] User terminal 60 may be used to review the generated value function 50 and give feedback on it. This feedback can then be taken into account by the processing component 10 in order to modify the value function 50 to align more closely with the user's values.

[0160] Negotiation interface 70 may be in communication with the processing component 10 and a third party 80. The negotiation interface 70 can be used to conduct a virtual negotiation by the processing component 10. The processing component 10 may then evaluate possible outcomes of the negotiation against the value function 50 and conduct the negotiation based on such hypothetical results.

[0161] FIG. 4 depicts a schematic embodiment of a system for generating and using the value function including data structures and layers.

[0162] The external data layer may comprise the user's (customer's) own internal IT system and the internet as a source of additional data.

[0163] The internal data layer may comprise current contract terms, customer financial and market situation (together corresponding to current parameter database), historical transactions of customer partners (third parties during negotiation) corresponding at least in part to historical parameter database and market situation (derivable from outside sources such as the internet and corresponding to auxiliary parameter database).

[0164] The internal logic may comprise generating a custom user value function and custom negotiation templates which can be employed as part of a virtual negotiation.

[0165] The operation panels may allow rule triggering, conducting a particular negotiation and validating the generated value function (as part of a feedback loop).

[0166] The outcome of running the system can then comprise a newly negotiated contract between a user and a third party that mutually benefits both.

[0167] FIG. 5 schematically depicts an exemplary user terminal or user interface. The user may access the value function and give feedback on it, as well as provide triggers for e.g. automatically triggering a negotiation with a certain partner.

[0168] FIG. 6 schematically depicts an exemplary virtual negotiation. White text boxes correspond to prompts automatically sent to a third party, and grey text boxes correspond to third parties' replies. Next steps or layers in the negotiation are determined by the previous replies of the third party, so that the negotiation progresses based on all of the previous input. The blue boxes (lighter gray) may correspond to nodes where a specific numerical value is to be entered by the third party participating in the virtual negotiation. Additionally or alternatively, the third party may enter alphanumerical strings that can be processed using natural language processing and converted into variables such as variable parameters.

[0169] FIG. 7 schematically depicts an embodiment of a negotiation interface. The interface can correspond to a chat where the third party can type in their entries, and a processing component analyses them, and provides appropriate replies.

[0170] Whenever a relative term, such as “about”, “substantially” or “approximately” is used in this specification, such a term should also be construed to also include the exact term. That is, e.g., “substantially straight” should be construed to also include “(exactly) straight”.

[0171] Whenever steps were recited in the above or also in the appended claims, it should be noted that the order in which the steps are recited in this text may be the preferred order, but it may not be mandatory to carry out the steps in the recited order. That is, unless otherwise specified or unless clear to the skilled person, the order in which steps are recited may not be mandatory. That is, when the present document states, e.g., that a method comprises steps (A) and (B), this does not necessarily mean that step (A) precedes step (B), but it is also possible that step (A) is performed (at least partly) simultaneously with step (B) or that step (B) precedes step (A). Furthermore, when a step (X) is said to precede another step (Z), this does not imply that there is no step between steps (X) and (Z). That is, step (X) preceding step (Z) encompasses the situation that step (X) is performed directly before step (Z), but also the situation that (X) is performed before one or more steps (Y1), . . . , followed by step (Z). Corresponding considerations apply when terms like “after” or “before” are used.