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Procedia Computer Science 139 (2018) 521–528
Procedia Computer Science 00 (2018) 000–000
Procedia Computer Science 00 (2018) 000–000
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www.elsevier.com/locate/procedia

The
The International
International Academy
Academy of
of Information
Information Technology
Technology and
and Quantitative
Quantitative Management,
Management, the
the
Peter
Peter Kiewit
Kiewit Institute,
Institute, University
University of
of Nebraska
Nebraska
Business
Business Negotiation
Negotiation based
based on
on Extenics
Extenics
a b c d
Xingsen
Xingsen Li
Lia *,
*, Fangyao
Fangyao Liu
Liu b†,
†, Aihong
Aihong Li
Lic,Libo
,Libo Xu
Xu d
a
aResearch Institute of Extenics and Innovation Methods, Guangdong University of T echnology (GDUT), Guangzhou, 510006, CHINA
Research Institute of Extenics andb Innovation Methods, Guangdong University of T echnology (GDUT), Guangzhou, 510006, CHINA
b University of Nebraska at Omaha, Omaha, Nebraska, 68106, USA
c University of Nebraska at Omaha, Omaha, Nebraska, 68106, USA
cSchool of bussiness, Shandong Yingcai University, Jinan, 250104, CHINA
d School of bussiness, Shandong Yingcai University, Jinan, 250104, CHINA
d Laboratory of Intelligent Information Processing and Data Decision, Ningbo Institute of Technology, Zhejiang University, Ningbo, 315100, CHINA
Laboratory of Intelligent Information Processing and Data Decision, Ningbo Institute of Technology, Zhejiang University, Ningbo, 315100, CHINA
Abstract
Abstract
The core needs of business negotiation are to achieve the goals expected by the negotiating parties, however, the goals of both parties are often
The core needs of business negotiation are to achieve the goals expected by the negotiating parties, however, the goals of both parties are often
conflicting. The conflict extended the negotiation cycle and even led to the breakdown of negotiations. The rapid accumulation of big data in
conflicting. The conflict extended the negotiation cycle and even led to the breakdown of negotiations. The rapid accumulation of big data in
the Internet environment has brought new opportunities for the intelligent research of business negotiations. In this paper, we use Extenics to
the Internet environment has brought new opportunities for the intelligent research of business negotiations. In this paper, we use Extenics to
describe the problem conflicts in business negotiation with a formal model. Through the systematic analysis of the relevant elements of
describe the problem conflicts in business negotiation with a formal model. Through the systematic analysis of the relevant elements of
negotiation deadlock, the negotiation object and conditions are respectively analyzed by formal divergence, correlation, implication and
negotiation deadlock, the negotiation object and conditions are respectively analyzed by formal divergence, correlation, implication and
extensibility. The new win-win negotiation strategy is finally obtained by five basic transformations and the quantitative evaluation of the
extensibility. The new win-win negotiation strategy is finally obtained by five basic transformations and the quantitative evaluation of the
correlation function. The essence of the extension business negotiation is to seek the win-win solution from the seemingly unsolvable
correlation function. The essence of the extension business negotiation is to seek the win-win solution from the seemingly unsolvable
impossible. The practical application shows that the extension business negotiation provides a new method for the negotiation of multi-source
impossible. The practical application shows that the extension business negotiation provides a new method for the negotiation of multi-source
data, information and knowledge, and helps the negotiators to reach a win-win agreement.
data, information and knowledge, and helps the negotiators to reach a win-win agreement.
© 2018 The Authors. Published by Elsevier B.V.
This is an
© 2018 Theopen access
Authors. article by
Published under the CC
Elsevier B.V.BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
© 2018
Peer The Authors.
review under Published by Elsevier
responsibility of theB.V.
scientific committee of The2018
International Academy of Information Technology and
Selection and/or peer-review under responsibility of the organizers of ITQM
Selection and/or
Quantitative peer-review under
Management, responsibility
the Peter of the organizers
Kiewit Institute, of ITQM
University 2018
of Nebraska.
Keywords: Business negotiation; Extenics; Conflict resolution; Win-win solution; Knowledge management.
Keywords: Business negotiation; Extenics; Conflict resolution; Win-win solution; Knowledge management.

1. Introduction
1. Introduction
Business negotiation is one of the signature part of economic activ ities. No one would deny that the role of business
Business negotiation is one of the signature part of economic activ ities. No one would deny that the role of business
negotiation is a plan for conflicts solving and deal agreements. All the stakeholders have the same goal o f getting a satisfied
negotiation is a plan for conflicts solving and deal agreements. All the stakeholders have the same goal o f getting a satisfied
profit results under the condition of closing an accepted deal [1]. As a micro -level negotiation in economic field, both negative
profit results under the condition of closing an accepted deal [1]. As a micro -level negotiation in economic field, both negative
and positive side of negotiation strategy is the key factor of business negotiation management, which is also the one of the
and positive side of negotiation strategy is the key factor of business negotiation management, which is also the one of the
difficult areas in the business negotiation research. No matter this negotiation occurs in the same culture or an internation al
difficult areas in the business negotiation research. No matter this negotiation occurs in the same culture or an internation al
situation, the negotiation strategy and skill is the prerequisite for a successful business negotiation. When the stakeholders
situation, the negotiation strategy and skill is the prerequisite for a successful business negotiation. When the stakeholders
dispute key terms of the agreement, to reach a co mpro mised plan, people has to trust in their own negotiation experiences,
dispute key terms of the agreement, to reach a co mpro mised plan, people has to trust in their own negotiation experiences,

* Corresponding author. Tel.: +86-020-39322973

* Corresponding author. Tel.: +86-020-39322973
E-mail address: lixingsen@126.com
E-mail address: lixingsen@126.com
* Corresponding author. Tel.: +1-402-889-9221
* Corresponding author. Tel.: +1-402-889-9221
E-mail address:fangyaoliu@unomaha.edu
E-mail address:fangyaoliu@unomaha.edu

1877-0509 © 2018 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer review under responsibility of the scientific committee of The International Academy of Information Technology and Quantitative
Management, the Peter Kiewit Institute, University of Nebraska.
10.1016/j.procs.2018.10.238
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Author name / Procedia Computer Science 00 (2018 ) 000–000

knowledge background, authority, and flexibility. The ability of extending the business plan, designing a win -win agreement is
the key factor of business negotiation, which need an urgent systematic scientific methodological guidance.
Extenics is a new discipline focus on the expanding thinking, and conflicting situation solving. Extenics has a wide
application on operation management, marketing, architectural design, mechanical design, control, decision making, etc [3].
However, there is no sys tematic Extenics application exist in the business negotiation field. Under the impact of big data
analysis trend, business negotiation need collecting mu lti-d imensional data though information technology method, as well as
expanding thinking based on Extenics, to design a win-win and optimal strategy. Then, all the stakeholders could have the
possibility to reach an expected goal.
This paper focus on the intersection research between Extenics and business negotiation. The goal is to treat Extenics as a
methodological guidance, and build a process -oriented flow for the negotiation terms disputed situation in the business
negotiation management. The rest of the paper is organized as follows: In section 2 we review the literature on business
negotiation and put forward their disadvantages on methods. Section 3 introduces theory and methods of Exten ics and discusses
the business negotiation model. Section 4 presents a case study and show how the new model works. In section 5 we conclude
the paper and give future research directions.

2. Literature review

Almost all the business deal involves an acquisition, a lease, a sale agreement, or other co mmercial transaction requires a
strategy for a successful business negotiation. If people use the traditional business negotiation strategy, there are kinds of
factors for successful negotiation. First one is “appropriate polite language” [2], In 1987, Bro wn and Levinson proposed that
politeness theory was a universal concept, especially, the positive polite face, negative polite face and face-threatening acts.
Second one is “application o f language skills”, which in particular, is necessary to express your opinions in a full, co mplet e,
accurate and appropriate manner in the negotiations. There are more on the list, such as: figure out the co mmonality of interests,
negotiation chip, negotiation strategy route, alternative solution, demand intensity [4], flexib ility, creat ivity, constantly propose
new strategies [5], cross-regional cultural issues and interpretation issues [6], s ilent language applicat ion [7], national sentiment
[8], cross-cultural strategy and preventive solution, avoid deadlock [9]. Furthermo re, equality and mutual benefit is the rule that
people have to follow when the scenario is an international case [10]. Ch en studied the international business negotiation with a
cultural context , based on the context theory and cross -regional cultural, get the main culture factors are: intention, subject,
situation, negotiator, media. Based on the analysis, Chen pointed out the root of culture differences in international business
negotiations is the traditional core values that influence members of society [11].
Chen conducted some analysis on the business negotiation skills imp rovement. In o rder to get a win -win results, there are
three significant guidance. First, prepare for business negotiations. Second, excellent use of language art, language needs to be
flexib le. Th ird, use flexible and varied negotiation skills, have rich negotiation experience, clear negotiation steps , and loosely
strictness [12].
Kremenyuk explo red three techniques of how to use human psychology in the process of business negotiation, such as seeing,
thinking and speaking, fro m the perspective of the use of psychological skills in business negotiation s [13].
When Nierenberg analyzes the negotiating opponent's demand structure based on Maslow's hierarchy of needs, figure out that
this analysis results associated with strategy is helpful to negotiate successfully. She did the analysis of the specific con tent of
the five needs of business negotiators, then explored strategies and techniques for effect ively using negotiators to achieve the
goals of negotiation [14].
Grosse pointed out that in the process of international business negotiation, the traditional array negotiation mod e, the
modern rational negotiation mode and the PRAM negotiation mode are the three most commonly used negotiation modes. These
three main negotiation modes have different negotiation styles and negotiation methods, and should be flexibly selected and
applied [15].
With the rapid development of information technology and the accumulation of big data, intelligent tools for assisting
negotiations began to build. Based on two aspects of business negotiation and automated business negotiation in the tradition al
sense, some scholars have proposed that adaptive strategies are the hotspot of future business negotiation strategies [16]. Make
the negotiating agent smarter and adaptively adjust its strategy according to changes in the negotiation environment (includi ng
the behavior of other agents), will contributes a lot to business negotiation success [17].
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Good negotiations contribute significantly to business success, because it could help people build better relationships, deliver
lasting, quality solutions, rather than poor short-term solutions that do not satisfy the needs of either party. Also, it could help
people avoid future problems and conflicts [18].

3. Business Negotiati on Model on Extenics

3.1 Background of Extenics

Extenics was founded in 1983 by Chinese scholar Wen Cai. It is a new discipline that uses formal model to expand and
transform things, and is used to expand ideas and solve contradictions [3]. Extenics summarizes the manifestations and
treatments of various contradictions in the past and the present. Based on set theory, it discusses the basic theories and methods
of formalizat ion and process of contradictions. After more than 30 years of research, Extenics has been formed into an original
methodology system, which has become one of the basic disciplines of intelligent processing of contradictions [19]. Th e
application of Extenics in the fields of in formation, engineering and management shows their unique advantages in dealing with
contradictions and conflicts [20-23].

3.2 Core needs of Business Negotiations

Business negotiation is related to people's thinking habits, language arts, psychological needs, etc. Regardless of the cultu ral
differences between the two part ies or parties in the negotiation of the business, the dif ferences in the formulat ion of the
negotiation strategy, the object of negotiation, the content of the negotiation and the negotiation stage, the core needs of the
business negotiation are the goals that the negotiating party expects. However, the goals of both sides are often conflicting. How
to resolve conflicts and achieve a win-win goal is the common pursuit of both sides. However, when the two sides focus their
needs on a controversial focus, such as price, they often think that concessions have damage d their own interests and cannot be
explained to the company, after that, they may extend the negotiation cycle, wh ich causing disputes and hurting feelings and
even leading to the breakdown of negotiations.
Fro m the perspective of Extenics, conflict is a contradiction problem. Contradictory problems often arise fro m focusing on
specific minorities or even one attribute while neglecting other object and attribute information. Contradictory problems tha t
cannot be solved under the existing situation, but, people can expand the information, find out the object, attribute and quantity
expansion ideas related to the problem, and seek a win -win solution. Co mmonly used objects and their attributes are listed here:
 Product: producer, consumers, user, dealers, shelf life, delivery cycle, the ex-factory price, d istribution price, market
price, material, produce process, storage, advertising promotions, closing cycle etc.;
 Technology ： technical proposal, backup plan, implementation method, technical route and methods, results,
requirements, cost, payment method, equipment, work p lan, organization, personnel, consultants, outline of the task,
work schedule, training and logistical support, evaluation value, patent licensing, inventor, use period,
confidentiality, etc.;
 Consultation: consulting solutions, consultants, consulting way, time span, evaluation methods, imp lementation
cycle, privacy, o wnership of data, data management type, cost, payment method, personnel situation, the third-party
cooperation, etc.;
 Possible relationship types involving in business negotiations: matter-element relationship, such as the relationship
between the stakeholders, executives, department directors, workers, customers, suppliers, distributors, dealers,
consumers and so on; Affair relationship, such as negotiation, inspection, implementation and signing, payment,
implementation, transportation, delivery, acceptance, assessment, feedback, the relationship between the
improvement and renewal, etc.
Use the basic elements to build a model, expand and transform, get a systematic solution, and then choose the optimal
implementation solution.

3.3 Business Negotiation model based on Extenics

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A large amount of information and knowledge in the network environ ment has become an important resource for business
negotiation. Effective use of massive network information and industry knowledge can prov ide sufficient conditions for
strategic innovation in business negotiation.
The extension business negotiation method is based on Extenics and builds an extension model of contradictions in
negotiation. Extension conditions and objectives by means of divergence analysis, correlation analysis, implication analysis,
scalable analysis, and conjugate analysis. It also uses formalizat ion, process and quantitative methods such as extension
transformation and goodness evaluation to help negotiators solve the deadlock problem in negotiation. It is a set of
methodologies for achieving a win-win strategy for negotiation.
Figure-1 is about the business negotiation based on Extenics model.

Fig. 1: Business negotiation model based on Extenics.

The essence of extension business negotiation is to find the optimal solution to the problem o f mutual benefit and
incompatib ility. The problem of opposition is that the negotiating party has the conditions to meet the needs of the other party,
but does not pursue the maximization of its own interests and is subjectively unsatisfied. The inco mpatibility problem is tha t the
objective conditions of oneself cannot meet the needs of the other party. The negotiating performance of the t wo sides is that the
two sides do not give each other on specific issues and form a stalemate.
The model for solving the deadlock with extension thinking is to fu rther collect the Internet informat ion, expert experience,
industry knowledge and pattern knowledge acquired by the data min ing related to the negotiation. To form basic element
domains related to negotiation problems, and then use attributes such as divergence analysis, correlation analysis, imp licat ion
analysis and scalable analysis to expand the attributes and values to obtain an approximate element base. For the deadlock
problem, the transformat ion, expansion, addition, deletion, decomposition and replication of elements, criteria and fields are
carried out according to the conditions and objectives. Then get all possible new negotiation options. After that, the human -
computer interaction method is used to evaluate the scheme, such as sum and product, an d the correlation function based on the
extension distance, to obtain the ideal goal of mutual benefit. With the ideal goal as the limit, we will further co mmunicate and
negotiate to achieve a win-win goal under the current boundary conditions.
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The negotiation basic element model o f mu ltidimensional information fusion is described as follo ws:
The basic elements express the informat ion as a trip le form o f (object, characteristics, magnitude) and construct a problem
description model.
The way to express negotiation informat ion in the form of basic elements is:

 O bject， c1 , v1 
 
c2 , v2
B （ O， C ， V ） =  
  (1)
 
 cn , vn 

Where O (Object) represents an object (object, action, or relational word), c1, c2,...,cn represents n features of object O, v1,
v2,...,v n represents the corresponding value of object O with respect to the above feature. Such as subject matter, contract
implementation, stakeholder involved in the contract, etc. Figure -2 is the business negotiation innovation directions based on
matter analysis.

Fig. 2: Business negotiation innovation directions based on matter analysis.

3.4 Steps to resolve the deadlock in business negotiations

The main steps to break the deadlock in business negotiations and expand the innovative ideas of negotiations are as follows:
Step1. Modeling of key contradictions in negotiations
Div iding the subject matter, imp lementation, and stakeholder re lationship involved in the negotiation into three categories:
matter, event, and relat ionships. Expressing its contents by attributes and values, forming negotiating cells describing the matter,
event, and relationship elements. The basic element is used t o express the negotiating target and the current conditions of the
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parties, and a formal model is established for the contradictory problem. Th rough the mining and analysis of a large amount o f
informat ion, all possible characteristics and values are listed, and the win-win ideas of systematic development and negotiation
are systematically developed.
Step2. Systematic expansion, divergence, analysis
Based on the principles of materiality, structure, dynamics and opposition, we systematically expand the attributes of things
fro m the aspects of imaginary, real, soft, hard, latent, apparent, positive and negative, according to “1M:n C”, “1M:n V”,
“1C:n V”, “1V:nM”, etc. Then carry out relevant analysis, implication analysis, expandable analysis, and expand the dir ection of
negotiation ideas and new programs.
Step3. Multi-dimensional analysis of contradictory problem
Starting fro m the conditions of negotiation and the achievement of goals, then, analyse the basic elements, criteria, fields, and
fields involved in the negotiation, and list possible paths.
Step4. Generate new negotiation strategies through transformation
Using the five basic transformat ions, such as substitution, expansion and reduction, addition and deletion, combination
decomposition, and replicat ion, wh ich are summarized fro m set theory and a large number of wisdom stories, the informat ion
generated in the above steps 1-3 is transformed to obtain a series of new negotiation strategies.
Step5. Plan calculation and evaluation
Perform the four operations of AND, OR, product and inverse on the initial strategy obtained by the transformation.
Construct a multi-class negotiation innovation thinking cube, expand and transform all possible innovations, and achieve the
effect of solving the equation to obtain the full solution. Then, the scheme is evaluated for relevance and the optimal strategy is
selected.

4. A case study

Two companies A and B in Ningbo, Zhejiang Province have maintained the relationship between A and B about processing
auto parts for many years. Last year, due to the improvement of the government's environmental protection requirements,
company A invested in the transformation of the production line, coupled with factors such as rising wages of emp loyees, the
average processing cost per piece increased by 5%. In the renewal o f the contract with Co mpany B, the single -piece processing
fee was increased by 5 yuan, but, the co mpany B could increase by up to 1 yuan. The processing price was in a deadlock. Aft er
two weeks of negotiations, no agreement was reached.
After a chance to hear about extension, company A negotiator briefly studied basic element theory and conjugate analysis
methods. He then analysed the workers, machine tools, machining accuracy, packaging methods, delivery methods, de livery
dates and other factors related to the processing price. In the third week of negotiations, it was proposed to Company B that if
Co mpany A d id not raise the price, what could Co mpany B do for Co mpany A to reduce the processing cost? Fro m the
perspective of basic elements analysis, it imp lies that Company B can consider the processing precision, packaging method,
transportation mode, delivery date and so on. Based on this idea, the two sides found that there is a lot of room for negotia tion
and a lot of cooperation, and there are many direct ions for cooperation and win -win. Then, six directions are listed in detail, and
the following transformations are imp lemented:
The “price” single attribute expands the attributes of “worker, machine tool, processin g precision, packaging method,
delivery method, delivery date”, and then performs displacement transformation on the moving object of the transportation
mode.
Old method:
      
 
M=  

  

New method:
 Xingsen Li et al. / Procedia Computer Science 139 (2018) 521–528 527
Author name / Procedia Computer Science 00 (2017) 000–000

     
 
M=

Through the above transformat ion, the overall cost of processing + transportation of Co mpany A is reduced to the original
level, and the waste disposal has certain benefits. The transportation cost of Co mpany B is d istributed to about 0.2 yuan p er
piece of single-p iece parts, which is within the company's budget. In the end, the two sides reached a new win -win agreement:
 The processing price of Co mpany A for Co mpany B remains unchanged.
 Co mpany B uses the spare capacity of the vehicle to t ransp ort the parts to be processed and is responsible for
transporting the processed parts back to Co mpany B.
 Co mpany B t ransports the waste processing of Co mpany A back to the garbage collection station.
The extension business negotiation method can effectively imp rove the negotiator's thinking expansion, the analysis of the
deadlock problem and the ability to expand and transform. Those who have not been trained in this method can generally think
of about 8-10 kinds of negotiation strategies, and after the extension training, they can come up with mo re than 50 new
strategies, and they are still unfin ished.

5. Conclusions and future research directions

The rapid accumulat ion of big data in the Internet environment has brought new opportunities for the intelligent research of
business negotiations. Extenics describes the problem conflicts in business negotiation with a formal model. Through the
systematic analysis of the relevant elements of the negotiation deadlock, it separately flows, formalizes the divergence,
correlation, implication and expandable analysis of the negotiation targets and conditions. The system negotiates a new strat egy
with five basic transformat ions. Finally, through the calculat ion of the scheme and the quantitative evaluation of the correlat ion
function, a mult i-party win-win negotiation scheme is obtained. Expanding a win -win solution fro m the seemingly unsolvable
impossibility.
The extension business negotiation provides a new method for the integration of mu lti-source data, information and
knowledge related to negotiation, and builds an intelligent “bridge” between big data and business negotiation innovation. In the
future research, the basic element do mains intelligent construction method of negotiation objects can be refined, and the
intelligence level of negotiation strategy generation can be imp roved, so that more enterprises and organizat ions can achieve
win-win situation through extension negotiation.

Acknowledgements

This research was supported by the National Natural Science Foundation of China (#71271191), Zhejiang Natural Science
Fund (#LY18F020001, # LY16G010010), Hu man ities and Social Sciences project (18YJAZH049) of the Ministry of Education
Science China and Technology Planning Pro ject of Guangdong Province (#2016A040404015).

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