Promotion and Education EC 101 Fundamentals of Electronic

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Promotion and Education EC 101 Fundamentals of Electronic Commerce Note: You may look up acronyms and abbreviations used in this class at http: //www. eidx. org/publications/abbrev/

Promotion and Education Reminder Before we begin, please… Turn pagers to vibrate Set cell phones to a silent setting If you get a call, please leave the room to take it Thank you! © 2002 Computing Technology Industry Association, All rights reserved 2

Promotion and Education Course Objectives Introduction What is e-business Evolution of e-business applications What is EDI Web publishing Inter-Enterprise integration (B 2 B) E-Business Technologies E-Business Standards © 2002 Computing Technology Industry Association, All rights reserved 3

Promotion and Education Partners in the Supply Chain Infrastructure: Movement of Data • Solution Providers • Exchanges and Marketplaces Electronics Distributor Channel Assemble r Materials Distributor Basic Supply Chain End Consumer Software Provider Reseller OEM Contract Manufacturer © 2002 Computing Technology Industry Association, All rights reserved Componen t Supplier Raw Material Supplier Infrastructure - Movement of Products and Money • Logistics Providers • Warehouses • Financial Institutions • Service Providers, Repair Centers • Customs 6

Promotion and Education What is E-business e. Business - The process of doing business electronically. While "electronic commerce" describes the world of B 2 B commercial transactions, the term "e. Business" usually refers to a broader scope of electronically-enabled activities, including B 2 C and B 2 P activities. An e. Business relationship with a partner implies tighter coupling that enable the building of virtual enterprises. © 2002 Computing Technology Industry Association, All rights reserved 7

Promotion and Education Public and Private Processes Partner A Back-End Gateway Micro – Implementable Chunk (e. g. EIDX Component Business Model, PIP™, OAG BOD) Private Process Public Process Partner B Back-End Lots of “micro” business processes (historically) Private Process Macro – Business Process Scenario © 2002 Computing Technology Industry Association, All rights reserved 8

Promotion and Education Evolution of E-business communications 1 - EDI (Electronic Data Interchange) Chronologically the 1 st type of e-business communication 2 - Information Sharing and simple commerce 3 - Business process integration © 2002 Computing Technology Industry Association, All rights reserved 9

Promotion and Education 1 - EDI History EDI (Electronic Data Interchange) transaction exchange - Initiated by the transportation industry in the 1960 s (around 1964): Chronologically the 1 st type of e-business communication Facilitates the exchange of commerce data via private Value Added Networks (VANs) Common documents are Purchase Orders and Invoices. Common challenges are the initial cost to implement and ongoing VAN charges © 2002 Computing Technology Industry Association, All rights reserved 11

Promotion and Education Electronic Data Interchange (EDI) TRANSACTION DATA COMPANY B EDI is the computer-to-computer exchange of routine business documents (data) in a standard format between companies. © 2002 Computing Technology Industry Association, All rights reserved 12

Promotion and Education Basic EDI Transaction Flow Request for Quote (840/REQOTE) Your Customer Purchasing You Response to RFQ (843/QUOTES) Purchase Order (850/ORDERS) P. O. Acknowledgment (855/ORDRSP) Sales Order Entry Purchase Order Change (860/ORDCHG) P. O. Change Acknowledgment (865/ORDRSP) Receiving Invoice (810/INVOIC)/Advance Ship Notice (856/DESADV) Shipping Receiving Advice (861/RECADV) Financial Payment Order/Remittance Advice (820/PAYORD) Financial Electronic Funds Transfer © 2002 Computing Technology Industry Association, All rights reserved 13

Promotion and Education Value Added Network (VAN) Buyer U. S. Post Office Seller A VAN is a ”Post Office” for EDI data exchange between trading partners. © 2002 Computing Technology Industry Association, All rights reserved 14

Promotion and Education Transaction Set PO EDI Purchase Order (PO) Purchaser Business information in standard syntax. Consists of a transaction set header segment, one or more data segments in a specified order, and a transaction set trailer segment. Complete business transaction. © 2002 Computing Technology Industry Association, All rights reserved 16

Promotion and Education EDI Document Structure Date: 12/31/92 Purchase Order # 4001 PURCHASE ORDER Vendor: ABC Supplies P. O. Box 180 Baltimore, MD 21239 Quantity 2 Legal Pads LP 8 X 11 Ship To: Concurrent Technologies Corporation 1450 Scalp Ave Johnstown, PA 15904 Description Price $8. 00/DZ Amount $16. 00 ST*850*0001^ BEG*00*NE*4001**921231^ N 1*VN*ABC Supplies^ N 3*P. O. Box 180^ N 4*Baltimore*MD*21239^ N 1*ST*Concurrent Technologies Corporation^ N 3*1450 Scalp Ave^ N 4*Johnstown*PA*15904^ PO 1*1*2*DZ*8. 00**VP*LP 8 X 11^ CTT*1^ SE*11*0001 © 2002 Computing Technology Industry Association, All rights reserved 17

Promotion and Education EDI Components Hardware Standards EDI Software Communications Self-study: Read more at http: //www. eidx. org/publications/techinfo/techopt 1. html © 2002 Computing Technology Industry Association, All rights reserved 19

Promotion and Education 2 - Information Sharing and simple commerce A. Web-based Marketing and Support - An information distribution tool - Increased market penetration - Easy global reach - Not secure - No exchange of commerce data B. ERP-Web Interfaces - Secure Internet exchange of commerce transaction data - Inventory levels, shipping status, goods receipt, purchasing - Real-time transactions © 2002 Computing Technology Industry Association, All rights reserved 21

Promotion and Education Benefit of B 2 C Extend Reach Better customer services Reduce transaction cost Reduce time to market Competitive edge © 2002 Computing Technology Industry Association, All rights reserved 25

Promotion and Education 3 - Business Process integration Today, process integration via emerging technologies and business processes allows: } Automated business processes and secure Internet transactions between enterprises } Effective real-time collaboration intensive communication } Examples: Forecasting, inventory, purchase order lifecycle } Quicker information flow and increased interenterprise efficiency © 2002 Computing Technology Industry Association, All rights reserved 27

Promotion and Education The World of 1999: the good news Service Credit Engineering ERP Billing Distribution Production Source: M. Hammer, Sapphire, 9, 1999 © 2002 Computing Technology Industry Association, All rights reserved 28

Promotion and Education The World of 1999: the bad news The 2000’s will be about breaking down external walls: integrating and redesigning inter -enterprise processes using the Internet Source: M. Hammer, Sapphire, 9, 1999 © 2002 Computing Technology Industry Association, All rights reserved 29

Promotion and Education Coordination: The general vision Web site Complete information transparency, synchronicity, and immediacy Source: M. Hammer, Sapphire, 9, 1999 © 2002 Computing Technology Industry Association, All rights reserved 30

Promotion and Education Benefits of B 2 B Optimize your supply chain Better customer relationship management Shorter time to market Capture information in real time Increase productivity Share resources with your partners Increase shareholders value by reducing cost and improved asset utilization © 2002 Computing Technology Industry Association, All rights reserved 31

Promotion and Education Technologies TCP/IP HTTP Java XML Self-study – see the full picture at http: //www. eidx. org/publications/techinfo/tech_icm. html © 2002 Computing Technology Industry Association, All rights reserved 32

Promotion and Education What You Need for Electronic Commerce Application Interface Software A Gateway Communications and Routing Software Transmission Logging Software Mapping Software Security Software Storage/backup Software Antivirus shield and scanning software A Value-Added Network or ISP (all of them do both now) Wait … there’s more! © 2002 Computing Technology Industry Association, All rights reserved 33

Promotion and Education What You Need for Electronic Commerce, cont. Hardware Gateway Server Web Server Application Server Data Base Server(s) Clients Communications Hardware (modems, routers, LANs, etc. ) Storage System Wait … there’s more! © 2002 Computing Technology Industry Association, All rights reserved 34

Promotion and Education What You Need for Electronic Commerce, cont. Other software Web server software Load balancing software Caching system Human resources Implementation Plans Capable Trading Partners! © 2002 Computing Technology Industry Association, All rights reserved 35

Promotion and Education What You Need for Electronic Commerce, cont. And then … Trading Partner Agreements An agreed upon method for identifying products An agreed upon method for identifying parties and locations Translation maps © 2002 Computing Technology Industry Association, All rights reserved 36

Promotion and Education What is Security? Prevents someone or something from getting out Allows someone or something to get in Raises an alarm if something/someone has intruded or escaped Guards against espionage or sabotage © 2002 Computing Technology Industry Association, All rights reserved 37

Promotion and Education Security is a P-A-I-N Privacy: Ensuring that unauthorized parties cannot read the information that is being transmitted. Authentication: Ensures the identity of a user or source of a transaction. Integrity: Ensuring that the message content cannot be changed (intentionally or accidentally) or, if it is changed, that the change will be detected. Non-repudiation. Ensures that the sender cannot deny having sent a transaction, and the recipient cannot deny having received the transaction. © 2002 Computing Technology Industry Association, All rights reserved 38

Promotion and Education EIDX e. Business Process Framework Self Study: See EIDX web site - Clickable Business Models * Historical Priorities * http: //www. eidx. org/publications/business_models/ © 2002 Computing Technology Industry Association, All rights reserved 39

Promotion and Education Basic Technology Options - User View EDI File XML or proprietary Interface File EDI w/ XML Wrapper XML Standard Application Dial-up – PTP, VAN or ISP Internet – PTP, VAN or ISP Buyer’s Web Application Seller’s Web Application EDI File EDI w/ XML Wrapper XML or proprietary Interface File XML Standard Application Extranet, VPN, or 3 rd Party VPN © 2002 Computing Technology Industry Association, All rights reserved 40

Promotion and Education What is XML? e. Xtensible Markup Language Designed to add structure to data-driven web documents A Meta-language to create markup languages (information about information) We now have tags that tell you what data you’re getting – you can describe what’s important to you Ex. Cisco © 2002 Computing Technology Industry Association, All rights reserved 41

Promotion and Education XML: A Brief History 1996: Dave Hollander & Jon Bosak “invent” XML in a taxicab Late 1997: XML enters the marketplace via Ariba & Commerce One 1998: XML v 1. 0 arrives 1999: XML Namespace, schemas and standards start to emerge 2001: XML Digital Signatures + more standards and widespread adoption © 2002 Computing Technology Industry Association, All rights reserved 42

Promotion and Education Mechanics of XML breaks a document into structural components Labels them using markups Organizes them into a hierarchy Goal is to make parsing of data automatic and intuitive © 2002 Computing Technology Industry Association, All rights reserved 43

Promotion and Education What does XML looks like HTML XML Invoice

From: Joe Black

To: A. someone

Date: 1 October 99

Amount: $200. 00

Tax: 15%

Total: $230. 00

Promotion and Education XML Summary Pros / Benefits • Easy to interchange documents on the web • Interoperability • Platform independent • User-defined semantics (human/machine readable) • “Smart” data = meaningful • Simple • Scalable – multi-vendor • Extensible Cons / Drawbacks • Big, bulky messages (data about data = ~10 x message size) • Case sensitive tags & data – otherwise, messaging fails or is rejected by partner • Not everyone has the infrastructure to support it yet • Standards are evolving – trying to choose the emerging “winner” is difficult © 2002 Computing Technology Industry Association, All rights reserved 47

Promotion and Education What is Rosetta. Net? Rosetta. Net is a supply chain consortium whose mission is to define standards around industry business processes and to develop real-time XMLbased standards to support those processes (data transfer) Partner, Product & Service Review Product Information Order Management Inventory Management Marketing Management Service & Support It is a movement (strategic) AND a process (tactical) © 2002 Computing Technology Industry Association, All rights reserved 48

Promotion and Education Rosetta. Net Trivia Rosetta Stone is the key to deciphering and modern understanding of ancient Egyptian hieroglyphics Rosetta. Net unlocks the mystery of business-tobusiness electronic commerce © 2002 Computing Technology Industry Association, All rights reserved 49

Promotion and Education Standards: EDI vs. Rosetta. Net EDI Overview Rosetta. Net Overview • No new development planned – • New & evolving, solving legacy • Data-Centric • Regional variations of standard • Hits lots of verticals • People still use it widely – “if it’s not broken, don’t fix it!” • X 12/EDIFACT/JEITA technology • EDI Works Today • Has a big install base, as long as you deal with big companies • Process-Centric Standardization it is what it is (X 12 still evolves) issues we all otherwise ignore • Single Global Standard - target • Emerging Technology = early adoption, but target is 100% of high tech supply chain + some verticals • Addressing new business areas: warranty, returns, draws, etc. • Rosetta. Net IS Work Today • Goal to eventually hit smaller co’s © 2002 Computing Technology Industry Association, All rights reserved 50

Promotion and Education Transport: EDI vs. Rosetta. Net EDI Overview • VAN-enabled, incurs dollars per character, per transaction • Manual retries on failures • Has error handling capabilities • Limited payload content checks • Can be event-driven • Synchronous messaging • Solutions are highly customized (proprietary) = unique map for each partner Rosetta. Net Overview • Internet, virtually free (after startup costs – see next slide) • Automated Resends (rules-based) • Has error handling capabilities • Full domain checking, increased data integrity (RNIF) • Event-driven / “Real-time” • Synchronous & Asynchronous messaging • XML volume can be hard to handle © 2002 Computing Technology Industry Association, All rights reserved 51

Promotion and Education Infrastructure: EDI vs. Rosetta. Net EDI Overview Rosetta. Net Overview • $5 K - $500 K EDI Infrastructure • $10 K - $2 M B 2 B Infrastructure • EDI’s ongoing costs significant for infrastructure use, development & implementation (VAN costs seem low, until you do millions of transactions & then it adds up!) • Most companies have knowledgeable EDI teams already • Use VAN or EDI INT or your solution is not extensible due to dedicated secure line requirement • Costs upfront can be significant, then ongoing cost is in new process development & partner implementation Cost ($5 K+VAN costs & back-end) Cost (Cheap = Limited) • Seamless communication requires end-to-end interoperability or timeconsuming, costly IT efforts for @ connection • If you can establish connectivity rules with partners first, you win © 2002 Computing Technology Industry Association, All rights reserved 52

Promotion and Education When is Rosetta. Net the Answer? Rosetta. Net is the next generation of (or improvement of) Electronic Business or e-commerce It goes beyond the present capabilities of EDI The processes cover more areas of interest to the supply chain, encompassing product info, marketing & sales info, order management, inventory management, service & support… The standard provides END-TO-END process scenarios It’s global It’s still evolving and will continue to do so in response to ever-changing business process in the supply chain It brings business rules and Trading Partner Agreements into central location for all industries Advocating & Developing Global Product ID’s and Global Customer ID’s © 2002 Computing Technology Industry Association, All rights reserved 53

Promotion and Education Why Implement Rosetta. Net? Trading partners with a solid B 2 B vision want it (or they will soon) It’s a global request (EMEA & APJ are requesting it now) The competition is doing it Maintain your role as technology leaders Get involved now or catch up later = $$$ Global Customer Satisfaction Effort © 2002 Computing Technology Industry Association, All rights reserved 54

Promotion and Education OAG and OAGIS Not-For-Profit Industry Consortium building standards for Global Business Integration • • Business to Business Application to Execution For horizontal business © 2002 Computing Technology Industry Association, All rights reserved 55

Promotion and Education Sample BODs Add PO Cancel PO Change PO Getlist PO List PO Process PO Receive PO Show PO Sync PO Get Pricelist Show Pricelist Sync Pricelist Cancel Prodorder Create Prodorder Get Prodorder Show Prodorder Sync Prodorder Add RFQ Cancel RFQ Change RFQ Get RFQ Respond RFQ Show RFQ Add Quote Cancel Quote Change Quote Get Quote Show Quote Respond Quote Load Receivable Add Requisitn Cancel Requisitn Change Requisitn Get Requisitn Show Requisitn © 2002 Computing Technology Industry Association, All rights reserved 56

Promotion and Education OAGI value proposition Usable now Rich Collaborations Library Rich XML Message Library Rich Documentation Library UML Repository Future is protected eb. XML support UDDI Support XML Schema Direction Bolero. Net partnership Strong development capability Vendors are implementing © 2002 Computing Technology Industry Association, All rights reserved 57

Promotion and Education The Universal Business Language (UBL) Defines a library of standard electronic business documents Plugs directly into existing traditional business practices Eliminates re-keying of data in existing fax-based supply chains Fills the “payload” slot in B 2 B frameworks such as the UN/OASIS eb. XML initiative (http: //ebxml. org) © 2002 Computing Technology Industry Association, All rights reserved 58

Promotion and Education UBL Value Proposition UBL fulfils the promise of XML for business by defining a standard cross-industry vocabulary UBL plus eb. XML enables the next generation of EDI Cheaper, easier, Internet-ready Extends benefits of EDI to small businesses Fits existing legal and trade concepts Allows re-use of data (analysis, reporting) UBL can provide the XML payload for a wide variety of other web-based business frameworks © 2002 Computing Technology Industry Association, All rights reserved 59

Promotion and Education XML Standards Segmentation • • • • Defining XML W 3 C eb. XML Biz. Talk. org XML Repositories eb. XML Biz. Talk Frameworks and RN infrastructure OAGI RN Defining eb. XML Content Commerce. One (vocabulary Ariba and process) HL 7 XML/EDI Defining Internet UDDI Service layer eb. XML © 2002 Computing Technology Industry Association, All rights reserved 60

Promotion and Education Questions?