efficient electronic business transactions
DESCRIPTION
TRANSCRIPT
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B2B/EDI integration B2B/EDI integration for efficient electronic for efficient electronic business transactionsbusiness transactions
Ivan VaklinovIvan [email protected]
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ERP Systems & efficiency ERP Systems & efficiency
Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources.
• Tangible assets• Financial resources• Materials• Human resources
Needed by any largeorganization
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ERP systems & CommunicationERP systems & Communication
ERP systems need to efficiently communicate with the outside world in a global economy.
• Manual data entry• Product differentiation issues• Automation needed for any large document
traffic• Vendor lock-in and need for interoperability
standards
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B2B & EDIB2B & EDI
EDI (Electronic Data Interchange) Standard for the electronic exchange of
commercial documents. Computer-to-computer exchange of
structured information, with a minimum of human intervention
Business to Business integration (B2B)• Commerce transactions between businesses• Usually via modern Web technologies such as
SOA, Web Services etc.
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B2B/EDI scenarios – IB2B/EDI scenarios – I
Between large businesses equipped with ERP systems that possess automatic communications capabilities.
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B2B/EDI scenarios – IIB2B/EDI scenarios – II
Between a large company and many small suppliers with a communications capability (Hub & Spoke)
Between a large company and many small suppliers with no automation (Web, Fax etc.)
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History of EDI/B2BHistory of EDI/B2B
• 1960s-1970s USA • 1980s - standardization efforts
• 1990s – The internet and beyond
• 2000... - SOA & Web Services
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EDI Standards – flat filesEDI Standards – flat files
Flat Files are textual data with fixed length fields typically used by legacy ERP systems (e.g. SAP)
EDI_DC40 3000000000003905072620 3014 E2EDK01005 300000000E2EDKA1003 300000000E2EDKA1003 300000000E2EDKA1003 300000000E2EDKA1003 300000000E2EDKA1003 300000000
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EDI Standards - EDIFACTEDI Standards - EDIFACT
United Nations/Electronic Data Interchange For Administration, Commerce and Transport (UN/EDIFACT) is the international EDI standard developed under the United Nations (1980s ...)
UNB+IATB:1+6XPPC+LHPPC+940101:0950+1'UNH+1+PAORES:93:1:IA'MSG+1:45'IFT+3+XYZCOMPANY AVAILABILITY'ERC+A7V:1:AMD'...
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EDI Standards – ASC X12EDI Standards – ASC X12
ASC X 12 - U.S. national standards body for the development and maintenance of Electronic Data Interchange (EDI) standards. 1979s...
ISA*00* *00* *01*RECEIVERID *12*SENDERID *100325*1113*U*00403*000011436*0*T*>~GS*FA*RECEIVERID*SENDERID*20100325*1113*24712*X*004030~ST*997*1136~AK1*PO*142~
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EDI Standards – TRADACOMSEDI Standards – TRADACOMS
TRADACOMS – Developed in the UK in the early 1980s
STX=ANA:1+5000000000000:SOME STORES LTD+5010000000000:SUPPLIER UK LTD+070315:130233+000007+PASSW+ORDHDR+B'MHD=1+ORDHDR:9'TYP=0430+NEW-ORDERS'SDT=5010000000000:000030034'CDT=5000000000000'
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EDI Standards – XMLEDI Standards – XML
XML – Extensible Markup Language(set of rules for encoding documents in machine-readable form)<Order Number=”4325432543”> <Sender> <Address>Main Str. 25, London</Address> </Sender> <LineItem> <Product> <Name>Rolls-Royce</Name>...
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EDI Standards - othersEDI Standards - others
A number of standards were developed in the 1980s in Europe ASIA etc. More modern sub-standards exist as variants of XML
• VDA – German automobile industry
• EIAJ/CII/HWSW - Japan• GS1 XML• ebXML
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EDI Standards organizations - I EDI Standards organizations - I
EDI standards may be drafted at indurtry, national or international level
• UN/CEFACT - United Nations Center for Trade Facilitation and Electronic Business - http://www.unece.org/cefact/
• ASC X12 - Accredited Standards Committee (ASC) X12, chartered by the American National Standards Institute - http://www.x12.org/
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EDI Standards organizations - II EDI Standards organizations - II
EDI standards may be drafted at indurtry, national or international level
• OASIS - Organization for the Advancement of Structured Information Standards - http://www.oasis-open.org
• GS1 (EANCOM) - association dedicated to global standards to improve the efficiency of supply and demand chains
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EDI Standards organizations - III EDI Standards organizations - III
EDI standards may be drafted at indurtry, national or international level
• VDA - Verband der Automobilindustrie e., is a German interest group of the German automobile industry
• EIAJ - Electronic Industries Association of Japan (EIAJ) part of Japan Electronics and Information Technology Industries Association (JEITA).
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Example EDI interchangeExample EDI interchange
Based on an EDIFACT example, the most common messages types are related to processing ORDERS and INVOICES
COMPANY A COMPANY BORDERS
ORDERSP INVOIC
Many different message types exist...
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Communications standards - ICommunications standards - I
EDI predated the internet explosion in the 1990s...
• Modems - 1970s-1990s (point to point communication between partners)
• ISDN - Integrated Services Digital Network• X.25 – reliable WLAN protocol during 1980s
and early 1990s• OFTP/OFTP2 – FTP based transport protocols
that include features like encryption, compression etc
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Communications standards - IICommunications standards - II
More advanced communications were made possible by advances in the 1980s and later the internet...
• VANs - Value-added Network (hosted service offering that acts as an intermediary between business partners. Offers reliable messaging, auditing etc)
• AS1, AS2, AS3 – modern protocols offering encryption, reliability, disposition notifications etc based of SMTP, HTTP, FTP
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Communications standards - IIICommunications standards - III
Web services came along simplifying integration...
• Web Services/SOA – standards for system design providing greater interoperability and flexibility
• SOAP/WSDL/UDDI – technologies that implement SOA on the basis of HTTP(s), XML etc. that are most commonly used.
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B2B Gateway features - IB2B Gateway features - I
Modern B2B gateways need to support...
• SOA/ESB (enterprise service bus) Capabilities – suitable for integration of multiple services and their “orchestration” into larger more complex ones.
• BPEL - Business Process Execution Language. OASIS standard for “orchestration” of web services. Defines business processes composed of service interactions.
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B2B Gateway features - IIB2B Gateway features - II
Modern B2B gateways need to support...
• Communications support – all commonly used protocols.
• TPM (Trading Partner Management) and usability – centralized and easy to use interface that allows manipulation of all data relevant to trading partners (e.g. how to connect)
• Document/message tracking and audit functionality
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B2B Gateway features – IIIB2B Gateway features – III
EDI document conversion and mapping design capabilities..
• Should support all common data formats
• User-friendly mapping design
• Modular/reusable mappings for large deployments
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B2B Gateway Products (high end)B2B Gateway Products (high end)
High end B2B gateways have a comprehensive feature set...
• Biztalk Server (Microsoft)• XI eXchange Infrastructure (SAP)• Business Integration Server (Seeburger AG)• B2Bi (Axway)• B2B Integration (Sterling)• e-Commerce Gateway (Oracle)• others...
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B2B Gateway Products (low end)B2B Gateway Products (low end)
Low end products possess a subset of features making them applicable to small companies...
• Bots open source EDI translator - http://bots.sourceforge.net
• Webswell Business Hub (hosted), Websswell Connect and others (open source) - http://www.webswell.com
• Celtix: The Open Source Java Enterprise Service Bus - http://celtix.ow2.org
• Simpler tools, hosted solutions, SAS ...
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Example product – BOTS IExample product – BOTS I
BOTS is a free/open source EDI product suitable for small deployments
• Written in python and uses an embedded database or can use an external one
• Presents a relatively simple Web configuration interface to the user
• Customization involves programming/ scripting.
• Defines channels/routes/translations that can be scripted
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Example product – BOTS IIExample product – BOTS II
Route:
Channel:
Translation:
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EDI Implementation (large)EDI Implementation (large)
Project stages
• Business case analysis
• Product selection (features, cost)
• Process design and communications rollout
• Mapping design (high effort)
• Infrastructure, administration etc.
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EDI Implementation (small)EDI Implementation (small)
Project stages
• Business case analysis – usually requirements set by larger partners
• Product selection (features, cost) – choose a suitable cost effective product or develop something in-house
• Process design and communications rollout - simple
• Mapping design – a few mappings• Infrastructure, administration etc.
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EDI in Eastern Europe - IEDI in Eastern Europe - I
• EDI is typically shunned by small companies because of costs and perceived lack of real necessity
• EDI implementations typically come as a result of requirements by large companies (e.g. market chains) or western partners
• Lack of trained consultants on legacy standards like EDIFACT, ASC X12, VDA and similar that are demanded
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EDI in Eastern Europe - IIEDI in Eastern Europe - II
• Ad-hoc implementations that are easy starters but offer no flexibility later on
• Small ERP vendors aiming for customer lock-in
• Need for EDI questioned at a time of crisis by small companies
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Legal issues in EDILegal issues in EDI
• (Contract) Laws needed consistent with EDI (or need to back up EDI documents with paper ones, possibility of accumulation... )
• Legally binding contractual arrangements (Trading Partner Agreements, valid under contract law and based on EDI standards accepted as national standards - eases contractual disputes)
• Document retention policies, and use of third party mediators (VANs)
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ConclusionConclusion
Q & AThis presentation may be shared and used under a creative commons license:
http://creativecommons.org/licenses/by/3.0/