Moving Forward with Standards

Dr. Chayakrit CharoensiriwathRosettaNet Thailand

NECTEC

18 May 2549

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Supply Chain

• Micro (Old) Scheme

• Macro (New) Scheme– Network of entities associated with flow and

transformation of goods and associated information from raw material stage to end user.

– Suppliers, Manufacturers, Transporters, Warehouses, Retailers, Customers.

Supplier Manufacturer

Retailer

Customer

Warehouse

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Supply Network - Nervous System

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Supply Chain Integration

• Technical Goal:– Automate business processes

• Why?– Reduce transactional delays and

inefficiencies– Avoid human intervention in exchanging,

reading and processing information between trading partners

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Business Integration Problems

• Interface compatibility

• Data structure compatibility

• Model compatibility

• Process model compatibility

• Application integration

• Legacy systems

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Why Standard?

• Value Creation for Suppliers– VMI (Vendor managed inventory)– SPM (supplier performance metrics)

• Leveraging Supplier Networks– Interoperable Networks – Federated Trading Directory

• Catalog/Content Services– Updating product content costs money and time– Product content is a huge problem for SMEs

• Master Data Management– Data Synchronization

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What’s Needed?

Industry standardProcess orientedOpen system GlobalUsing latest technologyBackend system agnosticStandard dictionaryStandard codesRobust transport protocol

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Emerging Standards

• RosettaNet– provide the infrastructure for integrating business pro

cesses with trading partners • ebXML• OAGIS

• BMEcat and other Catalog Standards• Global Data Synchronization Network (GDSN)

– connects retailers and suppliers, via their selected data pools

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Emerging Standards

• Global Location Number (GLN) – provides a standard means to identify legal entities,

trading parties and locations.

• Global Trade Item Number (GTIN) – uniquely identifying trade items (products and

services) sold, delivered, warehoused, and billed throughout the retail and commercial distribution channels.

• Global Product Classification (GPC) – provides a common language for category managem

ent

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• Used for Business to Business communication• Dominant in supply chain management• Established Standards in EDI:

– ANSI X12 (USA)– EDIFact (Europe) – HIPAA (Healthcare)

• Document standards – at least 250+– E.g., PO (850), ASN (856)

• Transport standards– E.g., VAN, AS2

• Trading partner agreement framework

Electronic Data Interchange (EDI)

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Problems with EDI

• Expensive bandwidth

• Messages are difficult to decipher

• Needs dedicated EDI server and VAN

• Costly to implement and maintain

• Difficult to change trading partners

• Competing standards

• Complex

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• Locked up investment in EDI• Backing by big guys:

– WalMart, Novartis and Addison Wesley– Big guys drive partners to adopt it as well

• Support from powerful vendors:– GE, Sterling Commerce

• AS2 (EDI over HTTP) reduced cost by eliminating VAN. Walmart drove adoption of AS2.

Why EDI will stay anyway?

ebXML

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ebXML

• OASIS: Organization for the Advancement of Structured Information Standards

• ebXML™ is a joint OASIS - United Nations/ CEFACT “Electronic Business XML initiative”

• Non profit, ... (like RosettaNet)• Competition to RosettaNet• ebXML Mission: To provide an open XML based

infrastructure enabling the global use of electronic business information in an interoperable, secure and consistent manner for all parties.

• Uses XML Schema (not DTDs)

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Introduction to ebXML™

• Strengths– Completely based on XML– Provides complete set of specifications.– HORIZONTAL approach– A combined effort of XML & EDI communities to

evolve new generation B2B(EDI)– Infrastructure to provide a set of re-usable and

extensible Core Components

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Description of B2B Collaboration using ebXML™

• Roles – Seller, Buyer• Transactions – Quote Request, Quote Response,

Purchase Order Request, Purchase Order Confirmation

• Business Documents– Quote Request, Quote Response– PO Request, PO Confirmation

• Protocol – HTTP• SSL for Authentication• Documents and Capabilities published for Trading

Partner access

Open Applications Group Integration Standard (OAGIS)

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Interfacing with ERP Providers• Connectivity, Integration and Data Exchange

between ERP Systems• Leveraging Supplier Networks in Partnership

with Software Providers• Partnering Options

– Channel partner for your services – Channel partner to your customers– Still trying to solve the SME market

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OAGi History

Founded in November, 1994 Originally by ERP Vendors Focused on how they can

integrate together better Identified common content

as biggest missing piece

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•OAGi is a not-for-profit, independent, open standards development organization.

•It was formed to promote interoperability among business software applications and to create or endorse one or more standards for easier business software interoperability.

•The primary technical standard produced by OAGi is OAGIS, the OAG Integration Standard.

Open Applications Group

www.openpplications.org

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OAGIS Standard

Provides a neutral venue for constituencies to build the business languages for interoperability they require.

HORIZONTAL (Cross Industry) Business Language

Adding vertical efforts over time All versions based on OAGIS Message Architecture is consistent

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OAGi Work Groups Core Components CRM XML Logistics XML Internet Parts Ordering (Auto Aftermarket) Inventory Visibility (AIAG) Auto Retail (STAR) Supply Chain Management (ITA) VisionML Facilities Management (OSCRE) NIST Test Bed Semantic Integration Web Services

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Reasons for OAGIS Adoption

Are moving toward interoperability solutions in XML

Want to preserve EDI investment where it makes sense

Want to define new interoperability needs using XML

Want interoperability across their trading partners

The Global Standard for Business-

to-Business E-Commerce

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• Global, non-profit consortium with major industry players

• Identify all business-to-business touch points between trading partners in the IT & EC supply chains

• Bring business owners from member companies together to define and agree on common processes

• Develop real-time, XML-based standards to support those processes

• Drive adoption and implementation of the standards

What is RosettaNet?

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RosettaNet is NOT

• A vendor• Software• A portal, hub, exchange or

marketplace

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2006+

Business strategies dictate that size and scope of the supply

chain network increases to achieve

operational and functional goals

Future: Tens of thousands

of supply chain transactions automated

1998-2001

RosettaNet began with a few of the largest

manufacturers and trading partners who

offered the biggest gains from automation

Past: Hundreds of supply chain transactions

automated

2002-2005

More of the trading partners were

brought online to extend the value of

the networks

Present: Thousands of supply chain transactions automated

Time

1998 2000 2002 2004 2006

RosettaNet: History and Future

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MANUFACTURER3Com, Cisco, Compaq, Dell, HP, IBM, Intel,

NEC Technologies, Quantum, Siemens, Solectron

eTECHNOLOGISTTrilogy, SAP

ENDUSERGSA, Lucent

RESELLER/SICompUSA,

Insight, Office Depot

CARRIERFedEx, UPS

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3

2

2

2

SOFTWARE PUBLISHERNetscape

1

WHOLESALE DISTRIBUTORArrow, Avnet,

Ingram Micro, Pioneer-Standard

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IT Managing

Board(26)

RosettaNet INFORMATION TECHNOLOGY BOARD

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SEMICONDUCTOR SUPPLIERSAltera, Hitachi, Intel, Lucent, Micron, Motorola, National,

NEC, Philips, Samsung, ST, TI, Toshiba, Xilinx

CUSTOMERAgilent, IBM, CISCO, Nokia,

Sony

CONNECTOR SUPPLIERFCI, Molex,Tyco Electronics

DISTRIBUTORArrow, Avnet, Future,

Pioneer, Memec

EC Managing

Board(30)

PASSIVE SUPPLIERAVX, Bourns, Kemet

3

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3

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RosettaNet ELECTRONIC COMPONENTS BOARD

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INTEGRATED DEVICE MANUFACTURERAgilent, Intel, LSI, Lucent, Micron, Motorola, National Semiconductor, NEC,

Philips, Samsung, TI,Toshiba, Winbond

FOUNDRYChartered

Semiconductor, TSMC, UMC

FABLESS DESIGN MANUFACTURERXilinx

ASSEMBLY, TEST, PROBEAmkor, ASE, SPIL

SM Managing

Board(30) MATERIAL

Air Products & Chemicals, Applied Materials, JSR, Shin-

Etsu Handoutai, Shinko, Sumitomo Bakelite, Sumitomo Metal Industries, SITIX, TOK,

Toppan

1

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RosettaNet SEMICONDUCTOR MANUFACTURING BOARD

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A2I Active Software Adexa Agile Software Anderson Consulting AristaSoft Corp. Aspect Development Baan BEA Systems Bow Street Software Bridges for Islands (Israel) Calico Commerce Celarix ChannelAutomation Comergent Commerce One CommerceQuest Descartes Digital Paper Dun & Bradstreet

ecomXML EDIFECS Enigma Extricity Software FirstSource GE Information Glue Technology Harbinger Hearst Holosofx Hyperchannel (UK) i2 Technologies IBM Introit Systems JBA International (UK) JD Edwards Kinecta KPMG Manugistics Microsoft

NeoGrid (Brazil) Netscape OnDisplay Optimal Networks PeopleSoft RSA Security Saga Software SAIC SAP Saqqara Systems Slam Dunk Network Software Instruments Software Technologies Sterling Commerce Syncra Systems Tallan TDI Tibco Software

Tradec.com TriStrata Valicert Viacore Viewlocity Viquity Vitria Technologies WebMethods webPLAN Web-TRACs.com XMLSolutions

Solution Partners

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E.g. Oracle

Company A Company BThe Web And XML

- The FutureE.g. SAP

RosettaNet eBusiness Interface

Translate to and from Rosettanet standards to Company specific system data set

Translate to and from Rosettanet standards to Company specific system data set

•RosettaNet defines processes and a framework for how data gets passed over the Web and certain handshake criteria.

•RosettaNet has adopted standards for product classification and categorization including GTIN, UN/SPSC; D-U-N-S®, and the RosettaNet Dictionary.

Company Specific processing

Company Specific processing

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Business Integration Network

RosettaNet

China

Worldwide Sites

Thailand

Web UI

Server-to-Server39 Suppliers

Process Manager

(Order, Forecast, & Inv.)

Information Manager

- Doc Archive & Reports

Buy side

Singapore

3PL Hubs

Integration Hub

Distribution

CustomersEDI Direct

CustomersRosettaNet

Distribution POS, OEM PO, (PO Changes, Forecast, Commit)

Information Manager

- Doc Archive & Reports

Server-to-Server>40 Customers

Sell Side

Integration Hub

EAI Hub

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RosettaNet Standards: Technical Components

Partner Interface Processes (PIPs®) Guidelines that define the format in which

information about particular processes is shared among partners.

Dictionaries and Codes To ensure the consistency of information

exchanged between trading partners when executing PIPs.

RosettaNet Implementation Framework (RNIF) RNIF packages, routes and transfer all

messages and signals between end points. RosettaNet currently supports HTTP and SMTP

transfer protocols.

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Standardized Content Format

PIPs--Guidelines that define the format in which information about particular processes is shared among partners.

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RosettaNet Process Areas Summary of Process Areas and Select eBusiness Processes

Order

DemandCreation

ManufacturePayment

Logistics

Design Forecast

- Collaborative Forecasting

- Work Order- Work in Process- Material Composition- Test Data Exchange

- Global Billing- Payment

- Vendor Managed Inventory-Product Catalog Info-Sales Reporting-Request for Quote-Price & Availability -Order to Cash

- Design Mgmt

- Inventory Report- Ship Notice- 3PL- Warranty- E-Customs- Warranty - Returns

- Engineering Information Management

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RosettaNet

• PIPs = Partner Interface Processes• 8 Clusters

– Support– Partner Product and Service Review– Product Information– Order Management– Inventory Management– Marketing Information Management– Service and Support– Manufacturing

• Segments wiht PIP Definitions in each Cluster

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3 Order Management

• Segment 3a: Quote and Order Entry

• Segment 3b: Transportation and Distribution

• Segment 3c: Returns and Finance

• Segment 3d: Product Configuration

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Alphabet

Grammar

Dialog

Words

XML

Framework

Dictionary

human-to-human

business exchange

Partner-to-Partner eBusiness exchange

Sound Internet

Business Process

Telephone Rose

ttaN

et

Business Process

Telephone

DIALOG PIP

eBusiness Process

Ecom Application

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RFID in Supply Chain Management

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Logistics Applications

• Supply Chain Management

• Warehouse Management

• Cargo Management

• Logistics

• Retail Store

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RFID in Supply Chain Management

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• No dominant force yet.• More than replacing barcode.• Barcode will still be needed• Master Data Management is needed for trading partner Barcode implementation

RFID

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The Rosetta StoneMade 196 b.c.Discovered July 1799

Final Thoughts….

• A standard is not a standard until it becomes a standard!!• Convergence is unavoidable.• Share and learn information.• Know your own requirements

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Thank you for your attention.Thank you for your attention.