Paperless Trading Infrastructure Technology Development in Hong Kong


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Location: 2005 APEC Symposium on the Assessment and Benchmark of Paperless Trading, Beijing /
Conference Start Date: Sep 1, 2005

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Paperless Trading Infrastructure Technology Development in Hong Kong

  1. 1. Paperless Trading InfrastructureTechnology Development in Hong Kong2005 APEC Symposium onthe Assessment and Benchmark of Paperless TradingSeptember 1-3, 2005, Beijing, China Mr. Thomas Lee Chief Technology Officer Center for E-Commerce Infrastructure Development The University of Hong Kong Hong Kong, China
  2. 2. Trading with FAX PO PO 1/9/2005 1/9/2005 ABC Co. ABC Co.order food order food Repetitive data entry and checking Low productivity Prone to human errors Making e-commerce everyday commerce 2 Center for E-commerce Infrastructure Development
  3. 3. Paperless TradingFax machine for electronic documents? System-to-system data exchange 01010101 01010101 10101010 10101010 Manual data entry and 01010101 01010101 checking saved Accurate data exchange Human fraud avoided Round-the-clock operation Making e-commerce everyday commerce 3 Center for E-commerce Infrastructure Development
  4. 4. Paperless Trading Infrastructure TechnologySoftware Message gateway for data exchange on Internet Factors for adoption: cost and complexityStandards Standards on communication protocols, electronic documents, business processes Factors for adoption: sanction, traction, openness, localization Making e-commerce everyday commerce 4 Center for E-commerce Infrastructure Development
  5. 5. eCommerce Software InfrastructureIn 2002, HKSARG Innovation and TechnologyCommission funded CECID HK$9.5M (US$1.2M)Build ebXML software infrastructure in HKVery successful R&D project: Open-sourced software deliverables Hermes Message Gateway as flagship technology Lowered barriers for SMEs to do B2B e-commerce Widely adopted in HK and internationally Gained international recognitions Making e-commerce everyday commerce 5 Center for E-commerce Infrastructure Development
  6. 6. B2B EDI on the Internet EDI Private Network Order Doc EDI gateway EDI gateway (EDI)Buyer Seller Expensive !!With Hermes Internet Order Doc Hermes HermesBuyer (XML) Seller Cost effective,for E-commerce Infrastructure Development Center affordable byeveryday commerce Making e-commerce SMEs !! 6
  7. 7. Cost of Ownership EDI * HermesInitial cost US$40,000 – $80,000 (Unix FREE or Windows based) If running on Linux US$120,000 (mainframe)Programming cost US$40,000 - $120,000 US$3,000 (app development)Operational US$0.25 - $1 per document Internet subscriptionexpenses (flat fee for unlimited usage) * Source: “The Total Economic Impact of EDI” by Forrester Research Making e-commerce everyday commerce 7 Center for E-commerce Infrastructure Development
  8. 8. Worldwide Adoption of HermesPotentially largest user base among ebXML products Recorded downloads from 80+ economies (Australia, Canada, China, Chinese Taipei, Denmark, France, Germany, India, Korea, Japan, Macau, Myanmar, New Zealand, Singapore, Thailand, UK, USA, Vietnam, …)Integrate Hermes into products and services TIE (The Netherlands), Webswell (US), Crimsonlogic (Singapore), HK Govt EGISMany production cases in local and overseas projects, e.g. Dairy Farm Group (HK large consumer goods retailer chain) HKSAR Government (G2B document submission) HMV HK MTRC (HK major subway operator) OOCL (international shipping company) Sony Music HK Daganet (Malaysia) Spherion Technology (IT consulting in Australia) Tedis (IT consulting Australia) Making e-commerce everyday commerce 8 Center for E-commerce Infrastructure Development
  9. 9. Electronic Invoicing Between Buyer and Supplier MTRC user orders via 2 Physical goods 3 MTRC user mark 4 E-invoice delivery1 bigboXX web application delivery goods received via Hermes Procurement web application 3 1 1 1 Auto Auto User BrowserReconciliationReconciliation Vendor Internet Backend SystemElectronic goods receivingintranet system 4 4 4 4 Hermes Hermes 2 2 Making e-commerce everyday commerce 9 Center for E-commerce Infrastructure Development
  10. 10. eCommerce Standards InfrastructureIn 2004, HKSARG ITC funded CECID HK$14M(US$1.8M) to build e-business interoperabilityplatformMethodology and tools for e-businessinformation and process standardizationLocalized international standardization practicesfor adoption for many corporate andgovernment data standardization projectsActively contributing to local and international e-commerce standardization Making e-commerce everyday commerce 10 Center for E-commerce Infrastructure Development
  11. 11. Local StandardizationeGovernment data standardization Developed XML Schema Design and Management Guide under eGovernment Interoperability Framework HKSARG established Registry of Data Standards ( to manage common XML schemas e.g. person name, HKID, address, etc. Software vendors need to follow the Guide and standards to implement G2G and G2B projectsDigital Trade and Transportation Network electronicdocument standardization DTTN Co. standardized 60+ trade documents in XML with industry and academia Contributed the standards to develop Universal Business Language 2.0 Making e-commerce everyday commerce 11 Center for E-commerce Infrastructure Development
  12. 12. Regional and International StandardizationHong Kong actively participates in ebXML AsiaCommittee (eAC) and OASIS Universal BusinessLanguage (UBL) To define cross-border trade standards in XMLUBL Library defines common trade documents E.g. purchase order, invoice, despatch advice Localized in different languages, e.g. Chinese, Japanese, Korean, Spanish UBL v2 aims to develop all trade documents mentioned in APEC Paperless Trading Initiative paper HKSAR and Singapore contributed local standards to develop transport documents in UBL v2 Danish government mandates UBL for G2B invoicing Potential saving estimated to be 160M euros per year Making e-commerce everyday commerce 12 Center for E-commerce Infrastructure Development
  13. 13. FAX Machine for Electronic Documents OGCIO Dept B Dept C e-Government Web Services Infrastructure Hermes / ebXML Service (EGIS) HKSARG OGCIO Recruitment Issuance Shipping Clinics Agents Companies Agents B2B Hermes Connector (Hermes Linux Other Box) products Making e-commerce everyday commerce 13 Center for E-commerce Infrastructure Development
  14. 14. ConclusionSoftware and standards are core paperlesstrading infrastructure technologyTechnology must be affordable, simple, andopen for wide adoption Open source and open standardsTechnology must be developed in a globalperspectiveGovernment leadership in e-commerce adoptionis a critical success factor Making e-commerce everyday commerce 14 Center for E-commerce Infrastructure Development
  15. 15. About CECIDR&D Center under Faculty of Engineering in theUniversity of Hong KongOur mission: To create an infrastructure and environment that allows e-commerce to pervade large and small businesses through technology innovation, industry collaboration, and knowledge cultivation.20+ full-time staffs to develop innovative e-commerce technology and provide R&Doutsourcing services to the industry Making e-commerce everyday commerce 15 Center for E-commerce Infrastructure Development
  16. 16. Thank You Thomas Lee