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B2B/EDI integration  for efficient electronic business transactions Ivan Vaklinov [email_address]
ERP Systems & efficiency  <ul><li>Enterprise Resource Planning (ERP) system is an integrated computer-based application us...
ERP systems & Communication <ul><li>ERP systems need to efficiently communicate with the outside world in a global economy...
B2B & EDI <ul><li>EDI (Electronic Data Interchange) </li></ul><ul><li>Standard for the electronic exchange of commercial d...
B2B/EDI scenarios – I <ul><ul><li>Between large businesses equipped with ERP systems that possess automatic communications...
B2B/EDI scenarios – II <ul><ul><li>Between a large company and many small suppliers with a communications capability (Hub ...
History of EDI/B2B <ul><li>1960s-1970s USA </li></ul><ul><li>1980s - standardization efforts </li></ul><ul><li>1990s – The...
EDI Standards – flat files Flat Files are textual data with fixed length fields typically used by legacy ERP systems (e.g....
EDI Standards - EDIFACT United Nations/ E lectronic  D ata  I nterchange  F or  A dministration,  C ommerce and  T ranspor...
EDI Standards – ASC X12 ASC X 12  - U.S. national standards body for the development and maintenance of Electronic Data In...
EDI Standards – TRADACOMS TRADACOMS  – Developed in the UK in the early 1980s STX=ANA:1+5000000000000:SOME STORES LTD+5010...
EDI Standards – XML XML  – E x tensible  M arkup  L anguage (set of rules for encoding documents in machine-readable form)...
EDI Standards - others <ul><li>A number of standards were developed in the 1980s in Europe ASIA etc. More modern sub-stand...
EDI Standards organizations - I  <ul><li>EDI standards may be drafted at indurtry, national or international level </li></...
EDI Standards organizations - II  <ul><li>EDI standards may be drafted at indurtry, national or international level </li><...
EDI Standards organizations - III  <ul><li>EDI standards may be drafted at indurtry, national or international level </li>...
Example EDI interchange Based on an EDIFACT example, the most common messages types are related to processing ORDERS and I...
Communications standards - I <ul><li>EDI predated the internet explosion in the 1990s... </li></ul><ul><li>Modems - 1970s-...
Communications standards - II <ul><li>More advanced communications were made possible by advances in the 1980s and later t...
Communications standards - III <ul><li>Web services came along simplifying integration... </li></ul><ul><li>Web Services/S...
B2B Gateway features - I <ul><li>Modern B2B gateways need to support... </li></ul><ul><li>SOA/ESB (enterprise service bus)...
B2B Gateway features - II <ul><li>Modern B2B gateways need to support... </li></ul><ul><li>Communications support – all co...
B2B Gateway features – III <ul><li>EDI document conversion and mapping design capabilities.. </li></ul><ul><li>Should supp...
B2B Gateway Products (high end) <ul><li>High end B2B gateways have a comprehensive feature set... </li></ul><ul><li>Biztal...
B2B Gateway Products (low end) <ul><li>Low end products possess a subset of features making them applicable to small compa...
Example product – BOTS  I <ul><li>BOTS is a free/open source EDI product suitable for small deployments </li></ul><ul><li>...
Example product – BOTS  II Route: Channel: Translation:
EDI Implementation (large) <ul><li>Project stages </li></ul><ul><li>Business case analysis </li></ul><ul><li>Product selec...
EDI Implementation (small) <ul><li>Project stages </li></ul><ul><li>Business case analysis – usually requirements set by l...
EDI in Eastern Europe - I <ul><li>EDI is typically shunned by small companies because of costs and perceived lack of real ...
EDI in Eastern Europe - II <ul><li>Ad-hoc implementations that are easy starters but offer no flexibility later on </li></...
Legal issues in EDI <ul><li>(Contract) Laws needed consistent with EDI  (or need to back up EDI documents with paper ones,...
Conclusion Q & A This presentation may be shared and used under a creative commons license: http://creativecommons.org/lic...
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Efficient electronic business transactions

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Efficient electronic business transactions

  1. 1. B2B/EDI integration for efficient electronic business transactions Ivan Vaklinov [email_address]
  2. 2. ERP Systems & efficiency <ul><li>Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources. </li></ul><ul><li>Tangible assets </li></ul><ul><li>Financial resources </li></ul><ul><li>Materials </li></ul><ul><li>Human resources </li></ul><ul><li>Needed by any large </li></ul><ul><li>organization </li></ul>
  3. 3. ERP systems & Communication <ul><li>ERP systems need to efficiently communicate with the outside world in a global economy. </li></ul><ul><li>Manual data entry </li></ul><ul><li>Product differentiation issues </li></ul><ul><li>Automation needed for any large document traffic </li></ul><ul><li>Vendor lock-in and need for interoperability standards </li></ul>
  4. 4. B2B & EDI <ul><li>EDI (Electronic Data Interchange) </li></ul><ul><li>Standard for the electronic exchange of commercial documents. </li></ul><ul><li>Computer-to-computer exchange of structured information, with a minimum of human intervention </li></ul><ul><li>Business to Business integration (B2B) </li></ul><ul><li>Commerce transactions between businesses </li></ul><ul><li>Usually via modern Web technologies such as SOA, Web Services etc. </li></ul>
  5. 5. B2B/EDI scenarios – I <ul><ul><li>Between large businesses equipped with ERP systems that possess automatic communications capabilities. </li></ul></ul>
  6. 6. B2B/EDI scenarios – II <ul><ul><li>Between a large company and many small suppliers with a communications capability (Hub & Spoke) </li></ul></ul><ul><ul><li>Between a large company and many small suppliers with no automation (Web, Fax etc.) </li></ul></ul>
  7. 7. History of EDI/B2B <ul><li>1960s-1970s USA </li></ul><ul><li>1980s - standardization efforts </li></ul><ul><li>1990s – The internet and beyond </li></ul><ul><li>2000... - SOA & Web Services </li></ul>
  8. 8. EDI 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 300000000 E2EDKA1003 300000000 E2EDKA1003 300000000 E2EDKA1003 300000000 E2EDKA1003 300000000 E2EDKA1003 300000000
  9. 9. EDI Standards - EDIFACT United Nations/ E lectronic D ata I nterchange F or A dministration, C ommerce and T ransport (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' ...
  10. 10. EDI 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~
  11. 11. EDI 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'
  12. 12. EDI Standards – XML XML – E x tensible M arkup L anguage (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> ...
  13. 13. EDI Standards - others <ul><li>A number of standards were developed in the 1980s in Europe ASIA etc. More modern sub-standards exist as variants of XML </li></ul><ul><li>VDA – German automobile industry </li></ul><ul><li>EIAJ/CII/HWSW - Japan </li></ul><ul><li>GS1 XML </li></ul><ul><li>ebXML </li></ul>
  14. 14. EDI Standards organizations - I <ul><li>EDI standards may be drafted at indurtry, national or international level </li></ul><ul><li>UN/CEFACT - United Nations Center for Trade Facilitation and Electronic Business - http://www.unece.org/cefact/ </li></ul><ul><li>ASC X12 - Accredited Standards Committee (ASC) X12, chartered by the American National Standards Institute - http://www.x12.org/ </li></ul>
  15. 15. EDI Standards organizations - II <ul><li>EDI standards may be drafted at indurtry, national or international level </li></ul><ul><li>OASIS - Organization for the Advancement of Structured Information Standards - http://www.oasis-open.org </li></ul><ul><li>GS1 (EANCOM) - association dedicated to global standards to improve the efficiency of supply and demand chains </li></ul>
  16. 16. EDI Standards organizations - III <ul><li>EDI standards may be drafted at indurtry, national or international level </li></ul><ul><li>VDA - Verband der Automobilindustrie e., is a German interest group of the German automobile industry </li></ul><ul><li>EIAJ - Electronic Industries Association of Japan (EIAJ) part of Japan Electronics and Information Technology Industries Association (JEITA). </li></ul>
  17. 17. Example EDI interchange Based on an EDIFACT example, the most common messages types are related to processing ORDERS and INVOICES COMPANY A COMPANY B ORDERS ORDERSP INVOIC Many different message types exist...
  18. 18. Communications standards - I <ul><li>EDI predated the internet explosion in the 1990s... </li></ul><ul><li>Modems - 1970s-1990s (point to point communication between partners) </li></ul><ul><li>ISDN - Integrated Services Digital Network </li></ul><ul><li>X.25 – reliable WLAN protocol during 1980s and early 1990s </li></ul><ul><li>OFTP/OFTP2 – FTP based transport protocols that include features like encryption, compression etc </li></ul>
  19. 19. Communications standards - II <ul><li>More advanced communications were made possible by advances in the 1980s and later the internet... </li></ul><ul><li>VANs - Value-added Network (hosted service offering that acts as an intermediary between business partners. Offers reliable messaging, auditing etc) </li></ul><ul><li>AS1, AS2, AS3 – modern protocols offering encryption, reliability, disposition notifications etc based of SMTP, HTTP, FTP </li></ul>
  20. 20. Communications standards - III <ul><li>Web services came along simplifying integration... </li></ul><ul><li>Web Services/SOA – standards for system design providing greater interoperability and flexibility </li></ul><ul><li>SOAP/WSDL/UDDI – technologies that implement SOA on the basis of HTTP(s), XML etc. that are most commonly used. </li></ul>
  21. 21. B2B Gateway features - I <ul><li>Modern B2B gateways need to support... </li></ul><ul><li>SOA/ESB (enterprise service bus) Capabilities – suitable for integration of multiple services and their “orchestration” into larger more complex ones. </li></ul><ul><li>BPEL - Business Process Execution Language. OASIS standard for “orchestration” of web services. Defines business processes composed of service interactions. </li></ul>
  22. 22. B2B Gateway features - II <ul><li>Modern B2B gateways need to support... </li></ul><ul><li>Communications support – all commonly used protocols. </li></ul><ul><li>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) </li></ul><ul><li>Document/message tracking and audit functionality </li></ul>
  23. 23. B2B Gateway features – III <ul><li>EDI document conversion and mapping design capabilities.. </li></ul><ul><li>Should support all common data formats </li></ul><ul><li>User-friendly mapping design </li></ul><ul><li>Modular/reusable mappings for large deployments </li></ul>
  24. 24. B2B Gateway Products (high end) <ul><li>High end B2B gateways have a comprehensive feature set... </li></ul><ul><li>Biztalk Server (Microsoft) </li></ul><ul><li>XI eXchange Infrastructure (SAP) </li></ul><ul><li>Business Integration Server (Seeburger AG) </li></ul><ul><li>B2Bi (Axway) </li></ul><ul><li>B2B Integration (Sterling) </li></ul><ul><li>e-Commerce Gateway (Oracle) </li></ul><ul><li>others... </li></ul>
  25. 25. B2B Gateway Products (low end) <ul><li>Low end products possess a subset of features making them applicable to small companies... </li></ul><ul><li>Bots open source EDI translator - http://bots.sourceforge.net </li></ul><ul><li>Webswell Business Hub (hosted), Websswell Connect and others (open source) - http://www.webswell.com </li></ul><ul><li>Celtix: The Open Source Java Enterprise Service Bus - http://celtix.ow2.org </li></ul><ul><li>Simpler tools, hosted solutions, SAS ... </li></ul>
  26. 26. Example product – BOTS I <ul><li>BOTS is a free/open source EDI product suitable for small deployments </li></ul><ul><li>Written in python and uses an embedded database or can use an external one </li></ul><ul><li>Presents a relatively simple Web configuration interface to the user </li></ul><ul><li>Customization involves programming/ scripting. </li></ul><ul><li>Defines channels/routes/translations that can be scripted </li></ul>
  27. 27. Example product – BOTS II Route: Channel: Translation:
  28. 28. EDI Implementation (large) <ul><li>Project stages </li></ul><ul><li>Business case analysis </li></ul><ul><li>Product selection (features, cost) </li></ul><ul><li>Process design and communications rollout </li></ul><ul><li>Mapping design (high effort) </li></ul><ul><li>Infrastructure, administration etc. </li></ul>
  29. 29. EDI Implementation (small) <ul><li>Project stages </li></ul><ul><li>Business case analysis – usually requirements set by larger partners </li></ul><ul><li>Product selection (features, cost) – choose a suitable cost effective product or develop something in-house </li></ul><ul><li>Process design and communications rollout - simple </li></ul><ul><li>Mapping design – a few mappings </li></ul><ul><li>Infrastructure, administration etc. </li></ul>
  30. 30. EDI in Eastern Europe - I <ul><li>EDI is typically shunned by small companies because of costs and perceived lack of real necessity </li></ul><ul><li>EDI implementations typically come as a result of requirements by large companies (e.g. market chains) or western partners </li></ul><ul><li>Lack of trained consultants on legacy standards like EDIFACT, ASC X12, VDA and similar that are demanded </li></ul>
  31. 31. EDI in Eastern Europe - II <ul><li>Ad-hoc implementations that are easy starters but offer no flexibility later on </li></ul><ul><li>Small ERP vendors aiming for customer lock-in </li></ul><ul><li>Need for EDI questioned at a time of crisis by small companies </li></ul>
  32. 32. Legal issues in EDI <ul><li>(Contract) Laws needed consistent with EDI (or need to back up EDI documents with paper ones, possibility of accumulation... ) </li></ul><ul><li>Legally binding contractual arrangements (Trading Partner Agreements, valid under contract law and based on EDI standards accepted as national standards - eases contractual disputes) </li></ul><ul><li>Document retention policies, and use of third party mediators (VANs) </li></ul>
  33. 33. Conclusion Q & A This presentation may be shared and used under a creative commons license: http://creativecommons.org/licenses/by/3.0/

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