Ron Shelby

1
e-Commerce Data Challenges

• Ron Shelby
• CEO, XMLSolutions Corporation
• e-Business Real Data Issues
• February 12, 2001

2
Ron Shelby Data Management History

• Established data management - Travelers Canada
• Data Administrator - US Dept of Interior
• Consultant - American Management Systems
• Head of information management
• Connecticut Mutual
• USFG
• Vice President of Data Warehousing - American
  Express
• Head of Data Warehousing - General Motors

3
History of Data Management

• Techniques
• Data and Business Modeling
• Canonical synthesis
• Business rules
• Object modeling
• Scope
• Storage-oriented
• Rationalizing data elements
• Application-wide
• Across a function
• Organization-wide

4
Why The Web?
5
The Business Context

• Its all e-Business
• Communications Revolution
• Shorter product lifecycles
• Moores Law
• Information Technology Impact
• Increases Productivity
• Destroys Profits

3
6
E-Business Domains
Customer
Dealer
GM
Employee
Alliance/ Equity
Eng. Supplier
Supplier
5
7
GM Business Innovations

• Business 2 Employee
• Socrates Portal
• Business 2 Business
• GM TradeXchange
• Business 2 Customer
• BuyPower
• OnStar

6
8
Building the Extended Enterprise
100GM Owned
IntraNET
DesignProduct
50/50JV
ProduceProduct
InterNET
BusinessServices
Non-equityMgmt
CustomerExperience
Tech Co-opCOE
ExtraNET
7
9
GMs e-Business Evolution
B2B2C Supplier 2/Trading Customer Employee Supplie
r/Collaborators Supplier
8
10
Increasing Data Challenges
DU2 Whats on the Lot
9
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Data Diversity

• Data sources from separate islands
• Country islands
• Functional islands
• Application islands
• Organizational islands
• From a record focus to a document focus

12
Point-to-Point Non-Scalable Enterprise
Integration Approach
13
Why XML ?

• Critical need for a universal interchange syntax
  that enables interchange between heterogeneous
  systems...

10
14
XML

• Serializes data
• Document-centric
• Can imbed metadata
• Enables machine-to-machine automation
• Forms the foundation for enterprise-to-enterprise
  information integration

15
Initial Vision
Vision Become the automotive industry leader
in real-time communications between GM and its
supply chain by 2001.
Vision To establish the worlds leading virtual
marketplace enabling multiple buyers and sellers
to conduct business and improve supply chain
management.
16
TradeXchange Overview
TradeXchange Portal Applications
Many Buyers
Many Suppliers
Buy Site
XML
Suppliers
Catalog Procurement
Design Collaboration
Supply Chain Mgmt
Financial Services
Auction Services
APS
Reverse Auction

Supply Order
Bid / Quote
EDI
Suppliers
ERP
XML Engine
Databases
Web Browser
PDM
Suppliers
Infrastructure (Telecom, Public Internet, ANX)
Commerce One Trading Community
17
Covisint GM, Ford, DaimlerChrysler,
Renault/Nissan, Toyota, Oracle and Commerce One
Creating A Global Automotive Supply Chain Network
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Automotive XchangeNow Covisint

• A Joint Venture between General Motors,Ford,
  DaimlerChrysler,Renault/Nissan, Toyota, Oracle
  and Commerce One
• Open to All OEMs, Suppliers, and Dealers
• Comprehensive Portfolio of Services
• Sourcing Procurement
• Supply Chain Management
• Primary Benefits
• Streamlined Flow of Products Information
• Improved Integration and Collaboration
• More Competitive Supply Network

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Covisint Vision
BuyerSelf Service
SupplierSelf Service
GeneralInformation
SupplierDirectory
Bidding Negotiations
SpotPurchases
Supply Chain Planning
Transaction Processing
Content Partners
Integration Kits
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e-Business Ecosystem
21
Making B2B2C Happen
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OTD Technical Architecture
Portals
Order to Delivery
e-GM BuyPower
Supply Power
Web Engines
Outsourced Services
Web Applications
Integration Framework
Wrapper(s)
Data
Decision Support
Legacy Applications
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Data Challenges e-Commerce

• Document-centric
• Data from many sources
• Short implementation time
• Skills and tools of todays vendors
• Growing semantic diversity
• Many flavors of XML
• Need for corporate vocabulary based on corporate
  semantic model

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Impact of B2B e-Commerce

• Slow and expensive integration projects
• Choice between risky replacement and expensive
  interfacing
• EAI vendor focus on point-to-point data mapping
  drives cost, complexity, risk
• Vendor use of proprietary XML standards
  creating more islands of information

25
XML forms the foundation for enterprise-to-enterpr
ise information integration
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Many-to-Many Scalable Enterprise Integration
Approach
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The Collaboration Hub
28
OnStar Virtual Advisor
Integration Hub
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Choose The Right Approach

• Avoid point-to-point application integration
• Technology and market expertise
• Support for all XML dialects
• Products easily integrate with other B2B
  applications
• Map to and from a semantic model based on a
  shared vocabulary

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The Collaboration HubReducing Interface
Complexity
External Applications

• Consolidates data
• Simplifies changes
• Reduces number of interfaces
• Reduces costs and delivery times
• Easier to add subscribers

HUB
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Where Companies are Starting
32
Market Maturity
MISSION CRITICAL
2 DIRECT MATERIALS B2B
3 COLLABORATIVE COMMERCE B2B2C
NOT PLANNED
PLANNED
1 Indirect Materials Supply Chain
Planning MARKETPLACES
Indirect Materials AUCTIONS
NON-MISSION CRITICAL
33
Common Semantics

• Lack of common semantics will greatly hinder
  e-commerce in the intermediate and long term.
• For e-commerce to use XML to its full potential,
  the common semantics problem must be resolved
• XML does not directly solve the semantics problem
• Example Purchase Order Number, P_123, PO_Num,
  and PN

34
Create a Corporate Vocabulary

• Pinpoint strategic business information
• Extend from vertical industry standards
• Uncover and leverage metadata and semantics from
  legacy systems
• Extract naming standards, corporate entities,
  attributes, elements and semantics
• Conduct business using the same syntax
  semantics
• Create Document Type Definitions (DTDs schemas)

35
Web-Enabled EDI

• Standard vocabulary for business communication
• Mapping of X12 and EDIFACT to XML
• Multi-lingual transaction sets
• XSL output is human- and ANY machine-readable,
  allowing for complete query and analysis
• Ability to multipurpose output
• Leverage existing legacy data

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Web-Enabling EDI/Direct Materials

• Securely send and receive data using widest
  variety of transport and security protocols
  available.
• Enterprise level workflow solution to define,
  model and automate business processes.

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Web-Enabling E-Commerce

• Platform for managing Direct and Indirect
  e-Procurement
• Enterprise-to-Enterprise Integration
• 31 speed to market
• Vertical Industry Transaction Sets (AIA, AIAG,
  CIDX many others)
• Highly extensible to meet the ever-changing needs
  of business partners and customers

38
Business Issues

• Yet 80 supplying partners are still unable to
  trade electronically
• Costs 10 times as much to transact manually than
  electronically
• New XML-based formats are used for data
  interchange (xCBL, cXML, RosettaNet, and ebXML)
  but need to link into existing systems
• Internet technologies will cause disaggregation
  of corporate functions

39
Business-to-Business-to-Customer

• B2B Nirvana is Collaboration
• B2B2C customer drives specific product
  requirements and demands which require dynamic
  supply chain automation
• Mass customization produce at scale and speed
  required to fulfill customized orders
• Examples GM Buy Power Dell Gateway

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B2B Collaborative Ecosystem
Business-to-Business
Business-to-Exchange
Customer
Exchange-to-Exchange
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The Future of B2B e-Commerce

• Rapid adoption e-Business systems
• Many exchanges
• Many different XML standards
• Many exchanges hubs
• XML transformation engines at the center of
  every exchange hub
• Opportunity to re-deploy corporate data models to
  neutral, common vocabulary for XML

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The Future
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Dis-Aggregation To Communities
44
Questions