eCommerce Frontiers and Trends

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e-Commerce Frontiers and Trends

• Tuesday
• 26 April 2004

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John Mihailov
???? Rogue Data ??
www.roguedata.com
mihailovj_at_roguedata.com
[phone] ? 419
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Introduction
Senior Policy Advisor and System Analyst for
Canadian Government
United Nations Senior ICT Advisor and Business
Analyst
President and Founder of Rogue Data Corporation
(Canada)

• Largest e-Customs System in Canada
• 200,000 EDI Customs Documents / Day
• Over 1 Billion in commercial value/day
• 260,000,000 transactions without loss or error

Largest Hosted Canadian e-Health Transaction
Portal
First Bi-directional e-XML e-Health Exchange
Wal-Mart Canada (Retail) Implementations
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Whose Numbers (in B)
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International Workflow

• Global Shipping is largest B2B/B2G workflow (EDI)
  
• Maritime, Rail, Air,Truck cargo, conveyance,
  customs
• Global Financial (EDI between banks and on-line)
• Global Supply Chain (e.g. Wal-Mart EDI buy and
  sell)
• On-Retail B2C (Dell, Amazon and other on-line
  selling)
• Manufacturing
• Distribution
• Utilities
• Government on Line

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Trends
Technology Trends
Management Practices
Tools and their Use
Business Practices
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System Fundamentals

• SAP, Oracle, People Soft, etc.
• 100s Procurement Products
• 100s Logistics Products
• Workflow Automation Software
• Traditional Infrastructure

B2B
S U P P L I E R S Y S T E M S
B2C
C U S T O M E R S Y S T E M S
e-Commerce Applications
Knowledge Management
ERP
CRM
SCM
Business Intelligence
e-Commerce Enablers

• EAI, Middleware
• API, CGI, Translators etc
• Custom Code, Build Arounds
• Open Source
• Share Ware / Free Ware
• C, C, Java, VB etc...

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WorkflowFundamentals

• Procurement
• Inbound Logistics
• Inventory
• Warehousing
• Transportation

• Marketing
• Sales
• Service Support

B2B
B2C
e-Commerce Applications
S U P P L I E R S
Knowledge Management
C U S T O M E R S
ERP
CRM
SCM
Business Intelligence
e-Commerce Enablers

• Forecasting
• Production
• Outbound Logistics
• HR Management
• Finance

• Data Warehousing
• Management Reporting
• CT / Document Management
• Decision Support/Analytics

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Process and FormFundamentals
B2B
S U P P L I E R S Y S T E M S
B2C
C U S T O M E R S Y S T E M S
e-Commerce Applications
Knowledge Management
ERP
CRM
SCM
Workflow and Collaboration (Process and Forms)
Business Intelligence
e-Commerce Enablers

• Business Model and Process Modeling
• Software Architectures
• Adaptive Process Model
• Unified Modeling Language
• Extreme Programming and RAD

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StandardsFundamentals
B2B
S U P P L I E R S Y S T E M S
B2C
C U S T O M E R S Y S T E M S
e-Commerce Applications
Knowledge Management
ERP
CRM
SCM
Workflow and Collaboration (Process and Forms)
Business Intelligence
e-Commerce Enablers
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Issues
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Issues (1)

• Every mix of software, hardware, custom code for
  every business is Different
• Every business process or workflow is Different
• Collaboration is Private and Different
• Every Transaction is Unique and Different
• Standards for security and exchange of business
  transactions (EDI, XML, Web Services) are
  immature because every company is Different
• Transaction Standards cannot cope with Diversity
• Challenge is how to validate Inbound
  Transactions

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Issues (2)

• Traditional Efforts to accommodate diversity is
  expensive, with a high rate of failure
• Average Implementation begins at 8 to 15
  Million US
• 30 of Strategic B2B systems fail to go to
  production
• 60 experience cost over runs and time delays
• Every B2B e-Commerce system needs to accommodate
  the diversity of workflow, processes, forms
  (transactions) and systems
• XML, Web Services, Application Portals Immature

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Issues (3)

• Only Global 2000 firms can talk to each other
• Major of firms world wide are marginalized (est.
  80)
• Most SMEs cannot afford systems to engage
• Traditional Exchanges (Public, Private,
  Third-Party) Web Sites fail to support B2B
• Cannot support strategic transactions and high
  volumes
• No ownership of data (impossible to aggregate)
• Web Sites reflect the workflow of the owner and
  NOT the workflow of Business Partners

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Trends
Technology Trends
Management Practices
Tools and their Use
2005-2007
External, Integrated Application and Portal
Servers SCM, ERP, CRM, SRM, KM Advanced, Dynamic,
Self Managed, Transaction Exchange XML, Web
Services, Semantic Web, Service-Oriented
Programming
2001-2004
Internal, Integrated Enterprise Applications SCM,
ERP, CRM, BI Workflow, Internal Information
Management EDI over IP, Translators, Custom,
Object-Oriented
1996-2001
Public, Private, 3rd Party Exchanges N-tier
Servers, Hosted Un-integrated Workflow
Transaction, Network, PKI CA (Advanced)
1994-1996
Global Intelligent Real-Time Enterprise
Online Communities Exchanges Workflow
Controlled Workflow Integration Virtual Enterpri
se
Business Practices
B2C Basic (Online Buy/Sell)
B2B Basic (Internal)
B2C Advanced (Online Exchanges)
B2B Advanced (External)
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Hype Cycle of Emerging Digital Technologies
Hype cycle phase
Visibility
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of productivity
Technology trigger
Time
Source Gartner Group (Adapted)
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??????
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Solution (1)

• Intelligent Agents - Smart Transactions
• Unique attributes defined by common business
  information in shared transactions
• Intelligent, Real-Time Enterprise
• Virtual Supply Chain
• Capture unique process and forms
• Strategy to accommodate diversity that exists in
  each and every B2B inter-system relationship
• Enable Workflow Integration without touching
  sending or receiving system

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Solution (2)

• Service-Oriented Message-based design
• Ability to remotely host unique attributes
• Input / output
• Conversion / transformation
• Message Processing
• Communication
• Standard-less Standard
• Remove need to custom code for legacy systems
• Transaction based Business and Technology Model
• Rapid Application Development EDI and XML

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Example Canadian Healthcare
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Example Canadian Healthcare
Direct Supplier Connections
Direct update to load Catalogues into ERP
E-Req
Buyer vets Orders e-monitors
Secure XML
Direct Ordering Into ERP
Material Mgmt System
PDA / Bar Code
Requestor
PO / Invoice Matching
E-Commerce Gateway Service
Internet
Accounting System
Comptroller E-Vets Approves Invoices
Inspect Validate
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Innovation
Supplier Communities
Direct Supplier Connections
Supplier A

• Web Portal Sites
• online entry
• punch-out

Value Added Networks
E-Markets
Hospital n
Hospital 3
Hospital 2
Supplier B
Direct to Supplier ERP Interaction (SAP,
Oracle, etc.)
Sunnybrook
PDA
Supplier C
Item Look-ups Requisitions Approvals
Order Status Availability Receiving
bar codes
Internet
E- Req Intranet
Desktop is full EDI with any supplier

Send / Receive Electronic - Catalogues
- Orders - PO Acks - Invoices
- Customs
Supplier D
EDI or XML to Fax
e
Supplier E
EDI or XML to .pdf
A single service can now process electronic
orders with any supplier or portal.
Full bi-directional data exchange with any
supplier, in any data format!
Internal Hospital Purchasing Accounting Systems
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Potential for China
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Potential for China

• Transactions become a revenue source rather
  than a sunk cost
• Hosted Interoperability for Chinese Manufacturers
  and their supply chain
• Ability for Chinese Government and Industries to
  assume leadership and control by enabling those
  unable to transact

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Thank You
John Mihailov
???? Rogue Data ??
www.roguedata.com
mihailovj_at_roguedata.com
[phone] ? 419
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