What is EDI? - West Virginia University

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www.mantech-wva.com
Information Exchange Session
Wednesday, April 11, 2001
West Virginia University,
Morgantown, WV
Mike Evanoff, Technical Director
evanoffm@mantech-wva.com
Overview
•
•
•
•
•
Who is ManTech
What is Electronic Data Interchange (EDI)
What is Web-based Electronic Commerce
The role of XML for Web E-Commerce
Emerging Frameworks for Business to
Business (B2B) E-Commerce
• Questions
ManTech.com
ManTech International Corporation
[ Fairoaks, Virginia]
* Founded in 1968 with Two (2) Employees
* Today has over 5,000 Employees Worldwide
* 132 Offices in 29 States / 8 Foreign Countries
* Sales FY00 nearly $ 0.5 Billion
Defense * Environmental * Aerospace * Telecommunications * ATE Programs
Enterprise Integration Center (e-IC)
Mission Statement
2001+
1994
“Information Technologist(s)”
“Our Principal Mission is to Provide the U.S. Department of
Defense (DoD) with a Range of Advanced Information
Technology Strategies Coupled with Business Case Modeling
Techniques, Functional Application Design and Development,
and the use of Information Exchange Standards that
Contribute to the Concept of a Shared Integrated
Environment (Data/Information/Knowledge) Between the DoD
and their Industrial Partners”
www.mantech-wva.com
www.dcnicn.com
Concept Formulation * Requirements Definition * Business Process/Models * Pilot Demonstrations
Internet Technologies
* The Internet Technologies are the Foundation for every
Project we have In-house
• E-Commerce Technologies
• Collaboration Tools
• Business Intelligence
• Training & Education
• Multi-Media Technologies
• Search Engines
“At no time in our history has so much
Information been available to so many”
“We moved in a very short time span from
limited access to “Information Overload”
(GLUT)”
Enterprise Integration Center (e-IC)
2000+
1994
Fairmont, WV
Charleston, WV
Hinton, WV
Present
1994
* Our Enterprise Integration Center (e-IC) Operates
as a “Virtual Corporation/Enterprise”
* We are not only Just an Equal Opportunity Employer but
a Fifty/Fifty Employer
ManTech e-IC
Sub-tier Team
* We have Fully Integrated Program/Project Teams
* No single tasking to any one Company ----- Including ManTech
* Overall Staffing Turnover <6% [7 year margin]
e-IC Summary by Customer / 2000
State 2%
USNR 10%
ONR 12%
DLA
31%
*CALS Korea
OSD/DoD (LAMP/CALSIDE)
OSD/DoD
45%
Multiple agencies support over
9 projects
DLA
• IETM Ordering Process
• Supply Chain Mgmt Council
• E-CAT
US Navy/ONR
• SILS
Navy Reserve (USNR)
• Computer Based Training
State Government
*Reflects less than
1% of Total
• Health/Human Resources
Network Support
CALS Korea
Electronic Commerce
• Electronic Data Interchange (EDI)
• Electronic Catalog Systems (e-Procurement)
• Web Applications
– Foreign Customs Clearance
– Type Designation Automation
• Emerging E-Commerce Frameworks
– Tools, Technologies, and Standards
– Migration Plans
– Concept of Operations
Definitions
• Electronic Data Interchange (EDI)
– The automated exchange of transaction data
between two or more interoperating application
programs;
– The computer-to-computer transmission of
(business) data in a standard format.
Definitions
• E-Commerce (EC)
– Transacting business via electronic means.
– This includes all forms of electronic media such
as FAX, E-mail and EDI.
– Electronic Commerce is NOT restricted to EDI
only.
• E-Business (EB)
– The application of electronic commerce
techniques and solutions to the business
processes of an organization.
What is EDI?
Electronic Data Interchange is
the exchange of standardized
business documents from
computer to computer.
Documents such as purchase
orders and invoices are
transmitted from one computer
to another in a mutually agreed
upon electronic (paperless)
format.
EDI: The Definition
Company
A
Purchase
Order
Company
B
-----------------------
EDI is a critical part of Electronic Commerce because it enables computers
to exchange data electronically, which is much faster, cheaper, and more
accurate that paper-based systems. To gain the maximum benefits of EDI,
an organization’s systems must have two characteristics:
• the flow of information must be integrated
• the automated business management systems must be intelligent.
These systems must be able to automatically process routine transactions
according to those limits defined by the businesses conducting trade.
EDI System Components
Knowing the standards and having an EDI translator is not
enough. EDI cannot be done efficiently without being
integrated with other components.
EDI System Components:
SOFTWARE
Application Systems




Financial Systems
Personnel Systems
Purchasing Systems
Compliance Checking
EDI Translator





Data Mapping
Translation
Interpretation
Audit Tracking
Send/Receive
The application interface software is the software
bridge developed to facilitate the interface between
the automated business management system software
and the standards translation software.
EDI System Components:
COMMUNICATIONS
• Value Added Network (VAN)
• Value Added Service (VAS)
• Internet (www)
• Direct Dedicated Connection
What's the difference between a VAN and a VAS?
A VAN is only responsible for moving your transaction
through a network to the addressee.
A VAS, however, normally provides translation
services, conversion from FAX or Internet to EDI,
security, reports, troubleshooting, etc. Some, but
not all, VANs are also VASs.
EDI System Components:
HARDWARE
• Workstations
• LANs
• Modems
• Mainframes/Servers
• Routing Devices
•Intranets
•Gateways
EDI System Components:
STANDARDS
ASC X12 Transaction Sets
• American National Standards Institute (ANSI),
Accredited Standards Committee X12
• Data descriptions of business functions
(invoicing, purchasing, applications, etc.)
UN/EDIFACT
• United Nations rules for Electronic Data
Interchange For Administration, Commerce and
Transport
• Comprise a set of internationally agreed
standards, directories and guidelines for the
electronic interchange of structured data
** Please note that X12 and EDIFACT terms will be used interchangeably
throughout this presentation.
Transaction Set/Messages
As previously noted, EDI is the electronic exchange of business information
using standard machine-processible data formats. A standardized formatted
message is called a transaction set (ASC X12) or message (UN/EDIFACT),
which is the electronic equivalence of a paper document.
Example transaction set/message:
Document
Purchase Order
Invoice
Acknowledgement
ASC X12
850
810
997
UN/EDIFACT
ORDERS message
INVOIC message
CONTRL message
Transaction Set/Messages, cont’d.
Transaction sets provide the
structure of the segments to
be used including:
Transaction Set/Messages, cont’d.
Intended for machine processing - not human readable!
EDI Communications VAN and/or Direct Dial-up
Translator
Application
System
Application
System
M
o
d
e
m
VAN
M
o
d
e
m
Translator
Direct DialUp Line
Application
System
Application
System
Web Browser
Web Browser
Internet
B2B EC Emerging Trends for U.S.
$ Billions
Internet
EDI
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1998
1999
2000
2001
Source: Boston Consulting Group
2002
2003
Legacy to the Future
• EDI in use by big Fortune 1000
– See statistics: 95% of Fortune 1000 use EDI
today
– The Government is a big user of EDI
• XML is coming on like a tidal wave
– Both Big Industry & the Government are
embracing XML
– The goal is to transition smoothly from X12
EDI & Legacy Systems to Standards-based
XML solutions
Business-to-Business Forecasts
$8,000
$7,297
$7,000
7% of global transactions!
$6,000
$5,000
$3,949
$4,000
$3,000
$2,188
$2,000
$1,000
$953
$403
$2000
2001
2002
2003
2004
Gartner Group forecasts the global dollar volume of goods exchanged
by businesses over the Internet will reach $7 trillion by 2004!
Source: Gartner
A Definitive Need for Standardization
Bonjour?
XML
Hello?
Global Standards will enable:
• Minimized the need for training personnel in use and maintenance
of EDI standards
• Eliminating the costs associated with duplication of functionality
• Minimizing the need for multiple translation software, and
• Semantic harmonization, which in turn will provide
interoperability among different but interconnected applications
Standards provide Interoperability
• What is Interoperability?
– The ability of software and hardware on multiple
machines from multiple vendors to communicate.
• Interoperability occurs at many levels:
– Syntax (data format)
– Semantics (agreed meaning - ‘tag set or
vocabulary)
– Transport & Routing System
– Character Sets (see www.unicode.org), etc.
Before the Web
• SGML - Standard Generalized Markup Language
– SGML is a framework for describing languages that
themselves describe the structure and semantics of data
using DTDs[*]
• SGML was created by Dr. Charles Goldfarb for
managing legal documents.
– While at IBM Dr. Goldfarb led the project that invented
SGML's precursor, GML, in 1969.
– SGML became an ISO standard circa 1986
[*] DTD’s provide a common tag set for describing the structure, syntax, and semantics of documents and data
Birth of the Web
• HTML - HyperText Markup Language
– HTML is an SGML DTD creating a syntax that is
used and understood by all web browsers
• Tim Berners-Lee used HTML as the basis for
his World Wide Web
• Amidst a wider discussion of how to add media
and binary elements to HTML, Marc
Andreesen added image support to Mosaic,
released it on the Internet, and the Web as we
know it today was born.
The need for extending HTML
• Separate Application Logic from Presentation
Style
– Increased Information Intelligence
• Searching & Shopping Agents, Integration, etc...
– Knowledge Management
• Data interchange between Web clients
• Moving processing from server to client
• Multiple client-side views w/o new data
The need for extending HTML
• “Information push” to / from personalized
applications
• Intelligence: How well data knows itself.
– Not enough metadata with HTML
• Adaptation: How well data changes in response to
changing times.
– Not enough with HTML
• Maintenance: How easily data is cared for.
– Not enough with HTML
– HTML not extensible
Evolution of Web
• 1st Generation Web
– Dumb display of info using HTML
• HTTP, URL, and CGI
• 2nd Generation Web
– Semantically rich document exchanges with XML
– More sophisticated ways to process and manage Web
data
• 3rd Generation Web
– Integrated Grid of e-Services
• Intelligent Agents and Agencies (terms borrowed from Marvin
Minsky essay)
• Distributed Registries & Repositories
What is XML?
• XML is a platform-, a database-, a languageand media-independent.
• It is ideal for Web applications
–
–
–
–
data-centric
easy to distribute
easy to manipulate on both client & server
easy to re-purpose data for different applications
• Both human and machine readable
What is XML?
• XML really refers to a core family of
specifications maintained by the W3C:
– XML Language (the markup language)
• Subset of ISO 8879 (SGML) optimized for the Web
– qualifies as an ISO accredited standard
–
–
–
–
–
–
XML Namespaces (way to prevent tag collisions)
XSLT (XML to XML transformation language)
XML Schemas (new document design language)
XPath (for specifying ways to traverse XML docs)
XLink & XPointer (pointing and linking to XML)
and other complementary spec’s...
- final approval as a standard by the W3C
A new way to do EDI
• XML provides a radical new way to build EDI systems.
• Standardized variants of XML are being developed for one
industry after another, making Web-based supply chain
integration a reality by providing a common data
interchange format.
XML from an E-Business
Perspective
• E-Business Scenarios:
1. Computer to Computer (Application to
Application – A2A)
• Pre-XML
– Electronic Data Interchange (ANSI X12, UN/EDIFACT)
• Post XML
– XML/EDI, Industry XML Vocabularies (RosettaNet,
xCBL, cXML, etc.)
2. Human to Computer
• Web browser, Handheld, TV, Phone, etc.
Generic E-Business Framework
Cost & complexity!
Translator
Application
System
Application
System
M
o
d
e
m
EDI
EDI
VAN
XML/EDI
XML/EDI
XML
XML
Web Browser
Internet
M
o
d
e
m
Translator
Direct DialUp Line
Application
System
Application
System
Web Browser
Emerging n-Tier B2B Framework
I
II...
XML
SOAP
SOAP
III...
XML
UDDI, WSDL
XML
XML
XML capable client
applications, Web
browsers, etc.
XML
Component based software
capturing the business logic
needed for a particular
application.
XML enabled DBMS’s,
middleware, backend
application systems, etc.
XML Application Architecture:
“XML is becoming ubiquitous with its emergence in the client,
server, application, DBMS, and middle layers”
Voice, etc.
“Mapping & Translation”
Media
Processing / Integration
• Standard APIs
- DOM / SAX
App’s
- JAXP
SOAP XML Content
- etc.
-UDDI
Databases
• XSLT -WSDL Servers
• Perl
• SQL
• etc.
Platform
“The Internet”
Presentation
HTML
XHTML
XML
FOs
Some XML E-Business Stat’s
• GartnerGroup - forecasts that by the yearend 2001 XML-defined B2B transactions will
account for 70% of biz transactions executed
on the Web.
• Also forecasting that 80% of A2A traffic
passed over the net will be in XML formats,
and that 50% of Web server content will be
stored in XML formats.
XML
EDI
Comparing XML to EDI
XML E-Commerce solution
EDI E-Commerce solution
• Optimized for easy programming
• Optimized for arcane compact messages
• Requires web server costing $0 to $5000
• Requires dedicated EDI software costing
$10,000 to $100,000
• Uses your existing Internet connection
• Uses value-added network (VAN) charging $1
to $20 per message or more
• XML message format learned in hours
• EDI format takes months to master
• Use standard open APIs with your choice • Requires highly specialized programmers and
of programming languages (Java, Perl, etc.) EDI mappers
• Leverages emerging Web Infrastructure
• Declined growth and development
ebXML Introduction
http://www.ebxml.org
• What is ebXML?
– tech spec / & develop as they go
• Why did ebXML form?
– natural way to bring next generation EDI to the Web
• When did it get started / when will it finish?
– 16 months into 18 month project
• How is it being developed?
– 3 step process, requiring two-thirds approval
– via open meetings & proof-of-concept systems
BizTalk
http://www.microsoft.com/biztalk, http://www.biztalk.org
• BizTalk was announced in March of 1999 and is
a Microsoft server product for the XML and
EDI business exchange/integration marketplace
• BizTalk is two things:
– BizTalk Framework
– BizTalk Tools and Server
• Targeting providing a complete solution for both
traditional EDI (X12 & EDIFACT) and XML
business integration
RosettaNet
http://www.rosettanet.org
• Founded in June 1998, RosettaNet is an independent, selffunded, non-profit consortium dedicated to the development and
deployment of standard electronic commerce interfaces to align
the processes between IT supply chain partners on a global basis.
• RosettaNet’s global initiative is to adopt and deploy open and
common business interfaces, enabling small and large buyers and
sellers of computer technology to do electronic business more
efficiently.
• More than 200 companies representing $1 trillion in annual
information technology and electronic components revenues
currently participate in RosettaNet's standards development,
strategy and implementation activities.
Summary
• EDI is the foundation for emerging Web-based
B2B e-Commerce frameworks
• Web Technologies like XML (and related
technologies) are enabling new frameworks for
conducting e-Commerce
• Commercial and Government groups are in the
process of developing frameworks (suites of
specifications) for B2B e-Commerce
• New tools and services are rapidly emerging
– This truly an exciting time to be in the business!
Thank You!
Time for Questions
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