ASC X12 General Session Minutes ASC X12X/98-185 October 5, 1998 Hyatt Regency Miami Miami, Florida Ms. Kendra Martin (API), ASC X12 Chair called the October 1998 General Session to order at 4:05 p.m. and welcomed everyone to Miami. She mentioned that she and Mr. Charles Quirt (Datex-Ohmeda), ASC X12 Vice Chair, would discuss X12’s tactical refinement of the X12 standard. Ms. Martin highlighted X12’s major tactical refinement accomplishments: Quality & Process Issues Opportunities being explored by X12J Technical Assessment Subcommittee (TAS), Procedures Review Board (PRB) and the Policies and Procedures Task Group (P&P) for the Six-month Publication Proposal EDIFACT Alignment International Vision has been achieved through Alignment Task Group (ATG) leadership. UN/EDIFACT alignment activity has been forwarded to the Subcommittees and Task Groups to manage day-to-day operations. Strategic Vision Strategic Implementation Task Group (SITG) is defining the structure of the next generation of EDI Ms. Martin gave examples of EDI implementation “real world” success stories. The examples were drawn from a variety of sources including a corporate EDI partnership, banking, state government, manufacturing, insurance, transportation, shipping and education activities. EDI Corporate Partnership Proctor & Gamble and H.E. Butt conducted an EDI for Grocery Logistics project that resulted in the following one-year improvements: Reduction of over 3,000 labor hours 1,700 in order processing hours and 1,300 paper administration and data rekeying hours 80% increase in speed of new items delivered to stores, price changes made and promotions implemented 75 % decrease in invoice deductions Grocery scanning accuracy of 99.8% ASC X12X/98-185 Page 2 of 7 Banking Compass Bank was approached by a large corporate customer, a trucking company, to provide an automated 820 Remittance Advice Previously not EDI-capable, the bank easily implemented the transaction, helping the trucking company, and keeping a large banking customer satisfied State Government Florida Dept. of Banking & Finance implemented Vendor EDI and Purchasing Card programs 4 million invoices per year @ $108 per invoice for manpower & paper Once fully implemented, the new system will cut costs by at least 40% Manufacturing Arrow Products, a small manufacturing company, began using EDI in 1989 As a result, the company has created 3 new divisions: Direct catalog/web site sales shipments EDI Service Bureau Internet Division hosting web sites The company continues to manufacture its initial product, sewing machine cabinets Insurance New Large-Scale Implementations in Property & Casualty, including: Auto Liability Insurance Reporting Rental Management Collision Estimating Transportation (Using X12 and UN/EDIFACT) Joint Petroleum/Airline/DoD Project Exchange of electronic formats for aviation fuel sales & administration Bulk Marine Inspection UN/EDIFACT Bulk Marine Inspection Summary Report Message (BMISRM) Summarizes the flow of bulk marine cargo between seller and buyer Used for loss control Also relays time log information, certificate of analysis, and voyage analysis information as related to loss control and payment approval ASC X12X/98-185 Page 3 of 7 Education Administration South Carolina Colleges have until 1/99 to implement EDI or risk losing state funds Oklahoma Regents’ Institutions have a $250k grant to implement transcript exchanges Iowa All 3 public universities are using EDI with state high schools Georgia The 34 University System members are implementing student transcript exchanges Ms. Martin gave specific examples of how some new X12 transaction sets are being implemented: TS 620 Excavation Communication Jointly developed by the utility, oil & gas pipeline, and telecommunications industries Used to communicate for the purposes of attaining clearance for excavation or to have the potentially impacted parties locate any affected assets and supervise the excavation Currently, information is processed in a proprietary manner by “Call Before You Dig” or “One Call” agencies TS 625 Well Life-Cycle Information Covers the Life-Cycle of an Oil or Gas Well from Exploration to Abandonment Initial Implementations between oil producers and government agencies include: Traditional EDI translation, using the Internet as communications vehicle Web-browser interface using XML to translate to TS 625 Ms. Martin described the speed of growth in the use of EDI and electronic commerce technology: It took commercial radio 38 years to reach an audience of 50 million in North America. It took commercial television 13 years to do the same. It took the World Wide Web five years. It took Wal-Mart 12 years and 78 stores to hit $168 million in annual sales. Amazon.com hit $148 million in sales in it’s third year; sales in year four are expected to reach $460 million.Amazon.com does not own any stores. ASC X12X/98-185 Page 4 of 7 Ms. Martin concluded her remarks by stating that the greatest challenge facing X12 when she and Mr. Quirt took office was to maintain X12’s relevance in the fast changing electronic commerce environment. She credited X12’s renewed relevance due to the Committee’s diligence in refining the strategic plan, clarifying participation in the domestic and international environment and re-focusing attention to quality products and services. Ms. Martin yielded the floor to Mr. Charles Quirt. Mr. Quirt welcomed everyone to Miami. He reported on X12’s leadership role in the development of EDI standards in healthcare, defense procurement, supply chain management, and education, among others. Mr. Quirt stated that X12’s leadership role can be attributed to the positive changes made by Ms. Kim Lambert (ATA) and the Delegate Liaison Task Group (DLTG), Mr. Robert Schroeder (J.C. Penney) and the Alignment Task Group (ATG), Mr. Harry Featherstone (LMI) and the Strategic Implementation Task Group (SITG) and X12’s active involvement in the international standards community. He reported that X12 must continue to address change and the impact it has on the future of EDI standards development. Mr. Quirt stated that he has seen X12 move from an organization that questioned process and development changes to one that encourages the implementation of new ideas for the development of the next generation of EDI. Mr. Quirt reported that a partnership must be developed between EDI and evolving technology. He stated that the SITG has used technology in the development of the next generation of EDI. Mr. Quirt stated that X12’s next step is to refine the development and implementation of the standard. Mr. Quirt stated that he and Ms. Martin are focusing on succession planning for the future of X12. He thanked the members for their support and encouraged them to continue the integration of new technologies for the future development of the X12 standard. Mr. Quirt introduced Ms. Judy Kilpatrick (President/CEO, DISA). Ms. Kilpatrick reported that DISA has made several staff changes. Ms. Yvonne Meding, formerly Manager of the Technical Department, has become the Director of the new X12 Operations Department. Mr. Tim Cochran, formerly the Director of the Technical Department, has become the Director of the new Standards Products and Services Department. Mr. John Hathaway, formerly X12 Database Administrator, has become the Manger of Information Technology (IT). Ms. Kilpatrick reported that there were approximately 770 attendees at the X12 meeting. She stated that the February 1999 Trimester meeting is scheduled for Dallas, TX. A ASC X12X/98-185 Page 5 of 7 contract for the June 1999 Trimester meeting has not been negotiated. The locations under consideration are San Diego, CA and Washington, D.C. Ms. Kilpatrick stated that the American National Standards Institute (ANSI) audited X12 and DISA during the summer and the initial results were very positive. Ms. Kilpatrick reported that X12F Finance has been working with the Open Financial Exchange (OFX) and Integrion on bill presentment standards. OFX and Integrion have created a new organization, Interactive Financial Exchange (IFX). IFX has selected DISA to be the Secretariat for their work and their meetings would be co-located with X12F meetings. Ms. Martin introduced Mr. Ray Walker, UN/CEFACT Steering Group Chair. Mr. Walker thanked X12 for inviting him to participate as an observer during the meeting week. He stated that the relationship between X12 and the international standards community is very active due to the efforts of X12’s membership. He recognized Ms. Irene Navarro, Mr. Klaus-Dieter Naujok, Mr. Harry Featherstone and Mr. Irv Chmielewski for their involvement in the UN/CEFACT process. Mr. Walker reported that international trade is important to the success of the global economy and X12 will continue playing a vital role in the marketplace. He stated that UN/CEFACT has a major role in the World Trade Organization (WTO), World Customs Organization (WCO) and the OECD (Organization for Economic Cooperation and Development). Mr. Walker stated that UN/CEFACT has negotiated a new Memorandum of Understanding (MoU) with the International Organization for Standardization (ISO). In addition, a new UN/CEFACT strategy has been developed which emphasizes simple, transparent and effective processes for global commerce. UN/CEFACT will examine the possibilities of linking business processes to semantic content through a structured data modeling technique. Mr. Walker reported that, in order for X12 and UN/EDIFACT to remain a component of electronic business, there must be an accepted strategy for change and both groups must invest in research and development efforts towards the next generation of EDI. Ms. Martin yielded the floor to Mr. Bob Miller (GE), X12C Communications and Controls Chair. Mr. Miller gave an update on Mr. Dan Codman’s (APL Group) medical condition and expressed his wishes for Mr. Codman’s quick recovery. Mr. Miller yielded the floor to Mr. Peter Benson (TradeRights), X12E Product Data Chair. ASC X12X/98-185 Page 6 of 7 Mr. Benson also expressed his best wishes for Mr. Codman. Mr. Benson stated that Transaction Set (TS) 101 Name and Address Lists has been approved. He stated that X12E has begun joint data maintenance work with X12K Purchasing. Mr. Benson yielded the floor to Mr. David Barkley (Freddie Mac), X12F Finance. Mr. Barkley stated that the Subcommittee would hold elections during the meeting week. He announced that X12F scheduled work on development of TS 820 Payment Order/Remittance Advice Technical Report 1 at the 4010 level. The Subcommittee scheduled the re-casting payment segments into UN/EDIFACT messages for X12G Government. Mr. Barkley reported that the Subcommittee would finalize TS 245 Real Estate Tax Service Response for ballot. He announced that the Subcommittee would continue its involvement with the SITG. Also, the Subcommittee would investigate the role of XML/EDI in financial transactions. Mr. Barkley reported that the Subcommittee would define X12 and DISA’s role in the maintenance of Internet based bill presentment standards. These standards would result from the merger of Integrion and OFX. Mr. Barkley yielded the floor to Ms. Teresa Sorrenti (GSA/FSS), X12G Government Chair. Ms. Sorrenti announced that X12G/TG3, UN/EDIFACT Migration, scheduled a data maintenance tracking session to discuss the Party Information Message which aligns with X12 TS 838 Trading Partner Profile. Ms. Sorrenti yielded the floor to Mr. Robert Schroeder (J.C. Penney), ATG Chair. Mr. Schroeder announced several meeting logistic changes for the week. He stated that the Task Group would continue revisions to Accredited Standards Committee X12 Electronic Data Interchange Standing Document 6 (SD6): Operations Manual Development and Maintenance Procedures for UN/EDIFACT Standards. Mr. Schroeder yielded the floor to Ms. Kim Lambert, DLTG Chair. Ms. Lambert announced that the DLTG would be re-structured in order to improve its functionality in the international standards community. Ms. Lambert stated that members of the DLTG attended the CEFACT meeting. Ms. Lambert reported that Version 4 of the UN/EDIFACT Syntax Parts 1, 2, 3, 4 and 8 has been completed. She announced that the new UN/EDIFACT Message Design Rules have been approved and they will be published in the D.99B Version of the UN/EDIFACT Directory. A Technical Assessment Checklist (TAC) Version 7.0 for batch and interactive messages was developed. ASC X12X/98-185 Page 7 of 7 She reported that the concept of a Single International TAG (SIT) has been approved. Ms. Lambert stated that the goal is to reduce the DMR processing time from 12 months to 4 months. The group is scheduled to hold its first meeting in January 1999. Ms. Lambert yielded the floor to Mr. Harry Featherstone, SITG Chair. Mr. Featherstone encouraged members to participate in the SITG’s work. He stated that the SITG has focused on the next generation of EDI development. Mr. Featherstone reported that the Task Group would be examining the possible change in X12’s standards development process. Mr. Featherstone announced that the SITG scheduled the following activities for the meeting week: Continuation of the SITG training sessions. The sessions were scheduled to focus on a single-use case scenario to provide informational training and awareness building. Mr. Featherstone requested that the Steering Committee encourage Subcommittee participation in the training sessions. Information Forum on Web based EDI in the automobile industry Information Forum on Long Running Transactions: A new model for Business to Business Transactions Mr. Quirt thanked Mr. Walker for his leadership in the international standards community and his willingness to assist the X12 leadership in its activities. Mr. Quirt adjourned the General Session at 5:15 p.m. EST. Respectfully submitted, Guy R. Mayer Recording Secretary Committee Support Administrator