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Standards in the world of E-business
Harm Jan van Burg
Ministry of Finance The Netherlands
UN/CEFACT Vice Chair for international cooperation
Framework for InteroperabilityFramework for Interoperability
• eBusiness is all about information exchange
• The ability of two or more systems or components to exchange information and to use the information that has been exchanged• Interoperability
• Requires mutual agreement on several levels• Standards help with this
example:eCert
example:eCert
Producer Processor / Store
Exporter
Importing Country
Authority
CERTIFICATION
Transport Arrival
Product information Consignment
information
Certificate Approved
Certificate viewed and updated on
eCert websiteeCert
The Value of StandardsThe Value of Standards
• Effectiveness• Implement solutions faster• Scalable
• Interoperability• Enable collaboration, traceability
• Consistency• Manage the risk • Sustainable
The Cost of StandardsThe Cost of Standards
• Complexity• Learning curve
• Inflexibility• Conformance limits innovation
• Dependency• External control
• Customization• One size does not fit all
A. No Standards• Who wins?
C. Coordinated Standards• Bridging communities of use• Common semantics• Federated approach
The Options Before UsThe Options Before Us
B. One Standard• Who decides?• What do they decide?• When do they decide?
Achieving standards for Trade and Trade facilitation
Achieving standards for Trade and Trade facilitation
• In 20 years time…• eBusiness will be ubiquitous• Collaborative business processes will be
integrated• Organizations won’t know or care what standards
are used to make this work
• How will we get there from here?• We can engineer evolution
• If we understand how it works• … and coordinate on the standards needed
The Need for TrustThe Need for Trust
• One of the challenges with this is Trust. • When businesses seek to develop or
improve their international supply chains, their primary consideration is trust in the complete trade system.
Trust in Trade SystemsTrust in Trade Systems
• Business collaboration is all about trust in the complete trade system• trust in the security, reliability and authenticity
of the processes and partners• trust in the quality of data (interoperability)
• These are established by agreement• aka Contracts, Trading Partner Agreements
Collaboration agreements need standards
Collaboration agreements need standards
• Standards are fundamental to establishing agreements on business.
• Using standards creates certainty… • and certainty enables trust.
• Using standards promotes interoperability• Sharing information across communities
• ‘open’ standards provide for independent governance • long term sustainability
The Need for UN/CEFACTThe Need for UN/CEFACT
• Changes to retail banking brought by digital technology: • made possible by an agreed framework of
global standards. • creating the trust required for the electronic
exchange of financial information. • UN/CEFACT is trying to create the
equivalent framework for international trade
UN/CEFACTUN/CEFACT
• UN/CEFACT is working with Member States, standards-development organizations, and business to coordinate a framework of open standards that will create a secure, reliable and authenticated environment for international trade in the digital economy.
SUPPLIER BUYER
PROCUREMENT
FINANCIAL
REGULATORY
LOGISTICS
BelarussianSingle Window
ChineseSingle
Window
INTTRAGTNexus
AETPGS1
SberbankHSBC
International Supply Chain- exampleInternational Supply Chain- example
The international supply chain is a complex federation of bi-lateral information chains
BUY
REPORT
PAY
SHIP
Legal Interoperability
Legislative Alignment
Organizational Interoperability
Organization/Process Alignment
Semantic Interoperability
Semantic Alignment
Technical Interoperability
Interaction & Transport
Political Context
Requirements forInteroperability
International Laws
WTO/UN recommendations
agreed business processes
agreed components
agreed documents
agreed syntax
Trade Agreements
Requirements for Trade Facilitation
agreed messaging protocol
Trade FacilitationRecommendations
Role of UN/CEFACTRole of UN/CEFACT
Definecommon semantics
new focus on trust and authentication
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