Activities of E-commerce (BtoB) in Japan

The 5th ASEM Conference on E-commerce

Activities of E-commerce (BtoB) in Japan

November 2-3, 2006

Yoshi Nagase

Technologic Arts Inc.

Next Generation Electronic Commerce Promotion Council of Japan

Information Sharing WG

The 5th ASEM Conference on E-commerceGenealogy of BtoB information sharing

1985 1990 1995 2000 2005 2010

・ Liberated from corresponding to each customer

・ Possible to exchangethe information on N:N ・ Lowering the cost of

network

・ Make it possible toconnect to wider range of customers

・ Solve the issue of isolation of material flow and information

・ Make it possible tomanage product life cycle

CALS / SCM（ Linking the information on merchandises, producers, and retailers）

　 Automating information exchange by getting away from screen operation by manpower (XML)

Securing reliability and safety of the internet (ebXML-MS/CPA) Realizing information sharing among business interfaces and globally (ebXML-BP/CC)

Evolution of EDI technology

VAN ServiceLiberalization of communication->Industry VAN

Standard EDIEDIFACT/CII->Industry standards

Product cycle management（ 3R ・ Maintenance ・ Safety ・ Environment ）

Strategic competitive superiority (SIS / Retention)

BPR (CRP/VMI)(Downsizing/ outsourcing)

Change of needs of economy and society

Internet EDIFTP/Email->Web EDI

XML/EDIebXML

Sharing the information on electronic tagIC tag EDI->IC tag NTWK


IT New Innovation Strategy

１． Pursuing the strength of IT structural change

Structural change of medical care, environmentally friendly society, secure and safe society, and safe road traffic

Electronic government, establishment of the IT business management, and lifetime enriched society

２． Developing IT infrastructure

The infrastructure that is designed universally and does not have the digital divide

Reliable IT society, establishment of human infrastructure, development of the high-degree human resource, and research/development for next generation

３． Disseminate to the world

Improve the presence of Japan

Contribute internationally by providing models to solve issues

IT Strategy Head Office, January 2006

The 5th ASEM Conference on E-commerceStrengthening corporate competitiveness by establishing the

IT business management－ Achieving the world’s leading IT business management －

① Achieving the highest level of corporate management in the world by utilizing ITAttempt to permeate use of IT into the business management by promotions such as pubic and private people’s movements and boost the ratio of companies, including large, medium, and small sized ones, that optimized their business management by use of IT beyond the walls among corporate departments and companies to the world’s leading level.

② Structuring and utilizing well-understood common infrastructure by e-commerce Structure well-understood common infrastructure ( for example EDI platform) that has global harmonization and can be used commonly by companies for E-commerce and attain that more than 60% of the companies that implement E-commerce are utilizing well-understood common infrastructure by the year of 2010.

③ Promoting utilization of IT for mission-critical tasks and expanding e-commerce at small-medium sized companiesAttain that more than 60% of small-medium sized companies (estimated annual amount of sales from 500 million to 2 billion yen) are utilizing IT for their mission-critical tasks by the year of 2010.Furthermore, attain that more than 50% of customers of the small-medium sized companies are implementing E-commerce by the year of 2010.

④ Developing environment of fund procurement for small-medium sized companies by utilizing ITUtilize IT and establish electron receivable system that increases liquidity of monetary claim such as account receivables that small-medium sized companies own while securing safety of transaction.


Transmit informationbetween computers

(Internet ）

Exchange BtoB business information

(XML)

Electronic Data Interchange （ EDI ）

EDI is to exchange business message among different organizations via communication lines by applying standard rules.


Current EDICurrent EDI ～～ Different customers have different specsDifferent customers have different specs

Order FormDear Sir/ madam of B Inc. I would like to order as

follows; 　　　 A Corp.

45,000300TI115

20,000100CT201

50,000500LX254

PriceQuantityProduct name

DTM+4:20010916:102’LIN+LX254+500++50000’LIN＋ CT201+100++20000’LIN+‥

Legacy EDI method (EDIFACT)

Order

Order dateWeb EDI method(HTML)

<Order> <Order date 日 >20010916</Order date> <Product name>LX254</Product name> <Quantity>500</Quantity> <Price>50000</Price> <Product name>CT201</Product name> <Quantity>100</Quantity> <Price>20000</Price> <Product name>TI115</Product name> <Quantity>300</Quantity> <Price>45000</Price></ 注文 >

XML/EDI method

Sept. 16, 2001

The world of paperslip

The EDI World

Date

Order dateSegment ID

QuantityPriceProduct name

Segment ID

<body> <h1>20010916</h1> < ｔｄ >LX254</ ｔｄ > < ｔｄ >500</ ｔｄ > < ｔｄ >50000</ ｔｄ > < ｔｄ >CT201</ ｔｄ > < ｔｄ >100</ ｔｄ > < ｔｄ >20000</ ｔｄ > < ｔｄ >TI115</ ｔｄ > < ｔｄ >300</ ｔｄ > < ｔｄ >45000</ ｔｄ ></body>

Product name Quantity Price

Needs translator exclusively for (EDIFACT)

Computer cannot identify product name, quantity, and price.

XML universal software can handle

QuantityPriceProduct name

Segment ID Segment ID

As information technology progresses, EDI specification changes. Different industries have differentspecifications due to different terms to address. Furthermore, specifications for individual companies Expand due to spread of XML and internet.


There are several methods to be basic technology.

Even though the same basic technology is introduced, different sets (subsets) of messages exist inDifferent industries due to business practice, business model, and the characteristics of products.

UN/EDIFACT ANSI X12 CII

DoD CIDEX EIAJ CINTEANCOM SMDG

XML

UBL RosettaNet ebXML

SyntaxInformation entity dictionary

Standard messageVarious codes

SyntaxInformation entity dictionary

Standard messageVarious codes

Syntax Syntax

Distribution industry

subset

Marine transport industry

subset

Ministry of Defense

subsetChemistry industry

subset

Electronic devicesindustryMessage

Information entity

Construction devicesIndustry

MessageInformation entity

StandardMessage

Information item

StandardMessage

Information entityBusiness process

StandardMessage

Information entityBusiness process

＊ Besides above, unique methods that use unique technology and business VAN are also used.


Framework of BtoB E-commerce

Different companies can have business collaborations seamlessly by exchanging information.

Business collaborations between companies maintain continuity from the information on product plan, acceptance and receipt of order, to payment.

The broader business linkage we have, the more valuable chain we can yield in the industrial world.

It guarantees security and safety of products and makes it possible to manage the information on environment-friendliness.

As for the information chain, all companies that have business collaborations can participate in exchanging information no matter how big the company is.

Information chain can be achieved between nations.

BtoB Information exchanging needs

Reintegrating existing EDIs separated by business unit.


In accordance with the agreed process, prepare for exchanging information.

Prepare data.

Convert data into the agreed format.

In accordance with the agreed operation manual, prepare for sending data.

Send out data.

In accordance with the agreed process, move on to the next step for exchanging information.

Send data to intranet application.

Convert data into the intranet format.

In accordance with the agreed operation manual, analyze data.

Receive data.

Intranetapplication

（ Including tasks by manpower ）

Intranetapplication

（ Including tasks by manpower ）

（ Including security ）

（ Including authentication and decoding ）

（ Mapping）（ Mapping

）

Components for operating BtoB E-commerce

EDI



Prepare data.


In accordance with the agreed operation manual, prepare for sending data.

Send out data.

Intranetapplication

（ Including tasksby manpower ）

（ Mapping）

Information model

Components that introduce BtoB E-commerce

Business Process Model

Data Type Description

Operation Process Definition

Data Transfer Definition

BPmodeling

methodology

Information entitydefinition methodology

Data definition syntaxdesign rules

Specifications for sending message

Security standards

Communication protocol

Operation process describing specs

[Sending procedure][Introducing components]

[Related standards]


Manufacturing cycle Circulation cycle Cycle of “use” Cycle of “used”

Product Lifecycle Management

Design plan

Procurement

Production

Placement/receipt of orderPhysical distribution

Placement/receipt of order

Physical distribution

Maintenance management

Includes refurbishment and recall

History management

Physical distribution

（ Collecting ）

Classifying dismantlement

Circulation of used products

Disposal

Reuse

Recycle

SalesMiddle physical distribution including procurement and sales

Production includes physical distribution, sub-cycle for use, and sub-cycle for “used”.

Procurement Utilization and consumption

History management

Business process model


Manufacturing cycle

Plan and design

Procurement

Production

Placement/Receipt order

Physicaldistributor

Manufacturing cycle

Manufacturer Parts manufacturer

Material manufacturer

Physical distributor

Processing manufacturer



BusinessProcessActivity

Ask for providing environmentalinformation on parts

BusinessProcessActivityInspect the environmental information provided

[No defectiveness]

BusinessProcessActivityRegister the part information to in-house DB

[Defected]

BusinessProcessActivity

Investigate the application of new parts for developing in-house products

[New parts applied]

[No new parts applied]

[Defected]

BusinessProcessActivityAsk for providing the environmental information again

BusinessProcessActivityInspect the environmental Information again

[No defectiveness]

BusinessProcessActivityRegister the parts information to in-house DB へ

BusinessProcessActivityReport receipt of the environmental information

Person who places order

[Already surveyed]

[Not surveyed yet]BusinessProcessActivityResearch the asked parts

BusinessProcessActivityProvide the environmental information on parts

BusinessProcessActivityDetermine the situation of survey on the asked parts

BusinessProcessActivityReceive receipt report on the environmental information

BusinessProcessActivityCorrect the pointed parts

BusinessProcessActivityProvide the environmental informationagain

BusinessProcessActivityReceive report on receipt of the environmental information

Person who receives order

SharedBusinessEntityState : Environmental information

[Already asked ]


[ Already asked]

BusinessProcessActivityNotify receipt of the environmental information


[Already asked ]

SharedBusinessEntityState : Environmental information[Already asked again ]

SharedBusinessEntityState : Environmental information[[Already asked again ]


[ Already received ]

Exchanging the information on environmentally challenging agents at the stage of Product manufacturing ー Design



UN/CEFACT Core Component As of Oct/2005

Information item classification

Primary information item Secondary information item Well-understood Information item

PartyParty( 当事者）Person( 個人）Organization( 組織）

Communication( 通信）Contact （連絡先）Registration （登記）Business Profile( 事業概要）Work Capability( 作業能力）Qualification( 資格）Staff( 要員）Technical Capability( 技術力）

ObjectProject( 工事）Service( サービス）

Dimension （外形寸法）Completed Work( 完了作業）Construction Type( 工事種別）Test Condition （試験条件）Examination Result （検査結果）

Event

Event( 取引事象）Contract( 契約）Process( 工程）

Tendering Process （入札プロセス）

Guarantee( 保証）Penalty( 違約金）Trade Terms( 取引条件）Instruction （指図）Delivery Terms （配送条件）

LocationAddress( 住所）Location( 場所）Geographical Coordinate( 地理座標）

Country( 国）Country Sub-Division （国内行政区分）

Payment

Payment( 支払）Price( 価格）Tax （税）Allowance Charge （調整課金）Service Charge （サービス課金）

Financial Account( 金融口座）Financial Card( 金融カード）Currency Exchange( 為替交換）Payment Means( 支払方法）Payment Terms( 支払条件）

Document Document( 文書）

Status( 状態）Preference( 選択）Calculation( 計算）Period( 期間）Route( 経路）Metrics( 計数）

Information entity model


Core structuring elements (Organizational information ）

Organization （組織）- Business Type （業務種別） : Code- Legal Classification （法的分類） : Code- Tax Registration （納税登録） : Identifier- Name （名前） : Text

- Identification （識別） : Identifier- Description （説明） : Text- District （区域） : Identifier

Registration （登録） Contact （連絡先）

Address （住所）

Location （場所）

Information model


<ComplexType Name=‘PersonType’>

<Element Name=‘Name’>

<Element Name=‘BirthDate’>

</ComplexType>

<Person>

<Name> Japan Taro</Name>

<BirthDate>1990-01-20</BirthDate>

</Person>

XML Scheme

XML Document

（ Description of XML Document ）

Person ( 個人）

　　 Name( 氏名）

　　 BirthDate( 誕生日）

Information structureInformation structure and XML



Making Business Information Entity be XML

Passenger （ Passenger_ Person)

Fullname （ Name. Text)

Birthday （ Birth Date. Date Time)

Residence （ Residence. Address)

Address （ Address)

Zipcode （ Post Code. Identifier)

Prefecture （ Prefecture. Text)

Municipality （ Town. Text)

House Number(House Number. Text)

<ComplexType Name=“Passenger_Person” >

<Element Name=“Name” Type=“Text” />

<Element Name=“Berth Date” Type=“Date” />

<Element Name=“Residence” Type=“Address” />

</ ComprexType>

<ComprexType Name=“Address” >

<Element Name=“Post Code” Type=“Identifier” />

<Element Name=“Prefecture” Type=“Text” />

<Element Name=“Town” Type=“Text” />

<Element Name=“House Number” Type=“Text” />

</ComplexType>

<ComplexType Name=“Text” >

<Simple Content>

<Extention Base=“xsd:string”>

<Attribute name=“LanguageID” />

</Extention Base>

</Simple Content>

,/ComplexType

Automatic generation



Agree the EDI operation procedure

Define collaboration

Party’s role

Define transaction

Define activities

Services

Binding specs

Operation process definition


　 The year of 2003 The year of 2004

Certification of reliability function

Argo 21 （ Japan ）B2B Internet （ Korea ）Chori Joho System （ Japan ）Dasan Technology （ Korea ）ETRI （ Korea ）NTT Data （ Japan ）

　

Certification of Reliability and Security function

Fujitsu （ Japan ）NEC （ Japan ）Infoteria （ Japan ）Inno Digital （ Korea ）KTNET(Korea ）SKLSE 、 Wuhan University （ China ）CECID 、 The University of Hong Kong （ China ）Crimsonlogic （ Singapore ）I3T 、 Kasetsart University（ Thailand ）

Hitachi （ Japan）B2B Internet（ Korea）POSDATA（ Korea）GCOM(Taiwan）

Interoperability of ebXML message transfer service

Data Transfer Description


Small-medium sized companies ( Client )Customers （ Server ）

Request slip （ PullRequest message ）

Receive slip （ PullResponse message ）

Notify receipt of slip（PullAcknowledgment message ）


Transfer message ー solution of small-medium sized companies



Prepare data.


In accordance with the agreed operation procedure, prepare for sending data.

Send data.

Intranetapplication

（ Including tasksby manpower ）

Information Model

Business Process Model


Operation Process Definition


StandardR&R

BPModeling

Methodology

InformationEntity Methodology

Data Definition SyntaxDesign rules

RegistryInformation Model

Technical specs for sending message

Operation ProcessDefinition Specs

Roles of Registry & Repository (R&R)


- Information on speculation of quality of steel products- Information on steel products' history registration　- Information on placement and receipt of order of electric appliances and electron-Information on placement and receipt of order of household equipment- Small-lot consolidated cargo tracking information publication history information- Hotel/inn information　- Consumption commodity master information- Electric appliances and electron manufacturing circulation cycle-Construction machine manufacturing circulation cycle-Electric appliances and electron maintenance and recycle- Business machine maintenance and recycle

Business Process and Information Model

RegistryRepository

Trial production of National Registry & Repository


International federation of registryUnited Nations

UN/CEFACT

Registry

National

Registry

Circulation

Registry

Construction

RegistryPhysical

distribution

Registry

Korea

Registry

Taiwan

Registry

China Wuhan

Registry

Japan

Trial production

in 2003

Development in 2004

Started project in 2004

（ LCDM)

Developing operation system in 2004

Started disclosing the system to market in 2005

Reference Proposal Cross-reference

Cross-reference

Cross-reference

Steel

Trading

Trial production

Trial production

Operation started

Registry structuring project was started from March of 2005.


Utilizing ｅｂＸＭＬ

ｅｂＭＳ（ Data Transfer Definition ）

Business Process （ＢＰ）

Core Component （ＣＣ）

RegistryRepository

ＣＰＡ（ Operation Process ）

R&R:Registry & Repository

CPA:Collaboration Protocol Agreement

Introduction

Operation


ｅｂＸＭＬ introducing tool

Business

Process

Information model


Ｒ＆Ｒ

Data type conversion

Operation procedure description

Data

Transfer

Definition

Modelingtool

Information model editor

XMLSchema

generation tool

Translator

CPAEditor

ebMSApplicatio

n

R&RGUI

Operating BtoB business process linkage

The 5th ASEM Conference on E-commerceIn order to structure E-commerce transaction platform

- Well-understood common infrastructure in an internationally harmonized manner

１． Agree and recognize the framework that forms platform

２． Select and recognize framework components （ Domestic and international ）

・ Agreement by the international standardization group

３． Describe interoperability among framework components

・ Interoperability authentication agent

４． Provide framework components by R&R

５． Promote the industry standard EDI that complies with platform

・ Support pilot project

６． Apply platform to business interface EDI / international EDI

７． Select solutions of the small-medium sized companies in compliance with platform

８． Enlighten the spread and support promotion of its introduction

- Financial support （ small-medium sized companies ）

Personal proposal

The 5th ASEM Conference on E-commerceNext Generation Electronic Commerce Promotion Council of Japan

Structure of the EDI group

B2B-EC framework

Selection of solutions

Development of business linkage model between companies

TechnologyComponentRepository

Promote the spread in the industry

Interoperability

International standard

Mechanism to distribute framework components

Harmonization

International standard

EDI promotion

council

Next generation EDIWG

Information sharing

WG

FrameworkWG

Documents

Activities of E-commerce (BtoB) in Japan