Standards in the world of E-business Harm Jan van Burg Ministry of Finance The Netherlands UN/CEFACT Vice Chair forinternational cooperation
Framework 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
Exporter Producer Processor / Store Transport Arrival eCert Product information Consignment information Importing Country Authority Certificate viewed and updated on eCert website Certificate Approved example:eCert CERTIFICATION
The Value of Standards • Interoperability • Enable collaboration, traceability • Consistency • Manage the risk • Sustainable • Effectiveness • Implement solutions faster • Scalable
The Cost of Standards • Dependency • External control • Customization • One size does not fit all • Complexity • Learning curve • Inflexibility • Conformance limits innovation
The Options Before Us • No Standards • Who wins? • Coordinated Standards • Bridging communities of use • Common semantics • Federated approach • One Standard • Who decides? • What do they decide? • When do they decide?
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 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 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 • 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/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/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.
International Supply Chain - example The international supply chain is a complex federation of bi-lateral information chains BUY GS1 AETP PROCUREMENT SHIP INTTRA GTNexus LOGISTICS SUPPLIER BUYER Chinese Single Window BelarussianSingle Window REPORT REGULATORY HSBC Sberbank PAY FINANCIAL
Role of UN/CEFACT Requirements for Interoperability Requirements for Trade Facilitation Political Context Trade Agreements new focus on trust and authentication International Laws Legal Interoperability WTO/UN recommendations Legislative Alignment Organizational Interoperability Trade Facilitation Recommendations Organization/Process Alignment agreed business processes Define common semantics Semantic Interoperability agreed components Semantic Alignment agreed documents Technical Interoperability agreed syntax Interaction & Transport agreed messaging protocol