Update on ASC X12 Standards Activity

1. Update on ASC X12 Standards Activity May 12, 2010 NEECOM Bill Alletzhauser EDI Consultant

2. What is ANSI? • The American National Standards Institute (ANSI) was founded October 1918 in response to a need to standardize parts in manufacturing. • Founded by five technical societies and three U.S. government agencies. • First standards specified the spacing of threads on machine screws. • ANSI Standards now cover virtually every aspect of American industry.

3. What is ASC X12? • Accredited Standards Committee (ASC) X12 is the U.S. standards body for cross-industry development, maintenance and publication of electronic data exchange standards. • ASC X12 is accredited by the American National Standards Institute (ANSI) and brings together volunteer business and technical professionals in an open cross-industry setting. • ASC X12 was founded in 1979.

4. Background • ASC X12 is the most commonly used B2B standard • Increasing use globally requires continued development • Innovation by businesses continue to drive development • Participation continues to be active

5. Vision of ASC X12 • ASC X12 is the preferred standards body for defining requirements of electronic business document content in the U.S., and also serves as a key player in international forums by contributing to the universal core component work and message design architecture.

6. Data Interchange Standards Association What is DISA? • The Data Interchange Standards Association (DISA) serves as the Secretariat of ASC X12 and other groups. • DISA also serves as the publisher of ASC X12 Standards, Guidelines, and Type 1 and Type 2 Technical Reports. • Facilitate, Coordinate and assist with scheduling meetings. • Marketing and Education. • General Administration.

7. ASC X12 ORGANIZATION ASC X12 STEERING COMM DISA (SECTY) EXECUTIVE COMM. SUBCOMMITTEES: X12C COMMUNICATIONS & CONTROLS X12F: FINANCE X12G: GOVERNMENT X12I: TRANSPORTATION X12J: TECH ASSESSMENT X12M: SUPPLY CHAIN X12N: INSURANCE TASK GROUPS: PRB: PROCEDURES REVIEW BRD P&P: POLICY & PROCEDURES COTG: COLLABORATION MBTG: MARKETING & BUS. DEVELOPMENT.

8. Trimester Meeting Cycle • Winter meeting – Late January/Early February • Summer meeting – Early June • Fall meeting – Late September/Early October • For upcoming meeting dates and locations, refer to the X12 website at • www.x12.org/x12org/meetings/x12trimt/index.cfm

9. What can X12 Do for Your Company? Standardize your company messaging Reduce the difference between your trading partners Improve profit margin Organize your Trading Community Facilitate Meetings Facilitate Marketing of your message to your partners Provide Collaboration Tools

10. Membership Benefits of X12 • Gain a proactive role in shaping the most widely used EDI standards. • Voting members are eligible to vote thereby controlling what changes become part of the standard. • Other member benefits include: • Attend ASC X12 trimester meetings at no cost • Purchase ASC X12 publications at the member rate • Network with the industries’ top innovators • Showcase your products & services to 300-400 attendees at each Trimester Meeting • Receive early access to standards (before they are approved)

11. ASC X12 UPDATE: • Virtual Meetings replacing the FACE-to-FACE meetings • (5/24-6/18) • The use of Social Networking tools: • Linked In • Twitter • Collaboration tools • Central Desktop • “CONNECTIVITY CAUCUS” • NOT an X12 group or subcommittee • Broad Support in many vertical markets • Network Interconnect first order of business

12. The Connectivity Caucus Group - Started as “VAN” summit Jan.2009 in Seattle, WA. - Open forum to discuss “issues”. - Several major VANs (not all) made the meeting. - Finance, Retail, and Transportation markets responded. - Consensus to move forward and continue talking.

13. The Connectivity Caucus Group • VAN Summit becomes a Caucus Group • January 2010 Summit meeting creates Caucus Group • Large attendance: Finance, Healthcare, Insurance, Retail, Transportation and the U.S. Government well represented. • VANs, Clearinghouses, Service Bureaus (many other third-party companies that offer communication). • Identifies Interconnect as first order of business

14. Caucus Group Highlights • Chair, Vice-Chair and Secretary identified • Mission and charter approved • ASC X12 project plan accepted by ASC X12C • Three main areas to be addressed: 1. Message Content 2. Operational Requirements (SLA) 3. Directory Enhancements • “Virtual” Meetings • Membership is open to all interested parties (End users, developers networks)

15. Interconnect Process Oversimplified COMPANY A COMPANY C ??? NETWORK 2 ??? NETWORK 1 ???

16. Interconnect Process: what really happens COMPANY A NETWORK 1 COMPANY C NETWORK 2 KEY: COMMUNICATION

17. Interconnect Process: Inside NETWORK 1 NETWORK 1 Check security, authorization etc. Check RECIEVER ID code (not recognized or contains errors) Move to INTERCONNECT POOL RETURN TO CUSTOMER INTERCONNECT POOL

18. Interconnect Process: Inside INTERCONNECT POOL • Check for Interconnect agreement (Y/N) • Is this a private or public network? • If private goto AS2 or other • If public get interconnect requirements • Method of connection (FTP, SFTP etc.) • Mailbag (Y/N) • If Yes, get Mailbag specs: • Size (file size restrictions) • Quantity of files allowed • File type allowed • Frequency allowed • Confirmation expected • Create file to transport • Schedule/run connection • Wait for confirm signal • End. TO: NETWORK 2

19. Meanwhile at NETWORK 2 • Check for Interconnect agreement (Y/N) • Is this a private or public network? • If private goto AS2 or other • If public get interconnect requirements • Method of connection (FTP, SFTP etc.) • Mailbag (Y/N) • If Yes, get Mailbag specs: • Size (file size restrictions) • Quantity of files allowed • File type allowed • Frequency allowed • Confirmation expected • Accept file transfer from NETWORK 1 • Send confirmation of receipt • Communication session ends • Interrogate file • End. TO: NETWORK 1

20. Meanwhile at NETWORK 2 BUT WAIT……THERE IS MORE !!!

21. Inside at NETWORK 2 • Interrogate the file: • Do we recognize the ID (Y/N) • Yes, pass on to ID mailbox • No, place entire file on “HOLD” • Are there any errors in the file (Y/N) • Yes, place entire file on “HOLD” • Notify NETWORK 1 (?)

22. Why is this causing problems with users? • NO confirmation of final delivery to end company • No error notification if error occurs • Time sensitive data looses the benefit of electronic communication • System failures or delays cancels automation investment • Restricts the usage and options available to end users.

23. What Is Needed??? COMPANY A NETWORK 1 COMPANY C NETWORK 2 KEY: OUTGOING CONFIRMATION

24. Additional Information • CONNECTIVITY CAUCUS GROUP • Chairman: Mr. Todd Gould Loren Data Corp. tgould@ld.com • Vice-Chair: Mr. Robert Fox Softshare Corp. robertf@softshare.com • Listserves • Sign up at the ASC X12 website: or contact: Patrice Scheyer at Pscheyer@disa.org

25. Additional Information • ASC X12 website: www.x12.org • Subcommittee Information • Current Standards Information provided in Committees/Groups • Members and contact information • Meeting minutes • Data Interchange Standards Association (DISA) • www.DISA.org • Listserves • One for each Subcommittee plus additional topics • Sign up at the ASC X12 website: • http://www.x12.org/x12org/listserve.cfm

26. Questions? Contact Info: Bill Alletzhauser bill@edisupport.com 800-404-9182 ext. 20

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