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enableSME E-Business Enablement for SME’s Information Technology Department National University of Ireland Galway Why e-Business? In the US, ECommerce Sales in the fourth quarter of 2003 were 17.2 billion, a 25 % increase from 2002 Similar growth figures available for Europe
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enableSME E-Business Enablement for SME’s Information Technology Department National University of Ireland Galway
Why e-Business? • In the US, ECommerce Sales in the fourth quarter of 2003 were 17.2 billion, a 25 % increase from 2002 • Similar growth figures available for Europe • E-commerce revenues in Europe continue to grow - should top USD1 trillion by 2004 (IDC Research) • B2B sales will drive ecommerce in Europe as the use of online marketplaces and online procurement becomes more popular with business decision-makers • Although B2C revenues in Europe doubled to USD12.2 billion last year, this high growth rate is not expected to continue (IDC Research) • Online business-to-business transactions (B2B) are poised to escalate. According to Forrester Research, the European Union's (EU) online trade will surge from the 2001 figure of €77 billion to €2.2 trillion in 2006 — increasing from less than 1 percent of total business trade to 22 percent.
Why SME’s? • Improve existing business relationships • Improved visibility for customers and suppliers • Reduce order processing overhead • Make it easier to forge new business relationships • More and more large enterprise are insisting on some level of B2B integration from their suppliers
E-Business “Capability Maturity Model” • Need to do it in a way that is comprehensible to the users, inexpensive and has a phased implementation • There are many e-business “readiness” assessments available – but they are low on technology assessment • Must have a strategy for going beyond the web page / storefront • Developing an audit and phased implementation methodology backed up by a software framework which can be implemented in a staged manner
enableSME scope • Primarily focused on the technology challenge • Provide a toolkit of methodologies, know-how and software: • B2B Technological Readiness Assessment methodology • Standard business transactions and associated (XML) documents to engage in basic B2B and B2C e-commerce • Integrated software solution for B2B and B2C e-business enablement
E-business is still maturing • Emphasis has changed as we learnt more: • from • intrusive process of reverse engineer and mapping of internal company processes and data • Trying to adapt company systems to our solution • Hard-coding of legacy application integration • to • Non-intrusive legacy integration • Monitoring of important business events • Separation of business logic from application logic
Revised Architecture Concepts • Separation of Application Logic (e.g. ERP) from flexible Business Logic (e.g. rules in e-Business Engine) • Kitbag of Customisable Components • Base around basic (expandable) set of business transactions • No / Low Licensing fees • Proven open source software • XML as format for business transacitons • Support emerging communications standards such as Web Services as well as http, e-mail
Why XML? • Only 300,000 companies worldwide have adopted EDI because of its complexity and expense • millions have established an Internet presence • EDI was never adopted widely enough to transform the way business is conducted electronically • EDI principle is good – elimination of manual processes by allowing direct information exchange between internal applications of different companies • XML allows the internal applications of different companies to share information directly. • XML is both machine and human readable while EDI is only machine-readable.
Customer Customer Supplier Supplier MRP ERP Sales MRP XML-Based e-Commerce bridges the manual gap
Sample EDI PO BEG*1234*01/24/2001~ DTM*110*01/25/2001~ PO1*1*232324~ NTE*Line Number 1~ PO1*2*99999~ NTE*Line Number 2~ CTT*2*10~
Legacy (e.g. MRP, ERP) Online Catalogue & B2C Online Order Entry Product Data B2C Publishing Engine XML Live Product Catalogue XML (Orders, Queries,..) E-Business Server Product Data Adaptor Customer Extract Product Catalogue
Level 1: Visibility Customer Supplier MRP Online Secure Customer Info Visibility Online Secure Supplier Info Visibility Trading Partner Management Trading Partner Data Event Monitor Editor E-Business Server Event Store Legacy Monitor
Level 2: B2C Customer Supplier MRP Online Secure Customer Info Visibility Online Secure Supplier Info Visibility Trading Partner Management Trading Partner Data Event Monitor Editor E-Business Server Event Store B2C Server Legacy Monitor XML Live Product Catalogue Extract Product Catalogue Online Ordering
Level 3: B2B Customer Supplier MRP Online Secure Customer Info Visibility Online Secure Supplier Info Visibility Trading Partner Management E-Business Rules Editor Trading Partner Data Event Monitor Editor E-Business Server Event Store B2B Engine Legacy Monitor Electronic Transactions (EDI, XML, E-Mail,..) Electronic Transactions (EDI, XML, E-Mail,..) XML Live Product Catalogue Extract Product Catalogue
Level 4: Business Event Management Customer Supplier MRP Online Secure Customer Info Visibility purchasing Online Secure Supplier Info Visibility sales operations event alerts Trading Partner Management E-Business Rules Editor Trading Partner Data Event Monitor Editor E-Business Server Event Store B2B Engine Legacy Monitor Electronic Transactions (EDI, XML, E-Mail,..) Electronic Transactions (EDI, XML, E-Mail,..) XML Live Product Catalogue Extract Product Catalogue
eSET: Business Testbed & Skilset Enhancement ToolWe are also looking at developing a training and testbed environment for e-business