The Business Internet Mark Hoffman Commerce One

Singular Focus: Deliver Customer Value Through the Business Internet Eliminating friction within enterprises and between trading partners through real-time information exchange, collaboration, and orchestration

Commerce One’s Evolution SCOPE TIME C C REOS Benefits Buyer and supplier interaction via hosted connections Challenges Static catalogs No workflow List prices High search costs No integration C S S S Commerce One Public Marketplaces Any Enterprise B B B MarketSite BuySite Hosted BuySite BuySite Supplier SupplyOrder S GTW Ability to Plug-in Business Services MarketSite XML (xCBL) S MarketSite MarketSite 3.x Benefits Matching Buy-Sell Network effects Dynamic pricing Transaction fees Comprehensive, hub- based XML integration Challenges Random interactions Limited point-to-point integration B B Benefits Out-of-the box EAI integration Performance enhancements Reliability, availability, serviceability features Graphical process builder Challenges EAI still too difficult and costly Limited standards- based Enhanced point-to- point integration, but no hub-based Integration Documents Transactions XPC / MAI Collaborative Platform AuctionSource Process GTW Collaborative Platform 5.x Supplier Buy Buyer

R&D = Technology Leadership DefinitionCommerce OneEvolution Business Documents xCBL OASIS UBL ebXML CC SOX W3C XML Schema MML ebXML Messaging W3C XML Protocol SOAP UDDI WSDL XML Document Schema Languages Sending Messages Directory & Service Definition …

Aggressive Focus = Value % of Operating Expenses Development Sales & Marketing

CatalogCatalog Manager Platform Content Products Community Manager Business Web Services Framework Process Manager Transaction ManagerEAI Connectors Business Intelligence xCBL ProcureFulfillPay NegotiateSource Sourcing Intelligence Supplier Self-Service Contract Labor Contract Management Invoice Management & Payment Auction Procurement Sourcing Commerce One 5.0

Commerce One Source  First CMRC solution deployed on the Exterprise patent-pending collaborative agent technology – integrates all key sourcing business processes from negotiation to analytics  Delivered: Q4’01 Beta; Q1’02 General Availability Business Process ProcureFulfillPay NegotiateSource AuctionSourcingSourcing Intelligence √ Forward Auction √ RFx √ Spend Analysis √ Reverse Auction √ Negotiation √ Advanced Supplier Perf. Analysis √ Supplier Performance Mgt. Contract Management Functionality √ Sourcing Activity Reporting Contract Management √

Business Process AuctionProcurement/Contract LaborSettlement √Forward√MRO Procurement√Invoice Presentment √Reverse√Configured Goods Procurement√Invoice Reconciliation √Order Management√Payment √Contractor Management Functionality ProcureFulfillPay NegotiateSource Commerce One Buy  This complete procure-to-pay solution combines the strength of Commerce One’s e- procurement with key components of our collaborative commerce platform. Provides integrated procurement with supplier management so all trading partners can participate.  Delivered: Commerce One Buy 5.0 Q1’02; Procurement Module 5.5 Q1’02  Delivered: Supplier Self-Service: SupplyOrder v3.5 Q401

Proven Value: Delivering Visibility and Control  Delivering efficiency  Reduced cost for buyers and suppliers  Faster cycle times  Increased visibility and control across the supply chain  Delivering strategic advantage  Faster time-to-market for new products  Increased market opportunity  Better access to new suppliers

2002: Key Challenges Remain Challenges Enabling seamless integration of enterprise systems Reducing the cost and complexity of buyer-to-supplier connections Accelerating availability of new functionality Applications should adapt to customer requirements

2002: Looking Forward Standards connect e-commerce solutions and legacy apps Enables fast connections to trading partners and 3 rd party services Breakthrough delivery of new capabilities Process platform orchestrates complex business processes Challenges Commerce One Focus Enabling seamless integration of enterprise systems Reducing the cost and complexity of buyer-to-supplier connections Accelerating availability of new functionality Applications should adapt to customer requirements

What are Web Services? Web services are software application components that: 1.Conform to a set of XML and Internet standards 2.Are searchable, and invokable within an enterprise or by trading partners Commerce One Characterization A.Simple Web Services: Compliant with the three currently adopted Web services standards (WSDL / SOAP / UDDI) and support a single synchronous-point service B.Composite Web Services: Simple Web services that can be combined together into a multi-step process under the control of a composite tool or process manager C.Enterprise-class Web Services: Web services requiring greater infrastructure support for asynchronous and reliable messaging, end-to-end security (non- repudiation and access control), guaranteed quality of service, and explicit business policy support D.Collaborative Web Services: Enterprise-class and simple Web services that are combined to create business process context. Collaborative Web services support, multi-step, multi-party collaboration among applications, users, and trading partners

Gartner Group on Web Services  What are Web Services and why do they matter?  Web Services are applications with public interfaces which may be accessed through Internet and Web Services-specific standards. They promise substantial improvement of dynamic interaction among networked applications. Gartner Presentation –

Pursuing Two Sets of Elusive Goals Leverage Core Abilities Outsource Flexibility Highly Transformative Relationship Enhancing Agility Enhancing Demonstrable ROI Platform Independent Standards-Based Secure Reusable Distributed Computing Scalable Web Services Business Goals Technology Goals Web Services enable the “virtual enterprise” “Components for the rest of us … “ Web Services = ASP, Cust. Services, Prof. Services, Service Businesses Gartner Presentation –

NameDescription Purpose WSDL Formats messages between web services Describes a web service in enough detail for soft- ware to use it Helps systems find relevant web services The SOAP standard specifies how to create a message envelope, header, and body in XML to be transported between a web service consumer and its producer via HTTP. It’s extensible, so users can embed extra security or reliability data in the messages. WSDL is an XML-based language for describing how a web service’s consumers can access it, what they must provide as inputs, and what outputs they can expect in return from the producer. UDDI describes how online business registries can list web services producers by name in “white pages” or by category in “yellow pages.” UDDI registries also must offer “green pages” that give technical details about each listed web service. Simple Web Services SOAP UDDI

Composite Web Services Step 8 Step 1 Step 5 Step 4 Step 3 Step 2 Step 6 Step 7Step 9 Project Manager Web Service

Step 8 Step 1 Step 5 Step 4 Step 3 Step 2 Step 6 Step 7Step 9 Web Service Enterprise-class Web Services Web Service End-to-End Security Quality of Service Auction Participants B2BiEAI Service Provider SAP B2Bi Supplier Orders EAI Reliable Messaging

Step 8 Step 1 Step 5 Step 4 Step 3 Step 2 Step 6 Step 7Step 9 Web Service Collaborative Web Services Step 8Step 4 Step 3 Web Service Multi-Party Multi-Step Trading Partners Auction Participants B2BiEAI SAP B2Bi Supplier Orders EAI Service Provider

Application Development Evolution Reuse of Data Ex: SAP R/2 App 1App 2App 3 Database e.g.: Address, Name, … Second Generation: Database-Based Apps Duplication of Business Logic & UI Data File Ex:Address Data Redundancy First Generation: File-Based Apps Duplication of Business Logic & UI App 1App 2App 3 Data File Ex:Address Data File Ex: Address Separation of Presentation UI from Business Logic Ex: Client Server Monolithic Applications No shared Biz Logic Monolithic Applications No shared Biz Logic Monolithic Applications No shared Biz Logic Business Objects Third Generation: Re-Use of Object Model App 1 Biz Logic App 1 UI App 2 Biz Logic App 2 UI App 3 Biz Logic App 3 UI Reuse of Business Logic via Objects Ex: SAP R/3 and PeopleSoft Database Ex: Address, Name, …

Application Development Evolution: Toward Creating a Service-Oriented Architecture Ability to evolve and integrate applications and business models quickly and flexibly within an enterprise and across trading partners / service providers Service Interfaces via XML Documents App 1App 2App 3 Database Business Objects Service 2Service 1Service 3Service 4 Business Process 1 Business Process 3 Busines s Process 2 Database Business Objects Next Generation : Service-Oriented Architecture

Commerce One Technology Strengths  Document management via XML  Standards-based integration  Orchestrating business processes  Delivering enterprise-class availability, speed, and reliability

Collaborative Web Services Platform Web Services Engine GTW Procurement Hosted Buy 3 rd Party Buy Supplier ERP B B B Collaboration Engine Source Buy CMRC Svc 3 rd Party Web Svc BuySite SAP3 rd Party Svc3 rd Party Web Svc Collaboration Engine Quickly and flexibly build collaborative applications for deployment within an enterprise and across trading partners: 1.Provide tools that enable collaborative, web service- based development with minimal programming 2.Provide easily configurable and reusable BPM and application components 3.Leverage these tools and components for applications within the enterprise, and across trading partners Web Services Engine Reduce the cost of application integration within and outside the organization through secure, reliable, and high performing business-to-business XML transaction processing: 1.Any-to-Any enterprise application integration 2.Ability to expose any EAI, A2A or B2Bi back-office application as industry-standard web services 3.Tools that enable low-cost web service integration Collaborative Web Services Platform

Simple Web Services are Not Enough (Current state of industry) Simple Web Services Enterprise-class Web Services Single Web Service Composite Web Services

Simple Web Services …  Consumer-oriented services  Calendaring  Preferences  File store  Informational services  15-minute stock quotes  Query from a content aggregator  A directory or catalog service  Price quotes Not adequate for enterprise applications, B2B commerce, or collaboration

We Will Deliver “Next Generation” Web Services Collaborative Web Services Management Simple Web Services Enterprise-class Web Services Single Web Service (Current state of industry) Composite Web Services

E-marketplaces and Web Services  Help Service Providers (Financials, Logistics) develop external Web Services and offer them in a common way to the E-Marketplace community  Aggregator for disparate Web Services (developed with different tools and different standard versions to meet unique industry / geographic requirements)  Develop complementary Web Services for Commerce One applications on Collaborative Web Services Infrastructure  Provide E-Marketplace specific information and applications (e.g. supplier discovery) as standard web services  Provide gateways for other B2Bi protocols (e.g. ebXML)

Aggressive Approach  Establish lead in new market  Speed e-commerce adoption  Get enterprises connected  Drive e-marketplace participation  Dramatically simplify integration and interoperability  6.0 platform due Q4  Accelerating 6.0 applications to Q4’02 (Source) / Q2 ‘03 (Buy)  Careful evaluation of roadmap, migration  Shifting people, engineering focus

The Business Internet Mark Hoffman Commerce One