Julie Smith David and William E. McCarthy 2002 Communities –Independent view –Collaboration space –ebXML & open-edi Ecological Fit ACC-821 – 8 DEC 2004 The Evolution of Enterprise Systems - II

Julie Smith David and William E. McCarthy 2002 BuyerSeller Third Party Collaboration Space Value Exchange Japan expert contribution to , 9 May 2002, Seoul Korea

Julie Smith David and William E. McCarthy 2002 Electronic Collaboration – WHY?? Michael Hammer -- The Agenda “Extend Your Enterprise” 1.See your business not as a self-contained company but as part of an extended enterprise of companies that work together to create customer value. 2.Identify and strengthen the key processes at which you excel; outsource everything else to someone better equipped to do it. 3.Be prepared to rethink your company’s identity and strategy in fundamental ways.

Julie Smith David and William E. McCarthy 2002 Electronic Collaboration – WHY?? Michael Hammer -- The Agenda “Knock Down Your Outer Walls” 1.Streamline the connections between your processes and those of your customers and suppliers 2.Relocate work between companies so that it is done by whoever can do it best 3.Coordinate through open sharing of data between companies (independent view of transactions?) 4.Exploit the opportunity of collaborating with co- customers and co-suppliers

Julie Smith David and William E. McCarthy 2002 Business Process Business Process Business Process Enterprise #1 Business Process Business Process Business Process Enterprise #3 Enterprise #2 Business Process Business Process Business Process Collaboration Perspective: Trading Partner vs. Independent Independent view of Inter-enterprise events Trading Partner view of Inter-enterprise events (upstream vendors and downstream customers) Dotted arrows represent flow of goods, services, and cash between different companies; solid arrows represent flows within companies Japan expert contribution to , 22 Oct 2001, Victoria BC,

Julie Smith David and William E. McCarthy 2002 Perspective-Dependent Collaboration Descriptions: Inside agent & outside agent Vendor & Customer Inflow & Outflow Sale & Purchase Cash Receipt & Cash Disbursement

Julie Smith David and William E. McCarthy 2002 Perspective-Independent Collaboration Descriptions: Initiating agent & Responding agent Flow Shipment Payment Buyer & Seller ??

Julie Smith David and William E. McCarthy 2002 Shipment Event-Type Payment Economic Event typification duality …

Julie Smith David and William E. McCarthy 2002 Economic Event Economic Agent accountability typification Economic Agent Type

Julie Smith David and William E. McCarthy 2002 Electronic Collaboration – Old (bottom-up) and New (top-down) OLD technology is EDI (electronic data interchange) EDI has standard documents or transaction to X12 (American) or EDIFACT (everywhere else) Industry – RosettaNet Cross Industry -- OAG NEW technology is XML –Bottom-up  UBL –Top-down  ebXML or BP emphasis

Julie Smith David and William E. McCarthy 2002 ebXML

Julie Smith David and William E. McCarthy 2002 shared business objectsebXML uses a concept of shared business objects to keep a partner’s processes aligned with another partner’s processes state state alignmentWhen partners in a collaboration agree on the same value (or state) of a shared business object, then each of their business processes should be synchronized, and the partners are said to be in state alignment ebXML calls a shared business object a Business Entity (BE) –Examples of Business Entities: A purchase order, a shipping container PO AB1234, SEAU –An instance example of a BE : PO AB1234, SEAU –A BE has 2 important points : state valuea state value (the business object is in a ‘condition’) lifecyclea lifecycle (the phases a business object goes through from start to finish) Understanding the behavior and lifecycle of BE is critical to modeling There will be a Library of Business Entities Business Semantics of ebXML Source: ebXML COOL presentation by R. Haugen & J. Yunker)

Julie Smith David and William E. McCarthy 2002 Business State Alignment Means both trading partners must agree on the state of each Business Object at the end of each Business Event. For example, the Order is not accepted until both partners agree explicitly that it is accepted. The Business Transaction protocol must insure that both partners transition to the new Business State - or neither does. Think “electronic handshake”. Source: ebXML BCP&MC Bob Haugen

Julie Smith David and William E. McCarthy 2002 ISO Open-edi Ontology Collaboration Model Bilateral Collaboration governs Economic Event Economic Resource Economic Agent stockflow from to Economic Contract Economic Commitment reciprocal fulfills establish duality Economic Resource Type typifies specifies Economic Event Type Business Role specifies typifies qualifies reserves involves Partner Third Party Mediated Collaboration Business Transaction participates requires Agreement Regulator constrains Business Event

Julie Smith David and William E. McCarthy 2002 BT PhaseExample Business Event PlanningSeller publishes Catalog Seller sends Catalog to Prospective Buyer IdentificationBuyer sends AvailabilityandPriceRequest to Seller Seller returns AvailabilityandPriceResult to Buyer NegotiationSeller sends OrderRequest to Buyer Buyer sends Offer to Seller Seller sends CounterOffer to Buyer Buyer sends an OrderAcceptance to Seller for parts (alternatively a NonAcceptance would suspend or abandon the Business Transaction) ActualizationSeller sends an AdvanceShippingNotice when goods are prepared for shipping Buyer sends ReceivingReport to Seller when inspected goods are accepted Seller sends an Invoice to Buyer after parts are shipped Buyer sends RemittanceAdvice to Seller with information about payment of the Invoice Post- Actualization Buyer sends WarrantyInvocation to Seller An Example Business Transaction with Business Events Grouped in Phases

Julie Smith David and William E. McCarthy 2002 EconomicResourceType CandidatePlannedIdentified > publishCatalog > sendCatalogRequest > acceptAvailabilityAndPriceRequest Proposed > sendOffer > shipAcceptableSubstitute Substituted > acceptOffer Specified State Machine Diagram for Economic Resource Type

Julie Smith David and William E. McCarthy 2002 Sample Business Object Example States (Lifecycles) for Business Object Business Transaction Waiting-Start In-Service Completed Aborted Suspended Economic Claim Materialized Settled Economic Resource Type Candidate Planned Identified Proposed Specified Substituted Business Transaction Phase Pending In-Service Complete Sample States for Business Objects

Julie Smith David and William E. McCarthy 2002 Sample Business Objects with State Life Cycles Economic Claim governs Economic Event Economic Resource Partner stockflow from to Economic Contract Economic Commitment reciprocal fulfills establish duality Economic Resource Type typifies specifies Economic Event Type Business Role specifies typifies qualifies reserves involves Business Transaction Agreement materializes settles candidate planned identified proposed specified substituted waiting-start – in-service completed -- aborted --suspended materialized settled negotiation pending  negotiation in-service  negotiation complete

Julie Smith David and William E. McCarthy 2002 ebXML vision A global electronic market place where enterprises of any size, anywhere can: –Find each other electronically –Conduct business through the exchange of XML based messages Using standard message structures According to standard business process sequences With clear business semantics According to standard or mutually agreed trading partner agreements Using off the shelf purchased business applications TEAMS: BP, CC, TP, security, messaging services, architecture, QC, etc.

Julie Smith David and William E. McCarthy 2002 Collaborative Process – Interactions Request Business Details 1 Build Local System Implementation Register Implementation Details Register COMPANY A Profile Agree on Business Arrangement 4 Query about COMPANY A profile Download Scenarios and Profiles DO BUSINESS TRANSACTIONS 6 COMPANY A COMPANY B ebXMLcompliant system Business Profiles Business Scenarios ebXML Registry XML Request Business Details 1 Build Local System Implementation Register Implementation Details Register COMPANY A Profile Agree on Business Arrangement 4 Query about COMPANY A profile Download Scenarios and Profiles DO BUSINESS TRANSACTIONS 6 COMPANY A COMPANY B Collaboration Protocol Profiles, Business Process Models (BPSS) Collaboration Protocol Profiles Collaboration Protocol Profiles, Business Process Models (BPSS) Collaboration Protocol Agreement

Julie Smith David and William E. McCarthy 2002 CPP CPA Summary What Parties ARE SCHEDULED to do What Parties COULD do Business Process Definition Party 1 CPP Party 2 CPP Business Process Definition Collaboration Protocol Agreement (CPA) intersection, negotiation

Julie Smith David and William E. McCarthy 2002 ebXML Architecture Registries/ Repositories Core/Industry Components Business Documents CP Agreement Design Time Business Process Collaboration Protocol Profile Transport Message Business Service Interface Business Services/App’s Runtime Business Service Interface Business Services/App’s Business Libraries, Trading Partner Directories, etc…

Julie Smith David and William E. McCarthy 2002 Business Domain View (BDV) Business Requirements View (BRV) Business Transaction View (BTV) Business Service View (BSV) UMM metamodel Process AreaBusiness Process Business Transaction Business Collaboration (binary or multiparty) Requesting Business Activity Responding Business Activity Business Messages Requesting Service Transaction Responding Service Transaction Agreement Economic Event Network Component Authorizing Roles Partner Economic Resources Business Documents Business Area Source: ebXML TMWG

Julie Smith David and William E. McCarthy 2002 COMPANY A Business Service Interface (BSI) COMPANY B Collaboration Messaging for: Planning Identification Negotiation Actualization Post-Actualization Collaboration System Enterprise System for Company B  XBRL  traditional financial statements Enterprise System for Company A General Ledger Taxonomy: Purchases – xx AccPay (A) – xx AccPay (A) -- xx Cash – xx traditional financial statements General Ledger Taxonomy: AccRec (B) – xx Sales -- xx COGS – yy Inventory – yy Cash -- xx AccRec (B) – xx  XBRL  Business Process XML (ebXML, OAG, ISO)  Traditional EDI transactions, business events, value creation, and controls XML domains

Julie Smith David and William E. McCarthy 2002 The Semantic Web Beyond Enterprise Systems Everybody-to-everybody RDF & ontologies Agent technology

Julie Smith David and William E. McCarthy 2002 Characteristics –Speed of change –Competition –Complexity –Corporate Structure –Size Organizational Fit for Enterprise Systems Ecological Niches –Ocean –Lakes –Desert –Mountains –Puddle

Julie Smith David and William E. McCarthy 2002 Enterprise Systems classification structure is from David, McCarthy & Sommer, Communications of the ACM, May 2003, pp where you will live your careers the most back

Julie Smith David and William E. McCarthy 2002 QUESTIONS ??

Julie Smith David and William E. McCarthy 2002 Enterprise Systems classification structure is from David, McCarthy & Sommer, Communications of the ACM, May 2003, pp back