1. © ChevronTexaco 2001 Web Services Business Drivers and Priorities September 11, 2001

2. Technology Ventures Business Landscape Existing EDI infrastructure between major trading partners —Internal expertise, proven VANs & EDI translators —Industry standards mostly around order/invoice cycle Many “independent marketplaces” failed, but still interest in: —E-Business “storefronts” —Major customer extranet connections “Energy Trading” business model largely unsuccessful, but —Logistics function still critical to industry

3. Technology Ventures Procurement of Oilfield Services Goals —Automate more of workflow —Reach wider population of smaller trading partners Technology —EDI / XML / WS ?? —ComProServ - emerging industry consortium solution Often multi-billion $ projects —Heavy equipment —Well drilling, logging services, etc —Computers, office supplies, travel miniscule spend —Industry spend $100’s billion

4. Technology Ventures Business Drivers EDI → Web Services Add Business Partners —Small and Medium Sized Enterprises (SMEs) Lower Setup Costs Decrease Dependence on Proprietary Protocols Increase Competition and Interoperability EDI experts currently skeptical about web services satisfying basic messaging requirements.

5. Technology Ventures Basic Messaging Requirements Security —Authentication, Authorization, —Privacy (HTTPS, not P3P) —Message Validity (got what sent) Reliable Messaging Non-Repudiation / Reconciliation

6. Technology Ventures Reconciliation Deal with miscommunication, errors Large portion of EDI day-to-day work Cannot solve just with protocols —Limitless ability of humans to screw up Non-repudiation usually too much —Legal action < 1% —99% good faith “What the heck happened?” Logs too little Need query capability, recognizable evidence

7. Technology Ventures Choreography Solutions in-place —ERP and EAI systems —ebXML and industry specific business specs Driver to standards based infrastructure solutions unclear Major technology providers pursuing —Products envisaged? —Enable Dot Com industry hubs?? Wait and see.

8. Technology Ventures Little Current Interest Runtime discovery, service composition Semantic Formalisms Web Peer-to-Peer Multi-Party Communication Agents Contract automation Low Business Drivers or Feasibility Not Demonstrated

9. Technology Ventures Web Services Bottom Line Foresee use in core business functions Need basics clearly demonstrated —Security —Reliability —Non-Repudiation / Reconciliation