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Activities of E-commerce (BtoB) in Japan

Activities of E-commerce (BtoB) in Japan. November 2-3, 2006. Yoshi Nagase Technologic Arts Inc. Next Generation Electronic Commerce Promotion Council of Japan Information Sharing WG. Genealogy of BtoB information sharing. 1985. 1990. 1995. 2000. 2005. 2010. VAN Service.

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Activities of E-commerce (BtoB) in Japan

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  1. Activities of E-commerce (BtoB) in Japan November 2-3, 2006 Yoshi Nagase Technologic Arts Inc. Next Generation Electronic Commerce Promotion Council of Japan Information Sharing WG

  2. Genealogy of BtoB information sharing 1985 1990 1995 2000 2005 2010 VAN Service Liberalization of communication->Industry VAN ・Liberated from corresponding to each customer Standard EDI EDIFACT/CII->Industry standards ・Possible to exchange the information on N:N ・Lowering the cost of network Internet EDI ・Make it possible to connect to wider range of customers FTP/Email->Web EDI Evolution of EDI technology Automating information exchange by getting away from screen operation by manpower (XML) Securing reliability and safety of the internet (ebXML-MS/CPA) Realizing information sharing among business interfaces and globally (ebXML-BP/CC) XML/EDI ebXML ・Solve the issue of isolation of material flow and information Sharing the information on electronic tag IC tag EDI->IC tag NTWK ・Make it possible to manage product life cycle Strategic competitive superiority (SIS / Retention) BPR (CRP/VMI) Change of needs of economy and society (Downsizing/ outsourcing) CALS / SCM （Linking the information on merchandises, producers, and retailers ） Product cycle management （3R・Maintenance・Safety・Environment）

  3. IT New Innovation Strategy IT Strategy Head Office, January 2006 １．Pursuing the strength of IT structural change Structural change of medical care, environmentally friendly society, secure and safe society, and safe road traffic Electronic government, establishment of the IT business management, and lifetime enriched society ２．Developing IT infrastructure The infrastructure that is designed universally and does not have the digital divide Reliable IT society, establishment of human infrastructure, development of the high-degree human resource, and research/development for next generation ３．Disseminate to the world Improve the presence of Japan Contribute internationally by providing models to solve issues

  4. Strengthening corporate competitiveness by establishing the IT business management －Achieving the world’s leading IT business management － ① Achieving the highest level of corporate management in the world by utilizing IT Attempt to permeate use of IT into the business management by promotions such as pubic and private people’s movements and boost the ratio of companies, including large, medium, and small sized ones, that optimized their business management by use of IT beyond the walls among corporate departments and companies to the world’s leading level. ② Structuring and utilizingwell-understood common infrastructure by e-commerce Structure well-understood common infrastructure ( for example EDI platform) that has global harmonization and can be used commonly by companies for E-commerce and attain that more than 60% of the companies that implement E-commerce are utilizing well-understood common infrastructure by the year of 2010. ③ Promoting utilization of IT for mission-critical tasks and expanding e-commerce at small-medium sized companies Attain that more than 60% of small-medium sized companies (estimated annual amount of sales from 500 million to 2 billion yen) are utilizing IT for their mission-critical tasks by the year of 2010.Furthermore, attain that more than 50% of customers of the small-medium sized companies are implementing E-commerce by the year of 2010. ④ Developing environment of fund procurement for small-medium sized companies by utilizing IT Utilize IT and establish electron receivable system that increases liquidity of monetary claim such as account receivables that small-medium sized companies own while securing safety of transaction.

  5. Electronic Data Interchange（EDI） Exchange BtoB business information (XML) Transmit information between computers ( Internet） EDI is to exchange business message among different organizations via communication lines by applying standard rules.

  6. Current EDI～Different customers have different specs As information technology progresses, EDI specification changes. Different industries have different specifications due to different terms to address. Furthermore, specifications for individual companies Expand due to spread of XML and internet. Needs translator exclusively for (EDIFACT) Legacy EDI method (EDIFACT) DTM+4:20010916:102’LIN+LX254+500++50000’LIN＋CT201+100++20000’LIN+‥ Sept. 16, 2001 Quantity Order Date Quantity Order Form Product name Price Price Product name Order date Dear Sir/ madam of B Inc. I would like to order as follows; A Corp. Segment ID Segment ID Segment ID Segment ID Web EDI method(HTML) Order date Computer cannot identify product name, quantity, and price. <body> <h1>20010916</h1> <ｔｄ>LX254</ｔｄ> <ｔｄ>500</ｔｄ> <ｔｄ>50000</ｔｄ> <ｔｄ>CT201</ｔｄ> <ｔｄ>100</ｔｄ> <ｔｄ>20000</ｔｄ> <ｔｄ>TI115</ｔｄ> <ｔｄ>300</ｔｄ> <ｔｄ>45000</ｔｄ> </body> Product name Quantity Price LX254 500 50,000 CT201 100 20,000 XML universal software can handle TI115 300 45,000 Product name Quantity Price XML/EDI method <Order> <Order date日>20010916</Order date> <Product name>LX254</Product name> <Quantity>500</Quantity> <Price>50000</Price> <Product name>CT201</Product name> <Quantity>100</Quantity> <Price>20000</Price> <Product name>TI115</Product name> <Quantity>300</Quantity> <Price>45000</Price> </注文> The world of paper slip The EDI World

  7. Standard Message Information entity Business process Standard Message Information entity Business process Electronic devices industry Message Information entity Construction devices Industry Message Information entity Standard Message Information item Ministry of Defense subset Chemistry industry subset Distribution industry subset Marine transport industry subset EANCOM SMDG DoD CIDEX EIAJ CINT UBL RosettaNet ebXML UN/EDIFACT ANSI X12 CII XML Syntax Information entity dictionary Standard message Various codes Syntax Information entity dictionary Standard message Various codes Syntax Syntax Even though the same basic technology is introduced, different sets (subsets) of messages exist in Different industries due to business practice, business model, and the characteristics of products. There are several methods to be basic technology. ＊Besides above, unique methods that use unique technology and business VAN are also used.

  8. BtoB Information exchanging needs Different companies can have business collaborations seamlessly by exchanging information. Business collaborations between companies maintain continuity from the information on product plan, acceptance and receipt of order, to payment. The broader business linkage we have, the more valuable chain we can yield in the industrial world. It guarantees security and safety of products and makes it possible to manage the information on environment-friendliness. As for the information chain, all companies that have business collaborations can participate in exchanging information no matter how big the company is. Information chain can be achieved between nations. Framework of BtoB E-commerce Reintegrating existing EDIs separated by business unit.

  9. Components for operating BtoB E-commerce In accordance with the agreed process, move on to the next step for exchanging information. Intranet application （Including tasks by manpower） Intranet application （Including tasks by manpower） In accordance with the agreed process, prepare for exchanging information. Send data to intranet application. Prepare data. Convert data into the agreed format. Convert data into the intranet format. （Mapping） （Mapping） EDI In accordance with the agreed operation manual, prepare for sending data. In accordance with the agreed operation manual, analyze data. （Including authentication and decoding） （Including security） Send out data. Receive data.

  10. Components that introduce BtoB E-commerce [Introducing components] [Related standards] [Sending procedure] Intranet application （Including tasks by manpower） BP modeling methodology Business Process Model In accordance with the agreed process, prepare for exchanging information. Information entity definition methodology Information model Prepare data. Data Type Description Data definition syntax design rules Convert data into the agreed format. （Mapping） Operation process describing specs In accordance with the agreed operation manual, prepare for sending data. Operation Process Definition Security standards Specifications for sending message Data TransferDefinition Send out data. Communication protocol

  11. Business process model Product Lifecycle Management Manufacturing cycle Circulation cycle Cycle of “use” Cycle of “used” Procurement Utilization and consumption Physical distribution （Collecting） Design plan History management Placement/receipt of order Procurement Physical distribution Maintenance management Includes refurbishment and recall Classifying dismantlement Placement/receipt of order Disposal Sales Middle physical distribution including procurement and sales History management Physical distribution Reuse Circulation of used products Recycle Production Production includes physical distribution, sub-cycle for use, and sub-cycle for “used”.

  12. Business process model Manufacturing cycle Plan and design Placement/ Receipt order Parts manufacturer Manufacturer Manufacturing cycle Procurement Physical distributor Production Processing manufacturer Material manufacturer Physical distributor

  13. Business process model Person who places order Person who receives order BusinessProcessActivity Investigate the application of new parts for developing in-house products [No new parts applied] [New parts applied] BusinessProcessActivity SharedBusinessEntityState BusinessProcessActivity : Environmental information Ask for providing environmental information on parts Determine the situation of survey on the asked parts [ Already asked] [Not surveyed yet] BusinessProcessActivity Research the asked parts [Already surveyed] SharedBusinessEntityState BusinessProcessActivity BusinessProcessActivity : Environmental information Inspect the environmental information provided Provide the environmental information on parts [Already asked ] [Defected] [No defectiveness] BusinessProcessActivity Register the part information to in-house DB SharedBusinessEntityState BusinessProcessActivity BusinessProcessActivity : Environmental information Notify receipt of the environmental information Receive receipt report on the environmental information [Already asked ] SharedBusinessEntityState BusinessProcessActivity BusinessProcessActivity : Environmental information Ask for providing the environmental information again Correct the pointed parts [Already asked again ] SharedBusinessEntityState BusinessProcessActivity BusinessProcessActivity : Environmental information Inspect the environmental Information again Provide the environmental information again [[Already asked again ] [Defected] [No defectiveness] BusinessProcessActivity Register the parts information to in-house DBへ SharedBusinessEntityState BusinessProcessActivity BusinessProcessActivity Report receipt of the environmental information Receive report on receipt of the environmental information Exchanging the information on environmentally challenging agents at the stage of Product manufacturing ー Design : Environmental information [ Already received ]

  14. Information entity model UN/CEFACT Core Component As of Oct/2005 Information item classification Primary information item Secondary information item Well-understood Information item Communication(通信） Contact（連絡先） Registration（登記） Party(当事者） Business Profile(事業概要） Party Person(個人） Work Capability(作業能力） Organization(組織） Qualification(資格） Staff(要員） Technical Capability(技術力） Dimension（外形寸法） Completed Work(完了作業） Project(工事） Object Construction Type(工事種別） Status(状態） Service(サービス） Test Condition（試験条件） Preference(選択） Examination Result（検査結果） Calculation(計算） Guarantee(保証） Period(期間） Event(取引事象） Penalty(違約金） Route(経路） Contract(契約） Event Trade Terms(取引条件） Metrics(計数） Process(工程） Instruction（指図） Tendering Process（入札プロセス） Delivery Terms（配送条件） Address(住所） Country(国） Location Location(場所） Country Sub-Division（国内行政区 Geographical Coordinate(地理座標） 分） Payment(支払） Financial Account(金融口座） Price(価格） Financial Card(金融カード） Payment Tax（税） Currency Exchange(為替交換） Allowance Charge（調整課金） Payment Means(支払方法） Service Charge（サービス課金） Payment Terms(支払条件） Document Document(文書）

  15. Information model Core structuring elements (Organizational information） Address（住所） Organization（組織） - Business Type（業務種別） : Code - Legal Classification（法的分類） : Code - Tax Registration（納税登録） : Identifier - Name（名前） : Text - Identification（識別） : Identifier Location（場所） - Description（説明） : Text - District（区域） : Identifier Contact（連絡先） Registration（登録）

  16. Data Type Description Information structure and XML Information structure Person (個人） Name(氏名） BirthDate(誕生日） XML Scheme <ComplexType Name=‘PersonType’> <Element Name=‘Name’> <Element Name=‘BirthDate’> </ComplexType> （Description of XML Document） XML Document <Person> <Name> Japan Taro</Name> <BirthDate>1990-01-20</BirthDate> </Person>

  17. Data Type Description Making Business Information Entity be XML <ComplexType Name=“Passenger_Person” > <Element Name=“Name” Type=“Text” /> <Element Name=“Berth Date” Type=“Date” /> <Element Name=“Residence” Type=“Address” /> </ ComprexType> <ComprexType Name=“Address” > <Element Name=“Post Code” Type=“Identifier” /> <Element Name=“Prefecture” Type=“Text” /> <Element Name=“Town” Type=“Text” /> <Element Name=“House Number” Type=“Text” /> </ComplexType> <ComplexType Name=“Text” > <Simple Content> <Extention Base=“xsd:string”> <Attribute name=“LanguageID” /> </Extention Base> </Simple Content> ,/ComplexType Passenger（Passenger_ Person) Fullname（Name. Text) Birthday（Birth Date. Date Time) Residence（Residence. Address) Automatic generation Address（Address) Zipcode（Post Code. Identifier) Prefecture（Prefecture. Text) Municipality（Town. Text) House Number(House Number. Text)

  18. Operation process definition Agree the EDI operation procedure Define collaboration Party’s role Define transaction Services Binding specs Define activities

  19. DataTransferDescription Interoperability of ebXML message transfer service

  20. DataTransfer Definition Transfer messageーsolution of small-medium sized companies Small-medium sized companies Customers（Server） ( ) Client PullRequest message） Request slip（ PullResponse Receive slip（ message） Notify receipt of slip PullAcknowledgment （ message）

  21. Roles of Registry & Repository (R&R) BP Modeling Methodology Intranet application （Including tasks by manpower） Business Process Model Information Entity Methodology In accordance with the agreed process, prepare for exchanging information. Standard R&R Information Model Prepare data. DataType Description Registry Information Model Convert data into the agreed format. Data Definition Syntax Design rules Operation Process Definition Specs In accordance with the agreed operation procedure, prepare for sending data. Operation Process Definition Technical specs for sending message Data Transfer Definition Send data.

  22. Trial production of National Registry & Repository Business Process and Information Model • - Information on speculation of quality of steel products • - Information on steel products' history registration • - Information on placement and receipt of order of • electric appliances and electron • Information on placement and receipt of order of • household equipment • - Small-lot consolidated cargo tracking information • publication history information • - Hotel/inn information • - Consumption commodity master information • Electric appliances and electron manufacturing • circulation cycle • Construction machine manufacturing circulation • cycle • Electric appliances and electron maintenance and • recycle • - Business machine maintenance and recycle Registry Repository

  23. International federation of registry United Nations UN/CEFACT Registry Registry structuring project was started from March of 2005. Steel Reference Proposal Cross-reference Korea Registry Japan Operation started National Registry Cross-reference Trading Taiwan Registry Developing operation system in 2004 Started disclosing the system to market in 2005 Trial production Cross-reference China Wuhan Registry Trial production Circulation Registry Physical distribution Registry Construction Registry Started project in 2004 （LCDM) Trial production in 2003 Development in 2004

  24. Utilizing ｅｂＸＭＬ Business Process（ＢＰ） Core Component （ＣＣ） R&R:Registry & Repository Registry Repository Introduction CPA:Collaboration Protocol Agreement ＣＰＡ（Operation Process） ｅｂＭＳ（DataTransferDefinition） Operation

  25. ｅｂＸＭＬ introducing tool Modeling tool Business Process R&R GUI Translator Information model editor Information model Data type conversion Ｒ＆Ｒ CPA Editor Data Type Description Operation procedure description XML Schema generation tool Data Transfer Definition ebMS Application Operating BtoB business process linkage

  26. In order to structure E-commerce transaction platform - Well-understood common infrastructure in an internationally harmonized manner Personal proposal １．Agree and recognize the framework that forms platform ２．Select and recognize framework components（Domestic and international） ・Agreement by the international standardization group ３．Describe interoperability among framework components ・Interoperability authentication agent ４．Provide framework components by R&R ５．Promote the industry standard EDI that complies with platform ・Support pilot project ６．Apply platform to business interface EDI / international EDI ７．Select solutions of the small-medium sized companies in compliance with platform ８．Enlighten the spread and support promotion of its introduction - Financial support（ small-medium sized companies ）

  27. Next Generation Electronic Commerce Promotion Council of Japan Structure of the EDI group International standard Development of business linkage model between companies EDI promotion council Harmonization Promote the spread in the industry Information sharing WG Component Repository Technology B2B-EC framework Framework WG Mechanism to distribute framework components Next generation EDI WG Interoperability Selection of solutions International standard

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