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The Business Internet

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. Buy. Auction. Source.

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The Business Internet

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  1. The Business Internet Mark HoffmanCommerce One

  2. 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

  3. Buy Auction Source Supplier Buyer XPC / MAI Collaborative Platform Process Documents Transactions BuySite Supplier GTW Collaborative Platform 5.x B MarketSite Hosted BuySite Supplier B B SupplyOrder BuySite Supplier XML (xCBL) • 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 MarketSite B S Ability to Plug-in Business Services GTW MarketSite S B C S MarketSite 3.x C S • Benefits • Matching Buy-Sell • Network effects • Dynamic pricing • Transaction fees • Comprehensive, hub-based XML integration • Challenges • Random interactions • Limited point-to-point integration C S REOS • Benefits • Buyer and supplier interaction via hosted connections • Challenges • Static catalogs • No workflow • List prices • High search costs • No integration Commerce One’s Evolution Any Enterprise Public Marketplaces Commerce One SCOPE 1998 1999 2000 2001 2002 TIME

  4. R&D = Technology Leadership … 1997 1998 1999 2000 2001 2002 2005 Definition Commerce One Evolution xCBL Business Documents ebXML CC OASIS UBL XML DocumentSchema Languages SOX W3C XML Schema MML Sending Messages ebXML Messaging SOAP W3C XML Protocol UDDI Directory &Service Definition WSDL

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

  6. Commerce One 5.0 Source Negotiate Procure Fulfill Pay Procurement Sourcing Contract Management Auction Invoice Management & Payment Products Supplier Self-Service Sourcing Intelligence Contract Labor Catalog Catalog Manager Content Community Manager Process Manager Business Intelligence Platform EAI Connectors BusinessWeb Services Framework Transaction Manager xCBL

  7. Commerce One Source Business Process Procure Fulfill Pay Source Negotiate Functionality Auction Sourcing Sourcing Intelligence √ Forward Auction √ RFx √ Spend Analysis √ Reverse Auction √ Negotiation √ Advanced Supplier Perf. Analysis Contract Management √ Supplier Performance Mgt. √ Sourcing Activity Reporting Contract Management √ • 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

  8. Commerce One Buy Business Process Procure Fulfill Pay Source Negotiate Functionality Auction Procurement/Contract Labor Settlement √ Forward √ MRO Procurement √ Invoice Presentment √ Reverse √ Configured Goods Procurement √ Invoice Reconciliation √ Order Management √ Payment √ Contractor Management • 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

  9. 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

  10. 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

  11. Standards connect e-commerce solutions and legacy apps Enables fast connections to trading partners and 3rd party services Breakthrough delivery of new capabilities Process platform orchestrates complex business processes 2002: Looking Forward 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

  12. What are Web Services? Web services are software application components that: • Conform to a set of XML and Internet standards • Are searchable, and invokable within an enterprise or by trading partners Commerce One Characterization • Simple Web Services: Compliant with the three currently adopted Web services standards (WSDL / SOAP / UDDI) and support a single synchronous-point service • 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 • 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 • 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

  13. 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 – 4-2002

  14. Pursuing Two Sets of Elusive Goals Web Services enable the “virtual enterprise” Technology Goals Business Goals • Platform Independent • Standards-Based • Secure • Reusable • Distributed Computing • Scalable • Leverage Core Abilities • Outsource Flexibility • Highly Transformative • Relationship Enhancing • Agility Enhancing • Demonstrable ROI Web Services “Components for the rest of us … “ Gartner Presentation – 4-2002 Web Services = ASP, Cust. Services, Prof. Services, Service Businesses

  15. Simple Web Services Purpose Name Description SOAP Formats messages between 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. Describes aweb service in enough detail for soft-ware to use it WSDL 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. Helps systems find relevant web services UDDI

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

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

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

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

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

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

  22. Source Buy 3rd Party Web Svc SAP 3rd Party Svc 3rd Party Web Svc CMRC Svc BuySite Collaborative Web Services Platform Procurement Supplier B Web Services Engine Collaboration Engine Hosted Buy Supplier B B 3rd Party Buy ERP Collaborative Web Services Platform GTW • Collaboration Engine • Quickly and flexibly build collaborative applications for deployment within an enterprise and across trading partners: • Provide tools that enable collaborative, web service-based development with minimal programming • Provide easily configurable and reusable BPM and application components • 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: • Any-to-Any enterprise application integration • Ability to expose any EAI, A2A or B2Bi back-office application as industry-standard web services • Tools that enable low-cost web service integration

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

  24. 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

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

  26. 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)

  27. 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

  28. The Business Internet Mark HoffmanCommerce One

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