XML as the Foundation for e Marketplaces Dr Robert J Glushko Commerce One Engineering Fellow Yale CPSC 155b e Commerce 23 March 2001 Bob s Mini Biography Stanford BA Wang Inst MS UCSD Ph D 20 years of R D and consulting experience in text processing user interface design online publishing electronic commerce Bell Labs CMU Software Engineering Institute Founder or co founder of three companies 3rd one was Veo Systems pioneered XML in e commerce acquired by Commerce One in January 1999 At Commerce One formerly responsible for XML architecture standards interoperability Document Engineering 2 Outline Business Model and Technology Co evolution for e commerce The XML Revolution Electronic Marketplaces and Marketplace Networks Document Exchange Architecture The XML Common Business Library xCBL in the Global Trading Web Commerce standards as Marketsite Onramps 3 Business Model and Technology Co Evolution for E Commerce Traditional Electronic Business Traditional models for electronic business are based on long term point to point and tightly coupled relationships Electronic Data Interchange EDI used since 1980s to automate routine transactions between established trading partners especially for direct goods supply chains But EDI syntax not programmer or Web friendly Not well suited for small businesses or more spontaneous open market transactions like indirect procurement 5 Traditional Enterprise Centric View for e Business Supply Chain Customer s Enterprise Indirect Procuremen t 6 Sample EDI Message 7 Business Trends Relentless search for competitive advantage Ruthless efficiency necessary for survival Accelerating cycle times Focus shifting from administrative efficiency in the enterprise to winning in the marketplace 8 Business Inefficiencies Lack of real time information for basic business decisions Inability to connect supply to demand increases costs and limits revenue Disparate technology across the value chain makes planning collaboration slow and expensive Problem Solution Mismatch Current problems primarily result from poor visibility and collaboration with external commercial relationships Current solutions provide tools that focus on internal administrative and control processes of the enterprise 10 The Internet Was Supposed to Change Everything The Internet will enable new business models for marketplaces trading communities outsourcing open sourcing buying consortia auctions supply chain integration and virtual enterprises that are fundamentally different 11 Networks of Commerce Communities Assembly Outsourcing Supply Chain Distribution Customer s Enterprise Indirect Procureme nt Procurement Outsourcing Markets 12 Evolving Solutions Roadmap e Marketplace to e Marketplace E2E Connectivity Complex Business Process Direct Goods Collaboration Logistics Forecasting Supply Chain Management Simple Buying Selling Indirect goods Point to Point Phone Fax EDI 13 Evolution of Business Technology Enterprise Model Calculation Host based Computing Internal Control Single Data Model Single Entity Process Administration E Marketplace Model Communication Internet Computing Inter entity Collaboration Multiple Data Models Inter entity process Commerce Internet Business Models Integration Requirements Business models and relationships are experimental and evolving and have shorter lifetimes overall Describe once sell buy anywhere is the goal Both initial integration cost and incremental cost to evolve must be low Point to point coupling approaches won t scale 15 Connecting with HTML by eye Company 1 Web Browser HTML Web pages Internet HTML encoding can t carry the information that is needed for automated e commerce manual data entry or scraping and hoping Company 2 eCommerce Server ERP Accounting Systems 16 HTML s Limitations for Integration The Web was created as a publishing medium not as an e commerce platform HTML the Web s language for encoding information is format oriented and meant to be understood by eye simple structures headings lists links Browsers are hard wired to render HTML as web pages No content based encoding means that HTML can t be effectively searched or processed by business applications 17 Sample HTML Catalog Entry body p b The Compaq Armada300 Family b ul li Ultra portable form factor 3 2 3 4 lbs light and 9 in thin li Large 12 1 in CTFT display and full function keyboard at 95 percent full notebook size li Intel Mobile Pentium III processor li 2 399 is the Internet price for the Armada M300 part number 165288 002 li Compaq recommends Windows 2000 Professional for business ul body 18 The XML Revolution XML Extensible Markup Language Instead of a fixed set of formatoriented tags XML allows you to create whatever set of tags are needed for your type of information This makes any XML instance selfdescribing and easily understood by computers and people 20 Gratuitous Clip Art Slide HTML Comput ers Browsers XML Comput ers Browsers Comput ers 21 XML s Big Idea Document Types XML allows you to create whatever set of tags are needed for your type of information Catalogs Price Lists Purchase Orders Invoices Inventory Reports Bill of Materials Payments Schedules Forecasts whatever you need The formal definition of permitted elements attributes and the rules by which they combine is called a Document Type Definition or DTD or schema 22 Catalog Entry in XML computer type Notebook oem series Armada300 Compaq oem specs partno 165288 002 partno display type CTFT unit in 12 1 display processor Intel Mobile Pentium III processor weight unit lb 3 2 weight price currency USD 2399 price os Windows 2000 Professional os specs 23 computer Smart Processing with XML XML enables content and hierarchical encoding and separates that from formatting which is controlled by browser style sheets computer and specs provide logical containers for extracting and manipulating product information as a unit could sort products by oem processor weight price etc Explicit identification of each part enables its automated processing without scraping and hoping Convert price from USD units to Euro Yen etc 24 Connecting using XML Company 1 eCommerce Server ERP Accounting Systems Benefit XML can be processed automatically with huge cost savings XML Documents Company 2 Internet eCommerce Server ERP Accounting Systems Problem Company 1 and Company 2 have to agree on document format 25 Electronic Marketplaces and Marketplace Networks E Marketplace Architecture An e marketplace is a destination on the Internet