References:
[1]
Industrial products and services categorization standards
http://en.wikipedia.org/wiki/RosettaNet
http://en.wikipedia.org/wiki/RosettaNet
[2]
Message type and description of RoettaNet message
[3]
Message type and description of SWIFT message
[4] Society
for Worldwide Interbank Financial Telecommunication
[5] Realising
the Benefits of SWIFT for Corporates
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Recap of
last lecture
This
lecture mentioned misalignments in supply chain of industries may bring along impacts
such as low efficiency, higher costs and incompatible data format. The misalignments aspects included
- Plug-and-play e-process
- Information Coordination
- Knowledge sharing
By
increasing the alignment level of electronic interfaces, information flow and
information sharing between these supply chain companies, overall beneficial
effects would be bring to these companies.
Thus there 3 areas: production processes, manufacturing of new products/services
and knowledge sharing, should be of main focus of improvement. Value creation of the whole supply chain would
then be achieved.
RosettaNet
is one of the Electronic Data Interchange (EDI) that offers open partner
interface processes (PIP), it was joint by over 30 leading companies (totally 500
members, as in April, 2012[1]) within the IT industry. It provides unify guideline
and electronic interfaces for the exchange of qualitative information rather
than normal transactional/status information.
It based on XML to achieve standard among the global
electronic/semiconductor industry. Thus
process implementers would be benefited by getting interactions and information
useful for their sub-processes along different position in the supply chain.
Message
type and description of RosettaNet [2]
The
advantage of RosettaNet over EDI though, is that it provides real-time
processing of business data for supply rather than some EDI’s batch-processing. Moreover, RosettaNet is less complicated to
operate when due with larger volume (because of it’s efficiency, specify to use
in supply chain industries) than some
general EDI, which is more suitable if company is doing an intermediate or even
larger e-business.
traditional paper document transactions [6]
purchase order after implementing EDI [6]
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Topic: Brief
overview of a similar EDI in the financial supply chain - SWIFT
There
are many categorization standards used by business process interfaces. Example are RosettaNet, SWIFT, ETIM and
eCl@ss[1]. Here would review one of the
standard interface – SWIFT.
Standard and mission
Society for Worldwide Interbank Financial Telecommunication (SWIFT) is
a financial messaging network that exchanges messages across banks. Like RosettaNet, it is another quite popular interface and used
by 239 banks in 15 countries [4]. Instead
of using XML like in RosettaNet, it uses bank identifier codes (BICs) to identify
exchange message, services and even software.
Therefore, BIC can be identified by well-known financial processing
systems; and these standards are maintained under cooperation of international
organizations for message defines standards.
Message
type and description of SWIFT [3]
Different
interface provide different targeting industries. And for SWIFT, it provides services mainly
for securities, treasury & derivatives, cash management and trade services. SWIFT is also used for transfer of important message
among banks, thus one of the feature is that SWIFT allow secure messages sent
with encryption standard. This provides
usability to certain business processes among financial institutes that uses
SWIFT. Since it is a common interface
rather than a system or database, it does not provide any account information storage
or provide system functions such as clearing/settlement.
Major users of SWIFT [4]
Benefits
of this interface
-Reduced
operational costs and risks
-Secure,
low-cost and connection in global manner
-Flexibility
and scalability
-Improved
customer service
Other illustrated
benefits from the SWIFT website [4]
Further external
explanations can be found under section “The Last Mile” in [5]’s website.
Financial
supply chain is more the less getting benefits similar to product supply chain
mentioned in lecture, this basically covers:
- reduced delay in processes due to timely and automation after implementing the interface
- reduction in manual and paperwork processes
- increased knowledge sharing, this offers better CRM and increase market interaction
- update/synchronization of information
Conclusion
After studied
some other kinds of interface such as the SWIFT above, we can understand that
e-business may have at first their own internal standard to coordinate its
internal message coordination; however, to increase competitiveness and alignment
within the industries’ market players, share of information/knowledge, process
alignment are essential steps to keep the business’ interaction up to date with
the market. As a result, PIP or other EDI
exchange standards are required to provide along external message coordination
to achieve overall efficiency and performance of the business. EDI standards and interfaces is not just about
having a long collaborative process joint by several enterprises, but together
business can share and collaborate higher quality information, through having these
standards.
