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Open Interchange Consortium Open Interchange Consortium 15/12/1995 15/12/1995 13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney Stephen GOULD Stephen GOULD Secretary Secretary OPEN INTERCHANGE OPEN INTERCHANGE CONSORTIUM CONSORTIUM THE SIGNIFICANCE OF SMEs THE SIGNIFICANCE OF SMEs FOR ELECTRONIC COMMERCE FOR ELECTRONIC COMMERCE

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Page 1: Open Interchange Consortium 15/12/1995 1 13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney Stephen GOULD Secretary OPEN INTERCHANGE CONSORTIUM THE SIGNIFICANCE

Open Interchange ConsortiumOpen Interchange Consortium15/12/199515/12/1995

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13:15 - 13:50 Friday 15/12/95Wentworth Hotel Sydney

13:15 - 13:50 Friday 15/12/95Wentworth Hotel Sydney

Stephen GOULDStephen GOULD

SecretarySecretary

OPEN INTERCHANGE OPEN INTERCHANGE CONSORTIUMCONSORTIUM

THE SIGNIFICANCE OF SMEsTHE SIGNIFICANCE OF SMEs FOR ELECTRONIC COMMERCEFOR ELECTRONIC COMMERCE

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Electronic Information Interchange (EII)Electronic Information Interchange (EII)

Significance of SMEsSignificance of SMEs The ProblemThe Problem European Telematics ProjectsEuropean Telematics Projects Australians establishing the standardsAustralians establishing the standards Australian EDI ProjectsAustralian EDI Projects Commonwealth Electronic Commerce Commonwealth Electronic Commerce

Service (CECS)Service (CECS)

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Significance of SMEsSignificance of SMEs

EDI was originally developed to reduce administration costs for large companies EDI was originally developed to reduce administration costs for large companies particularly through the Purchasing cycle. 80% of a company’s purchases may be particularly through the Purchasing cycle. 80% of a company’s purchases may be from 20% of your suppliers. However the cost of producing an invoice for $ 100 from 20% of your suppliers. However the cost of producing an invoice for $ 100 is the same as an invoice for $ 1,000,000.is the same as an invoice for $ 1,000,000.

Thus 80% of companies purchasing administration costs is spent on the 80% Small Thus 80% of companies purchasing administration costs is spent on the 80% Small and Medium Businesses that produce 20% of the sales items and 20% of the and Medium Businesses that produce 20% of the sales items and 20% of the purchasing items. Hence to reduce the administration costs these SMEs have to purchasing items. Hence to reduce the administration costs these SMEs have to adopt Electronic Commerce.adopt Electronic Commerce.

Electronic Commerce now encompasses Electronic Catalogues hence the move Electronic Commerce now encompasses Electronic Catalogues hence the move towards multi-media and electronic marketing.towards multi-media and electronic marketing.

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The ProblemThe Problem

All EDI initiatives world-wide have the same problem when linking electronically All EDI initiatives world-wide have the same problem when linking electronically

with Small and Medium Size Enterpriseswith Small and Medium Size Enterprises .. The problem is:The problem is:

Developing a generic solution that can be utlilised by any SMEDeveloping a generic solution that can be utlilised by any SME

Ensuring that it provides many-to-many linkages with all facets of businessEnsuring that it provides many-to-many linkages with all facets of business

Interfacing with SME application softwareInterfacing with SME application software

Ensuring that start-up costs and on-going costs are acceptable to SMEsEnsuring that start-up costs and on-going costs are acceptable to SMEs

Promoting and implementing the Electronic Commerce with SMEsPromoting and implementing the Electronic Commerce with SMEs

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Telematics Projects in EuropeTelematics Projects in Europe

3rd Framework for R&D program 1990-19943rd Framework for R&D program 1990-1994 3 major areas total funds A$ 19.7 Billion3 major areas total funds A$ 19.7 Billion

II Enabling TechnologiesEnabling Technologies Information TechnologiesInformation Technologies Communications TechnologiesCommunications Technologies Development Telematics SystemsDevelopment Telematics Systems IIII Management of Natural ResourcesManagement of Natural Resources IIIIII Management of Intellectual ResourcesManagement of Intellectual Resources

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Identified ProjectsIdentified Projects

6 Major programmes6 Major programmes ProjectsProjects

ORA - Industry 62ORA - Industry 62 AIM - Health 37AIM - Health 37 ENS - Administration 14ENS - Administration 14 DRIVE - Transport 56DRIVE - Transport 56 DELTA - Education 43DELTA - Education 43 CUSTOMS 20 CUSTOMS 20

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TEDIS Conference 1989TEDIS Conference 1989

Legal WorkshopLegal Workshop

RecommendationsRecommendations

Electronic NotaryElectronic Notary

Information TrusteesInformation Trustees

Electronic ContractsElectronic Contracts

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RINETRINET

Established by the Re-insurance industry in 1987Established by the Re-insurance industry in 1987 Co-operative non-profit company comprisingCo-operative non-profit company comprising

The Mercantile & General Reinsurance Company (London)The Mercantile & General Reinsurance Company (London) Munich Reinsurance Company (Munich)Munich Reinsurance Company (Munich) National de Resseguros SA (Madrid)National de Resseguros SA (Madrid) Nederland Ressurantie Group MV (Amsterdam)Nederland Ressurantie Group MV (Amsterdam) Skandia International Insurance Corporation (Stockholm)Skandia International Insurance Corporation (Stockholm) Societe Commerciale de Ressaurance (Paris)Societe Commerciale de Ressaurance (Paris) Swiss Reinsurance Company (Zurich)Swiss Reinsurance Company (Zurich) Unione Italiene di Riassiourazione (Rome)Unione Italiene di Riassiourazione (Rome)

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Linking with Insurance & Broker NetworksLinking with Insurance & Broker Networks

Establishing electronic Networks with AssociationsEstablishing electronic Networks with Associations LIMNET (Lloyd's Insurance Market Network)LIMNET (Lloyd's Insurance Market Network) BROKERNET (UK Broker Network)BROKERNET (UK Broker Network) IVANS (US Broker Network)IVANS (US Broker Network) CELIA (French Broker Network)CELIA (French Broker Network) ASSURNET (French & Belgium Underwriter ASSURNET (French & Belgium Underwriter

Network)Network) ADN (Dutch Broker Network)ADN (Dutch Broker Network) RITA (Italian Broker Network)RITA (Italian Broker Network)

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UN/EDIFACT RapporteursUN/EDIFACT Rapporteurs

AustraliaAustralia 19 Belgium19 Belgium 12 UK12 UK 7 USA7 USA 66

CanadaCanada 6 New Zealand 6 New Zealand 5 France 5 France 5 Sweden 45 Sweden 4

NetherlandsNetherlands 4 Germany 4 Germany 4 Austria 4 Austria 4 Denmark 44 Denmark 4

SwitzerlandSwitzerland 3 Poland 3 Poland 2 Norway 2 Norway 2 Finland 22 Finland 2

LuxembourgLuxembourg 1 Japan 1 Japan 2 Hungary 1 Bulgaria 1 2 Hungary 1 Bulgaria 1

Czechoslovakia 1 RomaniaCzechoslovakia 1 Romania 1 Iceland 1 Iceland 1 Russia 1 1 Russia 1

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Australian UN/EDIFACT Rapporteurs 1990 - 1994 Australian UN/EDIFACT Rapporteurs 1990 - 1994

Jonathan KNIGHTJonathan KNIGHT KNIGHT STRATEGIC SERSKNIGHT STRATEGIC SERS Maintenance GroupMaintenance Group

Margaret WRIGHTMargaret WRIGHT KPMG PEAT MARWICKKPMG PEAT MARWICK Security & AuditSecurity & Audit

David BOTHERWAYDavid BOTHERWAY COLES MYERCOLES MYER RetailRetail

Karl ROMMELKarl ROMMEL BHP STEELBHP STEEL Heavy EngineeringHeavy Engineering

Randy AUSTINRandy AUSTIN ANZ BANKANZ BANK BankingBanking

Mark FULLERMark FULLER BHP STEELBHP STEEL SteelSteel

Jan BYLSTRAJan BYLSTRA NATIONAL MUTUALNATIONAL MUTUAL Life InsuranceLife Insurance

Bruce DAWSONBruce DAWSON ERICSSONERICSSON CommunicationsCommunications

Barry KEOGHBarry KEOGH TRADEGATETRADEGATE TransportTransport

Terry BROWNTerry BROWN NISSAN MOTORNISSAN MOTOR AutomotiveAutomotive

Tony MORRISTony MORRIS QANTASQANTAS TourismTourism

RichardRichard STANDFORDSTANDFORD JAMES HARDIE INDJAMES HARDIE IND HardwareHardware

Graham Graham BEHRENDORFFBEHRENDORFF ALH AUSTRALIAALH AUSTRALIA Wh’sale/DistribWh’sale/Distrib

Alan CUNNINGHAMAlan CUNNINGHAM ADL CONSULTINGADL CONSULTING AgricultureAgriculture

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Customs Co-operation CouncilCustoms Co-operation Council

Secretary General:Secretary General: Tom HAYESTom HAYES (AUSTRALIA)(AUSTRALIA)

Deputy Sec Gen:Deputy Sec Gen: P. BENETP. BENET (France)(France)

Head Fin Services:Head Fin Services: R. TRIESTR. TRIEST (Belgium)(Belgium)

Head Administration:Head Administration: Bill REIDBill REID (AUSTRALIA)(AUSTRALIA)

Dir Nomenclature:Dir Nomenclature: H ASAKURAH ASAKURA (Japan)(Japan)

Dir Customs Techniques:Dir Customs Techniques: A RIGDONA RIGDON (USA)(USA)

6 Deputy Directors6 Deputy Directors 7 Senior Technical Officers 7 Senior Technical Officers (28 different(28 different

19 Technical Officers19 Technical Officers 10 Technical Attaches 10 Technical Attaches nationalities)nationalities)

USAUSA 55 UKUK 44 BelgiumBelgium 44

JapanJapan 44 FranceFrance 33 AustraliaAustralia 22

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Working Nation Strategy 04/05/94

Working Nation Strategy 04/05/94

1994/95 - 1994/95 - A$A$ 1,058.7 M1,058.7 M

1995/96 -1995/96 - A$A$ 1,725.7 M1,725.7 M

1996/97 -1996/97 - A$A$ 1,888.1 M1,888.1 M

1997/98 -1997/98 - A$A$ 1,869.6 M1,869.6 M

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ADCONNECT - 1990 ADCONNECT - 1990

Anthony FITZGERALDAnthony FITZGERALD Seven NetworkSeven Network Stephen WRIGHTStephen WRIGHT Nine NetworkNine Network Sirkanth NANDIGAMSirkanth NANDIGAM Network TenNetwork Ten David GREENDavid GREEN MOJOMOJO Don WOODDon WOOD ClemengerClemenger Roger BICKRoger BICK George PattersonGeorge Patterson Alan MEDFORTHAlan MEDFORTH McCann EricksonMcCann Erickson Paul DAVEYPaul DAVEY DDB NeedhamDDB Needham Ross HOWARTHRoss HOWARTH MerchantsMerchants

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AEROS - Australian Electronic Retail Ordering System

AEROS - Australian Electronic Retail Ordering System

Australian Records Industry Association - ARIAAustralian Records Industry Association - ARIA

Members:Members: EMIEMI }} OrdersOrders

BMGBMG }} AcknowledgmentsAcknowledgments

SonySony }} Catalogues UpdatesCatalogues Updates

PolygramPolygram }} Weekly ChartsWeekly Charts

WarnerWarner

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Customs Electronic Commerce Programs

Customs Electronic Commerce Programs

Formation TRADEGATE - 1989Formation TRADEGATE - 1989

ACS, QANTAS, AAPMA and AustradeACS, QANTAS, AAPMA and Austrade

contributed $ 250,000.contributed $ 250,000.

6 SME associations contributed $ 50,000.6 SME associations contributed $ 50,000.

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Members TradegateMembers Tradegate

Aus Customs ServiceAus Customs Service

QANTASQANTAS

AAPMAAAPMA

AustradeAustrade

Customs Brokers Council of Australia (CBCA)Customs Brokers Council of Australia (CBCA)

Aus Forwarders EDI Association (AFEDIA)Aus Forwarders EDI Association (AFEDIA)

Aus Road Transport Federation (ARTA)Aus Road Transport Federation (ARTA)

Aus Chamber of Shipping (ACOS)Aus Chamber of Shipping (ACOS)

Aus Ship Owners Association (ASOA)Aus Ship Owners Association (ASOA)

Railways of AustraliaRailways of Australia

Tradegate manages 3 year contract for Value Added Network ServiceTradegate manages 3 year contract for Value Added Network Service

Current Service provider: AT&T EASY LINKCurrent Service provider: AT&T EASY LINK

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CUSTOMS NATIONAL CONSULTATIVE COUNCIL

CUSTOMS NATIONAL CONSULTATIVE COUNCIL

Members CNCC Electronic Commerce charge review panel:Members CNCC Electronic Commerce charge review panel:

Australian Customs ServiceAustralian Customs Service

Law Council of AustraliaLaw Council of Australia

Customs Brokers of Australia (CBCA)Customs Brokers of Australia (CBCA)

Aus Federation of Air Freight Forwarders (AFAFF)Aus Federation of Air Freight Forwarders (AFAFF)

Aus Chamber of Shipping (ACOS)Aus Chamber of Shipping (ACOS)

Aus Chamber of Commerce (ACC)Aus Chamber of Commerce (ACC)

International Air Couriers Association (IACAA)International Air Couriers Association (IACAA)

Institute of Chartered Accountants (ICA)Institute of Chartered Accountants (ICA)

Aus Aviation Industry Customs Committee (AAICC)Aus Aviation Industry Customs Committee (AAICC)

Aus Society of Certified Practicing Accountants (ASCPA)Aus Society of Certified Practicing Accountants (ASCPA)

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COMMONWEALTH ELECTRONIC COMMERCE SERVICE (CECS)

COMMONWEALTH ELECTRONIC COMMERCE SERVICE (CECS)

July 1995 - 2 contractsJuly 1995 - 2 contracts

II Primary contractor - Tendering systemPrimary contractor - Tendering system

IIII Additional Products and ServicesAdditional Products and Services

Contract IContract I

96 respondents 96 respondents - stage 1 RFI - stage 1 RFI

19 submissions 19 submissions - stage 2 RFP- stage 2 RFP

4 shortlist4 shortlist - stage 3 RFO- stage 3 RFO

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7 Lead Agencies7 Lead Agencies

11 Department of Defence (DoD)Department of Defence (DoD)

22 Department of Employment, Education and Training (DEET)Department of Employment, Education and Training (DEET)

33 Department of Administrative Services (DAS)Department of Administrative Services (DAS)

44 Department of Veteran Affairs (DVA)Department of Veteran Affairs (DVA)

55 Department of Human Services and Health (DHSH)Department of Human Services and Health (DHSH)

66 Department of Social Security (DSS)Department of Social Security (DSS)

77 Australian Taxation Office (ATO)Australian Taxation Office (ATO)

There are 25 Portfolio Departments with 95 administrative units There are 25 Portfolio Departments with 95 administrative units together with an additional 80 other agencies within those portfolios.together with an additional 80 other agencies within those portfolios.

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Prime Contractor ContractPrime Contractor Contract

There are 4 full bids that have progressed to the CECS Request There are 4 full bids that have progressed to the CECS Request for Offers (RFO) stage:for Offers (RFO) stage:

TelstraTelstra

ISSCISSC

EDS AustraliaEDS Australia

Australian Business On-LineAustralian Business On-Line

The Strategic Partner contract will be awarded May 1996.The Strategic Partner contract will be awarded May 1996.

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Addition Products and Services Contract

Addition Products and Services Contract

Contract IIContract II

This contract requires the following services:This contract requires the following services:

EDI Software and Services for SMEsEDI Software and Services for SMEs

Automatic Data Capture (ADC - bar code, scanning, OCR)Automatic Data Capture (ADC - bar code, scanning, OCR)

Systems integration & re-engineeringSystems integration & re-engineering

Business process re-engineeringBusiness process re-engineering

Security products and servicesSecurity products and services

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Requirement of CECS -numbering schemes

Requirement of CECS -numbering schemes

A range of identifiers including:A range of identifiers including:

PeoplePeople

OrganisationsOrganisations

LocationsLocations

Products and ServicesProducts and Services

The RUBAC (Relational Universal Business Automation Code) The RUBAC (Relational Universal Business Automation Code) Information Management Methodology was researched to fulfill the code Information Management Methodology was researched to fulfill the code identifier requirements for Electronic Commerce and Electronic Information identifier requirements for Electronic Commerce and Electronic Information Interchange (EII).Interchange (EII).

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The OIC VisionThe OIC Vision

Australian Companies and expertiseAustralian Companies and expertise

Establishing the Standards Establishing the Standards Implementing Electronic Commerce software that conforms to Implementing Electronic Commerce software that conforms to

international standardsinternational standards Marketing the products internationallyMarketing the products internationally Implementing and supporting products internationallyImplementing and supporting products internationally

All linked electronically to provide the highest standards of All linked electronically to provide the highest standards of service at a minimum on-going costservice at a minimum on-going cost