Paperless Trading Infrastructure Technology Development in Hong Kong-Thomas Lee-Full

8/10/2019 Paperless Trading Infrastructure Technology Development in Hong Kong-Thomas Lee-Full

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Paperless Trading InfrastructurePaperless Trading Infrastructure

Technology Development in Hong KonTechnology Development in Hong Kon2005 APEC Symposium on2005 APEC Symposium on

the Assessment and Benchmark of Paperless Tradingthe Assessment and Benchmark of Paperless Trading

September 1September 1--3, 2005, Beijing, China3, 2005, Beijing, China

Mr. Thomas LeeMr. Thomas LeeChief Technology OfficerChief Technology Officer

Center for ECenter for E--CommerceCommerce

Infrastructure DevelopmentInfrastructure DevelopmentThe University of Hong KongThe University of Hong Kong

Hong Kong, ChinaHong Kong, China


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2

Making e-commerce everyday commerce

Trading with FAXTrading with FAX

Repetitive data entry andRepetitive data entry andcheckingchecking

Low productivityLow productivity

Prone to human errorsProne to human errors

PO

1/9/2005

ABC Co.

order food

POPO

1/9/20051/9/2005

ABC Co.ABC Co.

order foodorder food


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3

Making e-commerce everyday commerce

Paperless TradingPaperless Trading

01010101

10101010

01010101

0101010101010101

1010101010101010

0101010101010101

SystemSystem--toto--system datasystem dataexchangeexchange

Manual data entry andManual data entry and

checking savedchecking saved

Accurate data exchangeAccurate data exchange

Human fraud avoidedHuman fraud avoided

RoundRound--thethe--clock operationclock operation

Fax machine for electronic documents?Fax machine for electronic documents?


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4Making e-commerce everyday commerce

Infrastructure TechnologyInfrastructure Technology

SoftwareSoftware

Message gateway for data exchange on InternetMessage gateway for data exchange on InternetFactors for adoption: cost and complexityFactors for adoption: cost and complexity

StandardsStandards

Standards on communication protocols, electronicStandards on communication protocols, electronic

documents, business processesdocuments, business processes

Factors for adoption: sanction, traction, openness,Factors for adoption: sanction, traction, openness,localizationlocalization


5/165Making e-commerce everyday commerce

InfrastructureInfrastructure

In 2002, HKSARGIn 2002, HKSARG Innovation and TechnologyInnovation and Technology

CommissionCommission funded CECIDfunded CECID HK$9.5MHK$9.5M (US$1.2M)(US$1.2M)BuildBuild ebXMLebXML software infrastructuresoftware infrastructure in HKin HK

Very successful R&D project:Very successful R&D project:OpenOpen--sourcedsourced software deliverablessoftware deliverables

Hermes Message Gateway as flagship technologyHermes Message Gateway as flagship technology

Lowered barriers forLowered barriers for SMEsSMEs to do B2B eto do B2B e--commercecommerceWidely adopted in HK and internationallyWidely adopted in HK and internationally

Gained international recognitionsGained international recognitions



EDI gateway EDI gateway

OrderDoc

(EDI)Buyer Seller

Cost effective affordable b SMEs !!

Expensive !!

PrivateNetwork

Hermes Hermes

Internet

OrderDoc

(XML)

Buyer Seller

With Hermes

EDI

B2B EDI on the InternetB2B EDI on the Internet



Cost ofCost ofOwnershipOwnership

* Source: The Total Economic Impact of EDI by Forrester Research

Operationalexpenses

Programming cost

Initial cost

US$0.25 - $1 per document

US$40,000 - $120,000

US$40,000 $80,000 (Unixor Windows based)

US$120,000 (mainframe)

EDI *

Internet subscription

(flat fee for unlimited usage)

US$3,000

(app development)

FREEIf running on Linux

Hermes



Worldwide AWorldwide Adoptiondoption of Hermeof Hermes

Potentially largest user base among ebXML productsRecorded downloads from 80+ economies (Australia, Canada, China, Chinese

Taipei, Denmark, France, Germany, India, Korea, Japan, Macau, Myanmar, NewZealand, Singapore, Thailand, UK, USA, Vietnam, )

Integrate Hermes into products and servicesTIE (The Netherlands), Webswell (US), Crimsonlogic (Singapore), HK Govt EGIS

Many production cases in local and overseas projects, e.g.Dairy Farm Group (HK large consumer goods retailer chain)HKSAR Government (G2B document submission)HMV HK

MTRC (HK major subway operator)OOCL (international shipping company)Sony Music HKDaganet (Malaysia)Spherion Technology (IT consulting in Australia)Tedis (IT consulting Australia)



Electronic Invoicing BetweenElectronic Invoicing Between

Buyer and SupplierBuyer and Supplier

Procurementweb application

Hermes

Auto

Reconci l iat ion

Au toAu to

RReconci l ia t ioneconci l ia t ionVendorBackendSystem

User Browser

Electronic goodsreceiving

intranet system

11

11 22 4433MTRC user orders viaMTRC user orders via

bigboXXbigboXX web applicationweb applicationPhysical goodsPhysical goods

deliverydelivery

EE--invoice deliverinvoice deliver

via Hermesvia HermesMTRC user markMTRC user mark

goods receivedgoods received

11 1133

4444

44

2222

44

InternetInternet

Hermes



InfrastructureInfrastructure

In 2004, HKSARG ITC funded CECID HK$14MIn 2004, HKSARG ITC funded CECID HK$14M

(US$1.8M) to build(US$1.8M) to build ee--business interoperabilitybusiness interoperabilityplatformplatform

Methodology and tools forMethodology and tools for ee--businessbusiness

information and process standardizationinformation and process standardizationLocalized international standardization practicesLocalized international standardization practicesfor adoption for many corporate andfor adoption for many corporate and

government data standardization projectsgovernment data standardization projectsActively contributing to local and international eActively contributing to local and international e--commerce standardizationcommerce standardization



Local StandardizationLocal Standardization

eGovernmenteGovernment data standardizationdata standardizationDevelopedDeveloped XML Schema Design and Management GuideXML Schema Design and Management Guide underunder

eGovernmenteGovernment Interoperability FrameworkInteroperability FrameworkHKSARG established Registry of Data StandardsHKSARG established Registry of Data Standards((www.xml.gov.hkwww.xml.gov.hk) to manage common XML schemas) to manage common XML schemas

e.g. person name, HKID, address, etc.e.g. person name, HKID, address, etc.

Software vendors need to follow the Guide and standards toSoftware vendors need to follow the Guide and standards toimplement G2G and G2B projectsimplement G2G and G2B projects

Digital Trade and Transportation NetworkDigital Trade and Transportation Networkelectronicelectronicdocument standardizationdocument standardization

DTTN Co. standardized 60+ trade documents in XML withDTTN Co. standardized 60+ trade documents in XML withindustry and academiaindustry and academia

Contributed the standards to develop Universal BusinessContributed the standards to develop Universal BusinessLanguage 2.0Language 2.0



StandardizationStandardization

Hong Kong actively participates inHong Kong actively participates in ebXMLebXMLAsiaAsiaCommitteeCommittee ((eACeAC) and OASIS) and OASIS Universal BusinessUniversal Business

LanguageLanguage (UBL)(UBL)To define crossTo define cross--border trade standards in XMLborder trade standards in XML

UBL LibraryUBL Library defines common trade documentsdefines common trade documentsE.g. purchase order, invoice,E.g. purchase order, invoice, despatchdespatch adviceadvice

Localized in different languages, e.g. Chinese, Japanese, KoreanLocalized in different languages, e.g. Chinese, Japanese, Korean,,SpanishSpanish

UBL v2 aims to develop all trade documents mentioned in APECUBL v2 aims to develop all trade documents mentioned in APECPaperless Trading Initiative paperPaperless Trading Initiative paper

HKSAR and Singapore contributed local standards to developHKSAR and Singapore contributed local standards to developtransport documents in UBL v2transport documents in UBL v2

Danish government mandates UBL for G2B invoicingDanish government mandates UBL for G2B invoicingPotential saving estimated to bePotential saving estimated to be 160M euros160M euros per yearper year



FAX Machine for Electronic DocumentFAX Machine for Electronic Document

Hermes/ ebXML

Web Services

OGCIO Dept B Dept C

HKSARG OGCIO

RecruitmentAgents

IssuanceCompanies

ShippingAgents

Clinics

e-GovernmentInfrastructure

Service (EGIS)

B2B

Connector(Hermes Linux

Box)

Hermes

Othproduc


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ConclusionConclusion

SoftwareSoftware andand standardsstandards are core paperlessare core paperless

trading infrastructure technologytrading infrastructure technologyTechnology must beTechnology must be affordableaffordable,, simplesimple, and, andopenopen for wide adoptionfor wide adoption

Open sourceOpen source andand open standardsopen standardsTechnology must be developed in aTechnology must be developed in a globalglobalperspectiveperspective

Government leadershipGovernment leadership in ein e--commerce adoptioncommerce adoptionis a critical success factoris a critical success factor


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About CECIDAbout CECID

R&D Center under Faculty of Engineering in theR&D Center under Faculty of Engineering in the

University of Hong KongUniversity of Hong KongOur mission:To create an infrastructure and environment that

allows e-commerce to pervade large and smallbusinesses through technology innovation, industrycollaboration, and knowledge cultivation.

20+ full-time staffs to develop innovative e-commerce technology and provide R&Doutsourcing services to the industry


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Thank YouThank YouThomas LeeThomas Lee

[email protected]@cecid.hku.hkhttp://www.cecid.hku.hkhttp://www.cecid.hku.hk

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Paperless Trading Infrastructure Technology Development in Hong Kong-Thomas Lee-Full