Ron Shelby

CEO, XMLSolutions Corporation

e-Business: Real Data Issues

February 12, 2001

e-Commerce Data

Challenges

Ron Shelby Data Management History

• Established data management - Travelers Canada• Data Administrator - US Dept of Interior• Consultant - American Management Systems• Head of information management:

– Connecticut Mutual

– USF&G

• Vice President of Data Warehousing - American Express

• Head of Data Warehousing - General Motors

History of Data Management

• Techniques– Data and Business Modeling– Canonical synthesis– Business rules– Object modeling

• Scope– Storage-oriented– Rationalizing data elements– Application-wide– Across a function– Organization-wide

Why The Web?

The Business Context

• It’s all e-Business

• Communications Revolution

• Shorter product lifecycles

• Moore’s Law

• Information Technology Impact– Increases Productivity – Destroys Profits

3

CustomerCustomer

SupplierSupplier

GMGMGMGM EmployeeEmployeeAlliance/Alliance/EquityEquity

DealerDealer

Eng.Eng.SupplierSupplier

5

E-Business Domains

GM Business Innovations

• Business 2 Employee

– Socrates Portal

• Business 2 Business

– GM TradeXchange

• Business 2 Customer

– BuyPower

– OnStar

6

IntraNET

ExtraNET

InterNET

100%GM Owned

100%GM Owned

Non-equityMgmt

Non-equityMgmt

Tech Co-opCOE

Tech Co-opCOE

50/50JV

50/50JV

DesignProduct

BusinessServices

CustomerExperience

ProduceProduct

Building the Extended Enterprise

7

SuppliersProductsSchedulesCustomersDealersEmployees

8

B2B2C

Supplier 2/Trading

Customer

Employee

Supplier/Collaborators

Supplier

GM’s e-Business Evolution

Increasing Data Challenges

DU2: What’s on the Lot

9

Data Diversity

• Data sources from separate islands

• Country islands

• Functional islands

• Application islands

• Organizational islandsFrom a record focus to a document focus

Point-to-Point: Non-Scalable Enterprise Integration

Approach

10

Why XML ?Critical need for a universal

interchange syntax that enables interchange between heterogeneous

systems...

XML

• Serializes data

• Document-centric

• Can imbed metadata

• Enables machine-to-machine automation

• Forms the foundation for enterprise-to-enterprise information integration

Initial Vision

Vision

“Become the automotive industry leader in real-time communications between

GM and its supply chain by 2001.”

Vision

“Become the automotive industry leader in real-time communications between

GM and its supply chain by 2001.”

Vision

“To establish the world’s leading virtual marketplace enabling multiple buyers and sellers to conduct business and improve supply chain management.”

Vision

“To establish the world’s leading virtual marketplace enabling multiple buyers and sellers to conduct business and improve supply chain management.”

TradeXchange Overview

TradeXchange Portal Applications

Cat

alo

g P

rocu

rem

ent

Many Buyers

Au

ctio

n S

ervi

ces

Rev

erse

Au

ctio

n

Bid

/ Q

uo

te

Su

pp

ly O

rder

Su

pp

ly C

hai

n M

gm

t

Fin

anci

al S

ervi

ces

Des

ign

Co

llab

ora

tio

n

XML Engine

Databases

Commerce OneTrading Community

XML

EDI

WebBrowser

Many Suppliers

Suppliers

Suppliers

SuppliersBuy Site

APS

ERP

PDMInfrastructure (Telecom, Public Internet, ANX)

Creating A Global Automotive Supply Chain NetworkCreating A Global Automotive Supply Chain Network

Covisint GM, Ford, DaimlerChrysler,

Renault/Nissan, Toyota, Oracle and Commerce One

Automotive –XchangeNow Covisint

• A Joint Venture between General Motors,Ford, DaimlerChrysler,Renault/Nissan, Toyota, Oracle and Commerce One

• Open to All OEMs, Suppliers, and Dealers• Comprehensive Portfolio of Services

– Sourcing & Procurement– Supply Chain Management

• Primary Benefits– Streamlined Flow of Products & Information– Improved Integration and Collaboration– More Competitive Supply Network

Covisint Vision

ContentPartners

Client AClient AClient AClient ASuppliersSuppliers

Bidding &Bidding &NegotiationsNegotiationsBidding &Bidding &

NegotiationsNegotiationsSpotSpot

PurchasesPurchases

SpotSpotPurchasesPurchases

Transaction ProcessingTransaction ProcessingTransaction ProcessingTransaction Processing

BuyerBuyerSelf ServiceSelf Service

BuyerBuyerSelf ServiceSelf Service

SupplierSupplierSelf ServiceSelf Service

SupplierSupplierSelf ServiceSelf Service

GeneralGeneralInformationInformation

GeneralGeneralInformationInformation

SupplierSupplierDirectoryDirectorySupplierSupplierDirectoryDirectory

Integration KitsIntegration KitsIntegration KitsIntegration Kits

Marketplaces

Dea

lers

, D

istr

ibu

tors

Cu

sto

mer

s

Supply Chain PlanningSupply Chain PlanningSupply Chain PlanningSupply Chain PlanningOE

Ms,

Tie

r1-T

ier

x S

up

pli

ers

e-Business Ecosystem

Global 2000 Company

Customer

E-Marketplace

Making B2B2C Happen

OTD Technical Architecture

Wrapper(s)

WebEngines

OutsourcedServices

LegacyApplications

DataDecisionSupport

Portals

Order to Delivery

Supply Power

e-GM BuyPower

WebApplications

Integration Framework

Data Challenges e-Commerce

• Document-centric

• Data from many sources

• Short implementation time

• Skills and tools of today’s vendors

• Growing semantic diversity

• Many flavors of XML

• Need for corporate vocabulary based on corporate semantic model

Impact of B2B e-Commerce

• Slow and expensive integration projects

• Choice between risky replacement and expensive interfacing

• EAI vendor focus on point-to-point data mapping drives cost, complexity, risk

• Vendor use of proprietary XML “standards” creating more islands of information

XML forms the foundation for enterprise-to-enterprise

information integration

Many-to-Many: Scalable Enterprise Integration

Approach

The Collaboration Hub

OnStar Virtual Advisor

OnStar.netOnStar.net

PalmPilotWindows CEGSM SMSWAP+PCS

FaxE-MailPager

OnStarVirtual

AdvisorGateway

Browser

InternetWirelessNetworksIntranet Extranet

SatelliteNetworks

Email

Call CenterOracle/IBM

“Internal Content”

Any Internal Source

Call Center

Email

NewsStocks

Weather

“External Content”

Any Internet Source

News

Integration Hub

Choose The Right Approach

• Avoid point-to-point application integration• Technology and market expertise • Support for all XML dialects• Products easily integrate with other B2B applications• Map to and from a semantic model based on a shared

vocabulary

The Collaboration Hub:Reducing Interface Complexity

• Consolidates data• Simplifies changes• Reduces number of

interfaces• Reduces costs and

delivery times• Easier to add

subscribers

External Applications Legacy ApplicationsC

om

mo

n F

orm

at,

Sem

anti

cs

HUBHUB

Channel Applications

Co

mm

on

Fo

rmat

, S

eman

tics

Where Companies are Starting

Market MaturityMISSION

CRITICAL

NON-MISSION

CRITICAL

PLANNED NOTPLANNED

Indirect MaterialsAUCTIONS

#1Indirect Materials

Supply Chain PlanningMARKETPLACES

#2DIRECT

MATERIALSB2B

#3COLLABORATIVE

COMMERCEB2B2C

Common Semantics

• Lack of common semantics will greatly hinder e-commerce in the intermediate and long term.

• For e-commerce to use XML to its full potential, the common semantics problem must be resolved

• XML does not directly solve the semantics problem

• Example: Purchase Order Number, P_123, PO_Num, and PN

Create a Corporate Vocabulary

• Pinpoint strategic business information• Extend from vertical industry standards• Uncover and leverage metadata and semantics

from legacy systems• Extract naming standards, corporate entities,

attributes, elements and semantics• Conduct business using the same syntax &

semantics• Create Document Type Definitions (DTDs &

schemas)

Web-Enabled EDI

• Standard vocabulary for business communication• Mapping of X12 and EDIFACT to XML • Multi-lingual transaction sets• XSL output is human- and ANY machine-

readable, allowing for complete query and analysis

• Ability to multipurpose output• Leverage existing legacy data

Web-Enabling EDI/Direct Materials

• Securely send and receive data using widest variety of transport and security protocols available.

• Enterprise level workflow solution to define, model and automate business processes.

Web-Enabling E-Commerce

• Platform for managing Direct and Indirect e-Procurement

• Enterprise-to-Enterprise Integration

• 3:1 speed to market

• Vertical Industry Transaction Sets (AIA, AIAG, CIDX & many others)

• Highly extensible to meet the ever-changing needs of business partners and customers

Business Issues • Yet 80% supplying partners are still unable

to trade electronically• Costs 10 times as much to transact

manually than electronically• New XML-based formats are used for data

interchange (xCBL, cXML, RosettaNet, and ebXML) but need to link into existing systems

• Internet technologies will cause disaggregation of corporate functions

Business-to-Business-to-Customer

• B2B Nirvana is Collaboration

• B2B2C – customer drives specific product requirements and demands which require dynamic supply chain automation

• Mass customization – produce at scale and speed required to fulfill customized orders

• Examples: GM Buy Power; Dell; Gateway

B2B Collaborative Ecosystem

Global 2000 Company

Customer

E-Marketplace

Business-to-Business

Bu

siness-to

-Exch

ang

e

Exchange-to-Exchange

The Future of B2B e-Commerce

• Rapid adoption e-Business systems• Many exchanges• Many different XML “standards”• Many exchanges “hubs”• XML transformation engines at the center

of every exchange hub • Opportunity to re-deploy corporate data

models to neutral, common vocabulary for XML

The Future

Dis-Aggregation To Communities

Questions…