According to news report, Malaysia's cyber dream finally take shape despite 
skepticism.

http://www.asiagateway.com/c/n/shownews?url=http://www.worldroom.com/pages/wrnkl/coverstory.phtml&&title=Malaysia+Cyber+Dream+Takes+Shape&&ID=149392&&Rate=0.00&&Hit=4

For any IT savvy Malaysians, this is a pure state propaganda. "The Next Big 
Thing" that has taken place in US now is the effort to develop XML/EDI for 
e-commerce.

EDI (Electronic Data Interchange)  has been around since the 1960s, but is 
used mostly by large corporations and their satellite suppliers working over 
a private network called a Value Added Network)  to automate the transfer of 
information between corporation departments, as well as between companies. 
But the cost of operation over VAN has limited the affordability of EDI to 
large corporations.

Broadband services are not cheap, US with it's huge geographical areas can 
not affort to build the same sort of IT infrastructures as envisaged in MSC. 
This is a serious obstacle for US in it's pursuit of IT development. In 
order to overcome it, a new technology called XML technology finally 
emerged.

The arrival of Extensible Markup Language (XML) technology on the Internet 
has opened new vistas for data exchange.

By leveraging Internet as a data transport mechanism and by combining the 
flexibility of XML-based data definitions with the business language and 
practices of EDI, a cost effective, secure, reliable and interoperable data 
interchange solution can be built.This ability to exchange data 
electronically means that traditional ERP and Legacy applications can now be 
integrated to the web without occurring exorbitant cost.  This will give EDI 
a new lease of life.

A lot intiatives to promote and develop XML/EDI have been going on with 
religous zeal, even the United Nations body for Trade Facilitation and 
Electronic Business (UN/CEFACT)  is involved but MSC is virtually ignorant 
about this development.

Like all other dot com companies, Malaysian MSC status companies have taken 
a piecemeal approach in providing e-commerce solution, giving rise to a slew 
of business issues when they arenˇ¦t integrated with other systems. There, 
is often no link, for example, between the applications and the companyˇ¦s 
inventory or production systems. A standalone Internet e-commerce 
application does not check product availability, it cannot prompt just in 
time production or delivery and it cannot update stock records. And, 
importantly, these front-end applications, unlike a complete procurement 
solution, do not contribute directly to managementˇ¦s overall view of the 
business.

Pricing issues create another immediate problem for companies entering the 
e-commerce world. The handling of foreign currencies, the rationalization of 
prices and product features across international boundaries, differing tax 
and customs law are all questions that need to be answered. Again, these 
complicated issues cannot be handled by a simple front-end Web-based 
application.

Lack of integration equates to inefficiency, inflexibility and poor customer 
service. And e-business without integration drives up costs and reduces 
customer satisfaction.

The failures of dot-com companied to grasp this underlying principle, have 
witnessed the frenzy drive of creating islands of applications that take and 
process orders without integrating to the backend ERP applications or legacy 
systems.  Which ultimately will lead to their demise.

The sad fact about Malaysian IT companies is that they are equally ignorant 
about the XML/EDI development taking place in US. Is there any effort to 
develop XML/EDI im Malaysia? Yes, but only confined to a single individual 
and no one else.

Why the world is so crazy about this " Next Big Thing"?

According to news report, the ability to automatically exchange business 
information with trading partners  will becoming, the primary means of 
conducting business. It has been estimated that 90% of the Fortune 1000 
companies use EDI as part of their business operations.  In the past, these 
benefits often did not transfer to the vendors for these trading partners, 
who were required to be able to receive and generate EDI documents.  By 
leveraging Internet as a data transport mechanism, a cost effective, secure, 
reliable and interoperable data interchange between peers of companies can 
easily be build, smaller companies can now recognize the same benefits with 
a rapid return of investment.

At present  only 6 percent of the estimated 10 million U.S. companies are 
EDI capable. EDI/XML integration  growth is expected to experience 
phenomenal growth in term of billion of  dollars by 2001.

Mahathir's vintage project will remain a dream and only exist in virtual 
reality. Malaysians should stop indulge in self deception and wake up to 
face the reality. It is the killer applications not the white elephant 
infrastructures that will ensure the sucess deployment of IT projects

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