I disagree with Paul that the advantage of XML/EDI is getting rid of the
VAN and its cost. XML is a syntax which is comparable but more flexible
than the X12 standards. The syntax used is irrelevant in terms of using
or not using a VAN. You can send XML formatted data through a VAN and
you can send EDI formatted data through the internet. The question in
using a VAN should be "Am I receiving the 'V' in 'VAN'", which is
'Value'. Is my VAN providing me a service which I need and one which I
can not obtain at a lower cost through other means?
The largest cost of EDI is not the VAN. It is the people needed to
establish, support, and maintain the business relationships with the
trading partners. Going to XML or the internet doesn't eliminate that
cost. In fact going to either XML or the internet could increase those
costs. Using XML you will need to duplicate the work done by X12 in
defining the business transaction. Going to the internet instead of a
VAN means you will have to perform and monitor more communication
sessions.
Base your decision on using XML, VAN's, EDI, the internet, or any
combination of them on your business requirements and do a cost
analysis.
Doug Fangmeier
Consulting Manager
Business-To-Business Solutions
Charter Solutions, Inc.
-----Original Message-----
From: Paul Williams [mailto:[EMAIL PROTECTED]]
Sent: Friday, June 30, 2000 10:59 AM
To: [EMAIL PROTECTED]
Cc: Richard Ward; [EMAIL PROTECTED]; 'Mark Seaborne'
Subject: RE: Are there really any benefits?.
I have to agree with Dick,
Surely the whole point in gaining an advantage (in the futrure) with
XML/EDI
it's to get rid of the third party (ie the VAN) and it's cost.
If we want to use XML/EDI and still use a van then we might as well use
just
plain simple EDI.
However using the internet HTTP is how we will be able to get XML/EDI
from
application to application.
One thing that does concern me however is the security of such a thing.
As we
know allowing HTTP into our company's servers is not the safest way. I
have
heard of a company called NETFISH which does something slightly
different with
the HTTP. Is there anything else that can be used?..
regards
Paul
"Dick Brooks" <[EMAIL PROTECTED]> on 30/06/2000 16:27:53
Please respond to [EMAIL PROTECTED]
To: "Richard Ward" <[EMAIL PROTECTED]>,
[EMAIL PROTECTED]
cc: Paul Williams/Manchester/UK_/Kellogg@Kellogg,
[EMAIL PROTECTED], "'Mark Seaborne'"
<[EMAIL PROTECTED]>
Subject: RE: Are there really any benefits?.
Richard Ward wrote:
>Everyone needs VANs, whether they run as traditional VANs or over IP -
a
>networking protocol doesn't change basic requirements. IP just opens up
the
>competition to non-traditional VANs
I have to disagree with Richard that "Everyone needs VAN's". Plenty of
companies have moved off VAN's and onto the Internet (surely you're not
referring to the Internet as a VAN, are you?). The Natural Gas industry
moved from VAN's to the Internet starting in 1997, now virtually all EDI
traffic flows over the Internet. The electric industry is moving from
VAN's
to the Internet, Healthcare companies are doing the same and it appears
that
a large percentage of HIPAA EDI documents will also be carried by the
Internet!
>So Randy, yes EDI file formats may be allowed to die, but the VAN will
live
>on doing the same job as before but wearing trendier clothes.
On a practical note, the VAN's will serve a purpose for the smaller
trading
partners who don't have the resources/skills to operate their own
E-Commerce
server. However the big players will have a hard time justifying a VAN
when
they can communicate directly with their trading partners via the
Internet.
E-Commerce is fast becoming a strategic part of corporate business
processes. Companies that want to control their own destiny will want to
control their E-Commerce servers. Whether you're talking about
transferring
X12 transactions or online interactive services (e.g. airline
reservations,
purchasing, et al) E-Commerce gives companies competitive advantage by
enabling them to offer "UNIQUE" and innovative services. None of the
companies I work with want to be at the mercy of a VAN when it comes to
their E-Commerce capability.
Dick Brooks
http://www.8760.com/
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