Paperless Trading Infrastructure Paperless Trading Infrastructure Technology Development in Hong Kong Technology Development in Hong Kong 2005 APEC Symposium on 2005 APEC Symposium on the Assessment and Benchmark of Paperless Trading the Assessment and Benchmark of Paperless Trading September 1 September 1 - - 3, 2005, Beijing, China 3, 2005, Beijing, China Mr. Thomas Lee Mr. Thomas Lee Chief Technology Officer Chief Technology Officer Center for E Center for E - - Commerce Commerce Infrastructure Development Infrastructure Development The University of Hong Kong The University of Hong Kong Hong Kong, China Hong Kong, China
Transcript
Paperless Trading Infrastructure Paperless Trading Infrastructure Technology Development in Hong KongTechnology Development in Hong Kong2005 APEC Symposium on 2005 APEC Symposium on the Assessment and Benchmark of Paperless Tradingthe Assessment and Benchmark of Paperless TradingSeptember 1September 1--3, 2005, Beijing, China3, 2005, Beijing, China
Mr. Thomas LeeMr. Thomas LeeChief Technology OfficerChief Technology Officer
Center for ECenter for E--Commerce Commerce Infrastructure DevelopmentInfrastructure Development
The University of Hong KongThe University of Hong KongHong Kong, ChinaHong Kong, China
2Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Trading with FAXTrading with FAX
Repetitive data entry and Repetitive data entry and checkingchecking
Low productivityLow productivityProne to human errorsProne to human errors
PO1/9/2005ABC Co.
order food
POPO1/9/20051/9/2005ABC Co.ABC Co.
order foodorder food
3Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Paperless TradingPaperless Trading
010101011010101001010101
010101010101010110101010101010100101010101010101
SystemSystem--toto--system data system data exchangeexchange
Manual data entry and Manual data entry and checking savedchecking savedAccurate data exchangeAccurate data exchangeHuman fraud avoidedHuman fraud avoidedRoundRound--thethe--clock operationclock operation
Fax machine for electronic documents?Fax machine for electronic documents?
4Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
SoftwareSoftwareMessage gateway for data exchange on InternetMessage gateway for data exchange on InternetFactors for adoption: cost and complexityFactors for adoption: cost and complexity
StandardsStandardsStandards on communication protocols, electronic Standards on communication protocols, electronic documents, business processesdocuments, business processesFactors for adoption: sanction, traction, openness, Factors for adoption: sanction, traction, openness, localizationlocalization
5Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
In 2002, HKSARG In 2002, HKSARG Innovation and Technology Innovation and Technology CommissionCommission funded CECID funded CECID HK$9.5MHK$9.5M (US$1.2M)(US$1.2M)Build Build ebXMLebXML software infrastructuresoftware infrastructure in HKin HKVery successful R&D project:Very successful R&D project:
OpenOpen--sourcedsourced software deliverablessoftware deliverablesHermes Message Gateway as flagship technologyHermes Message Gateway as flagship technologyLowered barriers for Lowered barriers for SMEsSMEs to do B2B eto do B2B e--commercecommerceWidely adopted in HK and internationallyWidely adopted in HK and internationallyGained international recognitionsGained international recognitions
6Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
EDI gateway EDI gateway
Order Doc
(EDI)Buyer Seller
Cost effective, affordable by SMEs !!
Expensive !!
PrivateNetwork
Hermes Hermes
Internet
Order Doc
(XML)Buyer Seller
With Hermes
EDI
B2B EDI on the InternetB2B EDI on the Internet
7Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Cost ofCost of OwnershipOwnership
* Source: “The Total Economic Impact of EDI” by Forrester Research
Operational expenses
Programming cost
Initial cost
US$0.25 - $1 per document
US$40,000 - $120,000
US$40,000 – $80,000 (Unix or Windows based)
US$120,000 (mainframe)
EDI *
Internet subscription (flat fee for unlimited usage)
US$3,000 (app development)
FREEIf running on Linux
Hermes
8Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Worldwide AWorldwide Adoptiondoption of Hermesof 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, New Zealand, 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 HKMTRC (HK major subway operator)OOCL (international shipping company)Sony Music HKDaganet (Malaysia)Spherion Technology (IT consulting in Australia)Tedis (IT consulting Australia)
9Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Electronic Invoicing Between Electronic Invoicing Between Buyer and SupplierBuyer and Supplier
Procurement web application
Hermes
Auto Reconciliation
Auto Auto RReconciliationeconciliation
Vendor Backend System
User Browser
Electronic goods receiving
intranet system
11
11 22 4433MTRC user orders viaMTRC user orders viabigboXXbigboXX web applicationweb application
Physical goodsPhysical goodsdeliverydelivery
EE--invoice delivery invoice delivery via Hermesvia Hermes
MTRC user mark MTRC user mark goods receivedgoods received
11 1133
4444
44
2222
44
InternetInternet
Hermes
10Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
In 2004, HKSARG ITC funded CECID HK$14M In 2004, HKSARG ITC funded CECID HK$14M (US$1.8M) to build (US$1.8M) to build ee--business interoperability business interoperability platformplatformMethodology and tools for Methodology and tools for ee--business business information and process standardizationinformation and process standardizationLocalized international standardization practices Localized international standardization practices for adoption for many corporate and for 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
11Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Local StandardizationLocal Standardization
eGovernmenteGovernment data standardizationdata standardizationDeveloped Developed XML Schema Design and Management Guide XML Schema Design and Management Guide under under eGovernmenteGovernment Interoperability FrameworkInteroperability FrameworkHKSARG established Registry of Data Standards HKSARG 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 to Software vendors need to follow the Guide and standards to implement G2G and G2B projectsimplement G2G and G2B projects
Digital Trade and Transportation NetworkDigital Trade and Transportation Network electronic electronic document standardizationdocument standardization
DTTN Co. standardized 60+ trade documents in XML with DTTN Co. standardized 60+ trade documents in XML with industry and academiaindustry and academiaContributed the standards to develop Universal Business Contributed the standards to develop Universal Business Language 2.0Language 2.0
12Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
Regional and International Regional and International StandardizationStandardization
Hong Kong actively participates in Hong Kong actively participates in ebXMLebXML Asia Asia CommitteeCommittee ((eACeAC) and OASIS ) and OASIS Universal Business Universal Business LanguageLanguage (UBL)(UBL)
To define crossTo define cross--border trade standards in XMLborder trade standards in XMLUBL LibraryUBL Library defines common trade documentsdefines common trade documents
E.g. purchase order, invoice, E.g. purchase order, invoice, despatchdespatch adviceadviceLocalized in different languages, e.g. Chinese, Japanese, KoreanLocalized in different languages, e.g. Chinese, Japanese, Korean, , SpanishSpanishUBL v2 aims to develop all trade documents mentioned in APEC UBL v2 aims to develop all trade documents mentioned in APEC Paperless Trading Initiative paperPaperless Trading Initiative paperHKSAR and Singapore contributed local standards to develop HKSAR and Singapore contributed local standards to develop transport documents in UBL v2transport documents in UBL v2Danish government mandates UBL for G2B invoicingDanish government mandates UBL for G2B invoicing
Potential saving estimated to be Potential saving estimated to be 160M euros160M euros per yearper year
13Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
FAX Machine for Electronic DocumentsFAX Machine for Electronic Documents
Hermes / ebXML
Web Services
OGCIO Dept BDept C
HKSARG OGCIO
RecruitmentAgents
IssuanceCompanies
ShippingAgents
Clinics
e-GovernmentInfrastructureService (EGIS)
B2BConnector
(Hermes Linux Box)
Hermes
Otherproducts
14Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
ConclusionConclusion
SoftwareSoftware and and standardsstandards are core paperless are core paperless trading infrastructure technologytrading infrastructure technologyTechnology must be Technology must be affordableaffordable, , simplesimple, and , and openopen for wide adoptionfor wide adoption
Open sourceOpen source and and open standardsopen standards
Technology must be developed in a Technology must be developed in a global global perspectiveperspectiveGovernment leadership Government leadership in ein e--commerce adoption commerce adoption is a critical success factoris a critical success factor
15Making e-commerce everyday commerceCenter for E-commerce Infrastructure Development
About CECIDAbout CECID
R&D Center under Faculty of Engineering in the R&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 small businesses through technology innovation, industry collaboration, and knowledge cultivation.
20+ full-time staffs to develop innovative e-commerce technology and provide R&D outsourcing services to the industry
