RosettaNet PIP Milestone
$700 Billion IT Industry Set to Embrace RosettaNet Global Business Standards Aimed At Aligning IT Supply Chain to Leverage Internet and E-commerce
IBM and Microsoft Successfully Complete Implementation Test of RosettaNet's First XML-based Partner Interface Process
SANTA ANA, California. April 12, 1999.
RosettaNet, a global business consortium creating the electronic commerce framework to align processes in the IT supply chain, Monday announced that it has successfully completed implementation on its first "Partner Interface Process," referred to as a PIP.
A RosettaNet PIP is an XML specification designed to align a specific business process between supply chain partners. This initial test of a PIP, completed by IBM and Microsoft, allows manufacturers to seamlessly add new products -- including standardized technical specifications and part numbers -- into their partners' catalogs.
RosettaNet develops PIPs through extensive process modeling to determine how partners (manufacturers, distributors, resellers, carriers and end-users) in the IT supply chain interact with each other as they carry out day-to-day business activities in each of six high-level business process areas -- Partner/Product Review, Product Introduction, Order Management, Inventory Management, Marketing Information Management, and Service and Support.
According to RosettaNet's Chief Executive Officer Fadi Chehade, "Our detailed process modeling showed that this first PIP alone translates into an average of $1 million in cost savings per year for each implementer -- a 200 percent ROI." By June 2000, RosettaNet anticipates to have identified over 100 PIPs to align most processes in the global IT supply chain. "The IT supply chain stands to reap significant savings from the pervasive implementation of PIPs, possibly as high as $25 billion annually," Chehade said.
The goal of the implementation was to demonstrate the viability of a RosettaNet PIP based on the RosettaNet Implementation Framework. Both IBM and Microsoft successfully implemented the first RosettaNet PIP in a relatively short period of time, primarily using off-the-shelf products.
According to Karl Salnoske, general manager, e-commerce at IBM and a member of the RosettaNet Managing Board, "RosettaNet has created a set of standards that not only support all IT industry business processes, but are also easy to implement. By using the industry standard, XML, we were able to extend the capabilities of IBM Net Commerce to support the RosettaNet PIP in just a couple of weeks.
"RosettaNet will not only help transform the way the IT industry does business, it will become a model for how other industries work together to realize the benefits of e-commerce. IBM intends to keep our e-commerce products at the forefront of this movement so that we can continue to provide the advanced solutions that help our customers transform into e-businesses."
Todd Weatherby, group manager, retail and supply chain, at Microsoft Corp. said; "The RosettaNet model is one of the best e-commerce business standards efforts we've seen, in any industry. This implementation showed how quickly the RosettaNet PIPs can be put into practice with today's technology. Through our Value Chain Initiative, based on the Microsoft Biz Talk XML framework, we look forward to helping hundreds of ISVs and corporate IT departments accelerate the broad-based adoption of the RosettaNet business process standards."
As a result of this successful test, RosettaNet members including Ingram Micro and Tech Data are gearing up to begin implementation of RosettaNet PIPs, including integration into their ERP and database systems. This commitment is evidenced by recent moves in many RosettaNet member companies to dedicate resources focused on the implementation of PIPs.
According to Richard J. Kish, senior vice president and the chief information officer of Ingram Micro Inc.: "The adoption of RosettaNet's standards allows the channel to collectively succeed by using all the available tools from electronic commerce. Adhering to RosettaNet standards will allow our industry to run more efficiently, lower costs and create opportunities for our resellers and their end-user customers. Ingram Micro is proud to have developed a team, E-Brigade, which dedicates focused resources on the implementation of RosettaNet. E-Brigade is comprised of purchasing, sales, operations and marketing departments and the team has begun preparatory groundwork this year and anticipates readiness by the third quarter."
"As a leading distributor of computer technology worldwide, our company is taking a global approach to integrating RosettaNet PIP processes into our existing Internet commerce capabilities," said John Lochow, senior vice president and chief information officer, Tech Data Corp. "We have dedicated an enterprise-wide team of IT specialists and business unit representatives to facilitate PIP implementation. With RosettaNet, we are making significant strides toward the goal of further streamlining and enhancing electronic commerce with our vendor partners and customers."
RosettaNet's key success factor is the representation it has secured on its powerful managing board. "Our board represents $400 billion out of the industry's total of $700 billion. Their commitment to implement RosettaNet PIPs is a significant mandate," said Chehade.
Eight new members were announced at a recent meeting of RosettaNet's managing board in Phoenix. They are Arrow Electronics, Avnet, Inacom, Marshall Industries, Office Depot, Siemens, Solectron and 3Com.
The RosettaNet Managing Board now consists of 34 CEOs, CIOs, and executives representing global members of the IT supply chain, including initial board member companies: American Express, CHS Electronics, Cisco Systems, CompUSA, Compaq, Computacenter, Deutsche Financial Services, EDS, Federal Express, GE Information Services, GSA, Hewlett-Packard Co., IBM, Ingram Micro Inc., Insight, Intel, Microage, Microsoft, Netscape, NEC Technologies, Oracle, pcOrder, SAP AG, Tech Data, Toshiba Information Systems and United Parcel Service.
Founded in 1998, RosettaNet is an independent, self-funded, non-profit consortium dedicated to the development and deployment of standard electronic commerce interfaces to align the processes between IT supply chain partners on a global basis.
RosettaNet can be found on the World Wide Web at http://www.rosettanet.org.