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Document Standards & On-Boarding Solutions
06 May 2005
William (Bill) Le SageCEO
OFS Portal, LLC
Scope – Upstream Oil & Gas
OFS Portal, a group of diverse suppliers
working together with a non-profit
objective, provides standardized
information to B2B customers to facilitate
e-commerce in upstream products and
services.
Who is OFS Portal?
CommunityBuyers
Anadarko Petroleum Anadarko Canada BHP Billiton Bill Barrett Corp.ChevronTexaco ConocoPhillips Encana EniExxonMobil Forest Oil Jetta Operating Co. MarathonNoble Energy Questar Oxy Inc. Repsol YPFShell Statoil Total Unocal
Networks
Ariba Digital Oilfield electroBusiness OildexQuadrem Petronect Trade-Ranger WebdiWellogix
Suppliers
Baker Hughes BJ Services Cooper Cameron ENSCOFMC Technologies Green, Tweed Halliburton M-I SWACOSchlumberger Smith International Trican Well Services Vetco GrayWeatherford
Supply chain life cycle
Identification Selection Order Delivery Invoicing Payment
FulfillmentSourcing Ordering
Catalogs/Content
Transactions
Value Provided
• Reduce costs & resistance– Standards– Rules of engagement– Shared learnings
• Distribute catalogs/content
• Transaction messaging
OFS Portal Services
OFS Portal
Transaction Messaging
Services
IntegrationCompetency
Services
Operational Services
(GXS)
BusinessServices
CatalogServices
BusinessServices
Focus of discussion today• Supply-side• Vertical• Friction• Enablement of
– Standards– Trading partners (On-boarding)
Things to consider
• Industry culture
• Capabilities
• Nature of products and services
• Industry needs
Summary
• Standards acceptance has worked remarkably well
• One set of industry standards works best
• There is friction and we can fix
What impacts enablement?• Standards
– Types• Content• Transactions• Processes
• Trading partners
• Entities in the “Chain”
• ERP/Software/Solutions deployed
Considerations
• Industry Culture– Buyer/Suppliers relationship– How are products/services bought,
sold, used and serviced?– Complexity of the requirements– Breadth and diversity of the
organizational/industry needs.
Complex Products and Services
• People, Technology, Products and Processes
• Complex Pricing
• Collaborative
• Service-orientated
Catalogable Configurable Custom
80% of the Transactions 80% of the Value
80% of the Value
80% of the Value
80% of the Value
Content changes by character
ContenContenttContenContentt
Complex Products/Services
Cannot catalog products that are dynamically structured or priced
Content’s role
• Characteristics by functionality– Sourcing– Contract compliance– Spend analysis
• Three components– Catalogable– Dynamically priced – Non-catalogable
Industry Needs for eCommerce
• Sourcing– Collaborative and Complex– Desk engineers
• Fulfillment– Cost Savings– Contract Compliance– Spend Analysis
• Ordering– Contract Compliance– Spend Analysis
not worked
Value added functions
LogisticsLogistics
OrderSelect Delivery PayIdentify
Strat.Strat.Src.Src.
SelectionSelectionPurchase OrderPurchase Order
Invoice
Service Service PartsParts
DeploymentDeployment
VMIVMI
Supplier Supplier Collab.Collab.
Service Service ExecutionExecution
Order Mgmt.Order Mgmt.
Operational
Tactical
Strategic
InvoiceInvoiceInventory MgmtInventory Mgmt
Executional
Contract Contract ComplianceCompliance
Demand PlanningDemand Planning
Partner
ERP
Value vs. the connection
Gateway/Svc
Provider
Partner
ERP
Cost line
Gateway/Svc
Provider
RFx
Sourcing
AP O/SUtility / Internet/Transaction messaging
Good Neighbor Policy
Trading Partner #1
Trading Partner #2
Cost line
Partner
ERP
Other Issues
Gateway/Svc
Provider
Partner
ERPGateway/Svc
Provider
RFx
Sourcing
AP O/S
Trading Partner #1
Trading Partner #2
PIDX Standard
s
SAS70/BS7799
Are ERP providers supplying necessary ?
SLA
End-to-End Ack
Interoperability vs. Independence
• Technology vs. Commercial
• Buyer Owned vs. Value Orientated
Transaction messaging footprint
-EDI-EDIFACT
-XML
-CIDX-PIDX-IDOC
StandardDocuments
StandardEvent
Processes
-Functional Acks-Control
Messages
Standard Business
Processes
-Long life cycleTransactions
-BPChoreography
StandardProtocols
-AS2-RNIF 2.0
EDISFTP
StandardProjects
-StandardOperations-StandardSupport
Transaction Messaging Standards(Document Exchange)
Not standardizing the product/service offered
Read: commoditize – not general consumable
Leveraging TMS (GXS) to reduce cost and friction
ERP #2
ERP #3
Member xyz
ERP #1SAP
GatewayAS2 /Flat + Binary
EAI / IDOC
EAI / Flat
Field TicketCapture
EAI / Binary
EAI / Flat
PIDX XML
PIDX XML / EDI
Customers
Marketplace
OFS Portal
Services/GXS
PIDX XML Spend Analysis Networks
Why Industry document standards• Electronic version of the way the
industry does business• Sensitive to the unique needs of
the industry• Created not to give competitive
advantage to anyone or class of TP• No vendor control of standard• Isn’t trying to be all things to
everyone and thus too complex• Industry specific
– Documents, Structures, and Tags
PIDX Transaction Standards– Request Requisition
Return– Quote Request– Quote– Quote Notification– Order Create–
OrderStatusResponse– OrderStatusRequest– CustodyTicket
– Order Change– Order Response– Field Ticket– Field Ticket Response– Invoice – Invoice Response– Receipt
– ASN (AdvancedShipNotice)
All were ratified by the PIDX General Committee and updated as API Recommended Practice 3901, Version 1.2 – Parts I-IV.
All are available today as open standards
Future
• Industry Standards– Convergence
• CIDX/PIDX – serve an integrated industry
– Share and learn information•CEN/ISSS - Information Society
Standardization System provides market players with a comprehensive and integrated range of standardization services and products, in order to contribute to the success of the Information Society in Europe.
........ Priorities for 2002 - 2006
3
Future• Industry Standards
– Convergence • CIDX/PIDX – serve an integrated industry
– Share and learn information • CEN/ISSS
• Mature– More standard, fewer flavors
• Work with S/W Providers - EIPP• Continue to share• Seek out and reduce friction
