LAURA IST-2001-33251 Adaptive Zones for Interregional Electronic Commerce based on the concepts of Request- Based Virtual Organizations and sector- specific Service Level Agreements Document Title: Analysis of technology / market trends based on interaction and feedback with other frameworks Date: 24 February 2003 Work Package: WP1 Task: 1.2 Lead Participant: CARIS, Kingston University Version: 2.0 Confidentiality: Public Reference: WP1/T1.2/CARIS/SOA Filename: SOA Final 240203.PDF Copyright © 2003 by the LAURA Consortium: 01P CERTH/ITI HAYE MECCI UNISOFT BG ARCFund CARIS TREND GTZH IAF Project funded by the European Community under the “Information Society Technology” Programme (1998-2002) LAURA Project Analysis of Technology and Market Trends List of Contributors Name Company Bob Roberts CARIS Adomas Svirskas CARIS Badawi Malik CARIS Kostas Petropoulos 01P Achilleas Balatos 01P George Zompolas 01P Yiannis Ignatiadis CERTH-ITI Alexiou Theodoros HAYE Panagiotis Giannikos MECCI Larisa Sotiropoulou KIS Vladislav Jivkov ARCFUND Dirk Wilke IAF History Change Date Version Reason for change Revised by 28/11/02 0.1 Draft Issue 01P 29/11/02 0.2 Draft Issue CERTH-ITI 13/12/02 0.3 Draft Issue CARIS 21/01/03 1.0 First Release CARIS 20/02/03 1.1 Revision 01P 24/02/03 2.0 Release for Review CARIS Distribution List Name Company ALL ALL Reviewer List Name Company ALL ALL Doc. Ref: WP1/T1.2/CARIS/SOA Page 2 of 153 LAURA Project Analysis of Technology and Market Trends TABLE OF CONTENTS 1 INTRODUCTION..................................................................................................... 9 2 PURPOSE AND SCOPE.......................................................................................... 9 2.1 OBJECTIVES, AUDIENCE AND VALUE OF THE REPORT ......................................... 9 2.2 ORGANISATION OF THE REPORT........................................................................... 9 3 VIRTUAL ORGANISATIONS ............................................................................. 10 3.1 VIRTUAL COMMUNITIES .................................................................................... 10 3.2 THE CONCEPT OF VO......................................................................................... 11 3.3 MODELS............................................................................................................. 15 3.3.1 Integrated Model of VO's.......................................................................... 15 3.3.2 VO Life-Cycle Model ................................................................................ 16 3.3.3 Categories of Business Process Interaction ............................................. 17 3.4 VARIANT INTERPRETATIONS .............................................................................. 18 3.5 ENABLING TECHNOLOGIES ................................................................................ 20 3.5.1 EDI (Electronic Data Interchange) .......................................................... 20 3.5.2 EAI (Enterprise Application Integration) ................................................. 21 3.5.3 ERP (Enterprise Resource Planning) ....................................................... 21 3.5.4 Workflow Management ............................................................................. 22 3.5.5 B2Bi (Business to Business Integration)................................................... 22 3.5.6 BPI (Business Process Integration).......................................................... 22 3.5.7 Enterprise Portals..................................................................................... 24 3.6 CASE STUDY ISSUES .......................................................................................... 25 3.7 CHANGE MANAGEMENT .................................................................................... 25 3.7.1 Security and Privacy of Information......................................................... 27 3.7.2 Strategic Implications ............................................................................... 27 3.7.3 Partnership Dependency & Trust ............................................................. 28 3.7.4 Business Disruption .................................................................................. 28 3.8 ELECTRONIC NEGOTIATION AND CONTRACTING................................................ 28 3.8.1 Service Level Agreements ......................................................................... 30 3.8.2 Electronic Negotiation.............................................................................. 32 4 E-COMMERCE SERVICES................................................................................. 35 4.1 BUSINESS MODELS ............................................................................................ 35 4.2 E–COMMERCE MARKET STRUCTURE AND TRENDS ............................................ 37 4.2.1 Market for e-Commerce Solutions............................................................ 37 4.2.1.1 Market Maturity.................................................................................... 37 4.2.1.2 Business-to-Business and e-Marketplaces............................................ 38 4.2.1.3 Market Penetration................................................................................ 40 4.2.2 E-commerce Inhibitors.............................................................................. 41 4.2.3 Effect of e-commerce to the public............................................................ 42 4.2.3.1 Impact of E-Economy on Sectors ......................................................... 42 4.2.3.2 Price and Pricing Mechanisms.............................................................. 43 4.2.3.3 Emergence of Services.......................................................................... 43 4.2.3.4 Customer Acquisition........................................................................... 44 Doc. Ref: WP1/T1.2/CARIS/SOA Page 3 of 153 LAURA Project Analysis of Technology and Market Trends 4.3 MARKET DEMAND ANALYSIS ............................................................................. 44 4.3.1 E-commerce Diffusion .............................................................................. 44 4.3.1.1 Tangible Drivers................................................................................... 45 4.3.1.2 Intangible Drivers ................................................................................. 46 4.3.2 Companies Perspective............................................................................. 47 4.3.3 Regional Information................................................................................ 47 4.3.4 E-commerce status in LAURA project countries ...................................... 48 4.3.4.1 Germany................................................................................................ 48 4.3.4.2 Greece ................................................................................................... 49 4.3.4.3 United Kingdom.................................................................................... 49 5 TECHNOLOGY ..................................................................................................... 50 5.1 E-COMMERCE FRAMEWORKS, ARCHITECTURES AND MODELS.......................... 50 5.1.1 General Frameworks ................................................................................ 50 5.1.1.1 The Biztalk™ framework ..................................................................... 50 5.1.1.2 CEN/ISSS Electronic Commerce Workshop 'Building Blocks' ........... 50 5.1.1.3 ebXML Technical Architecture ............................................................ 51 5.1.1.4 The CommercNet eCo framework........................................................ 53 5.1.1.5 IMPRIMATUR Business Model .......................................................... 53 5.1.1.6 Industrial Data Framework (STEP) ...................................................... 53 5.1.1.7 Java EC Framework.............................................................................. 54 5.1.1.8 OMG Electronic Commerce Domain Specifications............................ 54 5.1.1.9 Open-edi Reference Model (ISO 14662).............................................. 55 5.1.2 Trading Models......................................................................................... 55 5.1.2.1 Ad Hoc Functional and Process Models............................................... 55 5.1.2.2 OTP - Internet Open Trading Protocol (IETF) ..................................... 55 5.1.2.3 Open Applications Group XML Framework........................................ 56 5.1.2.4 OBI (The Open Buying on the Internet (OBI) Consortium)................. 56 5.1.2.5 RosettaNet............................................................................................. 57 5.1.2.6 Secure Electronic Market Place for Europe (SEMPER)....................... 57 5.1.3 Payment Models........................................................................................ 58 5.1.3.1 Electronic Payment Technologies......................................................... 58 5.1.3.2 SET - Secure Electronic Transaction.................................................... 58 5.1.3.3 Trading and Payment model in TC 224 Report on 'Card-related secure commercial and financial transactions on open networks'.................................... 59 5.1.4 Security Models......................................................................................... 59 5.1.4.1