Transcript How eBusiness Standardization can help XBRL

How eBusiness Standardization
can help XBRL
Dick Raman, CEO TIE Holding NV
Chair UN/CEFACT Forum
Agenda
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What is UN/CEFACT?
What is ebXML?
Why is TIE involved?
Will XBRL be successful?
Issues for XBRL
Challenges for XBRL
UN/CEFACT
SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES
FOR GLOBAL BUSINESS.
UN/CEFACT Plenary
>250 delegates
(Governments,
Global Organizations)
UN/CEFACT Bureau
UN/ECE
Secretariat
UN/CEFACT
Rapporteurs
UN/CEFACT Forum
Technology
Syntax
Business
Documents
Legal
UN/CEFACT Responsibilities
• Trade facilitation
– Simplification of global trade
– Between Governments and Companies
– Using eBusiness
• Producing Global standards
– UN/Layout Key (UNeDocs)
– UN/EDIFACT
– ebXML (in cooperation with OASIS)
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The Multi-Enterprise cCommerce Framework
Interoperable, open, global, B2B ‘standard’
Complex solution and SME support
Leveraging existing technologies and
standards
• Integration of business processes:
– By electronic means
– Independent of the technical solution.
– Allowing business processes and technologies to evolve
independently
ebXML Focus Areas
• Semantic Framework
– Meta-model for defining business process
– A set of re-useable core components
(common business semantics)
• Infrastructure
– Transport, Routing, Packaging
– Collaboration Protocol Profiles/Agreements
– Shared repository network
• company profiles, business process models and related
message structures
Architecture
Core Components
• Designed to capture:
• Business concepts (commonality)
• Relationship between business concepts
• Individual pieces (objects) of business
information in a context
• Format:
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Syntax Neutral
Can contain other core components
Uniquely identified (GUid)
Facilitate multi-lingual support
Too many data standards
agXML
XAML
cXML
IATA
OTA
Rosettanet
CIDX
GCI
HL7
xCat
Bolero
SMDG
EHD
GML
SWIFT
PIDX
xCBL
UBL
VICS
Togaf
UNe
Doc
HRXML
BSML
Opent
rans
Acord
Econstruct
CAT
XML
All have different data elements!
UN/CEFACT Core Components
Reconciliation
Of Data Elements
UN/CEFACT Core
Component Library
200?
2004
2002
verticals
1999
Existing Standards
eGov XML X12 SGML XML
EDIFACT
Etc.
Standardization of Semantics
• Groups of people can decide on semantics
– But they are not interoperable with other groups
• A Global Top-Down Process is required
– To capture semantics
– To structure/harmonize them
– In order to simplify the interactions
• UN/CEFACT was set up to do this
– Commitment at the highest level
• It takes many years
UBL
• First glimpse of what ebXML looks like
• They took the short-cut:
– Syntax Specific
– Limited reach
• Good eBusiness solution for the short term
• UN/CEFACT and OASIS back together
• To guarantee migration to ebXML
Transport
Structure
Why is TIE involved?
• TIE is a B2Bi Software Company
• TIE is a Public Company
– Must report in IFRS starting 2005
– Full Integration of IFRS in Accounting System
– Quarterly/Annual reports in XBRL
• TIE is experienced in eBusiness Standardization
• TIE adapted its eBusiness tools for XBRL
• TIE has tools available for the best infrastructure
for XBRL (ebMS)
• TIE has partnerships in place to offer full
implementation & support.
Will XBRL be successful?
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All major players support XBRL
IFRS is Mandatory in Europe
Rest of the world is following
Dutch government first to enforce
– 25% cost reduction (EUR 3 bn)
– mandatory reporting in XBRL
• There is no competing standard
• No semantic discussions
– when XBRL is based on IFRS
Semantics in eBusiness
• Are the real issue
• Not the physical transport
– From diskette to webService
• XML is designed to be ‘eXtensible’
– That is its strong point
• For B2Bi you need very explicit agreements
– Technical issues – easy (20%)
– Business issues – difficult (80%)
Semantics in XBRL
• XBRL is like eBusiness
– Interactions between different organizations
– Within an organization semantics are no issue
• IFRS provides a strong (legal) framework for the
semantics of XBRL
– US/GAAP does too, but that is another discussion
– IASB provides the semantics
• Building your own Taxonomy
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Is a nice intellectual exercise
Useful to know what your extension will be
Should never be used in practice
This leads to a semantic nightmare
Issues for XBRL
• Organization of/Agreement on:
– Maintenance of the standard
• IFRS, XBRL Intl, UN/CEFACT (TBG12)
– Infrastructure for messaging
• ebXML Messaging (ebMS)
– Certification of Software/Messages
• Many options
– Codelists
• UN/CEFACT, ISO
eReporting is NOT eBusiness
• Use XBRL only for reporting!
– Using it for eBusiness = Semantic Problem
– There are better standards already available
– Concentrate efforts on getting XBRL in the
mainstream
– There is a lot to be done!
• XBRL GL is already one step too far
– Capturing transactions = semantic problem
• Invoices in XBRL
– Will really lead to confusion and are a duplication of
effort
Getting XBRL in the Mainstream
• XBRL is in the Early Stages
– Academic, Experimental
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Create Awareness (Financial Press)
Show the Business benefits
Define clear implementation path
Message Implementation Guidelines
Parties that benefit, play leading role
Positive/Negative encouragements
In eBusiness, we’ve been there, done that!
Challenges for XBRL
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‘Crossing the Chasm’
Maturing the standardization process
Re-use what is there…not re-invent the wheel
Establish relationships with other (eBusiness)
standardization organizations:
– UN/CEFACT, OASIS
• Join the ‘ISO-IEC-ITU-UN/ECE MoU’
• Defining the Road-map
Contact Info
ebXML web site:
http://www.ebXML.org
UN/CEFACT web site:
http://www.uncefact.org
TIE XBRL web site:
http://xbrl.TIEglobal.com
Corporate Website: http://www.TIEglobal.com
E-mail: [email protected]