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Manufacturing and Distribution
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Lean Manufacturing, Basics, Principles, Techniques

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Best of Gaw Lean Management Articles

ELECTRONIC DATA INTERCHANGE

EDI is the grandfather technology of EC. It is a proven, reliable, and necessary part of any business-to-business electronic commerce program. (See figure 3.)

EDI is the universal standardization of hundreds of business docu­ments for the purpose of document exchange between two entities or applications. There are two document standards, known as ANSI X12 and UN/EDIFACT. The X12 standard is the primary standard used in North America, while UN/EDIFACT is used throughout the rest of the world.

These standards describe the document content, technical structure, transmission/receipt verification, and data rules associated for each docu­ment to be used by all businesses. As a result of these standards, all EDI-enabled business applications can digitally speak to each other in the same language when communicating business information. This lowers the cost and eases the integration aspect when exchanging business docu­ments between multiple businesses and disparate applications. The EDI standard also protects businesses by ensuring proper audits and acknowl­edgments during the exchange of business documents

WEB APPLICATIONS

In business-to-business electronic commerce, Web sites are more than merely online catalog shopping, which is typical in the consumer-to-business model. The Web applications must integrate information, such as a complete summary and status of an order as it relates to the order-ship-bill cycle. Furthermore, business-to-business Web appli­cations are far more sophisticated than the typical business-to-con­sumer applications.

Business-to-business Web applications should expect real-time in­formation, confirmation, and updates between the Web application and corporate legacy systems. Many of the applications on the Web will involve the use of many business documents; therefore, it would be prudent to use a business standard such as EDI to help standardize the specifications of your Web applications. (See figure 5.)

WEB MANAGER

Since Web applications in business-to-business environments are "con­nected" to your legacy applications, the creation, acceptance, rejec­tion, and modification of business documents on the Web must be pro­tected from abuse and unlawful entry.

A Web-management product will authenticate the users accessing the Web applications, enforce access rights to various Web applica­tions, audit the movement of the user and host, and organize the multi­tude of Web applications.

DOCUMENT MANAGER

When business documents are entering and leaving the organization, the document manager is able to schedule, route, and audit the movement of business documents. A document manager is integrated with different EC technologies, including links to your legacy applications. The objec­tive is to push or pull business documents between your legacy system and mission-critical system and your electronic commerce system.

DIGITAL CERTIFICATES

A key issue for EC, especially with the Internet, is providing a means whereby partners can exchange information deemed to be secret with­out fear of exposing that information to unnecessary risk. Although EDI will provide the necessary audits, document tracking and delivery verification, digital certificates will ensure confidentiality. The stan­dardized and effective method to ensure confidentiality is through the use of digital certificates, formally known as the X.509 public key in­frastructure (PKI). It ensures confidentiality of information between a Web site and the user who accesses the Web site. This basic use of the digital certificate is known as the secure socket layer (SSL) and is very easy to implement.

As one wishes to explore the possibilities of PKI, one will find a security model that enables authentication, access control, confidenti­ality, integrity, and nonrepudiation. In a nutshell, PKI ensures that the sender and the receiver of the messages are who they claim to be, en­sures that only the intended recipient can read the message, and en­sures that neither the sender nor the receiver can deny the receipt or transmission of a message.

To Be Continued


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