Executive Summary: Standardisation and Interoperability

Objectives of this study

This report is one of four special studies published by e-Business W@tch in 2005, in addition to its sector studies. While sector studies present e-business developments from a specific industry's perspective, special studies focus on a particular ICT related topic, across sectors.
This study focuses on the concepts, application and adoption of e-business interoperability and standards. It is intended as a sourcebook of reliable current background information, source data and indicative findings for SME business managers and public policy strategists.

Interoperability and Standards

Business interoperability between different companies is gradually being enabled by more sophisticated, and yet easier to manage, internet based systems. Systems such as ebXML have reached a point where they are now ready for full scale deployment. The lure of instant “plug and play” web and grid services is allegedly not far away. Behind these powerful new tools is a myriad of standards and standards development organisations, some proprietary and others more open. All are seeking their rightful place in the emerging Business Interoperability Frameworks. To make sense of all this, work is constantly underway to rationalise the standards maze, by selecting the best technologies, proving them in pilots and introducing mechanisms to eliminate duplication and manage conflicts among standards developers.

Europe has a role to play, primarily to ensure that the needs and requirements of the European SMEs are met as quickly and as efficiently as possible. However, Europe too must contribute its fair share to the international initiatives on standards convergence and interoperability testing.

Companies are expected to innovate regularly and continually. The same expectation should be placed on our standards development organisations and to the ways in which companies develop, select and implement B2B standards.

Enterprise Size-bands

SMEs are not a homogenous set. This study in its analysis of the take up of standards and technology clearly shows that the adoption rates and future plans are highly dependent both on the sectors and the size of the companies involved. One of the basic premises underlying the research is that a sector led approach to implementation, that meets national business and cultural requirements, is required to achieve the maximum benefits. This must include mechanisms to help SMEs set challenging and realistic targets for their B2B implementations, for accelerated development and harmonisation of sectoral standard roadmaps, and for the adoption of all relevant business and technology agreements.

National Initiatives

The sector independent characteristics of national interoperability initiatives in Luxembourg and Australia, which focus on methods to encourage and enable implementation of ebusiness standards by and for SMEs, are summarised and proposed for consideration as models for similar initiatives in other sectors and geographies.

The following observations have been noted from the survey analysis and the national initiatives:.

• There is evidence, of a high level of commitment and practice across all of the enterprise size-bands, that standards play a critical role and are taken into account when making decisions on what technology and data to use in the introduction of new products, services and processes. This focus on innovation is continued in the case study on the CRP Henri Tudor collaborative approach to e-business implementation within the construction sector in Luxembourg.
• When studied by enterprise size-band, interoperability with companies outside their own sector is most important for medium sized enterprises, irrespective of their sector.
• Subject to the absolute recognition of open voluntary participation, the role of a national or regional standards body can usefully include application of industrial strength project initiation criteria, coordination and management processes designed to assist small and medium enterprises (SMEs) move to and benefit from online trading operations.
• The longer term requirements for sustainable agile manufacturing and flexible service delivery in B2B networks can be best met by using open, flexible and efficient business trading frameworks. Interoperability, enabled by appropriate standards development and testing environments, is essential.

The comparative cross-sectoral data and conclusions from the e-Business Survey 2005 indicate that the pace and direction of e-business development differs considerably between sectors and between types of enterprise. In some sectors, internet based e-business is already significantly changing the way companies interact with their customers and business partners. Nonetheless, despite the apparent differences in take up, there are commonalities when viewed in the context of an e-Business Interoperability Framework: all sectors utilise similar core business processes and share the need for agreed cross-partner trading profiles.

Policy conclusions

The study recommendations focus on medium term actions which could directly contribute to implementation of common standards based solutions in all sectors. For long term value, transparent fairness and maximum impact (relative also to the additional goal of movement towards standards convergence) the proposed actions are suggested to be focused primarily at the sectoral, cross-sectoral, and standards policy levels. The study results are fully consistent with, and actively complement, the practical focus on increased implementation and use of technology proposed in support of the i2010 Action Plan.

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