ASC X12 CHAIR REPORT1995-1999

Kendra L. Martin, ASC X12 Chair

June 7, 1999

1995 CAMPAIGN GOALS

1) Become more responsive toimplementor needs

2) Leverage our national interestsin global Electronic Commerce

3) Foster greater industry and user involvement

WHERE WERE WE?

Policy in place, implementation to be undertaken:

New Standing Document 2 (Development & Maintenance Procedures)

X12/EDIFACT Alignment Plan ANSI ASC X12 Version 4 Plan

WHERE WERE WE?

Researching and investigating: modeling tools and techniques open-edi concepts future vision for ASC X12

Celebrating The Olympics!

Devoted to recognizing the special combination of teamwork and cooperation, hard work, and individual stamina to ensure we all reach our goals and work together as a World-Class Committee!

1996 Health Care Administrative Simplification legislation mandates the use of X12 EDI transactions

Proposed regulations currently under review, with active participation from X12-N

Savings to the industry:projected $4-10 billion annually

Health Insurance Portability & Accountability Act

Industry Activities Moving EDI Standards Forward

Consumer Billing User Guides Interactive EDI Directories New business areas, including

temporary services, equipment leasing, and motor vehicle registration

Relationship with DISAFormalizing & Strengthening

Improved budgeting and management processes

Writing SD4: Duties of the Secretariat Formalizing arrangement with our

Secretariat

Year 2000 Solution

Integrated single Y2K solution throughout all standards in Version 4010

Defines standard date in an eight-character format, which includes two characters for first two digits of calendar year

FUTURE EDI TIMELINE

19901990

19961996AC.1 begins re-engineering

EDIFACT X12 Future Vision

completed

Alignment Plan approved

Strategic Implementation TG formedLRP / BIM / C-TG3 / SC30

convenes

Future EDI TG formed

X12 StC brainstorms areas for improvement

BIM formed in X12 and EDIFACT

Product Data introduces Modeling Concept

SC30 Open-edi Reference Model started

Alignment Task Group formed

Strategic Implementation Task Group

SITG -- the Consolidation of Future Directions, Strategies and Tools

Validate Future Direction Develop an Action plan for the Next

Generation of EDI

U.S. Leadership Challenge in the International Arena

Participate: in the development of procedures for

CEFACT and the newly empowered JRT as a U.S. delegate to ensure U.S. interests

are addressed and encourage corporate support of

international efforts

Version 4 Preparation for CEFACT and expanded

role in international environment Relationship between X12 and DISA Formed Strategic Implementation TG Expanded X12 and EDIFACT Help Desks Tools for Members Program

WHAT HAVE WE ACCOMPLISHED?

STRATEGIC IMPLEMENTATION TASK GROUP

STRATEGIC IMPLEMENTATION TASK GROUP

Next-Generation EDI started in 1997 Objective -- make EDI widely available,

cost effective, and non-obtrusive to the business process

Vision -- a business-modeled approach, technology independent ... the “shrink wrap” solution

Shift in Focus from EDIFACT Integration to CEFACT Implementation

DLTG and P&P Enhancing Procedures (i.e. OPM and SD6)

Possible X12 restructuring to bring together all international coordination activities

INTERNATIONAL ACTIVITIES

INTERNATIONAL ACTIVITIES

EXTENSIBLE MARK-UP LANGUAGE & EDI

EXTENSIBLE MARK-UP LANGUAGE & EDI

X12 formalized a joint work effort between X12 (C&J), CommerceNet and the XML/edi Group

Exercise will facilitate the use of XML technology for standards-based Web EDI

“Voyage to A New World”

BANKING INDUSTRY & THE OFX/GOLD STANDARD

BANKING INDUSTRY & THE OFX/GOLD STANDARD

Financial on-line consumer standards -- OFX and Integrion Gold -- merging

Banking Industry Technology Secretariat seeking administrator;X12-F and DISA have taken an active role in the development and maintenance of this new protocol

OKLAHOMA ELECTRONIC SIGNATURE LEGISLATIONOKLAHOMA ELECTRONIC SIGNATURE LEGISLATION

H.B. 3287 Electronic Signature Legislation passed in May 1998

Encourages the use of EDI and EC Not “solution specific”, allows for X12 control and security

structures Governor’s task force

included X12-K’s chairand a PIDX member

UN/EDIFACT WORKING GROUPUN/EDIFACT WORKING GROUP

Inaugural Empowered EWG Meeting Held April 1998 in the U.S.

Three X12 members elected to the Management Committee, with a total of 7 on the Steering Group

Move begins to a Single International Technical Assessment Group

SOME OTHER INITIATIVESSOME OTHER INITIATIVES

Exploring areas of Common Interest with OMG (Object Management Group)

Joint efforts on-going between Product Data & ISO TC 154 STEP

New ISO TC 215 Health Care Informatics

“Clearly, e-commerce isn't a new business -- companies like Boeing have been conducting business electronically for decades through EDI ...”

-- PC WEEK ON-LINE, 4/29/98

“Reports of the death of EDI have been greatly exaggerated and the system has not disappeared as quickly as was once expected.”

-- REUTERS, 4/2/98

TACTICAL REFINING

Quality & Process Issues Opportunities being explored by TAS, PRB and P&P in Six-Month Publication Proposal

EDIFACT AlignmentInternational Vision accomplished with ATG Leadership, now in the hands of subcommittees and task groups to manage day-to-day

Strategic VisionIn the hands of the SITG to define structure and forward implementation

We’ve got plenty of Standards …

How are they working in the real world?!

IMPLEMENTATIONSUCCESS STORIES

PURCHASING CARDS

“EDI Saves Florida $190M Annually”-- EDI News

Florida Dept. of Banking & Finance implemented Vendor EDI and Purchasing Card programs

4 million invoices per year @ $108 per for manpower & paper

Once fully implemented, the new system will cut costs by at least 40%

AUTOMOTIVE INSURANCE

New Large-Scale Implementations in Property & Casualty, including:

Auto Liability Insurance Reporting Rental Management Collision Estimating

X12 Membership Stabilizes as Technological Opportunities Boom

838 848

787 792

600

800

1000

FY 96 FY 97 FY 98 FY 99

X12 Draft Standards for Trial Use

256 273 295304 307

200250300350

1995 1996 1997 1998 1999 (To Date)

Version 4 Approval

Received ANSI stamp of approval for Version 4 as American National Standard

Developed new procedures that accelerates X12-approval process

Publication Cycle EvaluationProposed Schedule Changes -- DISCONTINUED• 4 meetings each year: Feb, May, Aug, Nov• 2 publication updates: following May & Nov meetings• 4 maintenance cycles each year• No interim TAS meetings

Proposed Process Changes -- MOVING FORWARD• Re-designate DSTU’s as X12 Standards• Treat new Transaction Sets as maintenance to X12.1• 4 ballot periods each year: 30 days vs. 45 days• Eliminate rebuttal ballots in favor of Open Forums

1/99 Steering CommitteeSITG Decisions

Continue the active leadership role in UN/CEFACT in defining the next generation of EDI standards

Pursue the concept of OO-edi development as the next generation of EDI standards

Begin defining an organization to support the next generation of EDI standards development process within X12

Proceed with the SITG Demonstration Project

NOTABLE EDI FACTS

90% of Fortune 1,000 companies are EDI capable

57% of Fortune 500 companies are integrating Internet EDI into their work environments

Only 2% of small-to medium-sized companies are EDI capable, primarily due to the high costs associated with Value Added Networks

Source: David C. Darnell, President, SysTrends, Inc.

X12 aligns its standards with proliferating network of EC technologies, creating:

New business opportunities for SMEs

Standards that are accessible to non-technical users and easy to integrate into plug-and-play software

Expanded trading partner base

Let me hear from you!

martink@api.org

Tel: (202) 682-8517

Fax: (202) 963-4730