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Q. Have any new companies joined the IT or EC supply chain boards this year? Have any departed?
A.
This year, Samsung joined the
global EC Board. Also, Dell, Lucent and Pioneer joined the global IT Board. Deutsche Financial
Services has departed from a board position.
Q. How many Partner Interface Processes (PIPs) have been published?
A.
There are currently 30 PIPs that
have been published as open standards to the industry, with dozens more in different stages of
development.
Q. How many total PIPs are anticipated?
A.
Up to 120 PIPs are anticipated at
this time. The quantity of planned PIPs is an evolving goal, based on the continued evaluation of
key business processes and the scope of the RosettaNet initiative. For example, RosettaNet formed a
Semiconductor Manufacturing Board earlier this month; the inclusion of an additional supply chain
is likely to expand the scope of business processes covered by PIPs.
Q. Is it necessary for a company to implement all PIPs?
A.
No. A company can choose to
implement PIPs that align with business processes that are important to the company and/or its
trading partners. Companies typically target PIPs that are determined to have the greatest return
on investment, can streamline critical processes and cycle times to be more efficient, focus on a
process they planned to re-engineer, or have particular advantages with strategic trading partners.
Because PIPs represent business processes that are common among various companies in the supply
chain, the majority of PIPs will be applicable to a particular company's operations.
Q. Define what it means to be RosettaNet-compliant. Is anyone close?
A.
RosettaNet is in the process of
developing a formal Software Compliance Program, which will validate a software solution as fully
conforming to RosettaNet standards. Until this formal program is in place, RosettaNet is not
endorsing compliance claims made by partners. A partner company can conform to RosettaNet standards
using the guidelines set forth in the standards specifications.
Q. How many companies have implemented PIPs?
A.
Currently, approximately 80
percent of the IT and EC Board Member companies have implemented PIPs in production systems.
Additional supply chain partners are working on implementation projects in Asia, Europe and the
Americas, and dozens of Solution Partners have developed software products and integration
solutions to speed adoption of RosettaNet standards.
Q. How long does it take to implement a PIP typically?
A.
This varies on a
company-by-company basis. Partners are reporting implementation project times of three to four
months for the first PIP, with shorter development cycles for additional PIPs.
Q. How does RosettaNet define "implementation"? Is this the final phase?
A.
Implementation is defined as the
integration of RosettaNet standards -- including Partner Interface Processes (PIPs), the RosettaNet
Implementation Framework (RNIF) and technical dictionaries -- into (or an extension of) a company's
systems to manage a business process with a trading partner. Implementation of RosettaNet standards
is critical and represents a continuing goal within the supply chain. Partners are working to
expand implementation success by adopting additional PIPs and using PIPs to align business
processes with additional trading partners.
Q. What is the most significant pacing element in implementation -- cost or technology?
A.
The critical pacing elements for
many partners are people and resource availability. Because RosettaNet standards involve business
process alignments, not only transaction protocols, adoption involves business and technical staff
within a company -- working together to refine the processes. The end result is an efficient
process that closely aligns with equivalent processes used by trading partners.
Q. Since there are a number of semiconductor manufacturers and distributors already participating, what is the value of the SM Board? Why not just enlarge the EC Board?
A.
The Semiconductor Manufacturing
Board encompasses the manufacturing process up to the finished integrated device. This industry has
unique manufacturing aspects that do not apply to the discrete manufacturing processes covered in
the scope of the electronic components supply chain. The scope of additional work necessitated
priorities, expertise and funding that focus directly on this market segment.
Q. There appears to be more Solution Partners than Supply Chain Partners and the number seems to be growing. Is there an industry sector developing for implementing RosettaNet standards?
A. Currently, supply chain companies outnumber Solution Partners within the RosettaNet membership.
However, nearly 150 Solution Partner companies are dedicated to developing solutions and services
for the implementation of RosettaNet standards today. This involvement speaks volumes about the
commitment the industry has to RosettaNet standards.
An industry focus has developed and will continue to grow as more companies worldwide become
active in RosettaNet implementation projects. We expect to also see an evolution of these services,
as Solution Partners develop and excel in niche areas related to RosettaNet standards, as well as
the expansion of services provided today including the development of comprehensive training and
education programs related to RosettaNet.
Q. Many software developers and integrators say they have RosettaNet solutions ready to install. Can we see implementation proceeding at a more rapid pace as a result?
A.
Yes. These solutions can
accelerate the pace of RosettaNet implementation projects, as well as minimize work required to a
company's legacy systems to conform to RosettaNet standards.
Q. Considering the RosettaNet organization, Supply Chain Partners and Solution Partners, how many people are involved in implementing RosettaNet standards?
A.
Several thousand people are
actively involved with the implementation of RosettaNet standards within the RosettaNet consortium
and project teams within partner companies.
Q. Are many people employed by RosettaNet?
A.
RosettaNet employs a small staff
that is supplemented by on-loan resources from partner companies. Because of the collaborative
nature of how RosettaNet standards are developed -- with partner companies participating throughout
the process and contributing to project teams -- RosettaNet has been able to move quickly.
Approximately fifty percent of the RosettaNet staff is focused on standards development, while the
other team members focus on global implementation support, education, and industry
leadership.
Q. What are the key technology issues remaining?
A.
There is a continuing focus on
ensuring interoperability. Because the technology environment is growing and evolving, it is
important that RosettaNet standards continue to work with the systems and technologies companies
are implementing today and will be implementing in the future. This is a reason why RosettaNet
chose to incorporate other open standards such as XML.
Q. Is there comprehensive ROI data available to quantify the benefits of implementing RosettaNet standards?
A.
Because partners are in the early
phases of implementing RosettaNet standards in a production environment, comprehensive ROI data is
not yet available. Some of the most significant benefits -- operational efficiencies from inventory
reductions, improved cycle times, better customer service -- are difficult to quantify at this
stage.
The potential impact of
RosettaNet, however, can be extrapolated through efforts in other industries. For example, the
simple use of common numbering schemes in the book industry and bar codes in the grocery industry
have achieved a conservative estimated savings of two to 10 percent of revenue. Apply this to the
$1 trillion industry the RosettaNet initiative covers, and the operational gains could be in the
tens of billions of dollars. And this figure only begins to consider the ultimate savings
opportunity available from the massive business process automation on which the IT and EC supply
chain are about to embark.
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