Petrochem/Utilities Industry Trends

Global B2B E-Commerce Standardization Making It Possible

Issue Table of Contents

New Electronic Standards Aim to Increase Efficiency of Oil and Natural Gas Industry Transactions New Mission and Vision for API's PIDX Committee Information Technology - Crossing Industry Lines Global B2B E-Commerce Standardization Making It Possible

The Internet revolution has forever changed business. It is forcing companies, even entire industries, to transform the way they operate. Everyone is under tremendous pressure to reinvent themselves and adopt new business strategies, plans, and processes, as well as new technology, to compete in the new wired and wireless economy.

Success in the business-to-business (B2B) e-commerce market - from a buyer-supplier standpoint - is dependent on three key factors: (1) speed, (2) convenience, and (3) cost-effectiveness. Buyers and sellers want to have the ability to access one another quickly and be able to execute transactions in a timely manner. From a technology standpoint, buyers and sellers benefit from convenient and uniform process standards that make it easier to exchange their data globally. Lastly, by standardizing the "e-purchase" process on the Internet, the uniform standards make for a more cost-effective process for businesses because industry-specific and company-specific processes are eliminated.

Standards facilitate the rapid implementation of e-commerce systems by providing a common, interoperable set of business practices for buyers, sellers, technology suppliers and payment authorities. Process standards must exist for businesses to exchange data on a worldwide basis. Several organizations facilitate and direct e-commerce standards development to meet the challenges of their industry, including:

• American National Standards Institute (ANSI)
• American Petroleum Institute (API)
• British Standards Institute (BSI)
• Canadian Standards Association (CSA)
• Consumer Electronic Association (CEA)
• Defense Information Systems Agency (DISA)
• European Telecommunications Standards Institute (ETSI)
• Institute of Electrical and Electronic Engineers (IEEE)
• International Standards Organization (ISO)
  
• International Telecommunications Union (ITU)
  
• Society of Automotive Engineers (SAE)
  
• Telcordia
  
• Telecommunications Industry Association (TIA)

Organizations understand they have to go to e-business and go there fast, but they also recognize how hard it is to do so. As strategy and technology become more intertwined, companies are looking for help at the highest levels both to frame an e-business strategy and to follow through on implementation. Now, with standardization, this ideal B2B e-commerce market is becoming a reality. Through standards, the buyer-to-seller channel is streamlined, resulting in a faster, cheaper, and easier ways to do business on the Internet.

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