How eBusiness Standardization can help XBRL

Dick Raman, CEO TIE Holding NV

Chair UN/CEFACT Forum

Agenda

• What is UN/CEFACT?

• What is ebXML?

• Why is TIE involved?

• Will XBRL be successful?

• Issues for XBRL

• Challenges for XBRL

UN/CEFACTSIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES

FOR GLOBAL BUSINESS.

UN/CEFACT Plenary

>250 delegates(Governments,

Global Organizations)

UN/CEFACT Forum

Technology Syntax Business Documents Legal

UN/CEFACT Bureau

UN/ECESecretariat

UN/CEFACTRapporteurs

UN/CEFACT Responsibilities

• Trade facilitation – Simplification of global trade– Between Governments and Companies– Using eBusiness

• Producing Global standards– UN/Layout Key (UNeDocs)– UN/EDIFACT – ebXML (in cooperation with OASIS)

• The Multi-Enterprise cCommerce Framework• Interoperable, open, global, B2B ‘standard’• Complex solution and SME support• Leveraging existing technologies and

standards• Integration of business processes:

– By electronic means– Independent of the technical solution.– Allowing business processes and technologies to evolve

independently

ebXML Focus Areas

• Semantic Framework – Meta-model for defining business process – A set of re-useable core components

(common business semantics)

• Infrastructure– Transport, Routing, Packaging– Collaboration Protocol Profiles/Agreements– Shared repository network

• company profiles, business process models and related message structures

Architecture

Core Components

• Designed to capture:• Business concepts (commonality)• Relationship between business concepts• Individual pieces (objects) of business

information in a context

• Format:• Syntax Neutral• Can contain other core components• Uniquely identified (GUid)• Facilitate multi-lingual support

Too many data standards

All have different data elements!

HR-XML

EHD

xCat

UBL

Rosettanet

OTAIATA

cXML

E-constru

ct

CATXML

SMDG

PIDXGCI

UNeDoc

XAML

Opentrans

GML

xCBL

HL7

Acord

CIDX

BSML

agXML

VICS

SWIFT

Togaf

Bolero

UN/CEFACT Core Components

verticalseGov XML SGMLX12 XML Etc.

1999

2002

2004

200?

Existing Standards

Reconciliation

Of Data Elements

EDIFACT

UN/CEFACT Core Component Library

Standardization of Semantics

• Groups of people can decide on semantics– But they are not interoperable with other groups

• A Global Top-Down Process is required– To capture semantics– To structure/harmonize them– In order to simplify the interactions

• UN/CEFACT was set up to do this– Commitment at the highest level

• It takes many years

UBL

• First glimpse of what ebXML looks like

• They took the short-cut:– Syntax Specific– Limited reach

• Good eBusiness solution for the short term

• UN/CEFACT and OASIS back together

• To guarantee migration to ebXML

TransportStructure

Why is TIE involved?

• TIE is a B2Bi Software Company• TIE is a Public Company

– Must report in IFRS starting 2005 – Full Integration of IFRS in Accounting System– Quarterly/Annual reports in XBRL

• TIE is experienced in eBusiness Standardization• TIE adapted its eBusiness tools for XBRL• TIE has tools available for the best infrastructure

for XBRL (ebMS)• TIE has partnerships in place to offer full

implementation & support.

Will XBRL be successful?

• All major players support XBRL• IFRS is Mandatory in Europe• Rest of the world is following • Dutch government first to enforce

– 25% cost reduction (EUR 3 bn)– mandatory reporting in XBRL

• There is no competing standard• No semantic discussions

– when XBRL is based on IFRS

Semantics in eBusiness

• Are the real issue• Not the physical transport

– From diskette to webService

• XML is designed to be ‘eXtensible’– That is its strong point

• For B2Bi you need very explicit agreements– Technical issues – easy (20%)– Business issues – difficult (80%)

Semantics in XBRL

• XBRL is like eBusiness– Interactions between different organizations– Within an organization semantics are no issue

• IFRS provides a strong (legal) framework for the semantics of XBRL– US/GAAP does too, but that is another discussion– IASB provides the semantics

• Building your own Taxonomy – Is a nice intellectual exercise– Useful to know what your extension will be– Should never be used in practice– This leads to a semantic nightmare

Issues for XBRL

• Organization of/Agreement on:– Maintenance of the standard

• IFRS, XBRL Intl, UN/CEFACT (TBG12)

– Infrastructure for messaging• ebXML Messaging (ebMS)

– Certification of Software/Messages• Many options

– Codelists• UN/CEFACT, ISO

eReporting is NOT eBusiness

• Use XBRL only for reporting!– Using it for eBusiness = Semantic Problem– There are better standards already available– Concentrate efforts on getting XBRL in the mainstream– There is a lot to be done!

• XBRL GL is already one step too far – Capturing transactions = semantic problem

• Invoices in XBRL– Will really lead to confusion and are a duplication of

effort

Getting XBRL in the Mainstream

• XBRL is in the Early Stages– Academic, Experimental

• Create Awareness (Financial Press)• Show the Business benefits• Define clear implementation path• Message Implementation Guidelines• Parties that benefit, play leading role• Positive/Negative encouragements

In eBusiness, we’ve been there, done that!

Challenges for XBRL

• ‘Crossing the Chasm’• Maturing the standardization process• Re-use what is there…not re-invent the wheel• Establish relationships with other (eBusiness)

standardization organizations:– UN/CEFACT, OASIS

• Join the ‘ISO-IEC-ITU-UN/ECE MoU’• Defining the Road-map

Corporate Website: http://www.TIEglobal.comE-mail: Dick.Raman@TIEglobal.com

ebXML web site:http://www.ebXML.org

UN/CEFACT web site:http://www.uncefact.org

TIE XBRL web site:http://xbrl.TIEglobal.com

Contact Info