B2B Integration : A Practical Guide to Collaborative E-commerce

198 B2B Integration — A Practical Guide to Collaborative E-commerce
RosettaNet PIPs for the RosettaNet Implementation Framework (RNIF).
This capability reduces B2B integration complexities by providing
baseline rules and standard message formats for trading partner
interaction.
A good example is WebLogic Collaborate for RosettaNet which
provides tools to help solution providers implement PIPs.
7.2.5. What's the ROI (Return on Investment) in
implementing RosettaNet solution?
The return on investment is probably the first question that any
corporation would consider before investing any resources to implement
RosettaNet. Just because it is a hot technology and has everyone talking
about it, is certainly not a good enough reason. How much companies
will have to invest in implementing this solution and what the payoff,
both near term and long term, are natural questions that need to be
answered.
There is little doubt that the first PIP is the hardest to implement. The
cost and difficulty level in business process reengineering and integration
is high. However, both these features fade away with the implementation
of subsequent PIPs. The companies can, thereafter, enjoy the fruits of
incremental cost reduction inherent in XML-based standards. The
implementation and integration cost and effort required in RosettaNet is
inversely proportional to the level of integration in existing systems.
According to RosettaNet, implementation of just one PIP that allows
manufacturers to seamlessly add new products — including standardized
technical specifications and part numbers — into their partners' catalogs
alone, results in an average of $1 million in cost savings per year for
each implementer — a 200% ROI. The IT supply chain stands to reap
significant savings from the pervasive implementation of PIPs, possibly
as high as $25 billion annually.
Philips Semiconductors, a member of RosettaNet, believes that
RosettaNet's operational process enhancements will save the company
millions of dollars. Just by allowing customers to view order status and
obtain cursory price and delivery information in a standardized way, the
company will reduce the amount of customer service-related calls by
75%.