A theoretical concept for XML-enabled global small business networks

Abstract

The exchange of business data between business partners using was used in the past by consolidated companies or in a supply chain relationship. Data was only exchanged by using Value Added Networks (VANs) or industry specific subsets. Small business companies would only join this kind of if they were forced to. A typical reason to use was the role of the company as a supplier in the automated supply chain of a large consolidated company being the only or main customer. The slogan was EDI or die. The reason for distrust regarding the technology and its weak acceptance were the high costs of the VANs and, as result, the risk of dependency on the major customer as well as scepticism with regard to information technology in general [16].The use of the Internet, mainly the World Wide Web (WWW), enables a more cost efficient access to business networks. The price decline of hardware and the presence of Open Source Software make it more attractive to use information technology. In addition, because of the dispersion of the increase in the use of information technology, small business companies have easier access to qualified human resources. Usage of the internet to submit data via the established protocols or new ways like via XML or Web-EDI and between different applications and ERP-Systems is a great advance and it enables global E-business networks [1].Our paper describes how this evolution enables small and midsize businesses to share the globalized markets of today by joining global strategic networks. It will present a concept of how to enable these companies to find their preferred strategic business partners and what strategic impact the use of this technology will have. It also presents an outline of what the architecture of these networks may look like and how XML technology in particular can be a primary technology in this context.