standardisation convergence: a chinese puzzle l how to combine in the short, medium and long term?...
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STANDARDISATION STANDARDISATION CONVERGENCE: CONVERGENCE:
A CHINESE PUZZLEA CHINESE PUZZLE
HOW TO COMBINE IN THE SHORT, MEDIUM and LONG TERM?
– Concrete and pragmatic solutions
– Convergence within the financial domain
– Harmonisation between finance and other domains
REMIND YOU THREE REMIND YOU THREE YEARS AGOYEARS AGO
For banks:– SWIFT was standardising bank to bank– TBG 5 was standardising bank to client– ISO TC 68 Finance was focusing on limited areas
– Most of the representatives in one of these organisations didn't even know they had colleagues representing their bank in other organisations
For clients:– Treasurers didn't know they had company experts in
UN/CEFACT and vice versa
SINCE THENSINCE THEN
ADOPTION of a COMMON METHODOLOGY
– Defined by UN/CEFACT & OASIS,– Standardised as ISO 15000 in ISO TC154
– But standardised also in parallel in ISO TC68 Finance, firstly for securities, called ISO 15022 version 2, changed recently to ISO 20022 slightly different from ISO 15000
Reminder on standardisation Reminder on standardisation TARGET for FINANCETARGET for FINANCE
To enable communication interoperability between:– financial institutions, – their market infrastructures and – their end-user communities
But, most of end-user companies are not members of the financial sphere =>
Facing the risk of multiple Facing the risk of multiple standardsstandards
Within Finance, with so many (>40) standardisation organisations
Outside Finance, in the cross-domain environment
An increasing need of cross-domain interoperability because of:– the desire for end to end STP– more and more actors involved in one operation
Examples of cross-domain Examples of cross-domain projects between finance and projects between finance and
other UN/CEFACTother UN/CEFACT
E-Invoice Remittance Advice Electronic Tendering Accounting Token
Projects not directly financial, but often with links
WHICH GIVES THE WHICH GIVES THE FOLLOWING SITUATIONFOLLOWING SITUATION
Solutions developed by SWIFT: available for clients
A unique methodology for finance, presently slightly different from UN/CEFACT
A new ongoing organisation for financial standardisation
A risk of competitive standards A clear willing for cross-domain harmonisation,
especially with UN/CEFACT, which requires time and agreements
ONGOING ACTIONSONGOING ACTIONS
Finance has engaged two complementary actions:
– CONVERGENCE within the financial sphere
– HARMONISATION essentially with UN/CEFACT
CONVERGENCECONVERGENCE
ISO 20022, also called UNIFI, approved for all finance– Registration Management Group (RMG) created in
January– Standards Evaluation Groups (SEGs) to be created
Payments, Securities: immediately Treasury, Trade Finance
ISO TC68 becoming the hub for finance– 40 organisations to convince– New organisation to be finalised and efficient
HARMONISATION with HARMONISATION with UN/CEFACTUN/CEFACT
Already started or agreed:– Agreement signed in June 2004: TC68, TBG5 & SWIFT
– Ongoing convergence work plan for Core Components Gap analysis, investigates changes, submit recommendations,…
– June's co-operation agreement confirmed by RMG– Immediate submission of a pilot project approved by RMG
Still to be done:– Research of compatibility between workflows– Organisation of registries between ISO 20022 and UN/CEFACT
WHICH INTEREST WHICH INTEREST for UN/CEFACT?for UN/CEFACT?
Co-operate as much as possible with domains standardising more outside than inside UN/CEFACT (Finance, Transportation, Customs, Insurance, …) to facilitate cross-domain exchanges. Not specifically for Finance.
Pull other organisations with same methodology Lead standardisation process ...
– Uniqueness of the methodology– Uniqueness of a logical repository
… without appearing as dictatorial
TBG 5 ROLE: InterfaceTBG 5 ROLE: Interface
Data Dictionary
BusinessProcess
Catalogue
ebXML Registry / Repository
CoreComponents
CommonBusinessProcesses
ISO
TC68 Finance
UN/CEFACT All industries
UNIFIISO 20022
UN
TBG5
Bi-directional Roles for TBG5Bi-directional Roles for TBG5 From financial sphere to inter-sectorial:
Guarantee financial standards are recognised and unique– Be the supporting/forwarding arm for all sub-domains– Support forum harmonisation and validation– Market financial solutions within TBG– Market messages to clients
From UN/CEFACT to financial sphere:– Bring expertise in "ebXML" and methods – Be a pool for resources in customer to bank &
payments– Support evolution of forum workflow to facilitate the
workflow with external organisations (ISO 20022, but also GS1 (EAN), WCO, …)
Finally? Which Finally? Which organisation is doing what?organisation is doing what?
There are various types of standardisation organisations
None of them will disappear quickly It is then required to adapt roles to the new
situation Based on the acceptance of:
– unique methodology– unique registry– (partial lost of independence)
Roles of OrganisationsRoles of Organisations
World-wide & cross-domain Organisations : ISO, UN/CEFACT – Definition of methods– Responsible for transversal coherence (registry)
World-wide domain Organisations : SWIFT– A standardisation body for banks– Operator: RA + Modelling
Business Requirements: IST, TWIST, RosettaNet, FpML, ...
Regional Coherence:– Cross-sectorial: CEN, eBES, ANSI, – Sectorial : EPC, ECBS
FINALLY, WHY THIS FINALLY, WHY THIS PRESENTATION?PRESENTATION?
To show that there are solutions available To explain the approach followed in the Financial
Sphere to minimise divergences in standards– because Finance is surely not alone to face similar
issues– and because it could require some flexibility in
UN/CEFACT rules Because some issues require UN/CEFACT
participation
UN/CEFACT PARTICIPATIONUN/CEFACT PARTICIPATION
Reception of the first submitted project, Payment Initiation:– Follow up the normal approval workflow, – but with an open mind to detect potential
improvement(s) for this workflow Participate to the convergence work plan : TBG 5 &
17 + ICG (federated registry) + to be defined.
Find consensus solutions for cross domain projects Agree on a common message with clients: no
purist quarrels!
WHICH PRESENTATION WHICH PRESENTATION FOR CLIENTS?FOR CLIENTS?
Proprietary solutions are already available Standardisation under ISO 20022 is ongoing Standardisation in UN/CEFACT is ongoing Some user organisations are supporting Payment
Initiation as developed by SWIFT But ISO 20022 is not aligned on ISO TC154 A convergence work plan is on-going Users can -depending on the market they are in- in
cooperation with their customers assess the situation and start using solutions available with the potential risk of having to migrate once the standardisation & convergence activities are finalised