Potential of Webservices to enable smart business networks

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& 2004 JIT Palgrave Macmillan Ltd. All rights reserved 0268-3962/04 $30.00 palgrave-journals.com/jit

Special edition

Potential of Webservices to enable smart business networks Jos van Hillegersberg1, Ruurd Boeke2 and Willem-Jan van den Heuvel3 1

Bedrijfskunde, Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands; Sitechno, The Netherlands; 3 InfoLab, Tilburg University, The Netherlands 2

Correspondence: J van Hillegersberg, Bedrijfskunde, Rotterdam School of Management, Erasmus University, F1-27, PO Box 1738, 3000 DR Rotterdam, The Netherlands. Tel: þ 31 10 4082624; Fax: þ 31 10 4089010; E-mail: [email protected]

Abstract Webservices (WSs) are believed to be among the key technologies to enable the transformation of current static supply chains into dynamic virtual networks of enterprises. Others have said that these technologies are not yet ready for large-scale applications to supply chains and propose ‘traditional’ cross-enterprise integration methods. However, there is currently little research available that objectively evaluates the usefulness of WSs to enable smart business networks. In this study, this question is addressed through developing a typical scenario in which we transform a static supply chain into a ‘loosely coupled’ business network. We implement the scenario using state-of-the-art ‘enterprise application integration’ and WSs orchestration technology. The comparison of these alternative approaches reveals that WSs technology has some clear advantages above enterprise integration technology currently in use. However, there are also some limitations and research issues which are presented as a future research agenda for WSs technology. Journal of Information Technology (2004) 19, 281–287. doi:10.1057/palgrave.jit.2000027 Published online 9 November 2004 Keywords: webservices; orchestration; supply chain management; smart business networks

Introduction fter the hype, the web still holds huge potential for B2B integration. Now that a majority of companies have realized some sort of, mostly static, web presence, the web’s new promise is to enable smooth and cross-organizational business integration. Webservices (WSs) seem to be among the key webtechnologies that will allow this to happen. Eventually, these technologies should enable the transformation of current static supply chains into dynamic virtual networks of enterprises. Proponents of WS-technology frequently claim that WS will lower barriers for ‘plug-and-play’ B2B integration. Through WS-oriented architectures, current supply chains could become better integrated, more agile and eventually intelligent. Others have said that these technologies are not yet ready for large-scale applications to supply chains and propose ‘traditional’ cross-enterprise integration methods such as custom built point-to-point interfaces or centra-

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lized E-Hubs, which are able to connect systems through custom made adapters. Unfortunately, extensive reports from practice that address this debate are lacking. Dynamic busines