Art,
Thanks a lot for your observations, they are very valuable.
I agree that the real challange with EDI is integration with applications.
After all, that's what EDI was created for. However, my belief is that any form
of electric file is better than paper, fax, phome, and manual data entry. If
anything to save on paper, phone bills response time and errors. Exchanging and
integrating flat-files/spreadsheet has got to beat processing a fax...
As to the market we intend to penetrate I'm not so sure yet. That's what why
I intend to query the group. For now our idea is to com,e up with a solution
that provides e-mail type functionality to exchange EDI documents. THat
includes:
1. To be able to send and receive EDI documents via AS1, AS2, or AS3
2. To translate them with a simple, inexpensive translation engine.
3. To manage acknoeledments
As to How do we plan to meke money? Perhaps Microsoft or the web can provide
some inspiration. We could sell more expensive server products with inexpensive
or free client licenses.. Or place banners/adds in our free software.
However, I believe that a good market, as you wisely pointed out could be
consultants and HUBs wishing to do the mapping for their partners/customers.
We plan to sell two products: A map development/testing tool and a stand
alone translation engine that can import the maps. That way you can outsource
mapping to third parties/consultants or centralize withinit your organization..
That way the experts can develop and distribute their own maps while users
import them and use them with their translation engines in production. Perhaps
we come up with a 'Map Repository' where mapper could place their maps for
download in exchange for royalty fees, an iMap version of the iTune if you wish.
What do you think ? Can such a scheme work ?
If so, the market could include lots of PC owner for many of us could
exchange EDI bills, payments, and many other documents at home.
Thanks
Ricardo
Art Douglas <[EMAIL PROTECTED]> wrote:
Ricardo,
I am not an EDI developer. Its been done, and done well by many others.
But I like the model of giving the EDI software to a customer or supplier
that is not now EDI capable. I tried to convince my former boss to do that
when I was an employee of a manufacturing company. He felt it was more
important to concentrate on our core business. I tried to get him to allow me
to package software that we would give to our customers, but again, he was
reticent. Now they have closed business.
If you have an open source solution, or very low cost solution, you would
have to make money on consulting. Why not let somebody else have the headaches
of developing, supporting and maintaining the engine, and simply assemble the
solution and provide the consulting where necessary.
The biggest headache would be in integrating the EDI system to the partners
back end system, same as any installation. This couldnt be turn-key unless
you built a lot of adapters. Start with the MAS200, Great Plains, Quickbooks
people, forget SAP, JDE, Peoplesoft and Oracle, if they can afford those
packages, they wouldnt want free stuff anyway.
Target the large to medium EDI users and treat them as a hub for your
marketing activities. We are here to help you. Do you have customers or
suppliers who are not EDI-capable? How valuable would it be to have them trade
docs with you via EDI? Would you pay $10,000 each? Give me your list and we
will get it going for you. Give the wanna-be TP a dedicated server, software,
hook it into their network, connect to the DB, set up the interfaces, give them
one day of training and a toll-free number and youre good to go. Optionally,
offer to administer the system and expand it to the TPs other
vendors/customers for a fee. Works for me.
Your theory on VANs is sound, except many big TPs outside of retail still do
not do AS2. Some of this is paranoia, others sticker-shock. Often those who
do AS2 were forced into it. By changing from a big-name VAN to that one you
dont like to hear about, I went from $10K per month to $10k per year, while
increasing volume. No hidden costs. Better service. This is an instant
improvement with no user buy-in needed. It alone paid for all future
enhancement of our EDI capability. Its a great way to create value, which is
the way to sell services.
Good luck to you.
Art Douglas
Chief Consultant
Blackwater Network
877-464-8915
-----Original Message-----
From: Ricardo Johnson [mailto:[EMAIL PROTECTED]
Sent: Thursday, January 18, 2007 4:22 PM
To: Art Douglas
Subject: RE: [EDI-L] Re: Reducing/eliminating our EDI VAN
No Art, I'm no longer an EDI user nor consultant I'm now an independant
software developer working on new alternatives to traditional EDI, just like
Softshare got started many years ago.
Since the original subject iwas Redcucing/eliminating EDI fees, I'll like
to add my 5 cents:
1. If you really want to reduce EDI fees, you need to start with the big
partners. Eliminate the VAN at least with the top 5 or so (trafficwise).
2. For the other EDI capable partners:send AS2 as well. even if they don't
have AS2 yet their VANs will serve as gateways, but you'll saved on your end of
eliminating the VAN.
3. For all TPs that are not EDI capable:. Purchase a corporate license for
royalty free distribution of AS2 clients with an inexpensive translation
engines that include your maps, then give away to all your partners. You'll
save so much on paper, faxes, phone, and human processing/errors that the cost
of the software will be offset in a few months!!!!
This is the type of engine I'm working on, I will be submitting beta
versions to the group shortly and will be looking forward for your input and
guidance on its use, feel, improvements, and pricing.
Could it be possible that together we could develop the e-mail equivalent
of EDI software?
Regards
Ricardo
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