What is ebXML?

ebXML (electronic business eXtensible Markup Language) is a set of modules that forms a complete electronic business framework. Derived from the Extensible Markup Language (XML), ebXML is a joint initiative of UN/CEFACT (The United Nations Centre for Trade Facilitation and Electronic Business Information Standards) and OASIS (Organization for the Advancement of Structured Information Standards) to standardize the secure exchange of business data. The three basic concepts behind this project are:

1. To build an infrastructure that ensures data communication interoperability
2. To provide a semantics framework that ensures commercial interoperability
3. To provide a mechanism that allows enterprises to find each other, agree to become trading partners and conduct business with each other.

Built upon these concepts, the ebXML framework comprises five layers:

• Business Process (BP)
• Core Components (CC)
• Collaborative Partner Profiles and Agreements (CPP/CPA)
• Registry/Repository (Reg/Rep)
• Message Service (ebMS)

ebXML Functional Architecture

Source: ebXML: Introduction for HL7 by Todd Freter

These "specifications" together enable enterprises of any size and anywhere to securely execute business transactions through the exchange of XML-based messages. More important, ebXML brings benefits of Electronic Data Interchange (EDI) and enable developing countries, as well as small- and medium-sized enterprises in developed countries, to participate in the Internet economy in a more affordable way

Why ebXML?

With an increase in the number of business partnerships and collaborations, the need for maintaining a standard of interoperability between the applications and the business arises. EDI is a mechanism that has allowed the capture of common data-interchange formats. It is the "computer-to-computer exchange of business data in standard formats". Thus, EDI has eliminated the need for re-entering data and hence, fewer errors result. However, the cost of EDI implementation is high, due to its proprietary nature, and the time required to integrate EDI into a company's overall business operations is long. Consequently, majority of current EDI users are large enterprises, i.e. 95% of the Fortune 1000 in the top 10 countries of the world. For the rest of the world, only 5% of the companies are EDI users. On the other hand, ebXML is relatively inexpensive and easy to use. Its specifications comply with W3C recommendations and are based on the Internet's existing standards, such as HTTP, TCP/IP, MIME, SMTP, FTP, UML and XML. Thus, they can be implemented and deployed on any computing platform. Using software and services that conform to ebXML specifications, an enterprise can generate messages that enact business processes. These messages can be sent from and received at standard service interfaces. ebXML is not a replacement for EDI. Large enterprises can continue to run their EDI systems in parallel with ebXML. However, ebXML is envisioned to create a level playing field for the SMEs and developing countries, while the large enterprises can benefit from an expanded network of trading partners, customers and suppliers.

References:
Gannon, Patrick. "ebXML: Moving Forward - Technical Overview." 2001.
Freter, Todd. "ebXML: Introduction for HL7." 2 Oct 2001.
Kotok, Alan and David R.R. Webber. EbXML The New Global Standard for Doing Business Over the Internet (New Riders Publishing, September 2001).
"ebXML". http://searchebusiness.techtarget.com/sDefinition/0,,sid19_gci532347,00.html
26 Jul 2001.