Enterprise Extension through Extensible Markup Language1

An extended enterprise is comprised of multiple linkages between and amongst a companyand its suppliers, distributors, customers and others. Linkages are long term collaborative agreementsbased on synergies and the ability to create value. An extended enterprise eliminates wasteful transactioncosts and removes redundancies, delays and inefficiencies from the supply chain. This is accomplishedthrough the coordination of demand forecasting, production planning, deployment and transportation aswell as creating organizational and process links with seamless information flows between them. Extendedenterprise is enabled by developments in technology, especially information technology. Sharinginformation about sales forecast, production schedules, inventory, etc. makes an extended enterprise awin/win situation. Extended enterprise networks have used information technology systems such aselectronic data interchanges, enterprise resource planning, and the Internet with different degrees ofsuccess. The Integrated Manufacturing Technology Initiative has identified several information technologycriteria as critical to the success of future enterprises. Based on these criteria, this paper discussesXML’s contribution to the extended enterprise paradigm. Dell’s direct sale model is used to illustrate therole of XML in enterprise extension.