IBM Version 5 manual XML business benefits, Information sharing

1.3 XML business benefits

The benefits of a common base upon which the technical world can build layers upon layers of technical innovation are enormous. This will only be possible if this standard has been agreed to by all.

XML has three main applications:

Sharing of information: The main problem integrating data between any two business organizations is the interface between them. If they can at least agree upon the standard of their common meeting point and its usage, they can build upon this to start building their applications. If there is already an existing interface or infrastructure provided by industry or government standard or infrastructure, the business cost of developing it is extinguished.

Storage, transmission and interpretation of data: If the storage of information is adaptable to many mediums, its cost will be driven to the lowest cost of all mediums. XML is based on text, which obviously is accepted by all. It can be read. Its storage is cheap, compared to the storage requirements of graphics. And because the size of this text based object is small, its transmission, not withstanding cost, is cheap as well. And because it is commonly accepted, since it adheres to world wide standards, it can be easily interpreted.

Security: With the explosion of confidential information being transmitted across the Internet, there is now a need for sophisticated levels of security. Companies need to protect their documents and e-mail, banks need to allow their depositors to download their accounts and merchants need to be available their customers to enter their credit card details without compromising their security and privacy. The more secure the transmission medium, the more confidentiality it provides, the more it can be used to advertise a competitive advantage. With the evolution of XML digital signatures, the ability to protect or hide parts of a document, while sitting on a PC, server or mainframe, now covers up a security patch.

Speed and amount of content delivery: With the rapid evolution of network technologies, speed and delivery of any object has gained importance. Network companies now advertise download times of movies and CDs. Again, the first companies discovering the abilities of delivering something at an increasing speed without compromising their content will gain the competitive advantage.

1.3.1 Information sharing

XML has been readily accepted by the technical world because of its simplicity. The benefits of having a common format to share information between any two organization are obvious. Technologies and standards have been built upon XML. Consortiums and business organizations have developed industry wide

Chapter 1. XML overview 5