The intended freedom XML (Extensible Markup Language) gives companies to share data over the web, regardless of the kind of device they are using, is what has brought it so much attention within the online business community. As if there were any doubt regarding XML's relevance, the Gartner Group research firm has predicted that by 2003, 80% of business-to-business web traffic will be based on XML.

Much like its predecessor, HTML (Hypertext Markup Language), XML is, in essence, a set of instructions that allows Internet browsers to read documents on the web. Whereas HTML limits itself to telling the browser how to display elements on a web page, XML lets programmers add tags to keywords, images, and other elements to actually describe the information on the page. With XML, it's possible to include unlimited data for the browser to read. XML's greatest potential will be realized when whole industries start using the same XML tags, a milestone that will significantly increase the speed and ease of Internet data searchability and transmission.

Companies that have already adopted XML have good news to report. Dell Computers enlisted XML to help facilitate procurement for its largest corporate and government buyers. They customized the ordering pages for about 27,000 business-to-business customers and used XML to update each of their internal procurement systems each time a purchase was made. This eliminated the need for manual data entry of the same order into the customer's system. As a result, some of Dell´s largest accounts will see savings up to $4 million a year. Cisco reports similar success in adopting XML. While they process over 85 percent of their customer orders via the Internet, every one of Cisco's orders is custom built. This means that information for each order must be communicated electronically to both Cisco's own manufacturing plants and the entire supply chain. With systems based on XML, this process takes only a matter of minutes, cutting the lead time from an average of 4-6 weeks down to 2-3 weeks. Because of its adoption of XML, Cisco claims to have saved an estimated $175 million annually.

There are, however, some initial drawbacks to consider when adopting XML. First, switching a Web-based system to XML can be expensive. Consultants estimate the minimum cost for a company making the move at $200,000 to $300,000 for software, consultants and support. Those who balk at the cost need only consider the alternatives to realize that XML is the more cost effective option. Relying on electronic data interchange (EDI), for the most part, is a costly sidetrack that only puts off the inevitable switch.

Another challenge facing companies seeking to change to XML is the prospect of finding developers who are sufficiently familiar with the technology. XML has been around for only a short while, and the language is still evolving. In their search for XML experts, some companies have simply decided to retrain their existing staffs instead, going as far as to put their engineers through week-long XML crash courses in the effort to bring them up to speed.

Another troublesome point is that currently there is no universal vocabulary code for XML tags, a situation that has rendered them all but useless for the purposes of automated data sharing. In the absence of a recognized system, every industry segment has been coming up with their own code systems in the bid to become the final word on XML in their given markets. Although the development of a truly universal cross-industry tag code may take some time, once implemented, the seamlessness with which buyers and sellers can conduct online business, will make it well worth the wait.

Source: Sprechen Sie XML?
Heather Clancy
eCompanynow, Nov. 2000
http://www.ecompany.com/articles/mag/0,1640,8546,00.html