Value-added network
Encyclopedia
A Value-added Network is a hosted service offering that acts as an intermediary between business partners sharing standards based or proprietary data via shared Business Process
es. The offered service is referred to as "Value-added Network Service".
but increasingly they also transmit data formatted as XML
or in more specific "binary" formats. VANs usually service a given vertical or industry and provide "Value Added Network Services" ("VAN Services" or VANSs) such as data transformation between formats (EDI-to-XML, EDI-to-EDI, etc.).
At one extreme, a VAN hosts only horizontal Business-to-business
application integration services, hosting general-purpose integration services for any process or industry. At the other extreme a VAN also hosts process-specific or industry-specific integration, for example supply chain
ordering or data synchronization services.
A VAN not only transports (receives, stores and forwards) messages but also adds audit information
to them and modifies the data in the process of automatic error detection and correction or conversion between communications protocol
s.
for an example of a timeshare services company that spun off Tymnet
as a data communications specialist with a complex product portfolio.
The telco sector was marketised in the USA in 1982 (see Modification of Final Judgment
) and in the United Kingdom starting with the early 1980s (manily due to the privatization of the British Telecom under P.M. Margaret Thatcher
). In the later 1980s, running a "Value-Added Network Service" required licensing in the U.K. while "VAN" had merely become a functional description of a specific subset of networked data communication in the USA, as stated in.
, management of a VAN Service proved a complicated task leading to the idea of "user defined networks", a concept preceding the nowadays ubiquitous availability of internet service. Standardization efforts for data networking were made by ITU-T
(former CCIT) and included X.25
(Packet-switched network) and X.400
(Message handling system), specifically motivated by an emerging transatlantic competition in the early 1990s.
data transfer).
Governments like South Africa still maintain explicit regulation while others address specific services with licensing.
Traditionally, most VANs primarily only supported general-purpose B2B integration capabilities focused on EDI but service providers are evolving to become more process- and industry-specific over time, particularly in industries such as retail and hi-tech manufacturing. Some sources suggest that modern VANs should be called "Trading Grids" due to commonalities with Grid computing
.
Others, such as distinguish into "Internet Service Providers" (ISPs) and "International Value-Added Network Services" (IVANS) operators.
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
es. The offered service is referred to as "Value-added Network Service".
Technical Definition
VANS traditionally transmitted data formatted as Electronic Data InterchangeElectronic Data Interchange
Electronic data interchange is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e...
but increasingly they also transmit data formatted as XML
XML
Extensible Markup Language is a set of rules for encoding documents in machine-readable form. It is defined in the XML 1.0 Specification produced by the W3C, and several other related specifications, all gratis open standards....
or in more specific "binary" formats. VANs usually service a given vertical or industry and provide "Value Added Network Services" ("VAN Services" or VANSs) such as data transformation between formats (EDI-to-XML, EDI-to-EDI, etc.).
At one extreme, a VAN hosts only horizontal Business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
application integration services, hosting general-purpose integration services for any process or industry. At the other extreme a VAN also hosts process-specific or industry-specific integration, for example supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
ordering or data synchronization services.
A VAN not only transports (receives, stores and forwards) messages but also adds audit information
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
to them and modifies the data in the process of automatic error detection and correction or conversion between communications protocol
Communications protocol
A communications protocol is a system of digital message formats and rules for exchanging those messages in or between computing systems and in telecommunications...
s.
1960s: Timesharing and network services
Following in the wake of Timesharing providers, provision of leased lines between terminals and datacenters proved a sustainable business which led to the establishment of dedicated business units and companies specialized in the management and marketing of such network services. See TymshareTymshare
Tymshare, Inc. was headquartered in Cupertino, California from 1964 to 1984.It was a well-known timesharing service and third-party hardware maintenance company throughout its history and competed with companies such as Four Phase, Compuserve, and Digital Equipment Corporation...
for an example of a timeshare services company that spun off Tymnet
Tymnet
Tymnet was an international data communications network headquartered in San Jose, California that used virtual call packet switched technology and X.25, SNA/SDLC, ASCII and BSC interfaces to connect host computers at thousands of large companies, educational institutions, and government agencies....
as a data communications specialist with a complex product portfolio.
1970s: Marketisation of telecommunication
The large-scale allocation of network services by private companies was in conflict with state-controlled telecommunications sector. To be able to gain a license for telecommunication service provision to customers, a private business had to "add value" to the communications line in order to be a distinguishable service. Therefore, the notion of "Value-added Network Services" was established to allow for operation of such private businesses as an exemption from state control.The telco sector was marketised in the USA in 1982 (see Modification of Final Judgment
Modification of Final Judgment
In United States telecommunication law, Modification of Final Judgment is the August 1982 agreement approved by the court settling United States v. AT&T, a landmark antitrust suit, originally filed on January, 14, 1949 and modifying the previous Final Judgment of January 24, 1956...
) and in the United Kingdom starting with the early 1980s (manily due to the privatization of the British Telecom under P.M. Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
). In the later 1980s, running a "Value-Added Network Service" required licensing in the U.K. while "VAN" had merely become a functional description of a specific subset of networked data communication in the USA, as stated in.
Since 1980s: International competition and standardisation efforts
On a multinational scale, due to the heterogeneous telecommunication economy and infrastructure before the market penetration of the InternetInternet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, management of a VAN Service proved a complicated task leading to the idea of "user defined networks", a concept preceding the nowadays ubiquitous availability of internet service. Standardization efforts for data networking were made by ITU-T
ITU-T
The ITU Telecommunication Standardization Sector is one of the three sectors of the International Telecommunication Union ; it coordinates standards for telecommunications....
(former CCIT) and included X.25
X.25
X.25 is an ITU-T standard protocol suite for packet switched wide area network communication. An X.25 WAN consists of packet-switching exchange nodes as the networking hardware, and leased lines, Plain old telephone service connections or ISDN connections as physical links...
(Packet-switched network) and X.400
X.400
X.400 is a suite of ITU-T Recommendations that define standards for Data Communication Networks for Message Handling Systems — more commonly known as "email"....
(Message handling system), specifically motivated by an emerging transatlantic competition in the early 1990s.
Perspective
In the absence of state-operated telecommunication sector, "Value-added Network Service" still is used, mainly as a functional description, in conjunction with dedicated leased lines for B2B communications (especially for EDIFACTEDIFACT
United Nations/Electronic Data Interchange For Administration, Commerce and Transport is the international EDI standard developed under the United Nations...
data transfer).
Governments like South Africa still maintain explicit regulation while others address specific services with licensing.
Traditionally, most VANs primarily only supported general-purpose B2B integration capabilities focused on EDI but service providers are evolving to become more process- and industry-specific over time, particularly in industries such as retail and hi-tech manufacturing. Some sources suggest that modern VANs should be called "Trading Grids" due to commonalities with Grid computing
Grid computing
Grid computing is a term referring to the combination of computer resources from multiple administrative domains to reach a common goal. The grid can be thought of as a distributed system with non-interactive workloads that involve a large number of files...
.
Others, such as distinguish into "Internet Service Providers" (ISPs) and "International Value-Added Network Services" (IVANS) operators.
See also
- Electronic Data Interchange#Value Added Networks
- Time Sharing
- AmtrixAmtrixThe AMTrix System is an Enterprise application integration software system that acts as a middleware and enables applications to exchange data instandardized message formats, regardless of physical distance and hardware platforms....
- SoftshareSoftshare- NEWS: Liaison Technologies Acquires Softshare :Liaison Acquires Softshare for Extending Application and B2B IntegrationAcquisition Expands Geographical Reach, Partner Channels and Industry Diversification...
VAN Services - Value NetworkValue networkA value network is a business analysis perspective that describes social and technical resources within and between businesses. The nodes in a value network represent people . The nodes are connected by interactions that represent tangible and intangible deliverables. These deliverables take the...