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White Papers

B2B and B2G Custom Integrations in the Russian Market

By Daniil Barvitsky, Practice Leader, Business Applications

Modern businesses are looking for more than just enterprise applications on Intranets or over the Internet. Business scenarios often span across multiple organizations with subordinates in several countries and engage employees, customers, government officials in those countries. Moreover, while subordinates usually conform to the common BPM, they have to implement local procedures required by their respective local authorities.

In this white paper, we will help you to navigate through the the B2B and B2G integration landscape in Russia, which has unique characteristics and challenges for companies that want to exchange business documents electronically.

Custom Integration Requirements

Designing and implementing complex document management applications takes special skills, including implementation of complex communications and workflow technologies, a deep understanding of proprietary business processes, and knowledge of government regulations. For example, a relatively simple transaction, such as electronic invoicing, can result in a complex and time-sensitive business process if the deal involves trading partners in different countries. This is, because commercial and business rules can vary widely from country-to-country.

For example, in the Russian Federation, federal law regulates not only what and how businesses report to the fiscal institutions, but also how transactions must be processed. As result, a company will have to produce in a specific order three different primary documents per each invoice processed. This is done so that one side can defend the right to recuperate VAT in case of the audit

Business Understanding

In order to perform a transaction electronically, businesses must rely on one law that permits a certain type of transaction and a different law that describes document formats and workflows to be followed for the transaction to be legitimate. Although many transactions can now be done electronically, some B2B and B2G interactions may still involve paper. Typical cases are:

  1. The workflow assumes fallback into paper-based procedures if one of the parties does not support electronic processing OR if certain timeouts have been exceeded.
  2. Law is not in effect yet, or the formats and workflows are not approved. In this case, parties can execute a special agreement to allow transactions to be done electronically.
  3. The federal institution does not have capability to accept documents in electronic format.
  4. Parties are clients of the different providers that do not have routing capabilities.

These issues are especially prevalent in complex multi-agent transactions, which involve manual processing, various fallbacks, and the generation of primary accounting documents. VIAcode partners with TaxCom, a Russian market leader in B2B and B2G transactions processing and a certified transactions operator, to offer reliable solutions for point-to-point and business network integrations.


Technology

B2B and B2G integration space is a home for wide range of technologies. Currently, we heavily rely on cryptography, authorized CAs, and specialized operators' (such as TaxCom) cloud services for transport, validation of the messages and proof of legitimacy. For example, there are cloud solutions, such as JitterBit and Azure Service Bus, and open source, such as MuleESB and OpenESB. In Russia, unfortunately, they have one thing in common - the lack of support for Russian B2B and B2G networks.

Therefore, organizations looking to implement automated B2B solutions often find themselves parsing and generating XML documents, writing transactional code against cloud APIs, or using their ETL-style tools. Such integrations are mostly point-to-point between members of the same holding or association (e.g. a factory and a dealer). At this stage of the Russian EDI evolution, these point-to-point implementations appear to be "market sweet spot" with the best ROI and relatively small investments.

In VIAcode, we anticipate the landscape changing soon. As more organizations realize the benefits of doing business electronically, we will see complete integration solutions for various middleware and enterprise service bus products, electronic document management systems, and point solutions dedicated to business document exchanges. This will drive the need for smarter, more complex integrations, which VIAcode is ready to deliver.

Our Experience

We possess broad experience in:

  1. IT management and automation.
  2. Design and implementation of the mission critical systems and transaction processing in the US and Russian markets.
  3. In-depth knowledge of TaxCom's technologies and integration stack.
  4. Many years of professional software development and integration experience with proven expertise in both Microsoft and Java-based technologies.
  5. A senior-level team of high-profile engineers and business analysts with proven track record.

This makes VIAcode an optimal fit for implementing your custom point-to-point or business network integration project on the Russian market.

About VIAcode Consulting:

Headquartered in West Hartford, CT, VIAcode builds and delivers commercial or “internal” software products that are “difference makers” for our customers. We radically enhance your technical capabilities by deploying world-class technologists throughout the software development lifecycle to meet your application needs on time and on budget.

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