PIDX Standards: The Industry’s Best Practices


The PIDX XML transaction standards are modeled after the RosettaNet standards. While the RosettaNet standards were developed for electronics and related industries, the PIDX XML transaction standards were established for the oil and gas industry. Although the PIDX standards are based after the RosettaNet’s, there are a few important differences. Some of which are modified for the needs of the oil and gas industry. Others change and restrict the RNIF 2.0.

PIDX Standards and the Importance of Understanding Them
PIDX has three XML transaction standards: a) use of RNIF2 for TRP (transport, routing, and packaging), message security and reliability, b) use of the RosettaNet concept of Partner Interface Process (PIP), and c) definition of the message header XML documents in respect to RosettaNet Message Guideline. A basic understanding of these standards, the processes, and the general data and how PIDX restricts them are necessary to successfully manage projects.

The Need for PIDX Standards
Before PIDX standards were developed to manage the data exchange in the oil and gas industry, companies use telecommunication companies to exchange business information. While this process worked well for some companies, it was still not an efficient way to exchange data. Standards guide the exchange to make the process more efficient. They enable companies to separate their ERP systems from data formats they need to exchange with their partners.

PIDX impacts new technology and industry. By conforming with PIDX standards, operators, suppliers and third party portal providers are cutting costs. By exploring and adapting new technologies, they can make a more efficient AP/AR process. Now, they can streamline the data transfer of tickets, invoices, orders, remittance and other documents. Combined with Appterra, PIDX standards help organizations realize the cost savings and efficiencies faster than other non-standardized Value Added Networks (VAN).

Benefits of Using PIDX with Appterra
In combination with Appterra, PIDX standards offer operators, suppliers and third party portal providers numerous benefits. Oil and Gas Operators, Suppliers and Third Party Portal Providers can now exchange information with one another faster. They can reduce IT costs, increase uptime reliability, save money and reduce Days Payable Outstanding (DPO). Operators can improve P2P management. Suppliers and third party providers can manage better cash flow and improve Order to Cash cycle management.

Data exchange is still expensive, complex and only large companies could afford. Appterra eliminates the expense and complexity of VANs, making it promising for small to mid-sized businesses.

Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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