Editing Value-added network

A '''value-added network''' ('''VAN''') is a hosted service offering that acts as an intermediary between business partners sharing standards based on proprietary data via shared [[business process]]es. The offered service is referred to as "value-added network services".

== 1960s: "Timesharing" and "network" service ==

Following in the wake of [[timesharing]] providers, provision of leased lines between terminals and data centers 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 [[Tymshare]] for an example of a timeshare services company that spun off [[Tymnet]] 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 telecommunication operator sector was marketed in the USA in 1982 (see [[Modification of Final Judgment]]) and in the United Kingdom starting with the early 1980s (mainly due to the privatization of [[British Telecom]] under Prime Minister [[Margaret Thatcher]]). In the later 1980s, running a value-added network service required licensing in the U.K. while the term "value-added network" had merely become a functional description of a specific subset of networked data communication in the USA.<ref>{{cite book |first=Robert W. |last=Crandall |first2=Kenneth |last2=Flamm |title=Changing the Rules |year=1989 |publisher=Brooking Institution Press |isbn=0-8157-1595-1 |url={{Google books |plainurl=yes |id=9XcY31IQgw4C |page=273 }} |page=273 }}</ref>

== Since 1980s: International competition and standardization efforts ==

On a multinational scale, and due to the heterogeneous telecommunication economy and infrastructure before the market penetration of the [[Internet]], management of a value-added network service proved a complicated task leading to the idea of user-defined networks,<ref>[http://www.iptegrity.com/index.php?option=com_content&task=view&id=36&Itemid=42 Leaping the barriers - Value added services] Financial Times article, 1991</ref> a concept preceding the nowadays ubiquitous availability of internet service. Standardization efforts for data networking were made by [[ITU-T]] (formerly CCIT) and included [[X.25]] [[packet-switched network]]s and [[X.400]] [[message handling system]]s, specifically motivated by an emerging transatlantic competition<ref>[http://www.computerwoche.de/heftarchiv/1991/45/1142826/  IBM ergänzt sen Information Network um CIT-X.25-Support.] (German news magazine article on the IBM "Information Network") Computerworld, 45/1991</ref> in the early 1990s.

== Perspective ==

In the absence of state-operated telecommunication sector, value-added network services are still used, mainly as a functional description, in conjunction with dedicated leased lines for business-to-business communications (especially for [[EDIFACT]] data transfer).

Governments like South Africa still maintain explicit regulation,<ref>[http://www.internet.org.za/regs_vans_2005.html Independent Communications Authority of South Africa (ICASA): Regulations for Value-Added Network Services]</ref> while others address specific services with licensing.<ref>[http://www.ictregulationtoolkit.org/en/PracticeNote.aspx?id=3112 NERA Economic Consulting: One-Time Initial Authorization Fees in Selected Countries]</ref>

Traditionally, most value-added network services mainly supported general-purpose business-to-business integration capabilities focused on [[electronic data interchange]]s, but service providers are evolving to become more process- and industry-specific over time, particularly in industries such as retail and hi-tech manufacturing.{{citation needed|date=October 2015}} Some sources suggest that modern value-added network services should be called "trading grids" due to commonalities with [[grid computing]].<ref>[http://www.microsoft.com/biztalk/solutions/supplychain/gxs.mspx Microsoft and GXS Form Strategic Alliance to Speed and Simplify Global Business Collaboration.] Microsoft PressPass, May 8, 2006.</ref>
Others distinguish [[internet service provider]]s from international value-added network services (IVANS) operators.<ref>[http://www.ofta.gov.hk:80/en/tele-lic/operator-licensees/pnets-ivans-isp.html Office of the Telecommunications Authority (OFTA) of the Hong Kong Special Administrative Region: International Value-Added Network Services (IVANS) Operator or Internet Service Providers (ISP)]</ref>

== See also ==

* [[Electronic Data Interchange#Value-added networks]]

== References ==

{{Reflist}}

== External links ==
* [http://www.edibasics.co.uk/ EDI Basics] – options and different approaches to EDI
* [http://blog.jobisez.com/2015/03/making-informed-decisions-about-your.html Informed Decisions about EDI Initiative ] – Knowing and learning what is required.

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[[Category:Supply chain management]]