The Global Language of Business

3 General considerations

The term “GS1 system” refers broadly to all the artefacts created by the GS1 community, including GS1 standards, GS1 guidelines, GS1 solutions, and GS1 data services. This section defines more precisely what is meant by each of these terms and makes some general statements about how they are used.

2.4 Digital value networks

The central idea of a digital value network is that all information exchange is carried out electronically, through network pathways that effectively parallel the physical path taken by goods. In a fully realised digital value network, physical objects carry only a globally unique GS1 identification key, and all other information is communicated digitally using the unique identifiers to link the information to the physical objects.

2.3 GS1 standards: Identify, Capture, Share, Use

GS1 standards support the information needs of end users that interact with each other in value networks. The subjects of such information are the entities that are part of those business processes. Entities include things traded between companies, such as products, raw materials, packaging, and so on; equipment needed to carry out the business processes such as containers, transport, machinery; physical locations where business processes are carried out; legal entities such as companies; service relationships; business transactions and documents; and others.

2.2 Open value networks

A value network is a set of parties who are involved in business relationships with one another. In many cases, value networks are concerned with the trade of physical objects such as products, parts, raw materials or digital objects such as music downloads, video-on-demand, data services, and so on.