EDI
Electronic Data Interchange

Definition

"The direct computer-to-computer exchange between two organizations of standard business transaction documents such as invoices, bills of lading, or purchase orders." (Laudon & Laudon, 1996, p. 327)

Standards

There are numerous standards for EDI. The major standards are the ANSI X12 standard for the United States and the UN/ISO EDIFACT standard.

Additionally, many industry groups have set standards that are more specific to the particular industry involved. Some examples include insurance (ASC X12N), rail carriers (RAILINC), rail suppliers (NAPM), health care (HL7), and ocean transportation (ISA)

Trends

Even today, most EDI is done through direct communication networks between the organizations involved. XML over the internet is slowly evolving and may provide lower cost EDI-type exchanges, particularly for smaller companies, although security continues to be a major concern.

Advantages

Disadvantages

Helpful links on EDI

Federal Information Processing Standards Publication 161 (1996)
    http://www.itl.nist.gov/fipspubs/fip161-2.htm

EU and Security threat information:
    http://ganges.cs.tcd.ie/4ba2/edi/

 

Reference: Laudon, K. C. and Laudon, J. P. (1996). Management information systems: New approaches to organization and technology (4th ed.). Upper Saddle River, NJ: Prentice Hall.

Copyright 2000 Raymond S. Kulzick. All rights reserved. 000627.

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.

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Copyright 2000 Kulzick Associates, PA - Last modified: September 13, 2008