Introduction To EDI - What is EDI? - EDI History - EDI Benefits

Slides:



Advertisements
Similar presentations
Get Started in e-Business. Aim This presentation is prepared to support and give a general overview of the ‘How to Get Started in e-Business’ Guide and.
Advertisements

Electronic Business (E-Business) Systems.
2 An Overview of Telecommunications and Networks Telecommunications: the _________ transmission of signals for communications (home net) (home net)
Chapter 1 Introduction to Electronic Commerce. Traditional Commerce and Electronic Commerce What is e-commerce? How long has it been around?
EDI Future Environment Initiative Project Kickoff 12/15/2004 Corporate Information Technology.
Chapter 15 The Third Component: Powerful Networks.
Chapter 5 Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commerce
Electronic Commerce, Seventh Annual Edition
Chapter9 Introduction to Information Technology Turban, Rainer and Potter John Wiley & Sons, Inc. Copyright 2005.
Chapter 9 Strategies for Purchasing and Support Activities: From Electronic Data Interchange to Electronic Commerce.
Introduction to Management Information Systems Chapter 8 E-Commerce and Supply Chain Management HTM 304 Fall 07.
Business-to-Business and E- Government Strategies.
4.1 © 2006 by Prentice Hall 4 Chapter The Digital Firm: Electronic Business and Electronic Commerce.
Electronic Data Interchange (EDI)
1 E-Commerce Introduction Professor Joshua Livnat, Ph.D., CPA 311 Tisch Hall New York University 40 W. 4th St. NY NY Tel. (212) Fax (212)
Business-to-Business Strategies: From EDI to Electronic Commerce
PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved. Chapter 4 E-BusinessE-Business.
Objectives In this chapter, you will learn about:
Electronic Data Interchange (EDI)
1 EDI: Electronic Data Interchange What is EDI? –Exchange of electronic data between companies using precisely defined transactions –Set of hardware, software,
EDI, Supply Chain Management, and Global Information Systems
ELECTRONIC COMMERCE. CONTEXT: Definition of E-Commerce. History of E-Commerce. Advantages and Disadvantages of E-Commerce. Types of E-Commerce. E-Commerce.
Internet Business Strategies A strategic view of the various options and connectivity levels available to business through the Internet. Copyright 2011.
QAD Pitch Report QAD EDI. Introduction to EDI … the transfer of structured data, by agreed messaging standards, from one computer system to another without.
E-Commerce: The Second Wave Fifth Annual Edition
Basic Technology for Electronic Commerce Fan Fan address: GUANGXI UNIVERSITY BUSINESS SCHOOL 2005.
Electronic Data Interchange Computer readable forms for business documents such as invoices, purchase orders, delivery notes needed in B2B e- commerce.
Course code: ABI 204 Course Name: Introduction to E-Commerce
Electronic Commerce Semester 1 Term 1 Lecture 1. Defining Electronic Commerce Depending on whom you ask, electronic commerce (often referred to as e-
1 9 Chapter 9 Strategies for Purchasing and Support Activities Electronic Commerce.
Chapter 3 – Electronic Business (E-Business) Systems
Strategies for Purchasing and Support Activities
Chapter 7 Business-to-Business E-Commerce. Copyright © 2003, Addison-Wesley B2B E-Commerce Inter-corporate communication Exchange business information.
Strategies for Purchasing and Support Activities: From Electronic Data Interchange to Electronic Commerce.
Chapter 9 Strategies for Purchasing and Support Activities Electronic Commerce.
Chapter 5 Business-to-Business Strategies: From Electronic Data Interchange to Electronic Commerce Electronic Commerce, Sixth Edition.
Systems Analysis And Design © Systems Analysis And Design © V. Rajaraman MODULE 13 ELECTRONIC COMMERCE Learning Units 13.1 What is E-Commerce? 13.2 Electronic.
Applying E-commerce in the Agribusiness. Next Generation Science / Common Core Standards Addressed CCSS. ELA Literacy.RST.11 ‐ 12.8 Evaluate the hypotheses,
ISO17799 Maturity. Confidentiality Confidentiality relates to the protection of sensitive data from unauthorized use and distribution. Examples include:
Chapter 11 Interorganizational and International Information Systems.
Oz – Foundations of Electronic Commerce © 2002 Prentice Hall EDI and the Internet Oz – Foundations of Electronic Commerce © 2002 Prentice Hall.
CIS E-Commerce 1 Electronic Commerce. CIS E-Commerce 2 Introduction What is “E-Commerce” Happy Puppy - A New Internet Company: –
EDI communication system
Electronic Data Interchange (EDI) in Baltic States Edisoft Systems, June 2006.
1 Network Model. 1-2 Divide and Conquer A method of managing large system.
Introduction to E-Commerce. Define e-commerce in your own words.
Week 11: Open standards and XML MIS 3537: Internet and Supply Chains Prof. Sunil Wattal.
Rehab AlFallaj.  OSI Model : Open system Interconnection.  is a conceptual model that characterizes and standardizes the internal functions of a communication.
Review 2 Chapters 4, 5, 6. What is the Internet? Global network, a network of networks.
1 EDI, Supply Chain Management, and Global Information Systems Chapter 11.
Electronic Commerce Enabling Solutions for Small to Medium Enterprises Carol Pozezanac Associate - Electronic Commerce Imperial Tobacco Limited Mario Binette.
WHAT IS SUPPLY CHAIN MANAGEMENT?
When we communicate, we are sharing information. This sharing can be local or remote. Between individuals, local communication usually occurs face to face,
Electronic Data Interchange Systems
CUSTOMS INFORMATION SYSTEM (SMK DAGANG NET) 1.  Electronic Data Interchange – SMK Dagang Net was developed in 1995 both by EDIM (M) Sdn.Bhd. And the.
Management Information Systems, 4 th Edition 1 I. Sharing Information Systems Vertical market –A market in which the goods of one business are used as.
Electronic Commerce: An Overview John R. Durrett ISQS 6343.
Electronic Data Interchange
E-Commerce ©David Whiteley/McGraw-Hill, Chapter 8: Electronic Data Interchange (EDI)
EDI Electronic Data Interchange. Group X What is EDI? Application to Application transfer of business documents between computers Means of speeding up.
E-Supply chains, Collaborative Commerce and Corporate Portals Chapter 7.
XML— “Oxygen for E-Business” Persistent eBusiness Solutions Pvt. Ltd. Arvind Pandey
EDI ( ELECTRONIC DATA INTERCHANGE). Strategic Impact of EDI Business processes can become more efficient Customer-supplier relationships may change more.
COMARCH EDI 10 YEARS COMARCH EDI IN BULGARIA Paweł Klich Business Solution Manager.
NAME OF STUDENT: Akshay Lal Ranjan REGD NO: DATE : 21/09/12 SLID NO: 01 UNDER THE GUIDENCE OF E R. GAURI SHANKAR PATNAIK LECR IN E & TC DEPT.
Chapter 4 The Revenue Cycle 1.
E D I a new business paradigm
BY GAWARE S.R. DEPT.OF COMP.SCI
EDI – Information The presentation includes information on:
EDI Systems What They Are and Why They Matter
Presentation transcript:

Introduction To EDI - What is EDI? - EDI History - EDI Benefits - EDI Status - EDI System Approach - Migration to Open EDI Copyright@1999. Jerry Gao, Ph.D

- What is EDI? EDI - the inter-organization exchange of well-defined business transactions in standardized electronic form directly between computer applications. Style: Business-To-Business EDI - provides a collection of standard message formats to exchange data between organizations’ computers via any electronic service. EDI covers: - traditional business facets: inquires, planning, purchasing, acknowledgments, pricing, order status, scheduling, test results, shipping and receiving, invoices, payments, and financial and business reporting. Additional standards: interchange of data relating to security, administrative data, trading partner information, specifications, contracts, distribution.. Copyright@1999. Jerry Gao, Ph.D

- What is EDI? EDI’s goals: - Enable easy and inexpensive communication of structured information throughout the corporate community. - Reduce the amount of data capture and transcription. Applications: - EDI has been used in a number of specific industry groups: - automotive, retail, chemical, electronics, - metals, electronics, electrical, petroleum, - paper and office product sections. - The overall penetration of EDI has been relatively limited. < 1% of potential business in the U.S.A in 1993. Copyright@1999. Jerry Gao, Ph.D

- What is EDI? The key aspects of EDI are as follows: -The utilization of an electronic transmission medium (normally a VAN) rather than the transfer of physical storage media such as paper, magnetic tapes, and disks. - Use of structured, formatted messages based upon agreed standards. - Relatively fast delivery of electronic documents from sender to receiver. (generally implying receipt within hours or minutes) - Direct communication between applications (rather than just between systems) Copyright@1999. Jerry Gao, Ph.D

EDI Process Architecture Internal files Internal files Purchasing application Purchasing application Application file Application file EDI System C o m u n i c a t C o m u n i c a t EDI System Application link Application link Fixed-length file Fixed-length file EDI standard file Translator Translator Copyright@1999. Jerry Gao, Ph.D

EDI VAN Transaction TO/FROM all trading partners & VAN control reports Mailbox Transaction files for all trading partners PARTNER 1 Trading Company Mailbox TRADING COMPANY Protocol Partner 2 Mailbox PARTNER 2 Transaction files FROM all trading partners & VAN control reports Partner 3 Mailbox PARTNER 3 Copyright@1999. Jerry Gao, Ph.D

- EDI’s Benefits: - Automating existing business procedures in - inventory management, transport and distribution - administration, and cash management - Cost saving in - document preparation, postage, and handling of mainstream transactions - reduced errors and exceptions handling - dispatch of applications for approval by a regulatory authority or other reporting function - Faster handling of transactions results in increased cash flow. - Improve customer services - Enhance the business process and operations Copyright@1999. Jerry Gao, Ph.D

- EDI History: - Electronic transmission started during 1960s. - Initially in the road and rail transport industries. - In 1968, the United States Transportation Data Coordinating Committee (TDCC) was formed to coordinate the development of translation rules among existing four sets of industry-specific standards. - Later, the X12 standards of the American National Standards Institute (ANSI) gradually extended and replaced those created by the TDCC. - At the same time, the U.K. Department of Customer s and Excise was developing stands for documents used in international trade. These extended by the United Nations Economic Commission for Europe (UNECE) as GTDI (General-purpose Trade Data Interchange) - A United Nations Joint European and North American working party (UN-JEDI) addressed the harmonization between the two sets of standardized documents. They developed EDI for administration, Commerce, and Transport (EIFACT) document translation standards. - Today, EDI messages are coded in a standard data format based on X12 and EDIFACT specifications. Copyright@1999. Jerry Gao, Ph.D

- EDI’s Status: - EDI technology have matured. - EDI has been growing in the past, although the penetration is still low. - In spite of its moderate success, EDI has failed to gain total acceptance and become ubiquitous in industry. - Although EDI technology works well, until now this technology has been relatively expansive to implement. Year Companies using EDI Penetration (against 5 million potential)(%) 1987 1,000 0.02 1989 5,500 0.11 1990 12,000 0.24 1991 21,000 0.42 1993 58,500 1.16 1995 80,000 1.60 1996 100,000 2.00 Copyright@1999. Jerry Gao, Ph.D

- EDI Roll-out Cost: - EDI Roll-out cost facts: - Reaching a legal agreement between the parties regarding responsibilities and dispute settlement. (This may involve expensive lawyers) - Building and installing the EDI system - Modifying and interfacing with the existing computer system - Obtaining network services - Testing and installation cost - Reengineering internal processes with the goal of taking full advantages of the technology. - Training cost Copyright@1999. Jerry Gao, Ph.D

- EDI System Approach: There are several ways to set up EDI. - A dedicated PC link to the EDI network. - A group of computers via modems linking to the EDI network - A dedicated server link to the EDI network Communication link could be: - dial-up phone line (such as ISDN line or switched digital services) - a dedicated link to the network’s local hub point. Required software: - Application software - Message translator - Routing manager - Communication handler Copyright@1999. Jerry Gao, Ph.D

- Migration to Open EDI: The Internet and the transition to Open EDI will change the economics of EDI by reducing setup and rollout costs. Migration groups: - A nonuser becoming a private network/VAN user. - A current EDI user who wishes to make a transition to Open EDI. - A non-EDI user who can make a direct transition to Open EDI. - EDI transactions across the Internet in two ways: Email and FTP The benefits: - Reduction of the cost of transferring EDI messages - Increase the performance - Supporting E-Commerce - Increase the interoperability of networks increasing the usability of EDI. The problems and challenges: - Security issues - Many companies using EDI based on VANs. Not all VANs have connections to Internet. Copyright@1999. Jerry Gao, Ph.D