Data Interchange (EDI)
Prosperity, and even survival, for small businesses depends as never before
on the ability to respond with speed and certainty to the challenges and opportunities
that are presented by competitors and customers. Electronic Commerce provides
an opportunity to increase competitive edge and consolidate and enhance both business
to business and business to consumer trading relationships.
the current competitive & fast moving world of E-commerce & Electronic
data transfer , comes a highly relevant , yet , under-utilised system of data
exchange -the Electronic Data Interchange , or the EDI.
has no single consensus definition .Two generally accepted
definitions are :
1.Standardized format for
communication of business information between computer applications .
2.Computer- to- computer exchange of information between companies, using an industry
standard format .
In short , Electronic Data
Interchange (EDI) is the computer-to-computer exchange of business information
using a public standard. EDI is a central part of Electronic Commerce (EC), because
it enables businesses to exchange business information electronically much faster,
cheaper and more accurately than is possible using paper-based systems.
Electronic Data Interchange, consists of data that has been
put into a standard format and is electronically transferred between trading partners.Often
,an acknowledgement is returned to the sender informing them that the data was
received. The term EDI is often used synonymously with the term EDT. These two
terms are indeed different and should not be used interchangeably.
The terms EDI and EDT are often misused
1.EDT, Electronic Data Transfer, is
simply sending a file electronically to a trading partner.
EDI documents are sent electronically, they are sent in a standard format.
standard format is what makes EDI different than EDT.
EDI is also
often confused with E-commerce itself , though , of course by those who are relatively
novices to the technology . However, they may not be faulted as, even now, this
method has not found use in many such areas where it may work wonders .
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