Definition Electronic Data Interchange (EDI) can be formally defined as 'The transfer of structured data, by agreed message standards, from one computer system to another without human intervention'(Wikipedia, 2007). It represents the application of computer and communications technology to traditional paper-based business processes, supporting innovative changes in those processes. It involves the exchange and transmittal of business documents, such as invoices, purchase orders and shipping notices, in a standard, machine-processable format (CISA, 2008). EDI is not a new technology. It was first used in transportation and shipping industries in 1970s. However, EDI use has grown significantly in a many business sectors in the past decade. It is not limited to simply sending and receiving various messages but has allowed trading partners to access to each other’s internal records such as sales and inventory information. The use has come into prominence because EDI could provide the following benefits: • Less paperwork, reduced cost • Fewer errors during the exchange of information • Increased speed in information exchange and processing • Improved trading partner relationships • Improved intracompany flow of information Threats On the other hand, although EDI has created a number of changes in the way commerce is conducted and has offered significant opportunities, it also has attracted new threats and potential exposures and increased the seriousness of some existing problems. Some examples of these are described below. ... ... middle of paper ... ... and an on-line browser, businesses can link into secure EDI networks for a minimal investment. By engaging in EDI through the Internet, small and medium-sized firms can compete for business on a level playing field with large organizations; expand their market globally; and improve relationships with their current trading partners (ASCX12, 2007). Reference Wiki, 2007, “Electronic Data Interchange” http://en.wikipedia.org/wiki/Electronic_Data_Interchange Stanley Weiner, 1995, “BUSINESS RISK, INTERNAL CONTROL, AND AUDIT IMPLICATIONS OF EDI” http://www.nysscpa.org/cpajournal/1995/NOV95/Aud1195.htm CISA Review Manual, 2008 Ian Walden, 1993, “EDI audit and Control” David Moore, “Audit Implications of EDI” http://www.cica.ca/1/0/5/0/index1.shtml ASCX12, 2007, “ELECTRONIC COMMERCE ON THE INTERNET: THE FUTURE OF EDI” http://www.x12.org/x12org/about/edifuture.htm
Technological developments and improvements have allowed for businesses to communicate information faster and better by the use of email, live chats, and video teleconferencing. These enhancements allow for a faster flow of information in which a business can easily distribute and receive responses in real-time from its customers. It helps employees to function more efficiently by using software programs such as word processing, spreadsheet tools, statistical analysis software and computer aided design programs. With the growth of the internet and social media, businesses expose its products to a larger customer base. Others advances such as inventory management software are able to track and fill orders, and replace stock when the volume fails a pre-determined quantity at much faster rates. Digital storage of documents and information on servers and multi-media storage
The internet designed for the purpose of sharing information. Never before in history has it been so simple to send information from one place to another. While it was originally designed for storing information within large corporations, the internet today is used as an information highway. Due to this, things like music and movies can be shared very quickly via the internet. Property of one person can be shared quickly and efficiently. While there are many things to be gained from this, unfortunately it puts the manufacturers of this digital information at a disadvantage.
This paper based focused transaction and communication was very slow. Information was over looked as a critical competitive resource during this period, because its high value to supply chain members was not clearly understood back then.
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
With rapid technological advancement, CanIt Inc. will have to adapt to using some advanced technology to improve their business process to be more efficient, and effective. To enhance the flow of information and products, several new technologies can be implemented into the supply chain of CanIt Inc., which includes: Radio-Frequency Identification (RFID) tags and readers, Blockchain technology, and Commercial use servers.
Information technology is part of every corner in any organization. Employees use electronic mail, (VOIP) telephone systems to communicate. Electronic data interchange (EDI) is used to send out and receive data including orders and payments from one company to another. Servers process information and store large amounts of data. Desktop computers, laptops, and wireless devices are used to create
According to the definition of Whatis.com "E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners."[1]
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
When electronic devices transfer information to another electronic device, the devices need to know when data flow is beginning and ending. This is done with signals for synchronization.i
This can’t be said enough. The systems your business uses need to be connected and able to exchange information back and forth through an automated process.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)
What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.
E-commerce means that the company runs their business online, not like the traditional business way. We have to go the shopping mall or store to get goods that we need, E-Business is the enabling of electronic communication between any two or more participants in a business relationship. It helps companies capture abroad business field, cost saving, and market opportunity. E-commerce is an important factor that is making people’s lives more efficient.
E-commerce has grown significantly over the past years, it has helped small businesses to expand and create new businesses mush easier and faster than before, it also has changed the way they deal with customers and helped the growth of the economy, and more and more businesses are doing their business over the web, all of that shows how important EC is in many aspects and how it will continue emerging between businesses.