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
The Internet is the future of business. Bring your company up-to-date and provide customers, not only with product descriptions and information, but with a way to shop, communicate and interact with your company via the web. The Internet also provides less chance for human error in the ordering process because fewer individuals have to handle information. And, most importantly, the Internet speeds up operations, whether it is use for sending information to employees or receiving custom orders from customers.
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.
Second, I would recommend that WM utilize electronic data interchange (EDI) technology to ease communication efforts between its individual dealerships and its various suppliers. This will allow the company to exchange
Electronic Commerce or e-commerce refers to a wide range of online business activities for products and services(Rosen, 2000). E-commerce (or electronic commerce) is defined as the buying and selling of goods and services conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. (Anon, n.d.). It also refers to any type of business transaction where the parties interact electronically rather than by physical exchanges or physical contact. (Anon, n.d.)
E-business technology will be one of the key factors driving progress in the 21st century - it will change the way we live, learn, work and play. Advances in computing and communications technology will create a new infrastructure for business, scientific research and social interaction. This expanding infrastructure will provide the industry with new tools for communicating throughout the world and for acquiring knowledge and insight from information. It will provide a vehicle for economic growth through innovation and new product distribution. Information technology will make the workplace more rewarding, improve the quality of health care, and make government more responsive and accessible to the needs of our citizens (Xu, and Quaddus)
Shelly, Gary B., Cashman, Thomas J., and Judy A. Serwatka. Business Data Communications: Introductory Concepts and Techniques. 2nd ed. Massachusetts: Course Technology, 1998.
The most common e-business technologies are XML, EDI, different kind of Extranets and Websites. E-business technologies makes it possible for a firm to share data external parts. Data such as inventory information, order status, warehouse
The last decade can be marked as a period of significant changes in the business world. Being accustomed to utilize computers as a powerful tool with its office applications such as Microsoft Word and Excel. In the 1990s office workers first faced the opportunity to share information using the Internet (McNurlin, 2009). However, the situation became even more different with the transition to the third millennium. With a further development of information technologies, the majority of big enterprises had to reconstitute their business processes and to make the transition to the Internet economy. Enterprise resource planning (ERP), supply-chain management (SCM), customer relationship management (CRM) software and the variety of other information systems became essential components of the new economy. It can be expected, that all these complex solutions were designed to bring great benefits for different sides of the corporate activity, in particular, decisions made by top-managers are expected to become nearer to the ideal, customer service is to be improved and collaboration more prolific. Nevertheless, to ensure the desired results it should be taken into account that the key concept of these reorganizations is an information or a data, dealing with which can be a serious issue, and wide utilizing of the data warehouses in contemporary organizations confirms this fact.
An electronic document management system (EDMS) is a computer-based system used to track and store electronic documents and/or images of paper documents, electronic documents, and other knowledge used by the organization. According to Johnston and Bowen (2005) EDMS is "…an automated system which supports the creation, use and maintenance of paper or electronic documents and records for the purposes of an organization's workflow and processes" ( p. 133). This paper familiarizes the organization executive and information technology (IT) teams about the purposes for which EDMS is used, describes the key functions supplied by EDMS, and assists the organization to successfully implement and maintain EDMS. An EDMS includes record keeping functionality and the management of documents of informational and evidential value. The scope of an operational EDMS includes multiple elements. These may include documents, records, methods, procedures, tools, knowledge, means, and persons with which an organization operates and fulfils its requirements to preserve evidence of its activities, maintain its memory, and preserve its knowledge. Migrating to an EDMS is more than installing new hardware and/or software. The organization must be aware that not only executive support is vital, but the end user's involvement and buy-in is of critical importance as well.
...ies could make commitment of an on-going senior leadership communication and change to the same ERP systems for easy access of information this could enhance the communication between OEMs and ACMs. Negotiating discount or set a high cancellation fee could avoid cancelling orders each time the buyers are facing economic crisis instead opt to reduce the quantity that was previously demanded.
The advent modern forms of e-commerce occurred in 1949 when Diners Club launched credit cards for its frequent customers as way of consolidating debts. Meanwhile, the most immediate technological innovations that precipitate advent of today’s e-commerce infrastructure include use of Electronic Data Interchange (EDI), availability of affordable computer hardware and software as well as increasing profitability of Internet Service Providers (ISPs). EID refers to transmission of business data within organizational networks in standard formats that favor transactions between businesses and clients. EDI has been an important milestone in the development of e-commerce in the sense that it paved way for the recent developments in e-commerce. Some of the contempo...
Information technology strain the communication barrier between corporate function and extent business processes must be coherent with the new and electronic form of cooperation with suppliers and customers.
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.
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...
E-business is a wider concept that takes into account all the aspects of use of information technology in business. Apart from buying and selling, it also includes servicing customers, collaboration with business partners, and engages incorporation across business processes and communication within the organisation (Rowley, 2002)