• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What Electronic Data Interchange (EDI) is (conventional and internet based) and share with you some of the benefits and downfalls of operating such a system. Some

Extracts from this document...

Introduction

Introduction I will expand on what Electronic Data Interchange (EDI) is (conventional and internet based) and share with you some of the benefits and downfalls of operating such a system. Some of the benefits are lower costs, improved accuracy, and decreased paper output and processing time. One main downfall is the initial cost of the implementation of the system. I will also give you an example of how a company uses this technology. Electronic Data Interchange (EDI) as defined by Roger Clarke: "the exchange of documents in standardized electronic form, between organizations, in an automated manner, directly from a computer application in one organization to an application in another." EDI has been around for several decades and it has been the primary method of conducting electronic business-to-business commerce. It contains the same information that would be found on paper documents used for the same function within an organization. The following are elements of EDI: * Electronic transmission medium (VAN or the Internet) is used rather than the dispatch of physical storage media such as magnetic tapes and disks. ...read more.

Middle

Compatibility with new applications is difficult because of the complexity of the X12 formats. As a result of the compatibility the process of transferring large batches of data are delayed, which is at odds with today's real-time world. Also, the cost of transmitting data through VANs is very costly at $25 per 1,000 characters, but today costs are getting lower. Because conventional EDI is so rigid, costly and time consuming to initiate, it is only cost-effective for very large companies. For these reasons it keeps the number of EDI participants relatively very low. EDI via the Internet The internet was once thought to be the end of EDI, but instead it has given EDI users new options. EDI via the internet is basically the same as conventional EDI with the exception of how the information is transmitted. EDI transactions can now be sent over the internet instead of sending X12 forms back and forth via VANs. Software products put transactions into encrypted envelopes and then electronically seal them so that only authorized parties with the encryption key can view the contents. ...read more.

Conclusion

The full potential of an EDI system can be best utilized if it is integrated with other applications such as inventory control, shipping, accounts payable and production planning. Unfortunately, suppliers are forced to use the sometimes costly EDI system in order to continue a business relationship with the larger companies. This is not always as cost-effective for suppliers as it is for the larger companies. Summary EDI saves time because it is faster at transmitting data, delivers data with the utmost accuracy, cuts down on paper usage and decreases overall time by eliminating re-keying of information. It is a more stream-lined business process for both trading parties. Benefits can be obtained in areas like administration, inventory management, distribution, and cash management. EDI has its share of problems, but its benefits far exceed them. With the internet it is becoming easier for trading partners to transmit data at a much greater reduced cost to both parties. The next few years hold great promise for EDI and the internet. Existing EDI forms can be kept by trading partners and new ways of transmitting data can be found cheaper, which will enable more new partners. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Computer Science section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Computer Science essays

  1. Marked by a teacher

    Designing a data system for a vintage clothes business.

    3 star(s)

    Define the current system The current system to manage all the data is a manual system of which involves writing the buyer and design data on multiple forms, and storing the forms in folders which contain all the other data - this includes the price of the products.

  2. LAN & WAN Protocols

    The IP address and information about the client configuration such as the gateway, domain name & etc, is all managed by the DHCP server. FTP File Transfer Protocol is used to transfer data from one computer to another via a network similar to the internet.

  1. Different ways of data capture

    11.3 ORGANISATION OF DATA FOR EFFECTIVE RETRIEVAL DISADVANTAGES OF FLAT FILE DATABASES: 1. Duplication of data leading to inconsistent data. 2. Duplication of data leading to wasting storage space 3. Slow searching for non key data 4. Changes of requirements leads to major file reorganization.

  2. With diagrams compare and contrast the relative advantages and disadvantages of digital transmission over ...

    Distinguish between packet, circuited and message switching. Packet-switched are describes the type of network in which relatively are in small units of data called packets they are routed through a network based on the destination address which contained within each packet.

  1. Smart Card System

    by Bellare and Rogaway and also by Burt Kaliski (the editor of IEEE P1363a) to facilitate implementation and integration into existing protocols. Here is a small example of RSA Plaintexts are positive integers up to 2^{512}. Keys are quadruples (p,q,e,d), with p a 256-bit prime number, q a 258-bit prime

  2. CP3 - Proposed Solution to a Realistic Problem - Apartment Administration software

    This should not be the case if the system is delivered to their exact requirements. * Will it be easy enough to back up data files encase of a program failure which could result in the program being dropped for alternatives.

  1. Creating a computer system for Wooten Basset Rugby Club

    Also changes to the date for example can be made. In order to maintain the consistency of data validation is being used. The FixtureCode attribute is updated automatically as an auto number preventing the user from making mistakes. Also a TeamCode will be selected from a combo box so a user cannot enter a team that does not exist.

  2. Definition-nature of the problem solved - Car Mechanic business

    Also while the business is still small there is no issue with overcrowding of information. It doesn't really take long to find the info because it's all organised properly and efficiently but it still takes time to leave a customer on hold while I sort out the data they want.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work