Electronic Data Interchange

Martin Ombura Jr
Mind Map by Martin Ombura Jr, updated more than 1 year ago
Martin Ombura Jr
Created by Martin Ombura Jr almost 5 years ago
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Description

INF3014 course UCT. e-Commerce 2015

Resource summary

Electronic Data Interchange
1 ?
1.1 What it is

Annotations:

  • Electronic Data Interchange (EDI) is an inter-organizational system that involves the relatively fast delivery movement of business documents electronically between trading partners with little or without human intervention
1.2 How It's Done

Annotations:

  • utilises a set of electronic transaction rules and standards that allow different companies to exchange business documents electronically over a secure network (called a Value-Added Network or VAN). efficient electronic alternative to using email, phone, or fax to transmit and exchange paper documents and is an important area of larger scale e-commerce operations.
1.3 Outcome

Annotations:

  • In so doing, organizational boundaries are lowered (Ciborra, 1995), the organization’s interior is somewhat exposed to business partners (Webster, 1995), and thereby creating a high degree of organizational interdependence between participating parties
2 EDI Research Points
3 Benefits
3.1 Indirect

Annotations:

  • Avoiding errors  Faster payments/improved cashflow  Avoiding production stoppages resulting from lack of raw material  Reducing the purchasing/sales cycle (ordering, delivery and invoice)  Reducing stock levels  Reducing inventory breaks 
3.2 Direct

Annotations:

  • Paper savings   Avoiding filing costs and maintenance   Avoiding repetitive administrative procedures  Less paperwork enables reduction in administrative personnel
3.3 Strategic

Annotations:

  • Increasing business relationships with companies using EDI  Improving customer loyalty  Improving the quality and quantity of information  Faster response and access to information ) Gaining new business contacts using EDI  Reducing the number of business contacts by concentrating on those that use EDI (CONTRED)
4 EDI Implementation

Annotations:

  • Develop the organizational structure for managing the EDI system Deploy
  • Undertake a strategic review of the business
  • Develop an EDI solution to meet the needs of the business
  • Integrate with other business systems across the company
  • Analyse internal business processes
  • Establish a pilot project with selected trading partners
  • Deploy
4.1 1. Develop Organizational Structure

Annotations:

  • Identify project champion to manage the implementation process and liase with outside providers of EDI solutions Obtain Organisational Support
4.2 2. Undertake Strategic Review

Annotations:

  • project champion performs a strategic review of the business to see which areas of the business will benefit from implementing the EDI solution first.  project champion to undertake an EDI Survey or Cost / Benefit Analysis
4.3 3. Develop the EDI

Annotations:

  • Select process within the business that requires automation Purchase orders Invoice Advance ship notice or ASN Functional acknowledgement Identify and select an EDI network provider and associated software needs for implementation Consider Legal & Audit Requirements
4.4 4. Integrate With other Businesses

Annotations:

  • Identify information that interacts or uses and requires information from the automated business process Integrate such systems with automated process to provide significant downstream cost and efficiency benefits.
4.5 5. Undertake Data Analysis of Internal Business Processes

Annotations:

  • Link all internal documents with trading partners and internal systems to ensure the smooth flow of information. by linking them, allows the information to be transmitted efficiently across a network.
4.6 6. Establishing a pilot project with select partners

Annotations:

  • Implement trial project and Test with a small number of partners.
4.7 7. Deployment of EDI

Annotations:

  • Deploy the project to trading partners
5 Challenges
5.1 Telecommunications

Annotations:

  • advanced and reliable telecommunication infrastructure
5.2 Initial Investment

Annotations:

  • heavy initial investment in software and training
5.3 Skills

Annotations:

  • considerable skills and know-how to implement and operate (Webster, 1995) which developing countries still struggle with and unfortunately when not in place can seriously slow down the diffusion rate
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