Electronic Data Interchange (EDI) allows businesses to electronically exchange structured data through agreed message standards transmitted between computer systems, replacing paper documents. EDI originated in the 1960s for transport industry data transmission and standards were developed by organizations like ANSI and UN/ECE. EDIFACT is now the global EDI standard defining formats for many industries. Common EDI protocols include HTTP, FTP, AS1/AS2/AS3, and earlier versions used X.400. EDI has improved efficiency by reducing time, errors and costs compared to earlier physical document transfer systems.
2. Agenda
• Earlier Data Transfer Systems (non electronic)
• Disadvantages
• What is EDI
• EDI History
• EDI Benefits
3. Earlier Data Transfer System
• Physical document transfer
– Person
– Use of Animals
– Road / Sea
– Air (Fed-Ex)
– Fax
• Use of signals
– Teletext
4. Disadvantages of earlier systems
• Time / Duration
• Global reach
• Human error
• Duplication
• Efficiency
• Cost
5. What is EDI
• Electronic Data Exchange is the transmission
of data / documents by electronic means.
• Paper-based documents are replaced by
electronic data which is transmitted by a
number of means.
• This enables the efficient capture of data into
electronic form, the processing and retention
of data, controlled access to it, and efficient
and reliable data transmission between
remote sites.
6. EDI Definition
• The transfer of structured data, by agreed
message standards, from one computer
system to another by electronic means
• Structured Data
• Agreed message standards
• From one machine to other machine
• By electronic means
8. EDI Architecture
Digital Signature and Encryption
EDI Checks
EDI EDI
Applica Software Communi Communic Software Applica
tion & cation ation & tion
Standards Protocol Standards System
System
Checks
Acknowledgement
Acknowledgment
9. EDI - History
• 1960 – Business orders and shipping data used
to be transmitted over networks
• This was restricted to Transport Industry
• Data transfer between businesses who were
on the same network
• Transportation Data Coordinating Committee
was formed (TDCC) to regulate the activity
• American National Standard Institute (ANSI)
formed the Rules called X12
10. EDI History
• UK Customs and Excise dept. In collaboration
with British Simplification of Trade Procedures
board (SITPRO) published documentation
called Tradecoms.
• Tradecoms were extended by United Nations
Economic Commission for Europe called
(UNECE) into General Purpose Trade Data
Interchange Standards (GTDI)
11. EDI History
• So there were 2 standards ANSI & GTDI
• To resolve this problem UN-JEDI developed
new standard called – Electronic Data
Interchange for Administration, Commerce &
Transport (EDIFACT)
• Now other industries started coming into
picture like Automobile industry
• So work started on defining standards for
various industries