Your SlideShare is downloading. ×
0
CHAPTER 9 ELECTRONIC DATA INTERCHANGE
Department of Computer & Infromation Sciences IS 470 Prepared By  Group # 3: Ibrahim AL-Raee, 12000-0348 Khaled AL-Garnei,...
OUTLINE  <ul><li>INTRODUCTION  </li></ul><ul><li>WHAT IS ELECTRONIC DATA INTERCHANGE?  </li></ul><ul><li>EDI USERS AND TYP...
INTRODUCTION
INTRODUCTION <ul><li>Technology continually offers new and innovative techniques that affect companies and individuals:  <...
WHAT IS ELECTRONIC DATA INTERCHANGE (EDI)?
WHAT IS ELECTRONIC DATA INTERCHANGE? <ul><li>A Definition From Book: </li></ul><ul><ul><li>EDI is computer-to-computer com...
WHAT IS ELECTRONIC DATA INTERCHANGE?  <ul><li>A Definition From Net: </li></ul><ul><ul><li>(EDI) is about doing business a...
NORMAL BUSINESS ELIGIBILITY VERIFICATION SERVICE  CLAIMS ENROLLMENT CUST SERVICE CUST SERVICE CLAIMS PROCESSING ALLIANCE D...
270 FUNCTIONAL GROUP INTERCHANGE EDI Delivery 837 834 FUNCTIONAL GROUP FUNCTIONAL GROUP INTERCHANGE EDI VAN
EDI Example
 
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI Example
EDI USERS AND TYPES OF ACTIVITIES
EDI USERS AND TYPES OF ACTIVITIES <ul><li>SECTION OUTLINE: </li></ul><ul><ul><li>Who Uses EDI? </li></ul></ul><ul><ul><li>...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Who Uses EDI? (From Book) </li></ul><ul><li>Companies of all types and sizes are...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Who Uses EDI? (From Net) </li></ul><ul><li>Any company that  (buys, sells goods,...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Where Is Uses EDI? </li></ul><ul><ul><li>Sample EDI application areas  </li></ul...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Types of EDI Activity  </li></ul><ul><li>Currently EDI is primarily used for: </...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Types of EDI Activity   </li></ul><ul><li>Difference between EDI & electronic fu...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Business Processing Considerations   </li></ul><ul><li>EDI is changing the way c...
EDI USERS AND TYPES OF ACTIVITIES <ul><li>Business Processing Considerations   </li></ul><ul><li>Ex: </li></ul><ul><ul><li...
EDI USERS AND TYPES OF ACTIVITIES PAPER  vs  EDI   Document Transaction Little Envelope Functional Group Big Envelope Inte...
WHERE DOES INFORMATION TECHNOLOGY FIT IN?
WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>EDI is not simply a technical tool or technique </li></ul><ul><li>It off...
WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>EDI should have its own architecture fixed to the company’s strategic wa...
WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>The EDI different between criteria and needs: </li></ul><ul><ul><li>hand...
WHAT IS NEEDED TO IMPLEMENT EDI?
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>SECTION OUTLINE: </li></ul><ul><li>EDI Methodology </li></ul><ul><li>EDI Implemen...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Some companies and vendors make implementing EDI sound simple, but in reality the...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>Before starting any EDI adventure, ...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>Questions that must be answered are...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>The effort would be minimal and the...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Build External Company Relationships: </li></ul><ul><ul><li>EDI project from othe...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Ensure Commitment and Acceptance </li></ul><ul><ul><li>It is important that all l...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Legal and Tax Implications </li></ul><ul><li>a company should seek advice from le...
WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Legal and Tax Implications (con.) </li></ul><ul><ul><li>What information must be ...
Standard Data Formats <ul><ul><li>Introduction  </li></ul></ul><ul><ul><li>EDI Data Standards History </li></ul></ul><ul><...
Standard Data Formats <ul><li>One benefit of EDI is that it forces industries to standardize: </li></ul><ul><ul><li>Termin...
Standard Data Formats <ul><li>EDI Data Standards History </li></ul><ul><li>The EDI data standards process began in the Uni...
Standard Data Formats ASC X12S/94-172 FORMAT* Source:  DISA 1994 Publications Catalog,  Data Interchange Standards Associa...
Standard Data Formats <ul><li>Standard Group Types: </li></ul><ul><li>Various standard groups have been formed to establis...
Standard Data Formats <ul><li>Implementing Standards </li></ul><ul><li>An attempt to implement standard data formats is un...
Standard Data Formats <ul><li>Data Standards Software </li></ul><ul><li>The cost of software that supports translating inf...
Establishing Electronic Connections <ul><li>In addition to a standard data format, it is mandatory that the companies’ com...
Establishing Electronic Connections <ul><li>Protocol:  A set of standards for exchanging information between two computer ...
INTERNATIONAL CONSIDERATIONS <ul><li>Standards </li></ul><ul><li>Communication Connectivity </li></ul><ul><li>Advantages a...
INTERNATIONAL CONSIDERATIONS <ul><li>Standards </li></ul><ul><li>EDI is not used only in the United States or North Americ...
INTERNATIONAL CONSIDERATIONS <ul><li>Communication Connectivity </li></ul><ul><li>When dealing with international communic...
INTERNATIONAL CONSIDERATIONS Standardizes programs and procedures  Reduces the flow of paper between organizations  Diffic...
Benefits of EDI (From Net)
IS EDI FOR YOU? <ul><li>Companies should be wary of vendors that try to convince them how easy and inexpensive it is to im...
Questions For Students  <ul><li>What is mean EDI ? </li></ul><ul><li>Who Uses EDI ? </li></ul><ul><li>Where Is Uses EDI ? ...
Upcoming SlideShare
Loading in...5
×

ELECTRONIC DATA INTERCHANGE

23,330

Published on

IS470 ELECTRONIC DATA INTERCHANGE BY IBRAHIM ALRAEE
Prince Sultan University

Published in: Business, Technology
2 Comments
7 Likes
Statistics
Notes
No Downloads
Views
Total Views
23,330
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1,143
Comments
2
Likes
7
Embeds 0
No embeds

No notes for slide

Transcript of "ELECTRONIC DATA INTERCHANGE "

  1. 1. CHAPTER 9 ELECTRONIC DATA INTERCHANGE
  2. 2. Department of Computer & Infromation Sciences IS 470 Prepared By Group # 3: Ibrahim AL-Raee, 12000-0348 Khaled AL-Garnei, 12000-0636 Maged AL-Ali, 12000-0610 Mohammed AL-Muhaidib, 12000-0191 Examiner: Dr. Shehzad Khalid Ghani,PSU
  3. 3. OUTLINE <ul><li>INTRODUCTION </li></ul><ul><li>WHAT IS ELECTRONIC DATA INTERCHANGE? </li></ul><ul><li>EDI USERS AND TYPES OF ACTIVITIES </li></ul><ul><ul><li>Who Uses EDI? </li></ul></ul><ul><ul><li>Types of EDI Activity </li></ul></ul><ul><ul><li>Business Processing Considerations </li></ul></ul><ul><li>WHERE DOES INFORMATION TECHNOLOGY FIT IN? </li></ul><ul><li>WHAT IS NEEDED TO IMPLEMENT EDI? </li></ul><ul><ul><li>EDI Methodology </li></ul></ul><ul><ul><li>EDI Implementation Considerations </li></ul></ul><ul><li>INTERNATIONAL CONSIDERATIONS </li></ul><ul><ul><li>Standards </li></ul></ul><ul><ul><li>Communication Connectivity </li></ul></ul><ul><li>IS EDI FOR YOU? </li></ul>
  4. 4. INTRODUCTION
  5. 5. INTRODUCTION <ul><li>Technology continually offers new and innovative techniques that affect companies and individuals: </li></ul><ul><ul><li>Cordless telephone </li></ul></ul><ul><ul><li>Video games </li></ul></ul><ul><ul><li>Facsimile (fax) machines </li></ul></ul><ul><ul><li>Answering machines </li></ul></ul><ul><ul><li>Notebook computers </li></ul></ul><ul><ul><li>Electronic mail (e-mail) </li></ul></ul><ul><ul><li>ATM card </li></ul></ul><ul><li>We are in the midst of the e-communications era </li></ul><ul><li>One innovation is electronic data interchange </li></ul><ul><ul><li>causing major changes in how companies conduct business </li></ul></ul>
  6. 6. WHAT IS ELECTRONIC DATA INTERCHANGE (EDI)?
  7. 7. WHAT IS ELECTRONIC DATA INTERCHANGE? <ul><li>A Definition From Book: </li></ul><ul><ul><li>EDI is computer-to-computer communication using a standard data format to exchange business information between companies. </li></ul></ul><ul><li>Ex: </li></ul><ul><ul><li>Consider the Postal System </li></ul></ul>
  8. 8. WHAT IS ELECTRONIC DATA INTERCHANGE? <ul><li>A Definition From Net: </li></ul><ul><ul><li>(EDI) is about doing business and carrying out transactions with your trading partners electronically. </li></ul></ul><ul><ul><li>EDI covers most things that are traditionally done using paper-based communication.  </li></ul></ul>
  9. 9. NORMAL BUSINESS ELIGIBILITY VERIFICATION SERVICE CLAIMS ENROLLMENT CUST SERVICE CUST SERVICE CLAIMS PROCESSING ALLIANCE DETROIT MI ALLIANCE DETROIT MI
  10. 10. 270 FUNCTIONAL GROUP INTERCHANGE EDI Delivery 837 834 FUNCTIONAL GROUP FUNCTIONAL GROUP INTERCHANGE EDI VAN
  11. 11. EDI Example
  12. 13. EDI Example
  13. 14. EDI Example
  14. 15. EDI Example
  15. 16. EDI Example
  16. 17. EDI Example
  17. 18. EDI Example
  18. 19. EDI Example
  19. 20. EDI Example
  20. 21. EDI Example
  21. 22. EDI Example
  22. 23. EDI Example
  23. 24. EDI Example
  24. 25. EDI Example
  25. 26. EDI Example
  26. 27. EDI Example
  27. 28. EDI USERS AND TYPES OF ACTIVITIES
  28. 29. EDI USERS AND TYPES OF ACTIVITIES <ul><li>SECTION OUTLINE: </li></ul><ul><ul><li>Who Uses EDI? </li></ul></ul><ul><ul><li>Where is uses EDI? </li></ul></ul><ul><ul><li>Types of EDI Activity </li></ul></ul><ul><ul><li>Business Processing Considerations </li></ul></ul>
  29. 30. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Who Uses EDI? (From Book) </li></ul><ul><li>Companies of all types and sizes are able to utilize EDI. </li></ul><ul><li>Ex. Some large corporations specify EDI : </li></ul><ul><ul><li>Use as the communication method of choice </li></ul></ul><ul><ul><li>Federal Government </li></ul></ul><ul><ul><li>Automakers </li></ul></ul><ul><ul><ul><li>suppliers to send all purchase orders and invoices electronically </li></ul></ul></ul><ul><ul><li>Industry </li></ul></ul><ul><ul><li>banking </li></ul></ul><ul><ul><li>healthcare </li></ul></ul><ul><ul><li>retailing </li></ul></ul><ul><ul><li>travel </li></ul></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>insurance </li></ul></ul><ul><ul><li>Government </li></ul></ul>
  30. 31. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Who Uses EDI? (From Net) </li></ul><ul><li>Any company that (buys, sells goods, services ) can potentially use EDI. </li></ul><ul><li>Because it supports the entire business cycle </li></ul><ul><li>EDI can streamline the relationship that any company has with its (customers, distributors, suppliers) </li></ul>
  31. 32. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Where Is Uses EDI? </li></ul><ul><ul><li>Sample EDI application areas </li></ul></ul><ul><ul><li>EX: </li></ul></ul><ul><ul><ul><li>Purchasing </li></ul></ul></ul><ul><ul><ul><li>Inventory </li></ul></ul></ul><ul><ul><ul><li>Billing </li></ul></ul></ul><ul><ul><ul><li>Distribution </li></ul></ul></ul><ul><ul><ul><li>Price notification </li></ul></ul></ul><ul><ul><ul><li>Financial </li></ul></ul></ul><ul><ul><ul><li>Freight rate notifications </li></ul></ul></ul><ul><ul><ul><li>Sales & cash management </li></ul></ul></ul>
  32. 33. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Types of EDI Activity </li></ul><ul><li>Currently EDI is primarily used for: </li></ul><ul><ul><ul><li>Purchase orders </li></ul></ul></ul><ul><ul><ul><li>Bills of lading </li></ul></ul></ul><ul><ul><ul><li>Invoices </li></ul></ul></ul><ul><ul><ul><li>Healthcare claims </li></ul></ul></ul><ul><ul><ul><li>Financial exchanges </li></ul></ul></ul>
  33. 34. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Types of EDI Activity </li></ul><ul><li>Difference between EDI & electronic funds transfer (EFT) </li></ul><ul><li>EFT is also used to exchange information electronically. </li></ul><ul><li>Financial EDI is the exchange of payment and bank balance information between a company and its bank or another company. </li></ul><ul><li>EFT is the exchange of information between two banks that results in value being transferred. </li></ul><ul><li>It is possible for financial EDI to be bank to bank, but EFT does no bank-to-company exchanges. </li></ul>
  34. 35. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Business Processing Considerations </li></ul><ul><li>EDI is changing the way companies do business </li></ul><ul><li>shifting the ordering process from a snail-like </li></ul><ul><li>paper-intensive system to a computerized one </li></ul><ul><li>The nature of business relationships, both internal and external, is changing </li></ul>
  35. 36. EDI USERS AND TYPES OF ACTIVITIES <ul><li>Business Processing Considerations </li></ul><ul><li>Ex: </li></ul><ul><ul><li>A salesperson who used to receive and write orders has become a product advisor </li></ul></ul><ul><ul><li>Customers conducting business with firms that have multiple divisions now request centralized electronic transmission </li></ul></ul>
  36. 37. EDI USERS AND TYPES OF ACTIVITIES PAPER vs EDI Document Transaction Little Envelope Functional Group Big Envelope Interchange Postal Service VAN Courier Delivery Point-to-Point Human Audit Machine Audit
  37. 38. WHERE DOES INFORMATION TECHNOLOGY FIT IN?
  38. 39. WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>EDI is not simply a technical tool or technique </li></ul><ul><li>It offers change and new ways of conducting business </li></ul><ul><li>The involvement and role of the IT organization would be the same as for other business projects but entails crossing company boundaries </li></ul><ul><li>IT cannot be the sole implementer of EDI; it must be a business and technical team effort. </li></ul>
  39. 40. WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>EDI should have its own architecture fixed to the company’s strategic way. </li></ul><ul><li>This EDI architecture at a minimum should be designed to handle any system: </li></ul><ul><ul><li>Integration elements </li></ul></ul><ul><ul><li>Systematically </li></ul></ul><ul><ul><li>Address security levels </li></ul></ul><ul><ul><li>Communications connectivity to use </li></ul></ul>
  40. 41. WHERE DOES INFORMATION TECHNOLOGY FIT IN? <ul><li>The EDI different between criteria and needs: </li></ul><ul><ul><li>handling multiple data formats </li></ul></ul><ul><ul><li>multiple system interfaces </li></ul></ul><ul><ul><li>provides better support to the various Bus. Processing </li></ul></ul><ul><li>It may be necessary to designate an EDI </li></ul><ul><ul><li>Coordinator responsible (planning & coordinating) all EDI activity within the company . </li></ul></ul><ul><li>The size of the firm and the extent of EDI activity : </li></ul><ul><ul><li>deciding whether an additional full-time position is necessary </li></ul></ul><ul><li>It is recommended that someone coordinate the EDI effort, regardless of the size of the effort, so that results are not fragmented throughout the company. </li></ul>
  41. 42. WHAT IS NEEDED TO IMPLEMENT EDI?
  42. 43. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>SECTION OUTLINE: </li></ul><ul><li>EDI Methodology </li></ul><ul><li>EDI Implementation Considerations </li></ul><ul><ul><li>Business Strategic Planning </li></ul></ul><ul><ul><li>Build External Company Relationships </li></ul></ul><ul><ul><li>Ensure Commitment and Acceptance </li></ul></ul><ul><ul><li>Legal and Tax Implications </li></ul></ul><ul><li>Standard Data Formats </li></ul><ul><ul><li>EDI Data Standards History </li></ul></ul><ul><ul><li>Standard Group Types </li></ul></ul><ul><ul><li>Implementing Standards </li></ul></ul><ul><ul><li>Data Standards Software </li></ul></ul><ul><li>Establishing Electronic Connections </li></ul>
  43. 44. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Some companies and vendors make implementing EDI sound simple, but in reality there is more to it than electronically sending information to another company </li></ul><ul><li>EDI Methodology </li></ul><ul><li>The EDI project methodology guidelines are the same as for any project. The stages are: </li></ul><ul><ul><li>Planning and business requirements definition </li></ul></ul><ul><ul><li>Functional requirements </li></ul></ul><ul><ul><li>Design and build </li></ul></ul><ul><ul><li>Testing </li></ul></ul><ul><ul><li>Installation </li></ul></ul><ul><ul><li>Feedback and review </li></ul></ul>
  44. 45. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>Before starting any EDI adventure, it is important to establish a vision and mission for the company and its EDI commitment </li></ul>
  45. 46. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>Questions that must be answered are: </li></ul><ul><li>  Why are we pursuing EDI? </li></ul><ul><li>  What do we expect from its usage? </li></ul><ul><li>  </li></ul><ul><li>Who will be our EDI partners? </li></ul><ul><li>  What information do we want to exchange? </li></ul>
  46. 47. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Business Strategic Planning </li></ul><ul><li>The effort would be minimal and the benefits of EDI would not be fully realized </li></ul><ul><li>It is always best to keep it simple by installing a project in small manageable pieces, using a pilot program </li></ul><ul><li>Business may want to continually improve its work </li></ul>
  47. 48. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Build External Company Relationships: </li></ul><ul><ul><li>EDI project from other company projects is that EDI entails teaming with another company, known as a trading partner </li></ul></ul><ul><ul><li>A trading partner must be an active participant in each phase and both partners must cover the same activities </li></ul></ul><ul><ul><li>Timing, cooperation, and coordination between the trading partners are critical components of a successful implementation. </li></ul></ul>
  48. 49. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Ensure Commitment and Acceptance </li></ul><ul><ul><li>It is important that all levels of management participants be educated on EDI: </li></ul></ul><ul><ul><ul><li>employees </li></ul></ul></ul><ul><ul><ul><li>team participants </li></ul></ul></ul><ul><ul><li>This helps define business requirements in solving business concerns. </li></ul></ul><ul><ul><li>Education also helps in overcoming the fear of change and promotes eventual acceptance. </li></ul></ul><ul><ul><li>The overall goals and objectives of the project must be explicitly defined and top management must commit to the project before moving on to functional requirements. </li></ul></ul>
  49. 50. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Legal and Tax Implications </li></ul><ul><li>a company should seek advice from legal and tax experts. </li></ul><ul><li>The IRS is trying to help auditors eliminate paper files </li></ul><ul><li>IRS rules vary based on the company </li></ul><ul><li>Some basic questions that must be answered are: </li></ul><ul><ul><li>Is the original document required? </li></ul></ul><ul><ul><li>Are original signatures necessary? </li></ul></ul>
  50. 51. WHAT IS NEEDED TO IMPLEMENT EDI? <ul><li>Legal and Tax Implications (con.) </li></ul><ul><ul><li>What information must be retained for tax or legal purposes? </li></ul></ul><ul><ul><li>How long must the information be kept? </li></ul></ul><ul><ul><li>How long does the company have to present the information? </li></ul></ul><ul><ul><li>Will a copy of the document need to be recreated or will a report displaying the required information suffice? </li></ul></ul><ul><li>It is better to be safe than sorry; consult appropriate authorities for clear, concise answers before eliminating paper. Microfiche and imaging are other alternatives when storing archival information. </li></ul>
  51. 52. Standard Data Formats <ul><ul><li>Introduction </li></ul></ul><ul><ul><li>EDI Data Standards History </li></ul></ul><ul><ul><li>Standard Group Types </li></ul></ul><ul><ul><li>Standard Group Types </li></ul></ul><ul><ul><li>Implementing Standards </li></ul></ul><ul><ul><li>Data Standards Software </li></ul></ul>
  52. 53. Standard Data Formats <ul><li>One benefit of EDI is that it forces industries to standardize: </li></ul><ul><ul><li>Terminology </li></ul></ul><ul><ul><li>Usage </li></ul></ul><ul><ul><li>How information is recorded </li></ul></ul><ul><ul><li>Presented by creating a dictionary of industry terms and usage </li></ul></ul><ul><li>The data must be clear, concise, and unambiguous between companies </li></ul>
  53. 54. Standard Data Formats <ul><li>EDI Data Standards History </li></ul><ul><li>The EDI data standards process began in the United States with the transportation industry during the mid-1970s </li></ul><ul><li>In the early 1980s, the American National Standards Institute (ANSI) initiated efforts to define a single set of standards for EDI that could be applied across industries </li></ul><ul><li>These standards are known as the ASC X12 standards . </li></ul>
  54. 55. Standard Data Formats ASC X12S/94-172 FORMAT* Source: DISA 1994 Publications Catalog, Data Interchange Standards Association, Inc., Alexandria, VA. Acme Dist. Company P.O. Box 33327 Anytown, NJ 44509 CHARGE TO N1*BT*ACME DISTRIBUTING COMPANY N/L N3*P.O. BOX 33327 N/L N4*ANYTOWN*NJ*44509 N/L 7/13/90 6/25/90 1001 P989320 DATE ORDER DATE INVOICE# CUSTOMER ORDER# BIG*900713*1001*900625*P989320 N/L Invoice ST*810*0001 N/L Inside Envelope GS*IN*012345678*087654321*900509 *2210*000001*X*002040 N/L Outside Envelope (Interchange Control Header, ISA) ISA*00*0000000000*01*01*PASSWORDME *01*123456789 bbbbbb *987654321 bbbbbb * 890714*2210*U*00204*000000008*0*P* N/L SAMPLE INVOICE CONTENT/NOTES ASC X12 FORMAT
  55. 56. Standard Data Formats <ul><li>Standard Group Types: </li></ul><ul><li>Various standard groups have been formed to establish standards unique to their industries. </li></ul><ul><li>These groups usually consist of major companies that communicate electronically with each other or compete with one another. </li></ul><ul><li>The purpose is to establish a common language throughout the industry. </li></ul><ul><li>This text will not attempt to explain all the different standards and meanings of the data. </li></ul>
  56. 57. Standard Data Formats <ul><li>Implementing Standards </li></ul><ul><li>An attempt to implement standard data formats is underway, but many firms still use proprietary formats </li></ul><ul><li>This forces companies to support multiple formats for the same business document </li></ul><ul><li>a company must be able to identify the sending company, determine the type of business transaction </li></ul>
  57. 58. Standard Data Formats <ul><li>Data Standards Software </li></ul><ul><li>The cost of software that supports translating information into the standard data formats has dropped. </li></ul><ul><li>As more and more firms pursue EDI software, vendors are offering products that perform this function. </li></ul><ul><li>This eliminates the cost of developing in-house customized programs and maintaining reformat programs </li></ul>
  58. 59. Establishing Electronic Connections <ul><li>In addition to a standard data format, it is mandatory that the companies’ computers are able to “talk” to one another. </li></ul><ul><li>This sounds simple but it can be complex. EDI entails the use of special translation and communications software. </li></ul><ul><li>When connecting computers, companies must consider the communications method and protocol that will be used to transmit information, as well as security and business recovery. </li></ul>
  59. 60. Establishing Electronic Connections <ul><li>Protocol: A set of standards for exchanging information between two computer systems or two computer devices. </li></ul><ul><li>Communications protocol: A list of communications parameters (settings) and standards that govern the transfer of information between computers using telecommunications. Both computers must have the same settings and follow the same standards to avoid errors. </li></ul><ul><li>Communications program : An application program that turns your computer into a terminal for transmitting data to and receiving data from distant computers through the telephone system </li></ul>
  60. 61. INTERNATIONAL CONSIDERATIONS <ul><li>Standards </li></ul><ul><li>Communication Connectivity </li></ul><ul><li>Advantages and Disadvantages of EDI </li></ul>
  61. 62. INTERNATIONAL CONSIDERATIONS <ul><li>Standards </li></ul><ul><li>EDI is not used only in the United States or North America. </li></ul><ul><li>Data format standardization efforts are taking place in the United States (ANSI) and internationally (ISO). </li></ul><ul><li>Until there is one common standard base, EDI implementation must be flexible enough to handle multiple standards for the same type of document </li></ul>
  62. 63. INTERNATIONAL CONSIDERATIONS <ul><li>Communication Connectivity </li></ul><ul><li>When dealing with international communications, there are numerous concerns other than the obvious language and cultural barriers </li></ul><ul><li>In some countries, telephone lines are government regulated and are not as efficient as in the United States. </li></ul><ul><li>When the government runs the show, acquiring permission from telecommunications authorities for equipment connection often causes delays. </li></ul><ul><li>Another concern is the level of data security available and the right of ownership during transmission. </li></ul>
  63. 64. INTERNATIONAL CONSIDERATIONS Standardizes programs and procedures Reduces the flow of paper between organizations Difficult to quantify return return on investment Improves accuracy of information and reduces errors Complex to use Allows for more efficient disbursement of information Lack of a common understanding and limited education Improves productivity Disadvantages EDI Advantages EDI
  64. 65. Benefits of EDI (From Net)
  65. 66. IS EDI FOR YOU? <ul><li>Companies should be wary of vendors that try to convince them how easy and inexpensive it is to implement EDI. </li></ul><ul><li>This is partially true, but before spending money, all implications and expenditures should be considered. </li></ul><ul><li>Communication costs, ongoing maintenance, hardware costs, data volumes, and data availability should be investigated before investing. </li></ul><ul><li>A word of warning: it is difficult to quantify costs and determine a return on investment for using EDI because it is a complex system which affects multiple business functional areas. </li></ul>
  66. 67. Questions For Students <ul><li>What is mean EDI ? </li></ul><ul><li>Who Uses EDI ? </li></ul><ul><li>Where Is Uses EDI ? </li></ul><ul><li>What are types of EDI activity ? </li></ul><ul><li>What is Difference between EDI & electronic funds transfer (EFT) ? </li></ul><ul><li>What are EDI project methodology guidelines are the same as for any project ? </li></ul><ul><li>Is EDI Standard Data Formats? (Yes/No) and explain and give one example? </li></ul><ul><li>What is Benefits of EDI ? </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×