FROM
Prepared By :
Ashish Gunwal (12810017)
Ashish Aggarwal (12810018)
Kaushik Dutta
(12810043)
Siddharth Dikshit
(1281007...
INTRODUCTION
Definition
 EDI (Electronic data interchange) is electronic
exchange of business data/ documents between
two...
HISTORY
 In 1968, the transportation industry
recognized that the abundance of
paperwork was beginning to present a
probl...
 In 1978, The American National Standards
Institute (ANSI) used the pioneering work of
TDCC to charter a committee known ...
 In 1988, the United Nations chartered
UN/EDIFACT (Electronic Data Interchange
For Administration, Commerce and Trade) to...
EXAMPLE OF EDI
EDI- HARDWARE AND SOFTWARE
EDI Hardware Requirements
 Messaging Server
 Security protocol implementation
EDI Software
Op...
EDI STANDARDS
Definition
 A set of rules, agreed upon, accepted, and adhered to by two
entities, through which data is st...
EDI LAYERED ARCHITECTURE
INFORMATION FLOW WITHOUT EDI
INFORMATION FLOW WITH EDI
EDI BENEFITS
Cost Reduction
 Manpower, communications, resources, storage
Speed
 Electronic transfer Vs mail/ courier
Ac...
EDI ISSUES
 Initial and operative costs
 Need to share master data with external
partners
 Security concerns
Confidenti...
EDI APPLICATIONS IN BUSINESS
Four different scenarios in industries that
use
EDI extensively:
 International or cross-bor...
MINISTRY OF COMMERCE OF INDIA
THE MINISTRY OF COMMERCE
The Ministry of Commerce and Industry
administers two departments, the Department
of Commerce and...
VISION AND MISSION
 The basic role of the Department of Commerce is to facilitate
creation of an enabling environment and...
VISION AND MISSION
 The long-term vision of the Department is to
make India a major player in the world trade by
2020 and...
THE DEPARTMENT OF COMMERCE
 Administrative and General Division
 Finance Division
 Economic Division
 Trade Policy Div...
ADMINISTRATIVE CONTROL
 International trade
 Foreign Trade
 State trading
 Management of Indian Trade Services
 Speci...
PERFORMANCE: EXPORT
During the period, Products which have recorded
good rates of Export growth (in $ terms) are
Agricultu...
PERFORMANCE: IMPORT
During the period, Products which have shown
high rates of Import growth (in $ terms) are
Petroleum Pr...
TRADE FIGURES
TRADE IN INDIA
EDI IN DEPARTMENT OF COMMERCE
 The government of India has established an EDI council
under the Ministry of Commerce as t...
CONTD.
 Organisations like All India Management Association
(AIMA), Federation of Indian Export Organisation
(FIEO), Indi...
CONTD.
DGCI&S receives the basic data from different customs
formations and SEZs in the form of DTR (Daily Trade
Return) a...
WHY EDI IN DOC?
 Infrastructure poses a very important constraint
 Transaction costs need to be substantially reduced
 ...
IMPLEMENTATION
 Regulatory Organization Sector
 Finance Sector
 Transport Sector
 Air Sector
 Legal Sectors
E-COMMERCE IN INDIA
INTRODUCTION
 Electronic commerce (or e-commerce) encompasses all business conducted by
means of computer networks.
STAKEHOLDERS
 3 main flows in e-commerce
HOW THE MARKET EVOLVED IN INDIA
First wave: advent of online Naukri and Shaadi
Second wave: Online travel, Online retail
E-COMMERCE MARKET SIZE IN INDIA
 India’s consumer-facing e-Commerce market (B2C-C2C) grew at a whopping
CAGR of 49.1% fro...
FIRST TO SECOND WAVE: FUNDAMENTAL ENABLERS FALLING
IN PLACE
INTERNET PENETRATION IN INDIA
 Internet penetration in India was 11.4% as of June 2012, one of the lowest
worldwide.
PAYMENT LANDSCAPE
 The number of cards per capita in India is a mere 0.2 and is among the
lowest in the world.
CHALLENGES FOR E-COMMERCE
SECTOR
e-Commerce laws in India
 There are no specific e-Commerce laws in India. The sector is ...
CHALLENGES FOR E-COMMERCE SECTOR
Urban phenomenon
 India’s e-Commerce market is mainly restricted to urban areas, with th...
EDI IN INDIA
 The government of India has established an EDI council under the
Ministry of Commerce as the nodal agency f...
 Organisations like All India Management Association (AIMA), Federation
of Indian Export Organisation (FIEO), Indian Inst...
EC/EDICouncil
EC/EDI COUNCIL
Promotion and propagation of EDI and Electronic
Commerce
Creating awareness and education amo...
INDIA EDIFACT COMMITTEE
 The India EDIFACT (EDI For Administration, Commerce and Transport)
Committee and the EDI Working...
To address all the information needed on different sectors and its interface
with UN/EDIFACT standards following Message D...
CO-ORDINATED EC/EDI PROJECT
To facilitate international trade a co-ordinated EC/EDI implementation
project is underway in ...
REGULATORY ORGANIZATION SECTOR
Customs:
 Two important areas identified for EDI implementation caters to
electronic filin...
DGFT:
 There are 32 DGFT Zonal/Regional Offices scattered throughout the
country.
 The EDI implementation in DGFT would ...
AEPC/TEXPROCIL:
 There are thirteen offices of AEPC & TEXPROCIL each scattered
throughout the country.
 EDI based proces...
Central Excise:
 The EDI based processing would be induced into the functioning of
Central Excise especially with respect...
Banks:
 The banks would introduce EDI based processing into their
functioning which would facilitate inter-bank and intra...
Sea Ports:
 There are eleven Ports (Calcutta, Chennai, Cochin, Tuticorin,
Mumbai, JNPT, Goa, New Mangalore, Vizag, Kandla...
CONCOR:
 The EDI implementation in CONCOR would facilitate effective
and efficient handling of container related document...
AAI:
 The AAI would facilitate EDI based cargo handling system in its
functioning by all the offices of AAI. The system, ...
PROCESS REENGINEERING
With the advent of EC/EDI in India, the focus turned towards process
re-engineering as most Governme...
LEGAL ISSUES
 For the promotion and development of EC/EDI it is necessary to have an
institutional arrangement for recogn...
LEGAL ISSUES
 Information Technology Act, 2000 was passed in May, 2000. It has become
applicable from 17th October, 2000....
NATIONAL STANDARDS IN EDI
 EDIFACT standards for EDI implementation
 EANCOM for commercial transactions
 EAN Internatio...
EDUCATION AND AWARENESS
 EDICOM’96
30th Oct., 1996 – 1st Nov., 1996
New Delhi
 EDICON’98 – ‘Trade facilitation thru Elec...
ISSUES PERTAINING TO EDI IN INDIA
 Private Company’s Overview
 Limited solution options
 Inability to trade with their ...
ISSUES PERTAINING TO EDI IN INDIA
 Government’s Overview
 Case Study 1 - EU-India Maritime Transport
Project (Making EDI...
CASE STUDY – 2
 Department of Health and Human Services -
OFFICE OF INSPECTOR GENERAL (USA)
CHALLENGES PERTAINING TO EDI (GENERAL)
 Lack of top management support
 Negative staff attitude
 Inadequate IT staff tr...
MITIGATION STRATEGIES
 Establish dialogue between all parties involved to discern EDI implementation
strategies and timel...
GENERIC BENEFITS
 EDI and other similar technologies save a company money by providing an
alternative to, or replacing, i...
CONCLUSION
 India being pioneer most countries to adopt EDI (early adoption)
 General and widespread acceptance
 Innova...
QUERIES?????????
Presentation - Electronic Data Interchange
Presentation - Electronic Data Interchange
Presentation - Electronic Data Interchange
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Presentation - Electronic Data Interchange

  1. 1. FROM Prepared By : Ashish Gunwal (12810017) Ashish Aggarwal (12810018) Kaushik Dutta (12810043) Siddharth Dikshit (12810078) Sharad Srivastava (12810076) and its importance in Indian Scenario
  2. 2. INTRODUCTION Definition  EDI (Electronic data interchange) is electronic exchange of business data/ documents between two organisations using pre-defined transaction formats Constituents of EDI process  Hardware  Software  Standards
  3. 3. HISTORY  In 1968, the transportation industry recognized that the abundance of paperwork was beginning to present a problem  Transportation Data Committee (TDCC),is formed to develop standard formats for exchanging business information electronically  But, all the standards that were developed at this time supported only transportation related issues
  4. 4.  In 1978, The American National Standards Institute (ANSI) used the pioneering work of TDCC to charter a committee known as the ASC (Accredited Standard Committee) X12  The main objective was to develop uniform standards for inter-industry electronic interchange of business transactions  In 1983, ANSI published the first five American National Standards for EDI.  Using X12 standards, users ran into problems when communicating electronically outside of their national boundaries
  5. 5.  In 1988, the United Nations chartered UN/EDIFACT (Electronic Data Interchange For Administration, Commerce and Trade) to develop international EDI standards  These standards take the form of United Nations Standard Messages (UNSMs), which are analogous to what ANSI X12 calls Transaction Sets  Users involved in EDI will reap various benefits: overseas expansion, expense control, and the elimination of support for multiple formats
  6. 6. EXAMPLE OF EDI
  7. 7. EDI- HARDWARE AND SOFTWARE EDI Hardware Requirements  Messaging Server  Security protocol implementation EDI Software Option 1: Readymade EDI Solutions  Follows global standards and templates  Industry specific solutions  Common platform for multi-partner interaction  Not customisable and dependence on vendor Option 2 : Custom built solutions  Can be integrated with existing backend applications  Flexibility of enhancements
  8. 8. EDI STANDARDS Definition  A set of rules, agreed upon, accepted, and adhered to by two entities, through which data is structured into electronic formats for exchange of information Common standards requirements  Compatible hardware and software  Agreed data exchange templates Common standards  ANSI X12 is the standard that any industry can use  United Nations/EDI For Administration Commerce and Trade  (UN/EDIFACT) is the standard for international EDI transactions
  9. 9. EDI LAYERED ARCHITECTURE
  10. 10. INFORMATION FLOW WITHOUT EDI
  11. 11. INFORMATION FLOW WITH EDI
  12. 12. EDI BENEFITS Cost Reduction  Manpower, communications, resources, storage Speed  Electronic transfer Vs mail/ courier Accuracy  Avoids duplicate data entry and error margin Security  Information less susceptible to interception/ falsification System Integration  EDI can be integrated with internal system to push & pull data
  13. 13. EDI ISSUES  Initial and operative costs  Need to share master data with external partners  Security concerns Confidentiality of information Authenticity of information  Requires continuous maintenance and resources
  14. 14. EDI APPLICATIONS IN BUSINESS Four different scenarios in industries that use EDI extensively:  International or cross-border trade  Electronic funds transfer  Health care EDI for insurance claims processing  Manufacturing & retail procurement
  15. 15. MINISTRY OF COMMERCE OF INDIA
  16. 16. THE MINISTRY OF COMMERCE The Ministry of Commerce and Industry administers two departments, the Department of Commerce and the Department of Industrial Policy & Promotion. The head of the Ministry is a Minister of Cabinet rank. The incumbent Minister of Commerce and Industry is Anand Sharma, who has held the post since 22 May 2009 and is assisted by Minister of State for Commerce & Industry Sudarsana Natchiappan
  17. 17. VISION AND MISSION  The basic role of the Department of Commerce is to facilitate creation of an enabling environment and infrastructure for accelerated growth of exports. The mandate is regulation, development and promotion of India’s international trade and commerce through formulation of appropriate international trade & commercial policy and implementation of the various provisions thereof.  The Department formulates, implements and monitors the Foreign Trade Policy (FTP) which provides the basic framework of policy and strategy to be followed for promoting exports and trade. The Trade Policy is periodically reviewed to incorporate changes necessary to take care of emerging economic scenarios both in the domestic and international economy.  Besides, the Department is also entrusted with responsibilities relating to multilateral and bilateral commercial relations, Special Economic Zones, State trading, export promotion and trade facilitation, and development and regulation of certain export oriented industries and commodities.
  18. 18. VISION AND MISSION  The long-term vision of the Department is to make India a major player in the world trade by 2020 and assuming a role of leadership in the international trade organizations, commensurate with India’s growing economy.  The policy tools being adopted in this context are contained in the Strategy Paper focussing on the targeted commodity and country-wise strategy in the medium term and the Strategic Plan / vision and the Foreign Trade Policy in the long run.
  19. 19. THE DEPARTMENT OF COMMERCE  Administrative and General Division  Finance Division  Economic Division  Trade Policy Division  Foreign Trade Territorial Division  State Trading & Infrastructure Division  Supply Division  Plantation Division
  20. 20. ADMINISTRATIVE CONTROL  International trade  Foreign Trade  State trading  Management of Indian Trade Services  Special Economic Zones
  21. 21. PERFORMANCE: EXPORT During the period, Products which have recorded good rates of Export growth (in $ terms) are Agriculture & Allied Products (27.5%) of which growth rate of Guargum Meal was (138.65%), Meat & Preparations (11.84%) and Poultry & Dairy Products (73.46%), Drugs, Pharmaceuticals & Fine Chemicals (11.34%), Carpets (16.15%), Petroleum Products (4.57%) and Machinery & Instruments (3.53%).
  22. 22. PERFORMANCE: IMPORT During the period, Products which have shown high rates of Import growth (in $ terms) are Petroleum Products (11.80%), Pulses (25.97%), Vegetable Oil (19.92%), Organic Chemical (7.75%), Artificial Resins (15.14%) and Manufacture of Metals (3.35%).
  23. 23. TRADE FIGURES
  24. 24. TRADE IN INDIA
  25. 25. EDI IN DEPARTMENT OF COMMERCE  The government of India has established an EDI council under the Ministry of Commerce as the nodal agency for implementation of EDI in India.  It is the apex body with representation from several key government departments and representatives from trade and industry.  The chairman of EC/EDI council is Secretary, Department of Commerce.  The council is responsible for laying down policy framework and directions.
  26. 26. CONTD.  Organisations like All India Management Association (AIMA), Federation of Indian Export Organisation (FIEO), Indian Institute of Foreign Trade (IIFT) and National Informatics Centre (NIC) conduct training programs for bringing out awareness about EDI.  Besides two government networks i.e. VSNL of DoT and NICENET of NIC, there are also a number of private sector EDI service provider in the country such as Mahindra Network Services, Global Telecom Services Ltd., Satyam Infoway Network, Manipal Control Data , IBM Global Network Services, GE Information Services.
  27. 27. CONTD. DGCI&S receives the basic data from different customs formations and SEZs in the form of DTR (Daily Trade Return) and then processes and compiles it using state-of-the-art technology. The Customs Authority transmits these DTRs in three different modes, namely, Electronic Data Interchange (EDI), Non-EDI and Manual. The EDI data is transmitted on-line through Indian Customs EDI Gateway (ICEGATE) while the Non-EDI data is transmitted either through e-mail or CD and the rest through manually typed/ handwritten format. While the EDI data is received on a daily basis from ICEGATE, the non-EDI/ manual ports send data on a monthly basis. Data from most of the SEZs is being received through NSDL by e-mail on a monthly basis.
  28. 28. WHY EDI IN DOC?  Infrastructure poses a very important constraint  Transaction costs need to be substantially reduced  Implementation of robust contract labour policy needed  Substantial investment in R&D required in various sectors. Fiscal incentives required for export oriented R&D investment  Technology upgradation important in various sectors  Shortage of skilled personnel/manpower is an emerging concern in many sectors. This in spite of the ‘population dividend’  Import duty on certain inputs needs to be reduced
  29. 29. IMPLEMENTATION  Regulatory Organization Sector  Finance Sector  Transport Sector  Air Sector  Legal Sectors
  30. 30. E-COMMERCE IN INDIA
  31. 31. INTRODUCTION  Electronic commerce (or e-commerce) encompasses all business conducted by means of computer networks.
  32. 32. STAKEHOLDERS  3 main flows in e-commerce
  33. 33. HOW THE MARKET EVOLVED IN INDIA First wave: advent of online Naukri and Shaadi Second wave: Online travel, Online retail
  34. 34. E-COMMERCE MARKET SIZE IN INDIA  India’s consumer-facing e-Commerce market (B2C-C2C) grew at a whopping CAGR of 49.1% from 2007 to 2011 to reach a market size of US$9.9 billion.  On the other hand, the B2B market is a small contributor to the overall domestic e-Commerce market, and it was estimated at US$50.37 million in 2011.
  35. 35. FIRST TO SECOND WAVE: FUNDAMENTAL ENABLERS FALLING IN PLACE
  36. 36. INTERNET PENETRATION IN INDIA  Internet penetration in India was 11.4% as of June 2012, one of the lowest worldwide.
  37. 37. PAYMENT LANDSCAPE  The number of cards per capita in India is a mere 0.2 and is among the lowest in the world.
  38. 38. CHALLENGES FOR E-COMMERCE SECTOR e-Commerce laws in India  There are no specific e-Commerce laws in India. The sector is governed by the IT Act 2000, which regulates the legal obligations of sellers and buyers of goods and services in cyberspace.  e-Commerce companies also need to comply with banking and financial laws, where applicable.  The lack of law firms or lawyers specializing in e-Commerce laws compounds the problem. Low entry barriers leading to reduced competitive advantages  The rapid growth of the e-Commerce sector is attracting new players. The initial investment required to start an online venture is as low as a US$10,000–20,000.  This enables new companies to easily replicate the existing business models and, thereby, increases competition in the sector
  39. 39. CHALLENGES FOR E-COMMERCE SECTOR Urban phenomenon  India’s e-Commerce market is mainly restricted to urban areas, with the bulk of the business being restricted to cities. Internet usage in rural areas is limited. This could be due to several reasons including low internet speed and internet user base (20 million out of a total of 121 million in 2011), though rural areas account for 70% of the country’s population. Customer loyalty  e-Commerce players offer huge discounts to lure people to shop online. However, since Indian consumer looks for the lowest price before making a purchase, the cost of customer acquisition is high for these companies. Moreover, since a large number of players offer the same products at the same prices, switching cost is non-existent. Consequently, a customer’s lifetime value is low. This poses a challenge for players in their effort to develop sound strategies to attract and  generate repeat customers.
  40. 40. EDI IN INDIA  The government of India has established an EDI council under the Ministry of Commerce as the nodal agency for implementation of EDI in India.  It is the apex body with representation from several key government departments and representatives from trade and industry.  The chairman of EC/EDI council is Secretary, Department of Commerce.  The council is responsible for laying down policy framework and directions.
  41. 41.  Organisations like All India Management Association (AIMA), Federation of Indian Export Organisation (FIEO), Indian Institute of Foreign Trade (IIFT) and National Informatics Centre (NIC) conduct training programs for bringing out awareness about EDI.  Besides two government networks i.e. VSNL of DoT and NICENET of NIC, there are also a number of private sector EDI service provider in the country such as Mahindra Network Services, Global Telecom Services Ltd., Satyam Infoway Network, Manipal Control Data , IBM Global Network Services, GE Information Services. EDI IN INDIA (CONTD..)
  42. 42. EC/EDICouncil EC/EDI COUNCIL Promotion and propagation of EDI and Electronic Commerce Creating awareness and education among the potential EC/EDI functionaries and users Streamlining procedures and practices Attending to legal issues Human resource development Any other issue connected with EDI and Electronic Commerce
  43. 43. INDIA EDIFACT COMMITTEE  The India EDIFACT (EDI For Administration, Commerce and Transport) Committee and the EDI Working Group were created by Ministry of Commerce for directing the task of promoting EDI in the country.  The council formally adopted UN/EDIFACT message as the standard of conducting EDI in country.  India EDIFACT committee is chairman my Additional Secretary at Department of Commerce.  The India EDIFACT Committee (IEC) is responsible for formulating standards, streamlining the procedures in line with UN/EDIFACT and maintain liaison with UN/EDIFACT bodies.  The working group is responsible for motivating various functionaries in the government and ensure scheduled implementation of program.
  44. 44. To address all the information needed on different sectors and its interface with UN/EDIFACT standards following Message Development Groups are working :–  Ports Message Development Group under Indian Ports Association (IPA)  Airports Message Development Group under Airports Authority of India (AAI)  Financial Message Development Group under Indian Banks Association (IBA)  Customs Message Development Group under Central Board of Excise & Custom (CBEC)  Private Sector Message Development Group under Federation of Indian Export Organisations (FIEO) INDIA EDIFACT COMMITTEE (CONTD..)
  45. 45. CO-ORDINATED EC/EDI PROJECT To facilitate international trade a co-ordinated EC/EDI implementation project is underway in following departments/organisations :- Customs Reserve Bank of India (RBI) Directorate General of Foreign Trade (DGFT) Scheduled Banks Apparel Export Promotion Council/Cotton & Textile Export Promotion Council etc. Airlines Port Trusts Indian Railways Airport Authority of India (AAI) CHA/Freight Forwarders Container Corporation of India (CONCOR) Export Promotion Organisation
  46. 46. REGULATORY ORGANIZATION SECTOR Customs:  Two important areas identified for EDI implementation caters to electronic filing and processing of documents related to export and import clearances.  The system to facilitate electronic filing of shipping bill and bill of entry etc., documents by the individual/agents to Customs along with electronic interface with the community partners for message exchange.  The community partners for customs system are broadly Banks, Airlines, Airport Authority of India (AAI), AEPC, Sea Ports, TEXPROCIL, DGFT etc.  The information/data sharing with the community partner to take place electronically and the messages need to confirm to the EDIFACT standards adopted by the country.  The manual submission of GR-1 form to be replaced by the electronic copy.
  47. 47. DGFT:  There are 32 DGFT Zonal/Regional Offices scattered throughout the country.  The EDI implementation in DGFT would facilitate electronic submission and processing of licensing and other applications in the office of DGFT.  The community partner for EDI implementation in DGFT are broadly exporter/importer, export promotion organisation, Customs, Banks, RBI etc.  The licensing details would be shared between DGFT and Customs whereas the shipment details against the licences be shared between customs and DGFT. REGULATORY ORGANIZATION SECTOR
  48. 48. AEPC/TEXPROCIL:  There are thirteen offices of AEPC & TEXPROCIL each scattered throughout the country.  EDI based processing is proposed to be implemented. The system would facilitate electronic sharing of information between the community partners specially related to the quota management and clearances of shipping documents confirming to quota requirements.  It is expected that the system would facilitate electronic filing of the shipping documents by the user, endorsement of quota clearances on the shipping documents by AEPC/TEXPROCIL and its sharing with customs electronically.  It is also expected that the quota clearances information would also be electronically shared between AEPC and US customs under the Electronics Visa (ELVIS) system whereas with European Union under Import Licensing System (SIGL). REGULATORY ORGANIZATION SECTOR
  49. 49. Central Excise:  The EDI based processing would be induced into the functioning of Central Excise especially with respect to the documents facilitating clearances of export/import consignments. REGULATORY ORGANIZATION SECTOR
  50. 50. Banks:  The banks would introduce EDI based processing into their functioning which would facilitate inter-bank and intra-bank transactions in electronic media as well as user interface for electronic clearances/payments. This system would create an environment for electronic payment/receipts by the banks. FINANCIAL SECTOR
  51. 51. Sea Ports:  There are eleven Ports (Calcutta, Chennai, Cochin, Tuticorin, Mumbai, JNPT, Goa, New Mangalore, Vizag, Kandla and Paradip) which are required to implement EDI based processing. However, during the first phase six container handling ports were taken up. These ports are Calcutta, Chennai, Cochin, Tuticorin, Mumbai and JNPT. Remaining Ports have initiated study and development exercise.  The system would facilitate electronic submission/sharing of all types of documents with the community partners. The community partners in this case are Shipping-line, Customs, Agents, Banks, CONCOR, Railways etc.  It is expected that the EDI based documents handling will also induce efficiency into the functioning of the Ports. The documents related to the goods being transported by ship can be shared with the Ports in EDI mode well in advance i.e. before the ships calls on the Port.  The interface with CONCOR and Indian Railways would facilitate TRANSPORT SECTOR
  52. 52. CONCOR:  The EDI implementation in CONCOR would facilitate effective and efficient handling of container related documents between CONCOR and its community partners. The community partners in this case would broadly be Ports, ICDs, Agents, Banks, Indian Railways etc. The system would facilitate efficient handling, management and tracking of containers by CONCOR and related organisations. TRANSPORT SECTOR Indian Railways:  Indian Railways would automate their Freight movement system so that a integrated system of cargo movement can take place between all the community partners of Indian Railways. The community partners in this case are Ports, CONCOR, Agents etc. The containers from Ports to ICDs through CONCOR and Indian Railways would be effectively traced and tracked if a suitable EDI based system gets into position.
  53. 53. AAI:  The AAI would facilitate EDI based cargo handling system in its functioning by all the offices of AAI. The system, in addition to adoption of tracing and tracking of cargo in AAI as part of the total automation, will facilitate EDI based linkages with trading partners. These, in turn, would handle IGM and EGM information electronically. The EDI based interface with Customs, Airlines, Agents etc.., would be implemented by AAI as part of the EDI implementation. AIR SECTOR Airlines:  The airlines and its community partners like Customs, AAI, Agents etc.., can effectively share the IGM, EGM and other related information for speedy clearances of import and export consignments.
  54. 54. PROCESS REENGINEERING With the advent of EC/EDI in India, the focus turned towards process re-engineering as most Government departments and public enterprises tend to continue with cumbersome procedures, enormous documentation and complex rules that caused delays. A process re-engineering committee was constituted which has submitted its report for streamlining the processes leading to effective and efficient information flow between Customs, AAI, Ports, DGFT and their associated agencies. The report is being implemented by the concerned departments.
  55. 55. LEGAL ISSUES  For the promotion and development of EC/EDI it is necessary to have an institutional arrangement for recognition of electronically transacted documents as a valid instrument in Court of Law. This calls for various related issues of authentication of electronic transaction, computer crime, digital signature, creation of certification authority etc., to be handled.  In order to handle these issues an inter-ministerial committee under the Department of Commerce has gone into the details of the legal issues, which need to be addressed for electronic commerce and the amendments required in the various India Acts for the admissibility of EC/EDI documents in the court of Law.  The group submitted its report to Ministry of Law. The final report (called IT Bill’99) prepared by Legislative Department after integrating this and the initiative of Department of Electronics (now called MIT) was presented to the Parliament for approval.
  56. 56. LEGAL ISSUES  Information Technology Act, 2000 was passed in May, 2000. It has become applicable from 17th October, 2000.  The Act provides legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as "electronic commerce", which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers' Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto.  It covers Digital Signature, E-Governance, Attribution, Acknowledgement And Dispatch Of Electronic Records, Secure Electronic Records And Secure Digital Signatures, Regulation Of Certifying Authorities, Digital Signature Certificates, Duties Of Subscribers, Penalties And Adjudication, The Cyber Regulations Appellate Tribunal, Offences etc.
  57. 57. NATIONAL STANDARDS IN EDI  EDIFACT standards for EDI implementation  EANCOM for commercial transactions  EAN International codes for bar coding - All the regulatory and facilitator organizations implementing EC/EDI are working towards standardization of messages being exchanged between organizations as well as with the user community. Following standards have been declared as national standard for India
  58. 58. EDUCATION AND AWARENESS  EDICOM’96 30th Oct., 1996 – 1st Nov., 1996 New Delhi  EDICON’98 – ‘Trade facilitation thru Electronic Commerce’ 28th - 30th May, 1998 New Delhi  EDICON’99 - ‘Electronic Commerce - A window for new millennium’ 11th - 12th Nov., 1999 Mumbai. - Ministry of Commerce also organizes EDICON (An international conference and exhibition on Trade Facilitation (TF/EC/EDI) every year along with special session for CEOs of top Indian companies.
  59. 59. ISSUES PERTAINING TO EDI IN INDIA  Private Company’s Overview  Limited solution options  Inability to trade with their entire business community or meet compliance requirements  Low quality of services and high costs  Limited or poor customer service The companies which are already using EDI services are facing many challenges related to the management of their EDI application.  Expensive solutions that are not cost-effective for their situation  Technology requirements beyond their capabilities  Limited support or implementation  Inability to meet trading partner needs
  60. 60. ISSUES PERTAINING TO EDI IN INDIA  Government’s Overview  Case Study 1 - EU-India Maritime Transport Project (Making EDI Work in India)  Don’t leave it to the technologists! Get involved!  What is EDI?  Who communicates with whom?  Change Management  Education and Training  Insecurity  Acceptability
  61. 61. CASE STUDY – 2  Department of Health and Human Services - OFFICE OF INSPECTOR GENERAL (USA)
  62. 62. CHALLENGES PERTAINING TO EDI (GENERAL)  Lack of top management support  Negative staff attitude  Inadequate IT staff training and inadequate non IT staff training  Lack of trust of other EDI partners  Lack of flexibility  Lack of maintainability  Lack of awareness of benefits of EDI
  63. 63. MITIGATION STRATEGIES  Establish dialogue between all parties involved to discern EDI implementation strategies and timelines long before EDI implementation.  Joint planning and system specification that will facilitate the process of EDI implementation and application.  Provide EDI education and help to the trading partners to increase the number of trading partners and the speed with which trading partners comply.  User participation in planning, analysis, design, construction, and installation is also necessary for EDI project success.  Encouragement of the constant evaluation, continuous improvement, and ongoing exploration of new opportunities for EDI among all stakeholders is very important.  Change Management  Risk Mitigation Strategies  Disaster Recovery Plan  Proper Documentation of Key Learnings/Findings
  64. 64. GENERIC BENEFITS  EDI and other similar technologies save a company money by providing an alternative to, or replacing, information flows that require a great deal of human interaction and paper documents.  EDI and similar technologies allow a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry.  Reduced errors, such as shipping and billing errors, because EDI eliminates the need to rekey documents on the destination side.  Speed in which the trading partner receives and incorporates the information into their system thus greatly reducing cycle times.  EDI can be an important component of just-in-time production systems.  Implementing inexpensive "rip and read" solutions, where the EDI format is printed out in human readable form.  For Governments - Cost efficiency, Increased speed, Improved accuracy, Better logistics management and increased productivity, Transparency, Better Value to Taxpayers money and increased Social Good.
  65. 65. CONCLUSION  India being pioneer most countries to adopt EDI (early adoption)  General and widespread acceptance  Innovation and Updations  Migration from Manual to Electronic  Rules and Regulatory Framework from supportive Governments to enable EDI migration and structured Framework environment  Emergence of multiple EDI service providers  Emergence and acceptability for VANs (Value added Networks)  IT Revolution  Open (Web) enabled EDI (Cloud based and Mobile)  Continuous efforts for Change Management through Education, Training, Shows, Conferences and Workshops etc.  Enroute to become World Leaders in EDI Transactions  Effort to make 100% Digital Transactions by 2030 and make complete GDP activities through EDI route.
  66. 66. QUERIES?????????

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