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Mis Edi


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Mis Edi

  1. 1. Inter Organizational Commerce and EDI
  2. 2. Electronic Data Interchange (EDI) <ul><li>Definition : EDI </li></ul><ul><ul><li>EDI is defined as the inter process communication (computer application to computer application) of business information is a standardized electronic form. </li></ul></ul><ul><li>Historical Practice </li></ul><ul><li>Failing of the paper based system </li></ul><ul><li>How did EDI change things? </li></ul><ul><li>Benefits of EDI </li></ul><ul><ul><li>Vendor Stock Replenishment </li></ul></ul><ul><li>Flip side of EDI </li></ul>
  3. 3. EDI Basics
  5. 5. Interesting Info <ul><li>Cisco reportedly ship 45 per cent of their products &quot;without being touched by human hands&quot; save around $ 550 million a year as a result of transferring most of their business to the net. </li></ul>
  6. 6. <ul><li>EDI vs. Email </li></ul><ul><li>Electronic Commerce and EDI </li></ul><ul><li>EDI vs The Internet </li></ul><ul><ul><li>ANSI Accredited Standards Committee </li></ul></ul><ul><li>EDI over the Internet </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>VANs and the Internet </li></ul><ul><li>Uses of EDI </li></ul>
  8. 8. INTERNATIONAL TRADE AND EDI <ul><li>Role of EDI </li></ul><ul><li>Physical aspects of International trade are </li></ul><ul><ul><li>Movement of goods </li></ul></ul><ul><ul><li>Containers </li></ul></ul><ul><ul><li>Vehicles </li></ul></ul><ul><ul><li>Ships </li></ul></ul><ul><ul><li>And aircrafts </li></ul></ul>
  9. 9. INTERNATIONAL TRADE AND EDI <ul><li>Statistics show </li></ul><ul><ul><li>Minimum 12 participants </li></ul></ul><ul><ul><li>Cost of voluminous paperwork, </li></ul></ul><ul><ul><ul><li>complex formalities </li></ul></ul></ul><ul><ul><ul><li>associated delays and errors amount to about 10% of the final value of goods </li></ul></ul></ul><ul><ul><li>Typical International trade transaction involves around </li></ul></ul><ul><ul><ul><li>30 different parties </li></ul></ul></ul><ul><ul><ul><li>60 original documents </li></ul></ul></ul><ul><ul><ul><li>360 document copies (verification, transmission, re-key) </li></ul></ul></ul><ul><li>EDI benefits </li></ul>
  10. 10. Some major VAN operators’ worldwide are <ul><li>AT&T </li></ul><ul><li>IBM </li></ul><ul><li>GEIS </li></ul>
  11. 11. EDI in India - Chennai Customs <ul><li>The Requirement </li></ul><ul><ul><li>New network infrastructure connecting 23 locations in India </li></ul></ul><ul><ul><li>24*7 operations with High availability as a mission critical operation for Servers, Application and Leased Line </li></ul></ul><ul><li> </li></ul>
  12. 12. EDI in India - Chennai Customs <ul><li>The Implementer </li></ul><ul><ul><li>Wipro managed a complete end-to-end project involving </li></ul></ul><ul><ul><ul><li>hardware supply </li></ul></ul></ul><ul><ul><ul><li>system integration </li></ul></ul></ul><ul><ul><ul><li>Networking </li></ul></ul></ul><ul><ul><ul><li>application development </li></ul></ul></ul><ul><ul><ul><li>application integration </li></ul></ul></ul><ul><ul><ul><li>24*7 sustenance </li></ul></ul></ul><ul><ul><ul><li>and helpdesk support </li></ul></ul></ul><ul><ul><ul><li>security implementation </li></ul></ul></ul><ul><ul><ul><li>enterprise management through tight program management methodologies. </li></ul></ul></ul>
  13. 13. EDI in India - Customs Vishakapatinam <ul><li> </li></ul><ul><li>Introduced in October 1998 </li></ul><ul><li>To facilitate faster clearance of Imports and Exports </li></ul><ul><li>Software modules developed by the NIC </li></ul>
  14. 14. EDI in India <ul><li> </li></ul><ul><li> </li></ul>
  15. 15. FINANCIAL EDI <ul><li>INTRO </li></ul><ul><li>Types of Financial EDI </li></ul><ul><ul><li>Bank Checks </li></ul></ul><ul><ul><li>Inter bank Electronic Funds Transfer </li></ul></ul><ul><ul><li>Automated Clearing house (ACH) transfers </li></ul></ul><ul><ul><ul><li>Credit Transfers </li></ul></ul></ul><ul><ul><ul><li>Debit Transfers </li></ul></ul></ul><ul><li>Rapid Growth of ACH in B2B </li></ul>
  16. 16. How Financial EDI Payments are made <ul><li>PAYMENT AND REMITTANCE INFORMATION FLOWING TOGETHER </li></ul>
  17. 17. How Financial EDI Payments are made <ul><li>PAYMENT AND REMITTANCE INFORMATION FLOWING TOGETHER </li></ul>Company X (Payer) Bank X Bank Y Transfer of Funds ClearingHouse Company Y (payee) Remittance Information Remittance Information Goods or services bought
  18. 18. How Financial EDI Payments are made <ul><li>PAYMENT AND REMITTANCE INFORMATION FLOWING SEPARATELY </li></ul>Company X (Payer) Bank X Bank Y Transfer of Funds ClearingHouse Company Y (payee) Payment Authorization Payment Settlement Notice Remittance Information VAN Remittance Information
  19. 19. VANS <ul><li>A VAN is a communications network that typically exchanges EDI messages among trading partners. </li></ul><ul><li>Other services provided are </li></ul><ul><ul><li>holding messages in “electronic mailboxes” </li></ul></ul><ul><ul><li>interacting with other VANs </li></ul></ul><ul><ul><li>supporting many telecommunications modes and transfer protocols </li></ul></ul>
  20. 20. EDI Services in India <ul><li>VSNL </li></ul><ul><ul><li>has established the GEDIS TradeNET Network service for EDI. </li></ul></ul><ul><ul><li>It is connected to two international EDI VAN operators, GEIS and INS UK </li></ul></ul><ul><li>National Informatics Centre (NIC) </li></ul><ul><ul><li>Nationwide computer communication network </li></ul></ul><ul><ul><li>Over 600 nodes connecting the national capital, the state capitals and district headquarters </li></ul></ul>
  21. 21. EDI Services in India <ul><li>Satyam Infoway </li></ul><ul><ul><li>Had existing VAN based EDI </li></ul></ul><ul><ul><li>Introduced Web EDI solution based on Sterling product GENTRAN (1999) </li></ul></ul><ul><ul><li>Their customers </li></ul></ul><ul><ul><ul><li>Rane Brakes, Henkel, Du Pont, Whirlpool, Osram, Birla 3M … </li></ul></ul></ul>
  22. 22. Functions of a third party VAN Company Financial Institution Transport Company Manufacturing Company Translate Incoming Documents Performs Compliance Checking Format translation of (X.12=> EDIFACT) Route to mailbox ID Third-Party Value Added Network (VAN)
  23. 23. VANs contd… <ul><li>Disadvantage of EDI enabling VANs </li></ul><ul><li>Choosing Alternatives to VAN </li></ul><ul><li>Who are the good candidates for VAN? </li></ul><ul><li>Decision making process in VAN selection </li></ul><ul><li>Conclusion </li></ul>
  24. 24. EDI Services in India <ul><li>Satyam Infoway </li></ul><ul><ul><li>“ Henkel, has implemented an EDI solution to move critical data from its various carrying and forwarding agents to the head office at Chennai on a daily basis. Earlier, this was done only on a monthly basis and data was sent through floppies. &quot;The company was finding it very difficult to forecast their production and logistic demands accurately,&quot; says P R Sridhar, product manager at Satyam, which executed the project. </li></ul></ul>
  25. 25. EDI in India: Vysya Bank <ul><li>Vysya Bank </li></ul><ul><ul><li>VysyAmulya , online centralised banking project </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>Goal </li></ul><ul><ul><li>Providing anytime anyhow anywhere banking with online, centralised processing and local empowerment </li></ul></ul><ul><li>Five provider companies who jointly put the project in place </li></ul><ul><ul><li>These are Sanchez, a software solution provider </li></ul></ul><ul><ul><li>AT Kearney, project manager </li></ul></ul><ul><ul><li>Eicher Consultancy Services Ltd, HR consultant; </li></ul></ul><ul><ul><li>IBM India Ltd, data centre hardware, system integration services, branch roll-out and data centre; </li></ul></ul><ul><ul><li>and Bangalore Labs Pvt Ltd, network consultants. </li></ul></ul>
  26. 26. EDI in India: Vysya Bank <ul><li>Implementing payment gateways for B2C and B2B e-commerce. </li></ul><ul><ul><li>MasterCard International </li></ul></ul><ul><ul><li>Global Tele-Systems Ltd </li></ul></ul>
  27. 27. Career Prospects in EDI <ul><li>Marketing professional for selling EDI software and solutions to prospective firms. </li></ul><ul><li>Programmer for developing EDI software </li></ul><ul><li>EDI coordinator in companies for interacting with the trading partners </li></ul><ul><li>EDI professionals working with VAN providers in software as well as hardware operation and maintenance. </li></ul>
  28. 28. Career Prospects in EDI <ul><li>Career as </li></ul><ul><ul><li>Project leader/manager </li></ul></ul><ul><ul><li>Service engineer </li></ul></ul><ul><ul><li>Communication engineer </li></ul></ul><ul><ul><li>Security coordinator for developing and maintaining communication infrastructure. </li></ul></ul><ul><li>The EDI coordinators usually work in firms for searching trading partners and to resolve various commercial/legal issues </li></ul>
  29. 29. Career Prospects in EDI <ul><li>Experienced EDI professionals can also work as </li></ul><ul><ul><li>consultants for firms or government bodies for providing and implementing user specific EDI packages. </li></ul></ul><ul><li>Other related fields where career exits in abundance are </li></ul><ul><ul><li>Electronic Insurance Claims (ECS) </li></ul></ul><ul><ul><li>or Electronic Statement Printing (ESP). </li></ul></ul>
  30. 30. Essential Skill needed <ul><li>Strong knowledge of the prevalent business practices </li></ul><ul><li>Awareness of tax and duty structure </li></ul><ul><li>Good communication skills to help translate user requirement into task specific software </li></ul>
  31. 31. Essential Skill needed <ul><li>Understanding of </li></ul><ul><ul><li>manufacturing organisations </li></ul></ul><ul><ul><li>customer service </li></ul></ul><ul><ul><li>Billing </li></ul></ul><ul><ul><li>payments and shipping procedures. </li></ul></ul><ul><li>Technically, they should be aware of </li></ul><ul><ul><li>databases, </li></ul></ul><ul><ul><li>programming languages. </li></ul></ul><ul><li>Sample : Job Profile of EDI analyst or project manager . </li></ul><ul><ul><li>Proficient in designing and integrating data </li></ul></ul><ul><ul><li>establish trading protocols </li></ul></ul><ul><ul><li>and rectify technical problems. </li></ul></ul>
  32. 32. Qualification required for EDI professional <ul><li>The qualification required for working, as EDI professional may be electronic or computer engineering and MCA. </li></ul><ul><li>Those with MBA, commerce or economics background with proficiency in programming can also find opportunity in working for the EDI applications. </li></ul><ul><li>However, depending upon the industry or application, one has to become conversant with various EDI standards and software. </li></ul>
  33. 33. Institutions that offer courses <ul><li>AIMA (All-India Management Association) and IGNOU, are offering learning and advanced courses on the EDI. </li></ul><ul><li>National Informatics Centre (NIC) : </li></ul><ul><ul><li>technical and software-related supports to the users for developing and implementing the EDI. </li></ul></ul><ul><li>Seminars or workshops are held regularly by export and government organisations, highlighting the importance of the EDI in respective sectors </li></ul>
  34. 34. Institutions that offer courses <ul><li>NICNET provided by NIC </li></ul><ul><li>GEDIS provided by VSNL. </li></ul><ul><li>Satyam Infoway has also introduced EDI package called Gentran, for mapping, tracking, and communication between various operating systems. </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  35. 35. EDI in Other Fields <ul><li>Health Care and Insurance EDI </li></ul>
  36. 36. CASE STUDY : Sahara Life Insurance <ul><li>The company Sahara Life Insurance is Sahara India Parivar's venture. Launched with an initial paid-up capital of Rs 157 crore </li></ul><ul><li> </li></ul><ul><li>The need: </li></ul><ul><ul><li>To cut down on Paper Work in the company </li></ul></ul><ul><ul><li>To cut down processing time </li></ul></ul><ul><ul><li>To record every incoming paper from policy holders </li></ul></ul>
  37. 37. CASE STUDY : Sahara Life Insurance <ul><li>Requirements: </li></ul><ul><ul><li>Automate document validation and workflow throughout the organisation </li></ul></ul><ul><ul><li>Vendor had to provide the right solution in a short period of time </li></ul></ul><ul><li>Implementer </li></ul><ul><ul><li>Newgen Software Technologies </li></ul></ul>
  38. 38. <ul><li>Three Part Solution </li></ul><ul><ul><li>OmniCapture for scanning documents, </li></ul></ul><ul><ul><li>OmniDocs for document management, and </li></ul></ul><ul><ul><li>OmniFlow to manage automated workflow </li></ul></ul>
  39. 39. CASE STUDY : Sahara Life Insurance <ul><li>The benefits Processing time of a policy down to three days instead of the 15 days through traditional methods . </li></ul>
  40. 40. <ul><li>Manufacturing/ Retail Procurement Using EDI </li></ul><ul><ul><li>Just In Time and EDI </li></ul></ul><ul><li>Retail Procurement using EDI </li></ul><ul><ul><li>Quick Response and EDI </li></ul></ul>
  41. 41. RETAIL EDI WEBSITES <ul><li>Global players </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>Job Offers : Abroad </li></ul><ul><ul><li> </li></ul></ul><ul><li>Job Offers : India </li></ul><ul><ul><li> </li></ul></ul>
  42. 42. EDI IMPLEMENTATION <ul><li>Agreement between a company and trading partner </li></ul><ul><li>EDI standard is decided </li></ul><ul><li>Information to be exchanged </li></ul><ul><li>Network Carrier (VAN) </li></ul><ul><li>Mode of Information transmission </li></ul>
  43. 43. EDI IMPLEMENTATION <ul><li>Basic kit necessary for EDI implementation </li></ul><ul><ul><li>Common EDI standards </li></ul></ul><ul><ul><ul><li> </li></ul></ul></ul><ul><ul><li>Translation Software </li></ul></ul><ul><ul><li>Trading partners </li></ul></ul><ul><ul><li>Banks </li></ul></ul><ul><ul><li>EDI VANs </li></ul></ul><ul><ul><li>Proprietary hardware and networking </li></ul></ul>
  44. 44. Comparison of EDIFACT and X.12 Standards Easy to update – so trading partners often use different versions of the standard (problem) Fewer data elements and segments and only one beginning segment (header) , but it has more composites Each element should have a specific name such as order date, invoice date… Segments allow element generic or multiuse elements such as date. A qualifier, such as order or invoice, accompanies the generic element identifying what the date relates to X.12 EDIFACT
  45. 45. Comparison of EDIFACT and X.12 Standards <iq type='set' id='ANY' to=''> <query xmlns=''> ST*850*000000101~ BEG*00*NE*123456789*991125**AC~ N1*BT***0111213~ N1*ST***5566789~ PO1*1*250*KGM*15.3*SR*EAN*MY1001~ CTT*1*2~ SE*7*000000101~ </query></iq> Example. UNB +UNOA:1+US::US+50138::THEM+960531:0305+001934++ORDERS' UNH +1+ORDERS:91:2:UN' BGM +220+A761902+4:19960530:102+9' RFF +CT:EUA01349' RFF +AAV::C' TXT +THIS IS WHAT AN EDI MESSAGE WOULD LOOK LIKE... ' NAD +BY++OUR NAME PLC::::+++++EW4 34J' CTA +PD' COM +01752 253939:TE+01752 253939:FX+0:TL' CTA +OC+:A.SURNAME' COM +2407:EX' CTA +TI+:B.BROWN' COM +0:EX' CTA +SU' COM +0161 429 7476:TE+01752 670633:FX' UNT +15+1' UNZ +1+001934' Example Message - Segment tags are shown in bold e.g. UNB Note: Data elements that could identify the participants have been changed, although the text is based on a live transmission. X.12 EDIFACT
  46. 46. EDI Software Implementation <ul><li>EDI software has four layers </li></ul><ul><ul><li>Business application </li></ul></ul><ul><ul><li>Internal Format Conversion </li></ul></ul><ul><ul><li>EDI translator </li></ul></ul><ul><ul><li>EDI communications layer </li></ul></ul><ul><ul><li>Three main types of EDI access methods are available </li></ul></ul><ul><ul><ul><li>Direct dial or modem to modem connection </li></ul></ul></ul><ul><ul><ul><li>limited third party valued added network services </li></ul></ul></ul><ul><ul><ul><li>full thirdparty VANs </li></ul></ul></ul>
  47. 47. EDI Software Implementation <ul><li>Advantage of using EDI VAN </li></ul><ul><li>EDI Implementation cost </li></ul><ul><ul><li> </li></ul></ul>
  48. 48. INTERNET BASED EDI <ul><li>Several factors make the Internet useful for EDI </li></ul><ul><ul><li>Flat pricing </li></ul></ul><ul><ul><li>Cheap access </li></ul></ul><ul><ul><li>Common mail standards </li></ul></ul><ul><ul><li>Security </li></ul></ul>
  49. 49. MIME <ul><li>Multipurpose Internet Mail Extension </li></ul><ul><li>Why MIME? </li></ul><ul><li>How MIME helps? </li></ul><ul><li>MIME Advantages and Disadvantages </li></ul>
  50. 50. EDI’s Legal Status