2. Introduction to EDI…
• What is EDI?
– Electronic Data Interchange is the
computer-to-computer exchange of
business data and documents between
companies using standard formats
recognized both nationally and
internationally.
– The information used in EDI is organized
according to a specified format set by
both companies participating in the data
exchange.
http://www.x12.org/x12org/about/faqs.cfm#a1
3. • EDI has four components
• structured data
• Agreed message structured data :
exchange data at international level
• One system to other system
• By electronic means
4. • Reasons of adopting EDI
• Reduce cycle time
• Better inventory management
• Increased productive
• Reduce cost
• Improve business relationship
• Increased sale
• Increased cash flow
6. Advantages of EDI
• Lower operating costs
– Saves time and money
• Less Errors = More Accuracy
– No data entry, so less human error
• Increased Productivity
– More efficient personnel and faster
throughput
• Faster trading cycle
– Streamlined processes for improved trading
relationships
http://www.edi-guide.com/edi-benefits.htm
7. • Benefits of EDI
• Shortened ordering time
• Cost cutting elimination of error
• Fast response: paper order takes too
much time
• Accurate invoicing
• Reducing stock holding
• Business opportunities
8. Disadvantages
• High Dependence on the participation
of trading partners
• Costly for smaller companies
• Difficult to agree on standard to be
used
http://www.edi-guide.com/risks-of-edi.htm
9. Retailer A Wholesaler A
Retailer B Wholesaler B
Retailer C Wholesaler C
Retailer D Wholesaler D
10. Original Model
Retailer A Wholesaler A
Retailer B Wholesaler B
Retailer C Wholesaler C
Retailer D Wholesaler D
11. Value-Added Network (VAN)
• communications networks
supplied and managed by third-
party companies that facilitate
electronic data interchange, Web
services and transaction delivery
by providing extra networking
services
12. VAN Model
Retailer A Wholesaler A
Retailer B Wholesaler B
Value-added
Network
Retailer C Wholesaler C
Retailer D Wholesaler D
13. Web Services
• Applications that use a universal
language to send data and
instructions to one another, with no
translation required
• Uses the Internet, so most of the
connection problems are eliminated
http://www.computerworld.com/softwaretopics/software/appdev/story/0,10801,64099,00.html
15. • A full EDI security system should include
three levels of security:
(1) Network level security
This level of security basically screens users accessing a particular
network. With a set of account/user identification codes coupled
with the corresponding passwords, authorized users will be able to log
into the network and to perform transactions (that is, sending and
receiving of EDI messages) across the network. This level of security
ensures that users not registered in the EDI network are not able to
gain access to its facilities.
(
•
16. • 2) Application level securiy
Beyond network security, application
level security can also be put in place.
This level of security is usually
controlled by the individual front-end
EDI application (or software).
17. • (3) Message level security
Message level security can also be put in place to combat
unauthorized disclosure of message content, messages,
duplication, loss or replay of messages, deletion of messages
and repair of message responsibility by its sender or its
receiver. To counter these, EDIFACT (electronic data
interchange for administration commerce and transport) has
in place several methods of message-level security:
(i) Encryption
The idea of data encryption is that data, whether on screen
or as ASCII within a computer system, can be totally
encrypted by a transmission process, and on receipt by an
authorized user can be reconstituted into its original format.
This method of security is used to ensure confidentiality of
contents and protects against unauthorized reading, copying
or disclosure of message content.
18. • (ii) Message authentication
Message authentication, or a MAC
(Message Authentication Code), can
be applied to a whole message or
only part of a message.
The idea behind the MAC process is to
ensure that only authorized senders
and receivers correspond and that no
one is impersonating another
correspondent.
19. • (iii) Message sequence numbers
Message sequence numbers are used
to protect against duplication,
addition, deletion, loss or replay of a
message.
(iv) Hashing
Hashing is a technique used to protect
against modification of data.
21. • What is WWW
The World Wide Web(abbreviated
as WWW or W3,commonly known as the
Web), is a system of interlinked hypertext
documents accessed via the Internet. With
a web browser, one can view web
pages that may contain text, images,
videos, and other multimedia, and navigate
between them via hyperlinks.
22. • Function
the Web is one of the services that runs on the
Internet. It is a collection of text documents
and other resources, linked by hyperlinks
and URLs, usually accessed by we
browsers from web servers.
World Wide Web normally begins either
by typing the URL of the page into a web
browser and web server
23. • the browser resolves the server-name portion of the URL
(example.org) into an Internet Protocol address using the
globally distributed database known as the Domain Name
System (DNS); this lookup returns an IP address such
as208.80.152.2. The browser then requests the resource by
sending an HTTP request across the Internet to the computer
at that particular address. It makes the request to a particular
application port in the underlying Internet Protocol Suite so
that the computer receiving the request can distinguish an
HTTP request from other network protocols it may be servicing
such as e-mail delivery; the HTTP protocol normally uses port
80. The content of the HTTP request can be as simple as the
two lines of text
24. Web/Database
Web Browser (Server)
(Client)
Web Server
(IIS, Apache Database
Via CGI
Netscape) e.g., ASP,
(e.g. Access,
Oracle,
Java, C++,
Sybase)
Perl, etc.
25. The web is based on three part
architecture
• Html : the format of web page.
• http : the protocol for
communications b/w web server and
browser
• CGI : the interface for invoking
program from web server .
26.
27. • Different type of service and
application which web provided:
• marketing and advertising
• Customer service
• customer interaction and query capability
• customer data transfer
• direct relationship with company ,bank ,etc
• Access government information (tax)
• Developing new online products and services
• Data sharing.
28. • WWW and intranet application
• A ) logistics and supply chain management
• B) decision supporting management
• c) easy of use
• d) low maintenance
• e) cost
• f) publishing easy
• g) easy software distribution
Editor's Notes
Electronic Data Interchange is the computer-to-computer exchange of business data and documents between companies using standard formats recognized both nationally and internationally. The information used in EDI is organized according to a specified format set by both companies participating in the data exchange. This allows for computer transactions that require no human involvement. For the most part, all information in a transaction set is the same as it would be on a printed document
Lowering Operating Cost - EDI replaces paper transactions with electronic transmissions, saving time and reduced cost of business transaction and enabling the automatic processing of documents. Reduced Error and Increases Business Information Accuracy - With the implementation of EDI, there is no need for re-entering data, thus, reducing the risk for human error. Each re-entry of data is a potential source of error. Increase Productivity - Making personnel more efficient and it improves business capabilities by speeding up throughput. Faster Trading Cycle - EDI allows faster and streamlining trading cycle between organizations leading to improved relationships between trading partners.
Trading Partners Involvement – Highly dependence on the participation of trading partners. You need to be confident that they will do their part. EDI will be meaningless if your trading partner didn't get involved using EDI system effectively. Costly for smaller companies – Many small companies are facing resources problems in getting starter with the initial implementation of EDI system. It is beyond the resources these companies to invest tens or hundreds of thousands of dollars in setting and implementation costs, as well as weeks of personnel training, to get an EDI system running. Difficult to agree on standard to be used – Even though there are widely-accepted and used standards, there are no ways to force trading partners to accept these standards. Cooperation between trading partners is needed in order to develop a common rules to avoid differences in interpretation. And now Laura will more about EDI models and the use of VAN’s in these models…