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Electronic Data Interchange
            (EDI)
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
• EDI has four components
• structured data
• Agreed message structured data :
  exchange data at international level
• One system to other system
• By electronic means
• Reasons of adopting EDI
• Reduce cycle time
• Better inventory management
• Increased productive
• Reduce cost
• Improve business relationship
• Increased sale
• Increased cash flow
How EDI works
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
• 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
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
Retailer A   Wholesaler A



Retailer B   Wholesaler B



Retailer C   Wholesaler C




Retailer D   Wholesaler D
Original Model

Retailer A       Wholesaler A



Retailer B       Wholesaler B



Retailer C       Wholesaler C




Retailer D       Wholesaler D
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
VAN Model


Retailer A                 Wholesaler A



Retailer B                 Wholesaler B
             Value-added
               Network
Retailer C                 Wholesaler C




Retailer D                 Wholesaler D
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
Data transfer one mode to another
• 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.


 (
• 
• 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).
• (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.
• (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.
• (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.
WWW introduction
• 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.
• 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
 
• 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
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.
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 .
• 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.
• 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

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Edi

  • 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
  • 14. Data transfer one mode to another
  • 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

  1. 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
  2. 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.
  3. 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…