The document discusses electronic data interchange (EDI), which allows for the electronic exchange of business documents like purchase orders and invoices between organizations. It provides an overview of EDI standards and infrastructure, how EDI streamlines processes like supply chain management, and benefits organizations through reduced costs and faster transactions. Examples are given of how EDI has been implemented in various industries and applications in India like customs, banking, insurance, and retail procurement. Career opportunities and skills needed for EDI professionals are also outlined.

1. Inter Organizational Commerce and EDI

2. Electronic Data Interchange (EDI) Definition : EDI EDI is defined as the inter process communication (computer application to computer application) of business information is a standardized electronic form. Historical Practice Failing of the paper based system How did EDI change things? Benefits of EDI Vendor Stock Replenishment Flip side of EDI

3. EDI Basics

4. LAYERED ARCHITECTURE OF EDI EDI SEMANTIC LAYER APPLICATION LEVEL SERVICES EDI STANDARD LAYER EDIFACT BUSINESS FORM STANDARDS ANSI X12 BUSINESS FORM STANDARDS EDI TRANSPORT LAYER EMAIL X.435 MIME POINT TO POINT FTP TELNET WWW HTTP PHYSICAL LAYER DIAL UP LINES, INTERNET, IWAY

5. Interesting Info Cisco reportedly ship 45 per cent of their products "without being touched by human hands" save around $ 550 million a year as a result of transferring most of their business to the net.

6. EDI vs. Email Electronic Commerce and EDI EDI vs The Internet ANSI Accredited Standards Committee EDI over the Internet http://www.wipro.com/webpages/itservices/ebusiness/webservcasestudy2.htm http://www.covalentworks.com/ VANs and the Internet Uses of EDI

7. EDI in action BUYER’S COMPUTER SELLER’S COMPUTER PO PO CONFIRMATION TRANSPORT COMPANY BOOKING REQUEST BOOKING CONFIRMATION ADVANCE SHIP NOTICE STATUS RECEIPT ADVICE INVOICE PAYMENT

8. INTERNATIONAL TRADE AND EDI Role of EDI Physical aspects of International trade are Movement of goods Containers Vehicles Ships And aircrafts

9. INTERNATIONAL TRADE AND EDI Statistics show Minimum 12 participants Cost of voluminous paperwork, complex formalities associated delays and errors amount to about 10% of the final value of goods Typical International trade transaction involves around 30 different parties 60 original documents 360 document copies (verification, transmission, re-key) EDI benefits

10. Some major VAN operators’ worldwide are AT&T IBM GEIS

11. EDI in India - Chennai Customs The Requirement New network infrastructure connecting 23 locations in India 24*7 operations with High availability as a mission critical operation for Servers, Application and Leased Line http://www.chennaicustoms.gov.in/ediimpo/edi.htm

12. EDI in India - Chennai Customs The Implementer Wipro managed a complete end-to-end project involving hardware supply system integration Networking application development application integration 24*7 sustenance and helpdesk support security implementation enterprise management through tight program management methodologies.

13. EDI in India - Customs Vishakapatinam http://vizagcustoms.nic.in/edi.htm Introduced in October 1998 To facilitate faster clearance of Imports and Exports Software modules developed by the NIC

14. EDI in India http://archives.nic.in/edifact/hpage.html http://www.gs1india.org/SERV/awarness.htm

15. FINANCIAL EDI INTRO Types of Financial EDI Bank Checks Inter bank Electronic Funds Transfer Automated Clearing house (ACH) transfers http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/how_ach.htm Credit Transfers Debit Transfers Rapid Growth of ACH in B2B

16. How Financial EDI Payments are made PAYMENT AND REMITTANCE INFORMATION FLOWING TOGETHER

17. How Financial EDI Payments are made PAYMENT AND REMITTANCE INFORMATION FLOWING TOGETHER Company X (Payer) Bank X Bank Y Transfer of Funds ClearingHouse Company Y (payee) Remittance Information Remittance Information Goods or services bought

18. How Financial EDI Payments are made PAYMENT AND REMITTANCE INFORMATION FLOWING SEPARATELY 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. VANS A VAN is a communications network that typically exchanges EDI messages among trading partners. Other services provided are holding messages in “electronic mailboxes” interacting with other VANs supporting many telecommunications modes and transfer protocols

20. EDI Services in India VSNL has established the GEDIS TradeNET Network service for EDI. It is connected to two international EDI VAN operators, GEIS and INS UK National Informatics Centre (NIC) Nationwide computer communication network Over 600 nodes connecting the national capital, the state capitals and district headquarters

21. EDI Services in India Satyam Infoway Had existing VAN based EDI Introduced Web EDI solution based on Sterling product GENTRAN (1999) Their customers Rane Brakes, Henkel, Du Pont, Whirlpool, Osram, Birla 3M …

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. VANs contd… Disadvantage of EDI enabling VANs Choosing Alternatives to VAN Who are the good candidates for VAN? Decision making process in VAN selection Conclusion

24. EDI Services in India Satyam Infoway “ 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. "The company was finding it very difficult to forecast their production and logistic demands accurately," says P R Sridhar, product manager at Satyam, which executed the project.

25. EDI in India: Vysya Bank Vysya Bank VysyAmulya , online centralised banking project http://www.ingvysyabank.com/scripts/retailbanking.aspx Goal Providing anytime anyhow anywhere banking with online, centralised processing and local empowerment Five provider companies who jointly put the project in place These are Sanchez, a software solution provider AT Kearney, project manager Eicher Consultancy Services Ltd, HR consultant; IBM India Ltd, data centre hardware, system integration services, branch roll-out and data centre; and Bangalore Labs Pvt Ltd, network consultants.

26. EDI in India: Vysya Bank Implementing payment gateways for B2C and B2B e-commerce. MasterCard International Global Tele-Systems Ltd

27. Career Prospects in EDI Marketing professional for selling EDI software and solutions to prospective firms. Programmer for developing EDI software EDI coordinator in companies for interacting with the trading partners EDI professionals working with VAN providers in software as well as hardware operation and maintenance.

28. Career Prospects in EDI Career as Project leader/manager Service engineer Communication engineer Security coordinator for developing and maintaining communication infrastructure. The EDI coordinators usually work in firms for searching trading partners and to resolve various commercial/legal issues

29. Career Prospects in EDI Experienced EDI professionals can also work as consultants for firms or government bodies for providing and implementing user specific EDI packages. Other related fields where career exits in abundance are Electronic Insurance Claims (ECS) or Electronic Statement Printing (ESP).

30. Essential Skill needed Strong knowledge of the prevalent business practices Awareness of tax and duty structure Good communication skills to help translate user requirement into task specific software

31. Essential Skill needed Understanding of manufacturing organisations customer service Billing payments and shipping procedures. Technically, they should be aware of databases, programming languages. Sample : Job Profile of EDI analyst or project manager . Proficient in designing and integrating data establish trading protocols and rectify technical problems.

32. Qualification required for EDI professional The qualification required for working, as EDI professional may be electronic or computer engineering and MCA. Those with MBA, commerce or economics background with proficiency in programming can also find opportunity in working for the EDI applications. However, depending upon the industry or application, one has to become conversant with various EDI standards and software.

33. Institutions that offer courses AIMA (All-India Management Association) and IGNOU, are offering learning and advanced courses on the EDI. National Informatics Centre (NIC) : technical and software-related supports to the users for developing and implementing the EDI. Seminars or workshops are held regularly by export and government organisations, highlighting the importance of the EDI in respective sectors

34. Institutions that offer courses NICNET provided by NIC GEDIS provided by VSNL. Satyam Infoway has also introduced EDI package called Gentran, for mapping, tracking, and communication between various operating systems. http://ediacademy.com/ http://www.edi-center.com/ http://www.edi-blog.com/

35. EDI in Other Fields Health Care and Insurance EDI

36. CASE STUDY : Sahara Life Insurance The company Sahara Life Insurance is Sahara India Parivar's venture. Launched with an initial paid-up capital of Rs 157 crore http://www.saharalife.com/ The need: To cut down on Paper Work in the company To cut down processing time To record every incoming paper from policy holders

37. CASE STUDY : Sahara Life Insurance Requirements: Automate document validation and workflow throughout the organisation Vendor had to provide the right solution in a short period of time Implementer Newgen Software Technologies

38. Three Part Solution OmniCapture for scanning documents, OmniDocs for document management, and OmniFlow to manage automated workflow

39. CASE STUDY : Sahara Life Insurance The benefits Processing time of a policy down to three days instead of the 15 days through traditional methods .

40. Manufacturing/ Retail Procurement Using EDI Just In Time and EDI Retail Procurement using EDI Quick Response and EDI

41. RETAIL EDI WEBSITES Global players http://www.ecediinc.com/edi-industries/retail-edi.html http://www.icc.net/en_US/oc/icc.net/Software/PerformanceEDI/RetailProductManager/ http://www.123edi.com/edi-retail.asp http://www.edi-center.com/index.html Job Offers : Abroad http://www.fibre2fashion.com/jobs/jobdata.aspx?jobs=34042&edi-specialist-job-carlsbad-ca-phoenix-footwear-group-inc Job Offers : India http://india.recruit.net/search-edi%2520specialist%2520_in_India-jobs

42. EDI IMPLEMENTATION Agreement between a company and trading partner EDI standard is decided Information to be exchanged Network Carrier (VAN) Mode of Information transmission

43. EDI IMPLEMENTATION Basic kit necessary for EDI implementation Common EDI standards http://www.blueprint-ec.co.uk/index.htm Translation Software Trading partners Banks EDI VANs Proprietary hardware and networking

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. Comparison of EDIFACT and X.12 Standards <iq type='set' id='ANY' to='ANSI_X12Gate@way.com'> <query xmlns='http://jabber.org/protocol/ansi_x.12'> 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. EDI Software Implementation EDI software has four layers Business application Internal Format Conversion EDI translator EDI communications layer Three main types of EDI access methods are available Direct dial or modem to modem connection limited third party valued added network services full thirdparty VANs

47. EDI Software Implementation Advantage of using EDI VAN EDI Implementation cost http://www.msc-inc.net/Documents/EDI_roi.htm

48. INTERNET BASED EDI Several factors make the Internet useful for EDI Flat pricing Cheap access Common mail standards Security

49. MIME Multipurpose Internet Mail Extension Why MIME? How MIME helps? MIME Advantages and Disadvantages

50. EDI’s Legal Status