1. Electronic Data Interchange
Dai Vinh Lam

2. What is Electronic Data Interchange (EDI)?
“Is the transmission of electronic data between company through using electronic mean ”

3. What is Electronic Data Interchange (EDI)?
Was first developed by the automobile/transportation industry in the 1970s
EDI is currently used by:
Distribution
Finance and accounting
Health care
Manufacturing, etc…

4. How Does EDI Work? EDI is implemented in software
It is an conceptual interface between the sender’s and the receiver’s internal computer programs

5. Methods There are different methods for EDI Modem
FTP (Files Transfer Protocol)
HTTP (Hypertext Transfer Protocol)
AS1 & AS2 (Applicability Statement 1&2 )
Sending data securely and reliably over the Internet
, etc...

6. Specifications
Organizations that send or receive documents between each other are referred to as "trading partners”.
The trading partners agree on the specification of information and how it should be transmits.

7. Transmission
Most of Electronic Data Interchange (EID) transfer data using VAN (Value added Network)
VAN (Value added Network): is a hosted service offering that acts as an intermediary between business partners

8. Value Added Network (VAN)
A value-added network (VAN) is a private network provider (sometimes called a turnkey communications line)
Act as the regional post office

9. Value Adding Network (VAN)
They receive transactions, examine the 'from' and the 'to' information, and route the transaction to the final recipient.

10. Value Adding Network (VAN)
VANs provide a number of additional services
e.g. retransmitting documents, providing third party audit information, acting as a gateway for different transmission methods, and handling telecommunications support.

11. Other Method use for EDI
AS1/AS2
Applicability Statement 1 & 2
Sending data securely and reliably over the Internet

12. Other Method use for EDI
AS1/AS2
Use uses signing, encryption and MDN (Message disposition notification) convention
Once message is sent, a “success "and encrypted notification will be send back to the sender.

13. Interpreting Data For “In Bound” data
File is receive and validate whether if the sender is a valid sending partner, standard of the file
For “Out Bound” Data
Transform into appropriate format for the translator and then convert into EDI file

14. Example of EDI Process
Buyer prepared purchase order in the purchasing system
2. EDI translator checks and translates the message into an EDI format
3. Then securely sent to supplier via VAN, internet etc.

15. Example of EDI Process Cont’
4. The file is sent either directly to AS2 recipients, a mailbox or FTP site
5. The supplier’s software then reformat the data & import into an existing application’s data files
6. The EDI software generate an acknowledgement back to the buyer.

16. Advantages SAVING MONEY
Companies no longer have to spend money on paper document, meeting, faxes and Logistic
LESS TIME CONSUMING
Workers don’t have to search for files, sorting, organizing. NO MORE MANUAL ENTRY

17. Advantages Cont’ SAFE AND SECURE
Encrypted files, secure connection between the trading partners
REDUCE ERRORS
NO more MANUAL ENTRY. Thus, Less Error

18. Implementation Barriers
The Current Business Process
Most of the business are built around paper and document handling and may not be suited for EDI
Cost and Initial Set up
Initial cost may be high and training may be costly

19. What is causing the Growth of EDI?
The spread of computers and available software
“Domino Effects”
Large organizations force suppliers to adopt EDI
Learned that the companies mission of producing GPS equipment for military clients was focusing on a rapidly shrinking market, and its mission and strategy needs to be realigned towards the commercial market.

20. Future of EDI EDI is a must in today’s environment
All areas of business-to-business transactions will be increasingly automated with EDI