EDI – Electronic Data Interchange

Section 1	If you want to know what EDI is all about.
Section 2	If you know all about EDI and want to know how Entity can help.
Section 3	If you think that EDI is legacy technology and are seeking the next generation.

Section 3

If you think that EDI is legacy technology and are seeking the next generation

In the brave new world of e-commerce, EDI technology has been overtaken by XML based messages transported over the internet. Certainly these technologies hold out much promise and they allow B2B commerce to be conducted in new ways with exchanges and auctions and so on.

In practice the world is likely to see the co-existence of EDI and new technologies for many years to come. For many business transactions there is no payback to be gained by changing from EDI to XML. There are evolutions of EDI to allow EDI across the Internet that address some of the concerns regarding EDI. We therefore predict that businesses will continue to use EDI for many more years on the basis that "if it ain’t broke then don't fix it".

Even new businesses that might wish to start by using only new technologies may be forced to do EDI as a condition of trade to fit in with existing industry and supply chain standards.

If you present a business problem to Entity we will analyse and develop a range of solutions. If EDI is a possible solution we will present EDI and new technology solutions side by side for comparison. In fact some of our solutions will encompass new and old technology possibilities in the same approach.

Our approach is based on "horses for courses". We are not for or against EDI. It is a tool to do a job, we at Entity embrace new technologies but they have to be evaluated against other possible tools based on value for money, ease of use, quality and reliability.

Misconceptions

EDI, being technology with a long pedigree tends to suffer from some commonly held views prejudices and misconceptions. Especially from the new generation of IT experts brought up on wizards and GUI’s. We do not think EDI is perfect but would like to address the balance on regularly raised arguments.

What people say	A more balanced view from the real world
Its expensive	Compared to what ? Costs to be considered include the set up, implementation and ongoing operation of the solution. Does the project give a payback in a reasonable time scale ? EDI projects can comfortably stand up to be counted. EDI can cut out delays, errors, and unnecessary paperwork. It is well proven and costs are predictable.
Its difficult	Compared to what ? - Life is difficult. EDI is not difficult, however the methodology required to implement EDI often raises business process questions that need to be confronted. This can sometimes be difficult. It does not matter what technology you implement you would still need to address those difficult issues. There is no universal adapter that allows you open the box, plug anything into anything. However, there is a large base of expertise and many years of practical experience that mean the world of EDI has an answer to most situations.
It takes a long time to implement	It depends, the problem revolves around the need to co-ordinate actions in two or more organisations. Given commitment and effort from you and your trading partner, it does not take long to set up. It may take a little longer to test. So it comes back to the question "compared to what ?"
Its old technology	Yes, standards based EDI has been in use for 20 years or so. Globally in excess of £2 trillion is transacted each year, and this is growing. EDI is robust, secure and dependable and is likely to be in use for a long time to come. That is not to deny the new technologies, their time will come. XML based messages and the internet are not inherently better. They can demonstrate advantages and disadvantages when compared to EDI.