Electronic Data Inteerchange

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Slide 1:

Chapter 5 ELECTRONIC DATA INTERCHANGE

The Nature of Electronic Data Interchange:

The Nature of Electronic Data Interchange Electronic Data Interchange: Is defined as the exchange of computer processable data in a standard format between organizational entities It is a set of data definition that permits business forms that would have been exchange electronically.

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ASC- American Standard Committee

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UN/EDIFACT-United Nations EDI for Administration, Commerce, and Transport

EDI versus Paper-based System:

The used of electronic and online technology in any sector or industry of the economy has brought forth with the so-called paperless transaction. The concept of EDI veers away from voluminous paperwork's that come with the traditional business as diagrammatically shown in Fig.49. EDI versus Paper-based System

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Figure 49. EDI system versus paper-based system

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Fig.50 Information flows in the EDI purchasing process

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Fig. 51 Information flows in the paper-based process

EDI versus traditional Method:

EDI versus traditional Method Fig.52 EDI versus traditional method

Components of EDI and how it works:

Components of EDI and how it works Fig.53 Components of electronic data interchange system

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Fig. 54 How EDI works in a procurement activity

Application of EDI:

Application of EDI Fig.55 EDI application among participating firms

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Fig. 56 Application of EDI transaction in a manufacturing concern

Direct versus indirect EDI connection:

Direct versus indirect EDI connection Fig.57 Direct EDI connection

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Fig. 58 Indirect EDI Connection

Open EDI:

A more recent innovation to EDI is Open EDI on Virtual Private Networks(VPN). VPN is a technology that need for expensive leased lines for site-to-site communication and long distance remote access. Two major requirement of a VPN: There must be a method of keeping the data secure as it traverse the internet. There must be a means of authenticating the person or system making the connection. Open EDI

EDI and the banking system:

As earlier mentioned, EDI and online banking have given rise to the popular use of EDI. Bank and eCommerce is routinely used in to the banking sector in particular for Financial EDI over secure global network. EDI and the banking system

The BancNet EDI System:

The BancNet EDI System Fig. 60 Strategic alliance among online banking players

The BancNet EDI System:

Fig 61 SSSNet -EDI Program- linking up the employers and government agencies The BancNet EDI System

The BancNet EDI System:

Fig 62. BancNet EDI System- How it works The BancNet EDI System

The BancNet EDI System:

The BancNet EDI System

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