The Electronic Data Interchange

The Electronic Data Interchange

Definition of EDI • It is not easy to define EDI in strict terms.

– EDI defines the paradigm of exchanging data electronically more than anything else. – It is easier to describe the commonly used EDI practices. The collection of these common practices amounts to what is known today as EDI. – EDI can be thus described as an information sharing system utilizing an intermediate message storeand-forward entity and premeditated message syntax and interaction processes which are modeled by trading partners around standard templates.

What it takes to use EDI • EDI server • Internet access • Translation & mapping software • Staffing • Registration • Encryption software

Your EDI Server • Install translation & mapping software on stand-alone machine or on an existing server. • Old, spare pc works great for EDI.Smart • Trusted Link software requires Windows 95 or better

Internet Access

Software • Buy it off the shelf – EDI.Smart • Partner Sungard SCT – Quick ‘n’ Easy • Freeware • Receive & Print – Inovis Trusted Link • Partner Datatel – Mercator Integration Broker – AXIOM

• Write your own – Univ. of Maryland

Staffing • Installation & Mapping – Registrar’s office and Admissions office • Functional/Technical manager – IT • Systems Analyst/Programmer Analyst

• Daily Operation – Office Specialist/Transcript Staff

• Maintenance – Same as Installation & Mapping

Registration • Univ. of Texas – Austin – Internet EDI server • Free • 1 e-mail • Receive reply with username & password

Security • Encryption software – Optional

• What’s available – sftp to/from UT server – PGP • Freeware – RSA security – Crypto Heaven

The Structure of EDI Systems • The basic EDI structure is given below. – Each partner has their own internal software systems. – Special EDI adapters have to be implemented which will be able to interface with the internal system as well as communicate with the value added network. – The particulars of the message syntax and interaction process are negotiated between partners in advance. Sometimes a dominant partner will impose its standards on smaller partners.

Partner A Internal System

EDI Software

VAN VAN

EDI Software

Partner B Internal System

Value Added Networks • Value Added Networks are the go-between in EDI communications. • The VAN is responsible for routing, storing and delivering EDI messages. They also provide delivery reports • Depending on the VAN type, messages may need extra envelopes or may be routed using intelligent VANs which are able to read the EDI message itself. • VANs may be operated by various entities – Telecom companies – Industry group consortiums – A large company interacting with its suppliers/vendors

EDIFACT • EDIFACT stands for EDI for administration, commerce and transportation. • It has been introduced by the UN center for the facilitation of administration, commerce and transportation (UN/CEFACT) in the mid 1980s. • Older European EDI standards such as TRADACOM, GENCOD, SEDAS and ODETTE have all migrated to EDIFACT. • EDIFACT has furthermore has become an international standard as ANSI has stopped all work on X12 since 1997 and X12 systems are migrating to EDIFACT.

EDIFACT: Structure • EDIFACT Interchanges consist of messages which are in turn composed of data segments. The segments themselves consist of data elements.

Interchange I’change Header

Message Header

Message Data Segment Data Element

Message Data Segment Data Element

Message Data Segment Data Element

I’change Header

Message Header

Everyday Uses of EDI • Financial and monetary. – Systems like SWIFT and EFT all use EDI.

• Governmental. – Payroll operations. – Official information sharing (e.g. For motor vehicle information, visas etc.).

• Transportation. – IATA system is built on EDI. All airplane booking and ticketing operations done over EDIFACT.

Benefits of EDI • More Secure than paper • Cost savings • Acknowledgements from receiving institution • Speed • Easy partner exchange each term • Automated transfer articulation • Small file size

Drawbacks of EDI • Server issues • All technological systems need upgrades • EDI adapter software is too expensive for most organizations. • Staff training • The software is also subject to change when there is a revision in EDIFACT

Is EDI going away? NO There are benefits of both EDI and XML. One significant factor in favor of EDI is that our current trading partners are using EDI.