2. EDI, EDIFACT, and the Internet
In 1996, most of the attention was focused on application of the EDIFACT
framework standard in business-to-business commerce. It opened up the possibility
of solving a number of the problems that may occur in connection with sending
and receiving orders and invoices and the logistics of just-in-time deliveries.
UN/EDIFACT is a UN accepted global standard that makes it possible to reduce
transaction costs and ensure a quick/safe delivery of data. Among the challenges
in 1996 were preparing business specific manuals in application of EDIFACT,
solving discrepancies in relation to the American ANSI-standard and adjusting
privately agreed formats.
Manuals in the application of the EDIFACT-standard have been prepared
through EANCOM (EAN Denmark). In addition
to the manuals EAN Denmark also assigns location numbers to identification
of a company (or parts of it) in connection with EDI transactions. If you
order goods it is of course important that both the product code and order
are accurate.
Since 1996 the TCP/IP technology has become so disseminated that a range
of new companies and public authorities have decided to apply data entry
forms, etc. to transfer orders of goods over the Internet. Transfer of
data in the electronic form can also be done via proprietary formats, such
as the SWIFT system used among banks.
Other central technology applications in this period comprise datawarehousing
and datamining
in addition to developments in financial and production control systems,
all of which have been important to the EDI development. Within the public
sector it is especially the common filing of data from companies into a
"datawarehouse" and the application of Basis Procurement that are significant
in terms of EDI application. Within the private sector it is the integration
modules to management accounting systems, like Concorde, Navision and SAP/R3,
that enable full integration with EDIFACT. Thus, there is a range of different
interests in terms of EDI application connected to the type of transport,
integration and standards for the message itself, as illustrated by Figure
1.
Figure 1. EDI Typology.
2.1 Media and Formats
One key to the understanding of EDI implementation is to distinguish between
two levels of EDI traffic:
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The transport form:
-
E.g. disc, CD-ROM or tape via physical postal service, VANS operators,
Internet, own network based on closed (proprietary) standards, or own (closed)
network based on open standards, e.g. TCP/IP.
-
The message format:
-
EDIFACT-based or own (proprietary) formats.
2.2 EDI Integration in Business Systems
On this basis and in accordance with Figure 1 we
have also looked at the degree of integration between data interchange
and data processing in both ends of the communication. The analysis also
describes the depth of the EDI application with a view to automation. Where
EDI has not yet been fully integrated in both ends, we normally find systems
that:
-
in the initiating company's end are integrated with the company's own systems
via either proprietary standards (P) or EDIFACT (E), and
-
in the ends of the cooperating companies are decoupled the local systems,
normally by applying form-based EDI, where the cooperators e.g.
use a Web-browser to complete/update a form and return it electronically
to the company's systems.
To the extent that a company stores data for its cooperators, e.g. by means
of databases, the solution is to the advantage of the cooperators who e.g.
are saved from reentering former entered (and stored) data. The solution
can also be established on the basis of business. Companies without their
own EDI modules which need to exchange documents horizontally or vertically
with large companies that integrate EDI fully can establish a common database
between a group of member companies.
2.3 EDI Types
A complete classification of the EDI application today will include a large
number of categories, which we have gathered into three main categories:
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Proprietary standards
-
that include all EDI application where the messages are never based on
EDIFACT, except category 3.
-
EDIFACT-based standards
-
that include all EDI application where the message on its way is based
on EDIFACT, including form-based EDI that is converted to EDIFACT "on the
reverse side".
-
Browser-EDI
-
that describes the form-based EDI which is not EDIFACT-based.
As our survey has been keen on EDIFACT, the obvious fourth category, Browser-EDIFACT,
has been included in the second category when reporting numbers.
@ Juul, Andersen & Bjørn-Andersen: Electronic Commerce in
Denmark, Proceedings of the 3rd USENIX Workshop on Electronic
Commerce, Boston, September 1998.