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Second USENIX Workshop on Electronic Commerce

Financial EDI Over the Internet, Case Study II: The Bank of America and lawrence Livermore National Laboratory Pilot

Arie Segev, Janna Porra, and Malu Roldan
University of California, Berkeley


Bank of America Corporation (BofA) has used Electronic Data Interchange (EDI) to transmit financial transactions between itself and its customers for years. Until recently, however, BofA has used direct private lines or third party value added networks (VANs) as the carrier of the EDI data. In 1994, BofA initiated a pilot project with its customer Lawrence Livermore National Laboratory (LLNL) to investigate whether the Internet could be used for secure, reliable, and fast financial EDI (FEDI) transactions. This follow up study is the second case study on BofA's EDI strategy conducted by the Fisher Center for Information Technology and Management at the University of California, Berkeley. The first case study was completed in August 1995 (Segev,, 1995). In the first case study, the current practices in EDI, FEDI, and related technologies were reviewed and documented. In this second case study, the results of the pilot project, which ended June 30th, 1996, are presented and possible implications are discussed. According to the results, the Internet is a viable alternative carrier for critical or sensitive business transactions. It is suggested that the transition from the traditional EDI to EDI over the Internet has strategic implications.

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