History of EDI

History

The 1960s to 1970s - 

The entire business industry was looking for an automation system for exchanging data between two trading partners.

Accessible technology - 

• Mail
• Telex

In 1975, TDC released first EDI documentation to “Rail Transport Industry Application”

The 1980s to 1990s -

Extended Enterprise Communication

VAN - Value-Added Network.

• The third party will take care the transactions between two trading partners.
• It is very expensive.
• Only Two companies are using this technology.
• It is an IBM product.

Father of EDI

ED GULIBERT

Definition  

Computer to Computer exchanges of the STANDARD BUSINESS DOCUMENT without manual intervention, it's called EDI.

Or

It stands for Electronic Data Interchange. It is the exchange of business documents between two trading partners using communication protocols in a standard format.

Or

EDI (Electronic Data Interchange) is the electronic exchange of information or business documents between the information systems of trading partners following the standard format with a predefined structure through secured data communication protocol using a communication channel.

The industry is first to use EDI

The Transportation industry was one of the first industries to use EDI concepts in the organizations. The organization also named as Transportation Data Coordinating Committee (TDCC).

Some of the industries that use EDI.

• Automotive
• Banking
• Retail
• Transportation
• Healthcare
• Manufacturing
• Chemical
• Transportation
• Grocery/food service
• Insurance
• Entertainment
• Telecommunications
• Publishing

Translation Software

Translation software translates business documents into a common EDI standard for transmission to a trading partner. It also translates EDI standard data into a format suitable for application processing.

Why EDI?

• Usable
• Well define
• Generic Language format

Difference between EDI and e-mail

• EDI follows a structured computer processable format whereas e-mail doesn’t follow any structured format.
• Using EDI, we can send large volumes of data.
• Data security is more in EDI rather than e-mail.
• Data redundancy can be eliminated in EDI. 
• Data entry errors can be eliminated in EDI rather than e-mail.

What does EDI involve?

• Application - “Business Documents”.
• Translator - “Standard Format”.
• Communication Vehicle - “Electronic Exchange”.

Translation software

Translation software translates business documents into a common EDI standard for transmission to a trading partner.

Translation software also translates EDI Standard data into a format suitable for application processing.