L1

MAHENDRA ENGINEERING COLLEGE

MAHENDHIRAPURI, MALLASAMUDRAM - 637503
Dept. CSE Semester/Year
VI/III
Lecture Handouts
Subject Name: Electronic Commerce

Staff Name : Mr.K.R.Sathishkumar

Unit : I -Introduction Date of Lecture:

Topic of Lecture: Electronic data interchange (EDI)-I

Introduction
Electronic data interchange (EDI) is one of the most common forms of structured exchange of
business documents between organizations by electronic means. There are many different types
of EDI and a range of approaches to enabling EDI across a trading community. Whether looking
at EDI for the first time or expanding an existing EDI infrastructure to support a variety of
business partners across the globe, there is a method of utilizing EDI that will suit your business
needs, technical capabilities and budget. Many larger companies adopt hybrid EDI solutions to
connect with their business partners, dependent on size, importance and frequency of their
transactions.
(EDI) is the computer-to-computer exchange of business documents in a standard electronic
format between business partners.

Prerequisite knowledge for Complete learning of Topic:

1. Web Technology Fundamentals

2. Internet Basics

EDI stands for Electronic Data Interchange. EDI is an electronic way of transferring
business documents in an organization internally between its various departments or externally
with suppliers, customers or any subsidiaries etc. In EDI, paper documents are replaced with
electronic documents like word documents, spreadsheets etc.

EDI Documents
Following are few important documents used in EDI −

 Invoices
 Purchase orders
 Shipping Requests
 Acknowledgement
 Business Correspondence letters
 Financial information letters
Steps in an EDI System
 Following are the steps in an EDI System.

 A program generates the file which contains the processed document.

 The document is converted into an agreed standard format.

 The file containing the document is send electronically on network.

 The trading partner receives the file.

 An acknowledgement document is generated and sent to the originating organization.

Advantages of an EDI System

Following are the advantages of an EDI System.

 Reduction in data entry errors. − Chances of errors are much less being use of
computer in data entry.

 Shorter processing life cycle − As orders can be processed as soon as they are entered
into the system. This reduced the processing time of the transfer documents.

 Electronic form of data − It is quite easy to transfer or share data being in electronic
format.

 Reduction in paperwork − As lot of paper documents are replaced with electronic

documents there is huge reduction in paperwork.

 Cost Effective − As time is saved and orders are processed very effectively, EDI proves
to be higly cost effective.

 Standard Means of communication − EDI enforces standards on the content of data

and its format which leads to clearer communication.

Video Content / Details of website for further learning :

1. http://nptel.ac.in/courses/106108103/pdf/Lecture_Notes/LNm13.pdf
2. http://www.edibasics.com/what-is-edi/
Important Books/Journals for further learning including the page nos.:
Daniel Minoli & Emma Minoli, 'Web Commerce Technology Handbook", Tata McGraw Hill -
2002.(64-66 )

Subject Teacher

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