Information Distribution Systems for Businesses

Module 2 Mallika

Electronic Data Interchange (EDI)

EDI is the exchange of documents in standardized electronic form, between organizations, in an automated manner, directly from a computer application in one organization to an application in another organization

Elements of EDI

Use of electronic transmission medium for data exchange Use of structured, formatted messages based on agreed-upon standards Relatively fast delivery of electronic documents from sender to receiver Direct communication between computer applications

EDI Includes

Data processing Network capabilities to enable efficient capture of data into electronic form Processing and retention of data and controlled access to it Efficient and reliable transmission between remote sites

EDI Benefits

No recapture of data. So faster transfers of data and fewer errors Reduced cycle time result of above Better coordination with suppliers no delays, missing documents in transit, no human errors in data entry Reduced redundancy documents stored in email boxes, available anywhere, anytime. Expands market reach through value-added networks Increased revenue and sales result of frictionless transactions and related errors, faster account settlements

EDI History

1948 Berlin Airlift standardizes processes of airlifting of its consignments 1960 electronic data transmissions commenced in rail and road transport industry 1968 US Transportation Data Coordinating Committee (TDCC) formed to develop transport rules ANSI announced X12 standards to replace TDCC standards UK developed its own standards for documents used in international trade UN Economic Commission adopts UK standards into General purpose Trade Data Interchange (GTDI) standards UN Joint Europian and North American Working Party develops EDIFACT to address incompatibilities between X12 and GTDI 1991 most countries around the world adopt EDI

Barriers to EDI Implementation

Business process change from traditional paper format to EDI format Cost in time and money for organizations to migrate to EDI Business perception of EDI as technical data format, not as document exchange system to be integrated with internal MIS

EDI Operation 1

EDI implies

Transfer information electronically Information transfer between two trading partners who agree upon data formats Transferable information complies with agreed upon formats Exchange data directly with each partner Interact with multiple partners through a central information clearing house. Relieves sender from compatibility and licensing issues

EDI can happen in two ways

EDI operation 2

Trading partners meet to specify the applications in the EDI standard they would implement Each partner adds EDI programs to its computer to translate its data into EDI format for transmission and reception As often as required, partners exchange data in standard format

EDI Operation 3

Sender confirms authenticity of recipient Records in senders database generate data to transmit. Sender composes transmission in EDI format Receiver translates received data into its computer record for its internal processing All transmissions are checked both electronically and functionally for errors and corrected, if needed

EDI Building Blocks

Application / conversion Layer Standard Formats Layer (EDIFACT, X12 etc) Data Transport Layer (email, FTP etc) Interconnection Layer (network infrastructure)

Application / Conversion Layer

Comprises application involved in EDI Applications may use their won record formats for storage, retrieval and processing information within internal system Applications convert internal information and documents to EDI format Conversion may be part of application if number of conversions are few Conversion may be separate program if number of conversions are many

Standard Formats Layer

Specify the syntax and semantics of documents being exchanged Many document standards exist

US grocers' Uniform Communication Standard U K's DISH Europe's GTDI TDCC and its replacement ANSI X12 EDIFACT to merge X12 and GTDI

Data Transport Layer

Group of services that automate e-transfer process Utilized any of the available network transport services, such as email ITU-T adopted X.435 standards to support email message standards to ensure integrity and non-repudiation

Product Data Exchange Standard (PDES)

Is a project in US to

Develop an exchange standard for product daa in support of industrial automation Represent US position in ISO arena relative to the development of a single world-wide standard for exchange of product data

Includes data relevant to the entire life cycle of a product, manufacturing, quality assurance, testing support etc. So far, mechanical, electrical plant design products have been included for standardization

Product Data Exchange Standard (PDX)

Is in XML format Used to exchange BOM, change order, asbuilt configuration and quality information of products

Initial Graphics Exchange Specifications (IGES)

CAD tools enable ease of revise and archive and manufacturing instructions to plants Drawing specifications of different CAD tools differ Standards needed for exchange of drawing between designer and manufacturers CAD vendors and users created IGES in 1979 Specifies information structures to digitally represent and communicate product data Specifications concerned with data to describe engineering characteristics of physical products, in terms of physical dimensions

Standard for Product Data Exchange (STEP)

Also called ISO 10303.xxx, where xxx is part number Aims at standardizing product data between computer-based product life cycle systems Intended to be used for all products Covers electronic, electromechanical, sheet-metal, fiber composites etc Covers design, analysis, planning and manufacturing phases of product life cycle Data entities are defined in schema in EXPRESS language Application protocols define models that define parts PDML designed to support PDE for commercial systems

Homework

Write notes on the following

X12 standards EDIFACT standards