Page 48 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 4: Electronic Data Interchange to E-Commerce

systems, they can still freely exchange agreed-upon information. The implementation process can be
made even easier by using a full service VAN, which provides other services, including translation,
standards compliance checking, and EDI software.

Assume that some PCs are installed in a company and the information about
transactions with other companies are saved into the PCs manually or transmitted
from the information system online. Then, PC software products perform the
function like format translation and communication.

4.2.2 Components of EDI System
An EDI system consists of all the components necessary to exchange EDI transactions with the EDI
capable trading partners. The following components and tools are necessary for performing EDI:
1. EDI Standards: Different industries have developed their own EDI standards. One must first
know the EDI standards that their trading party is using before translating the EDI documents.
The EDI standards are designed to be independent of communication and software technology.
The EDI standard provides details about a particular document like, which piece of information is
mandatory for that document and which is optional. It also provides the rules for the structure of
the document. Two different EDI documents can follow the same standard and contain different
sets of information. EDI standards help EDI by:
(a) Providing rules of syntax
(b) Defining the data organization
(c) Providing editing rules and conventions

(d) Making available published public documentation

Using the same standard, a food company may indicate a product's expiry date
while an apparel manufacturer can choose to display color and size information.
The four major types of EDI standards are:
(a) UN/EDIFACT standard is the only international standard. This standard is predominant
outside of North America.
(b) ANSI ASC×12 standard is predominant in North America.

(c) TRADACOMS standard is predominant in the UK retail industry.
(d) ODETTE standard is used in the European automotive industry.
2. EDI Translation Management Software: EDI transactions are very difficult to read and
manipulate. With the help of EDI translation management software, EDI data is translated into a
file format which acts as an interface with a company’s in-house systems. It also helps to translate
the EDI data into the forms that can be used by the users. EDI translation software also supports
the development and maintenance of maps. Maps are required to handle each transaction type.
Each transaction type with individual partner is formatted differently with the help of a map. It
translates the EDI transaction into a useable file format.
3. EDI Guides: EDI trading partners provide EDI guides to communicate about the formatting style
of the transaction type. There must be a similarity between the EDI guide and the EDI complaint
made with a particular EDI partner. The EDI guides must be similar in order to be compliant with
a particular EDI partner. The EDI guides are generally used to develop maps.

4. Hardware: Hardware is needed to run EDI translation software. The computer hardware must be
sufficiently powerful and reliable to support the exchange of EDI transactions in compliance with
trading partners’ transmission schedules all the time.

5. Communication Network: A direct communication link is required to send and receive EDI
transactions. Some trading partners offer a direct connection to their EDI computer using a direct
AS/2 connection. Trading partners can elect this method of communication instead of using a

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