Inter-organizationalInter-organizational Information Information

System System

B to B Commerce and B to B Commerce and

Electronic Data Interchange

Sup de Co - PCM - English Track2008

Inter-organizationalInter-organizational exchangeexchange E.D.I.E.D.I.FiguresFigures

- Billing in France:

- 1.9 billion bills per year are exchanged by companies.

- Only 80 million (4.2%) in digitized format (Internet or EDI)

- 43 million are digitized in structured format (EDI).

- 37 million are electronically sent as a single signed file.

- The average cost of manual process is about 8 € for the transmittor and aboutf15 € for the recipient.

- 10% of these bills are disputed, and are much more expensive

-The electronic bill is about 50% cheaper than a paper bill (i.e. manual process)

- In French Tax Administration (Ministère de l’Economie et des Finances)

Government said that between 5 and 7 billion euros will be saved per year from 2007 with all the remote statements (VAT, Taxes)

January 10th 2006, Hubert d’Erceville

Company A Company B

Fax, mail, E-mail

Classical Exchange : Re-entry, terms, errors, costs

Customer order

2

3

4

Most usual edi-messages:- Order- Change of order- Order confirmation- Bill- Shipping notice- Customs declaration-…

1

Inter-organizationalInter-organizational exchangeexchange E.D.IE.D.I

Company « A » : customer Company « B » : accounting firm

Fax, mail, E-mail

Accounting data

1

2

3

4

Organisation « C1 » : Tax authorities

Sales tax return message

1

2

3

4

Fax, mail, E-mail

Company « C2 »Company « D3 » Company « D4 » … …. …..

Inter-organizationalInter-organizational exchangeexchange

E.D.I.E.D.I.Classical Exchange : Re-entry, terms, errors, costs

E.D.I. : Electronic Data Interchange

Company « A » Company « B »

In an interchange agreement, the communication will be made via a V.A.N.

Fax , mail , telex ...

Customer order1

2

3

4

1

2

3

4

Classical Exchange : Re-entry, terms, errors, costs

Company « A » Company « B »

Inter-organizationalInter-organizational exchangeexchange

E.D.I.E.D.I.

Company « A »  Company « B »

The format of company « B » database must be the same to receive the data included in the EDI-message sent by company « A » and coming from the company « A » database.Then, the application software of company « B » could directly process this data.The digitized message received can have the value of legal proof.

The logical compatibility of data and infrastructures can be issued:• from a bilateral agreement A - B• from a sector-based standard agreement ( ex : GALIA)• from a multi-sector-based standard agreement ( EDIFACT : EDILIASSE , EDITRANSPORT …)

Delayed Batch Processing

Inter-organizationalInter-organizational exchangeexchange

E.D.I.E.D.I.

Company« C » 

Company« D »

Company « A »Company « B »

Links via a V.A.N.Added Value Network

A

B

C

E

F X

D

full-EDI full-EDI

full-EDI

EDI « workstation

Inter-organizationalInter-organizational exchangeexchange

E.D.I.E.D.I.

EDI MessageCompany « A » : customer Company « B » : accounting firm

Company « C » occasional supplier

A B

V.A.N.

server

Full- EDI- Delayed batch processing

EDI workstation- Form (to retype in)

EDI and Internet- BATCH processing in XML format (has value of proof if certified)- Type in form on Web (has no value of proof )

Inter-organizationalInter-organizational exchangeexchange

E.D.I.E.D.I.