Electronic Data Interchange(EDI)

Introduction to EDI…

• What is EDI?– Electronic Data Interchange is the

computer-to-computer exchange of business data and documents between companies using standard formats recognized both nationally and internationally.

– The information used in EDI is organized according to a specified format set by both companies participating in the data exchange.

http://www.x12.org/x12org/about/faqs.cfm#a1

• EDI has four components • structured data • Agreed message structured data :

exchange data at international level • One system to other system• By electronic means

• Reasons of adopting EDI • Reduce cycle time • Better inventory management • Increased productive • Reduce cost• Improve business relationship• Increased sale• Increased cash flow

How EDI works

Advantages of EDI

• Lower operating costs– Saves time and money

• Less Errors = More Accuracy– No data entry, so less human error

• Increased Productivity– More efficient personnel and faster

throughput• Faster trading cycle

– Streamlined processes for improved trading relationships

http://www.edi-guide.com/edi-benefits.htm

• Benefits of EDI • Shortened ordering time • Cost cutting elimination of error • Fast response: paper order takes too

much time • Accurate invoicing • Reducing stock holding • Business opportunities

Disadvantages

• High Dependence on the participation of trading partners

• Costly for smaller companies

• Difficult to agree on standard to be used

http://www.edi-guide.com/risks-of-edi.htm

Retailer A

Retailer C

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Wholesaler D

Original Model

Value-Added Network (VAN)

• communications networks supplied and managed by third-party companies that facilitate electronic data interchange, Web services and transaction delivery by providing extra networking services

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Retailer C

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Value-added Network

VAN Model

Web Services

• Applications that use a universal language to send data and instructions to one another, with no translation required

• Uses the Internet, so most of the connection problems are eliminated

http://www.computerworld.com/softwaretopics/software/appdev/story/0,10801,64099,00.html

Data transfer one mode to another

• A full EDI security system should include three levels of security:

(1) Network level securityThis level of security basically screens users accessing a particular network. With a set of account/user identification codes coupled with the corresponding passwords, authorized users will be able to log into the network and to perform transactions (that is, sending and receiving of EDI messages) across the network. This level of security ensures that users not registered in the EDI network are not able to gain access to its facilities.

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• 2) Application level securiyBeyond network security, application level security can also be put in place. This level of security is usually controlled by the individual front-end EDI application (or software).

• (3) Message level securityMessage level security can also be put in place to combat unauthorized disclosure of message content, messages, duplication, loss or replay of messages, deletion of messages and repair of message responsibility by its sender or its receiver. To counter these, EDIFACT (electronic data interchange for administration commerce and transport) has in place several methods of message-level security:

(i) EncryptionThe idea of data encryption is that data, whether on screen or as ASCII within a computer system, can be totally encrypted by a transmission process, and on receipt by an authorized user can be reconstituted into its original format.This method of security is used to ensure confidentiality of contents and protects against unauthorized reading, copying or disclosure of message content.

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• (ii) Message authenticationMessage authentication, or a MAC (Message Authentication Code), can be applied to a whole message or only part of a message.The idea behind the MAC process is to ensure that only authorized senders and receivers correspond and that no one is impersonating another correspondent.

Message content integrity can be achieved by the sender including with the message an integrity control value (or known as hash value). The receiver of the message computes the integrity control value of the data actually received using the corresponding algorithms and parameters and compares the result with the value received

• (iii) Message sequence numbersMessage sequence numbers are used to protect against duplication, addition, deletion, loss or replay of a message.

(iv) HashingHashing is a technique used to protect against modification of data.

WWW introduction

•What is WWWThe World Wide Web(abbreviated

as WWW or W3,commonly known as the Web), is a system of interlinked hypertext documents accessed via the Internet. With a web browser, one can view web pages that may contain text, images, videos, and other multimedia, and navigate between them via hyperlinks.

• Function the Web is one of the services that runs on the

Internet. It is a collection of text documents and other resources, linked by hyperlinks and URLs, usually accessed by we browsers from web servers. 

World Wide Web normally begins either by typing the URL of the page into a web browser and web server

 

• the browser resolves the server-name portion of the URL (example.org) into an Internet Protocol address  using the globally distributed database known as the Domain Name System (DNS); this lookup returns an IP address such as208.80.152.2. The browser then requests the resource by sending an HTTP request across the Internet to the computer at that particular address. It makes the request to a particular application port in the underlying Internet Protocol Suite so that the computer receiving the request can distinguish an HTTP request from other network protocols it may be servicing such as e-mail delivery; the HTTP protocol normally uses port 80. The content of the HTTP request can be as simple as the two lines of text

Web Browser(Client)

Web/Database(Server)

Web Server(IIS, ApacheNetscape)

Database(e.g. Access,

Oracle, Sybase)

Via CGI e.g., ASP, Java, C++, Perl, etc.

The web is based on three part architecture

• Html : the format of web page.• http : the protocol for

communications b/w web server and browser

• CGI : the interface for invoking program from web server .

• Different type of service and application which web provided:

• marketing and advertising • Customer service • customer interaction and query capability • customer data transfer • direct relationship with company ,bank ,etc • Access government information (tax)• Developing new online products and services • Data sharing.

•WWW and intranet application • A ) logistics and supply chain management • B) decision supporting management • c) easy of use • d) low maintenance • e) cost • f) publishing easy

• g) easy software distribution