Electronic data interchange

Electronic Data Interchange (English electronic data interchange, EDI ) Refers to electronic data processing (EDP) as a collective term to exchange data using electronic transfer process. Directly involved (as sender, shipper and receiver of messages sent ) are application systems of the companies / organizations involved.

In a narrow sense of specific procedures and agreements are referred to for data exchange with EDI standards that have been developed between companies or by normalization proposals from industry associations. In this context, the term is only for enterprise -wide standardized business data transfer (after ).

Features

Implications

The above definition of EDI is independent of the application, the industry or nationality of the parties, products, structures or protocols used. Consequently, it is especially not an exclusion criterion for EDI, when the Internet or XML structures for the specific implementation are used, although this opinion is occasionally to be found - for example in advertising campaigns for Internet-based data exchange products, in which suggests that supposedly ' expensive EDI ' will now been replaced with the simple, inexpensive Internet and particularly with XML. This idea is wrong, because the challenges (see below ) to EDI implementations are always professional / business nature in the first place, no tools or technology- dependent - and also regardless of whether the data exchange ' EDI ' is called or not. For example, the semantic clarification of a term such as " Shipping Condition" between customer and supplier is always the same -consuming, regardless of whether an XML message or an EDIFACT message is used.

Demarcation

In contrast to EDI there are a number of other procedures and standards to exchange electronic data. To distinguish EDI of some of these processes, is therefore more precisely, from classic EDI, in contrast for example to Web EDI or Internet EDI. However, even in the professional world no clean distinction between EDI is made as a term and as EDIFACT as a concrete expression. RosettaNet XML as the new standard is not normally regarded as an EDI standard, although the clear demarcation is difficult.

Basic idea and potential

Of the fundamental and significant advantage in the use of EDI is the high speed of the electronic transmission in connection with the prevention of human errors in the transmission of information from one to the other institution. Through EDI, it is possible to exchange business data intervention freely between the application programs of the partners involved. This results in the maximum rationalization of a business process such as the transmission of an order: The customer's order is recorded almost instantly, reliably and accurately as complying order in the system of the supplier. It eliminates the postal delivery time compared to the use of paper and compared to FAX or e -mail eliminates the manual entry of the order in the supplier system, as well as the post at odds of incorrectly recognized orders. EDI is used around the world in all industries for various applications. EDI is the main and by far the largest pillar of the electronic volume that is exchanged across the world. EDI is despite its long history of EDP ratios still modern, its use continues to increase.

History

• Probably was used in the 1960s in the United States for the first time EDI. There message structures are defined for the specific needs, standards did not exist. The transfer of the data was carried out with the means then available via telephone and telex lines.
• The advent of Value Added Networks ( VAN ), privately operated networks, enabled institutions through a single connection to the network then EDI messages with all partners involved in the network to exchange. It was also offered by the operators of networks counseling and support.
• 1977 SEDAS was introduced as the default message format for the exchange of invoices and orders ( orders) in the consumer goods trade.
• As the first prominent News Standard 1978 appears the first news standard VDA 4905
• 1988: first adoption of messaging standards to UN / EDIFACT by the United Nations ( UN)
• The advent of the Internet ( WWW ) triggered the e-business euphoria. The new Community network induces a totally new idea for the electronic exchange of business data over existing boundaries.
• Electronic marketplaces, especially B2B marketplaces use the idea of ​​Value Added Networks, this time using the new possibilities of the Internet, again as a business model.
• There are self-contained networks for individual industries and applications with the help of Internet technologies. Prominent examples are RosettaNet, ANX and ENX its European offshoot.
• New initiatives such as ebXML, RosettaNet, and new technologies like Web services expand the possibilities of electronic communication between institutions towards synchronous method, which go beyond EDI.

Challenges

The implementation of EDI is subject to the conditions of the partners involved. Because this may be very different and often mutually unknown, the realization is always a project. There are large differences between EDI in the German or the Japanese automotive industry, in the food trade in Spain, in interbank business in Austria or the U.S. industry.

Therefore, project management is required. In practice, this point is often underestimated, which may lead to long project lead times, budget overruns and frustration on all sides. Basically, organizational agreements of all parties, in addition to a project organization initially required: Which business processes to be supported by EDI, as shown for these business processes and IS INTENDED defined on both sides, what happens in case of error?

A frequently not sufficiently considered one point are also the necessary master data. For manual processing of business processes much information about the business partners and its practices "in the head " of the processor are available. In the Automation EDI then one finds often that master data in the application systems are not fully available. Another problem set, for example, numbers in logistical processes dar. It questions arise, such as: If the customer uses the material number of suppliers? Or his own? The supplier knows the material number of customers? Is there a unique relationship between customer and supplier numbers? Problems in this area have, for example, in the consumer goods industry led to the development of EANCOM, a Europe-wide system of master data for products and trading partners.

Are uncertainties in the manual process clarified by further inquiry, it is in the automatic process for no chance. All data must be harmonized in advance, otherwise the automatic process can not work.

Help in the harmonization of master data provides the master data pool SINFOS as ECR tool. The pool offers a multilateral exchange of master data between suppliers and distributors as well as extensive validation tools.

In the technical part of the project, the following points have to be done:

Settlement in the EDI process

The EDI process is also increasingly used in the electronic billing, since sometimes high savings can be achieved. During a study by the European Commission, according to the classic paper bill cost more than EUR 16.60, the cost through payroll in the EDI process can be reduced by over 70 percent. In Germany far around six billion invoices per year, of which so far only six percent are sent electronically, which is a savings of around 60 billion euro per year. When you settle in electronic form, however, the sales tax requirements of § 14 para 3 UStG be observed. Here are several scenarios to choose from. A classical implementation variant is the EDI process that is based on an EDI agreement between the invoice issuer and invoice recipient for the recognition of the tax deduction.

Tasks of an EDI system

Described for the current processing, transport, and optionally, the conversion of the messages, and status messages, so the embodiment of the EDI functionality according to the points 2 and 3 above, is to the transmitter and the receiver side each an EDI system or a EDI service companies required.

Limitations

Message standards

This EDI messages can be processed by the recipient, they must correspond to a previously known structure ( " interchange format "). There are countless different structures for EDI messages worldwide. Some prominent standards are listed below:

• SWIFT - for banks
• UN / EDIFACT - the most comprehensive and most commonly used global standard is, by the Economic Commission for Europe ( UN / ECE ) is responsible for the United Nations. Within EDIFACT, there are industry-specific subsets such as EDIFICE, EANCOM, ...
• ANSI ASC X12 - mainly common in America standard
• GTDI ( Guidelines for Trade Data Interchange) - a UN / ECE in Geneva and developed in the UK today still strongly repre-sented standard format. It was together with ANSI ASC X12 the basis for UN / EDIFACT.
• VDA - Standard of the German automotive industry, which is also increasingly replaced by EDIFACT.
• GAEB - for the construction industry (Joint Committee electronics in construction )
• ODETTE - Standard of the European automotive industry, which is based on the EDIFACT syntax
• GALIA - automotive standard, especially in France, very similar to Odette
• EbXML - an open standard by OASIS and CEFACT
• Fortras - for data exchange between forwarders
• XBRL - Financial Reporting
• RosettaNet - A non-profit consortium, in which over 600 companies primarily involved in the electronics. The objective is the development and implementation of open e -business standards and services in the industry.
• MyOpenFactory - German standard for electronic data exchange to the operational tasks and project management
• OpenTRANS - transaction standard for the exchange of business documents such as invoices, orders or shipping and payment advice

In addition, there are innumerable national, product-or industry-specific messaging standards and standards in the context of market places and VANs as

• SEDAS
• ECODEX
• XCBL - XML Common Business Library ( xCBL ) originally defined by Commerce One
• Data medium exchange method (DTA ): Standard for the transmission of payment orders to their banks ( in Germany )
• MAGPIE: The Electronic tax declaration of the German tax authorities
• E- Council: transfer of air cargo airlines in air cargo forwarders

Transmission protocols

EDI is necessary to transport the useful data from the transmitter via any intermediate points to the receiver. There are a variety of communication protocols, of which a few are listed here, particularly common:

" Traditional EDI transmission protocols "

• X.400 mail standard ITU
• OFTP Odette File Transfer Protocol, is on ISDN, TCP / IP, X.25 or X.31 Place
• FTAM File Transfer Access and Management

In addition, of course, the "Internet protocols " in use, especially:

• SMTP Internet e- mail
• HTTP Hypertext Transport Protocol
• FTP File Transfer Protocol

Based on the Internet protocols, there are communication standards, which include in addition to pure data transport additional properties, such as encryption, authentication and compression. Examples are:

• AS1 EDIINT Internet Protocol ( Applicability Statement 1 ) ( SMTP)
• AS2 EDIINT Internet Protocol ( Applicability Statement 2 ) ( HTTP)
• Internet EDIINT AS3 protocol ( Applicability Statement 3) (FTP)
• EBICS Electronic Banking Internet Communication Standard ( HTTP)

In the classical protocols is usually dispensed encryption because either a point- to-point connection is being used or is familiar with the network. When using the Internet, however, usually an encryption is employed. The EDIINT protocols can thereby encrypt both the line and the file. Compression is also possible with the EDIINT protocols. In addition, there are an unknown number of national, product-or industry-specific protocols or communication standards, eg in the context of market places and VANs.