The Next Wave: Internet-based EDI Systems

Electronic Data Interchange

Introduction

EDI (electronic data interchange) technology has brought significant changes to the way business has been done. High benefits from EDI systems have captivated the attention of industry of various types and sizes and this has indirectly caused widespread usage of EDI systems throughout the world. However, although EDI systems were able to provide huge benefit to the implementing company, industries from the small to medium enterprises (SME) sector have not seen the brighter side of EDI systems. The SME industry perceives EDI as a technology that requires large investment while offering low benefits back to the industry. This factor has contributed to the EDI adoption slump among companies that fall in the SME category. On the other hand, Internet-based EDI technology has been developed to compensate the disadvantages contain in traditional EDI systems. Internet-based EDI systems have the ability to bridge the gap in traditional EDI systems. This has opened up the possibility for companies that fall in the SME category to participate in the EDI race. Competitive advantages in these companies would also be likely to increase due to their embracement of Internet-based EDI technology. However, Internet-based EDI system would also have its own setbacks. For example, Internet-based EDI systems were plagued by security and reliability issues. Further research showed that with the advent of new technology these setbacks have been well compensated. The issue remained on which EDI technology would succeed in the near future. Perception remained optimistic on Internet-based EDI technology while facts and data gathered in this paper have shown that Internet-based EDI would likely be the successor of EDI technology in the future.