What is Electronic Data Interchange (EDI)

Meta-term for a multitude of different electronic message standards that allow a computerized and highly structured low error communication between computers. A “merge” between EDI and Internet technology can be recently observed by the upcoming of web-based EDI solutions, where on EDI-partner does not have to install EDI but use common web browsers to communicate via EDI.

The structured transmission of data between organizations by secured network telecommunications

The structured transmission of data between organizations by electronic means, which is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention

A computer-to-computer communications standard for exchanging digital business documents among firms, such as invoices, purchase orders, price lists, and shipping bills. EDI standards were first developed in late 1970’s and have been evolved since then. The main goal of EDI is to reduce errors, delays, and cost of document exchanges by digitizing and standardizing documents. EDI messages are organized with distinct fields for each of the important pieces of information in a commercial transaction such as date, product specifications, amount, addresses, and names. EDI has become an important industrial network technology standard by enabling faster communications among a small set of strategic partners and establishing long-term relationships. The technical infrastructure of EDI systems has significantly evolved from mainframes to personal computers and wireless devices. Moreover, the telecommunications environment is changing from private dedicated networks to the Internet.

The computer-to-computer exchange of data (e.g., invoices) in a structured format that enables the automatic processing of data without manual intervention. EDI is based on a trust relationship between an organization and its partners or between an organization and a value-added network (VAN) provider that handles the access, security, and other issues related to EDI transmissions. Certain inherent characteristics of EDI discourage unauthorized access into the network by non-EDI partners, including the stringent data formatting requirements for specific industries and the secure, dedicated nature of EDI transmissions between specific trusted partners.

Computer to computer interchange between two or more companies so such entities can enter a range of standard forms such as purchase orders, bills of lading, invoices, forward orders, stock replenishment, and so forth.

The European Commission defines in 98/820/EC, ANNEX 1, Article 2.2 Electronic Data Interchange (EDI) as “the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message”

The automatic electronic exchange of (structured and standardized) business data or information between computers of different organizations.

A proprietary standards-based IOS that allows trading partners to exchange structured information electronically from application to application.

A standard used to govern the formatting and transfer of transaction data between different companies, using networks such as the Internet. As more companies are linking to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to share transaction information on buying, selling, and trading. ANSI (American National Standards Institute) has approved a set of EDI standards known as the X12 standards. Due to the growing influence of international trade, EDIFACT, a standard developed by the United Nations and used primarily in non-North American countries, is being merged with X12 into a worldwide standard.

EDI is a commercial way to create and use an electronic connection between two computers or networks geographically distant from one another and often owned by different organizations. These connections can be secure and may be relatively costly and inflexible as compared to solutions based upon Web services.

The computer-to-computer exchange of business documents in a standard electronic format between business partners.

The computer-to-computer exchange of repetitive, standardized/structured transaction data to trading partners’ computers over a telecommunication network. The standard transaction documents include invoices, bills of lading, purchase orders, approval of credit, shipping notices, and confirmation sent between business partners.

The interchange of data message structured under a certain format between business applications.

A technique for the exchange of data between computer systems.

A standard used to govern the formatting and transfer of transaction data between different companies, using networks such as the Internet. As more companies are linking to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to share transaction information on buying, selling, and trading. ANSI (American National Standards Institute) has approved a set of EDI standards known as the X12 standards. Although not yet a global standard, because of EDIFACT, a standard developed by the United Nations and used primarily in non-North American countries, negotiations are underway to combine the two into a worldwide standard.