EDI maturity and the competitive edge

Abstract

Most electronic data interchange (EDI) users start electronic trade with a simple experimental system. This initial step includes just one or two message types with one or two trading partners. From this initial step many users develop their EDI systems by expanding to additional trading partners and including more trade cycle messages. Proposes a six‐stage maturity model representing these stages in EDI developments. In the literature, EDI is exampled as an IS/IT application that can be used to gain competitive advantage. There are examples of early EDI systems (and EDI‐like systems) that gave organizations such advantage. Since those early days EDI has developed rapidly, normally on a trade sector basis, but there have been no similar examples of dramatic, competitive advantage. Within many trade sectors, EDI means “Everyone is Doing It” and the real battle is to avoid competitive disadvantage. Argues that the achievement of EDI maturity gives new scope for innovative, competitive advantage systems that make imaginative use of a company’s EDI infrastructure. Discusses new systems which illustrate this new competitive edge.