From Traditional EDI to Internet-Based EDI: Managerial Considerations

Abstract

Traditional EDI/VAN technology has been used for almost three decades and has brought its users significant advantages resulting in increased productivity and efficiency. However, implementation constraints have restricted the technology to predominantly large corporations, thus limiting EDI's reach to a broader base of small suppliers and customers. Internet-based EDI, with significantly fewer implementation constraints, can play an important role in extending EDI benefits to a wider spectrum of businesses. Recently published articles reflect a reluctance on the part of traditional EDI users to adopt this new communication modality. The reasons for this reluctance include the newness of the Internet technology, potential Internet legislation and lack of Internet standards plus the reliability and security of data transmission within the Internet environment. This paper examines these management issues and describes existing and potential solutions available to both new and traditional EDI users. Since few companies have embraced Internet-based EDI, this paper concludes with some successful Internet EDI-based cases. Along with these cases, the authors present a very broad description of the nature of the products and services currently available in the market today to support Internet-based EDI.