Abstract
Replacing the traditional paper mode of communication by Electronic Data Interchange (EDI) between trading partners opens up a great deal of opportunities. Similar to other information technologies, however, the mere implementation of EDI does not guarantee a windfall. A series of studies over the past six years at Carnegie Mellon University has attempted to identify the necessary conditions for realizing EDI benefits. This report will summarize two major lessons learnt from this research program. The first lesson is that the implementation of EDI does not automatically generate strategic advantage for a supplier. A closer look at the EDI system characteristics is necessary to fully understand the potential for strategic benefits of EDI. The second lesson emphasizes that EDI can lead to operational benefits through changes within the internal processes in an organization. The key to realizing these benefits lies in the specific transaction sets implemented and the level of EDI integration.
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