Electronic Data Interchange Applications Research Articles

Teaching case: electronic data interchange in port information systems

ABSTRACT Sea ports play an essential role in oceanic transport of cargo in global supply chains. Today, the maritime industry is facing many challenges, including efficiently and effectively integrating national and international participants. The lack of transparency and flexibility results in lengthened shipping time, worsened service levels, waste of resources, and higher costs. This challenge can be addressed with the use of Electronic Data Interchange (EDI) as a major component of modern Port Information Systems. The main purpose of this case is to study how the application of EDI can improve port operations at Mapulo, Zuanbia in Southeast Asia. This case helps students and practitioners understand important information systems related issues in port operations. In addition, the case allows both groups to consider further refinements, given that most emerging countries are often faced with a lack of resources. This is a fictitious case. The data cited in the case are based upon the implementation of EDI at an actual port in an emerging nation but the name and location of the port have been disguised. Any similarity contained herein to actual persons, businesses, events, etc. is purely coincidental and is the responsibility of the author(s). Please contact the case author(s) directly with any concerns.

Electronic Data Interchange (EDI) Applications Use the Decision Tree Method to Determine Vendor Recommendations

Electronic Data Interchange (EDI) is an electronic data exchange mechanism between a company and another company or Business to Business (B2B) in a supply chain cycle. In this study, EDI's role in managing the procurement of goods as well as the EDI model has been applied. Determination of vendor recommendations is one element of vendor performance evaluation of the procurement process. Lack of information and analysis obtained by PT. Cinovasi Rekaprima makes it difficult to predict vendor recommendations. Predicted vendor recommendations can help the Procurement Division in developing appropriate strategies to determine recommended vendors. This problem can be applied to data mining techniques to make predictions using the classification method. Decision Tree is a method that converts facts into decision trees that represent rules that can be interpreted by humans. Attributes that influence the determination of vendor recommendations consist of the availability of goods, services, ease of ordering and product quality. Sample data obtained directly from the Procurement Division of PT. Cinovasi Rekaprima is primary data in the form of vendor data (quotation) and secondary data in the form of vendor performance evaluation forms. The result of the EDI application is a classification consisting of 2 classes, namely recommended vendors and non-recommended vendors and the Procurement Division can use it for decision making to determine the right vendor, so that the procurement process becomes easier and increases company profitability. The testing model uses k-fold cross-validation with the k value is 1 to 10 fold. This application can determine vendor recommendations with the highest accuracy 87.00 % on k-3 and k-5 fold.

TRANSFORMASI PELABUHAN TANJUNG PRIOK DALAM MASYARAKAT EKONOMI ASEAN (MEA)

ASEAN Economic Community (MEA) makes an increase in intra- ASEAN trade, which requires excellent trade facilities. The main trade facility between countries is the port. Tanjung Priok is the main and largest port of Indonesia, how is readiness of this port in MEA. This research method using qualitative with data collection techniques from the literature and analysis of this research explanatory is to describe a phenomenon with actual facts that occur in the field and then analyze it. Rresult of this research is transformation of port Tanjung Priok to be effective and efficient such as INAPORTNET as Supporting the Implementation of National Single Window (NSW), Application of EDI (Electronic Data Interchange) System as Single Document at Tanjung Priok Port, implementing Information Communication Technology (ICT) system, Port Modernization, Improving the Quality of Human Resources and Establishing New Priok PortI. Conclusion of this research is that port of Tanjung Priok must be maintained and developed in order to remain the main port of Indonesia and upgraded to the International Hub Port.

The Application Of EDI: Empirical Evidence

Electronic Data Interchange (EDI) is one technology that has enabled B2B E-Commerce to speak to each other electronically in order to transmit information from sender to receiver in the format the receiver wants. B2B E-Commerce is no longer synonymous with EDI (Pathak & Baldwin, 2008). In UAE, EDI usage is in its early stage of implementation and research is highly tempted. This paper investigates the application of EDI in UAE by providing empirical evidence as to whether EDI application significantly and positively correlates to volume, cost, and profitability.

The New Competitive Advantage: Technological Change: An Application of Electronic Data Interchange Implementation in SME in Automotive Industry

The pace of change in technology has accelerated rapidly in the past decade providing various opportunities to companies to improve their efficiency and competitiveness. One of the useful and cost effective technological innovation is electronic data interchange (EDI). EDI has being increasingly used in many industries, as companies realized the potential benefits and competitive advantages of adopting electronic data exchange in their operations. EDI is strategically important, because good information systems are critical to the survival of many organizations. This paper presents an application of EDI in a SME in automotive industry in Turkey. With this study, our aim is to show the benefits of using EDI applications, explain how companies easily implement EDI in their system and what the advantages of these applications are.

Accountability in EDI Systems to Prevent Employee Fraud

The technology associated with EDI (electronic data interchange) is decades old, but new fraud concerns due to the connectivity of the Internet and the accuracy of automatic identification and data capture (AIDC) delivery technologies have increased the interest in EDI safeguards and EDI's numerous vulnerabilities. As new technologies and software applications are supplanting traditional EDI applications, spyware and other technologies that facilitate computer-based fraud endanger the EDI framework that most financial transactions are based on today. In addition, smaller companies are also implementing EDI technologies for the first time.

Efficiency analysis of controls in EDI applications

The high penetration levels of electronic data interchange (EDI), a mechanism for inter-organizational electronic commerce, has revolutionized the way organizational conduct their business. Major benefits derived from EDI, however, depend upon the use of appropriate controls to overcome potential risks and exposures inherent in integrating and utilizing of the system. As many resources and skills are required for the implementation of EDI controls, their design should proceed carefully. This paper discusses a description of a data envelopment analysis (DEA) model for analysis of the controls for a specific context of electronic data interchange. A data envelopment analysis model to analyze the efficiency of controls in the context of finance and trade. The model uses eight variables of formal or automated EDI controls as input and four variables of EDI implementation and performance as output. Automated controls are more efficiently utilized in financial than in trade applications, while formal controls are more efficiently used in trade applications. Every company can determine the relative amount of reduction in each mode or component of controls in order to make the control system efficient.

Implementation of EDI in Hong Kong: an empirical analysis

Electronic data interchange (EDI) plays a major part in improving organizational competitiveness in the twenty‐first century global market. Telecommunication technologies have improved the effectiveness of communication along the value chain. Information technology (IT) has been helpful in integrating various functional areas within and outside organisations. This paper uses empirical research to study the application of EDI in Hong Kong. In a survey of Hong Kong companies, questions are asked about perceived barriers to implementation of EDI, perceived benefits achievable through EDI, and critical success factors for the adoption of EDI. The main objective of this study is to develop a framework for enhancing the application and implementation of IT with a view to improved organizational competitiveness.

An Empirical Study on Electronic Commerce Diffusion in the Malaysian Shipping Industry

AbstractElectronic commerce (E‐commerce) refers to business transactions conducted over computer networks, both public and private; it is about electronic interactions among businesses, governments and consumers for the purpose of information retrieval, trading, procurement, purchasing and delivery of digitalized goods and services [1]. At industry level, the development of Electronic Data Interchange (EDI) has become central to the concept of E‐commerce. It is an important foundation block for the implementation of E‐business. To harness the capability of EDI, Port Klang was facilitated with the national EDI by Dagang Net under the government's trade facilitation programme. The government hopes that EDI applications will bring about greater efficiency and productivity and also be able to respond to the needs and changing requirements of trade if a port is to become a major port of call for shipping lines the world over. A decade has passed since the introduction of EDI to the shipping industry in the Port Klang area. An understanding of the current EDI status is essential for the success of any E‐commerce initiatives in Malaysia. Thus this study seeks to provide such an empirical base. This study found that in the Malaysian shipping industry, EDI was primarily used in transactions with the Customs Department for duty payments and import/export declaration. The results indicated that EDI usage at Port Klang might be high in terms of volume. However, its use was still very low and limited in terms of diversity, breadth and depth. There was hardly any transaction between other business partners except the Customs Department. Investigation on the feasibility factors revealed that initial investments, requirements of trading partners and software related issues were the major problems faced by these companies.

Electronic Supply Chain Partnerships

This study is focused on discovering important trading partner selection criteria that are relevant in electronic data interchange (EDI)-enabled relationships. Increasing implementation of integrated supply chain management (SCM) and collaborative commerce initiatives call for the cultivation and maintenance of long-term strategic partnerships such as those engendered by EDI. There is a body of evidence showing that hub firms (i.e., firms that initiate technology-enabled partnership networks) are, in fact, getting more selective about their trading partners. However, there is a need to understand specific trading partner attributes that are more likely to ensure successful long-term relationships. Using the survey technique, this study elicited respondents from customer and supplier firms engaged in EDI applications; the final respondent sample ended up with a pool of firms primarily in the manufacturing sector. Factor analysis uncovered six trading partner selection factors which both customer and supplier firms thought were critical in selecting partners: strategic commitment of top management; readiness for high-level EDI; joint partnering; trading partner flexibility; communications; and EDI infrastructure.

A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework

The wide adoption of electronic data interchange (EDI) has been argued to be important for the success of the technology. Past studies on EDI have focused mainly on large firms, as they were the major users at the time. With the advance of technology, however, EDI applications that used to require mainframe computers can be used on PCs at a much lower cost. At a result, small businesses are now able to enjoy the benefits of EDI. Using a technology–organization–environment framework, this study proposes a perception-based small business EDI adoption model that is tested against data collected from 575 small firms in Hong Kong. Six factors are tested using logistic regression and five are found to be significant in distinguishing adopter firms from non-adopter firms. The results suggest the perception-based model using a technology–organization–environment framework is a useful approach for examining factors affecting the adoption decision. For small businesses, while direct benefits are perceived to be higher by adopter firms than by non-adopter firms, indirect benefits are not perceived differently by either adopter firms or non-adopter firms, contrary to the findings in studies on large business. In addition, adopter firms perceive lower financial costs and higher technical competence than non-adopter firms do. Also, adopter firms perceive higher government pressure but lower industry pressure than non-adopter firms do. Implications of the findings and future research areas are discussed.

EDI's role as an enabler for electronic commerce and information integration

Electronic Data Interchange (EDI) is a form of electronic communication designed to permit trading partners (customers and suppliers), in two or more organizations, to exchange business transaction data in electronic, structured formats. Unique to EDI, the electronic transmission of the transaction information can be processed directly by the applications within the receiving computer systems. The transmission of data in machine readable form eliminates the need for manual intervention in the data entry or data manipulation process. EDI is a tool for the electronic transmission and integration of information interorganizationally. A growing number of leading edge engineering and construction companies from around the world are implementing EDI applications to improve operational efficiency, enhance information quality, and achieve reductions in processing time of project critical information. EDI facilitates electronic commerce and is particularly useful in international construction endeavours. This paper provides an overview of EDI, discusses EDI applications in engineering and construction (E & C), outlines the status of international EDI standards development as it relates specifically to the E & C industry, and summarizes corporate benefits commonly attributable to EDI implementation.

Electronic Data Interchange and Naval Aviation

ABSTRACT With the Department of Defense (DoD) community facing declining budgets, reductions in workforce, and a shrinking business base, re‐thinking of traditional methods of doing business is necessary. As part of the larger Federal government initiative, DoD has adopted Electronic Data Interchange (EDI) to improve its mission effectiveness and reduce operating costs. EDI is the paperless exchange of business information using standard, transaction‐based formats. The EDI standard details how to format electronic messages that transmit information usually found on purchase orders, invoices, and other documents. The benefits of EDI to Naval Air Systems (NAVAIR) are more than just reducing paperwork, eliminating data entry errors, and receiving more timely data. EDI is a methodology to streamline functional processes; increase visibility of requirements to commercial activities; increase productivity through reduced cycle times; reduce material inventories, and develop electronic linkage from Navy information systems to DoD trading partners. This paper examines the technology of EDI, its uses, benefits, and explores some of the opportunities for EDI applications in the NAVAIR community such as: maintenance and engineering; procurement; and financial management.

Electronic data interchange use in German and US organizations

This paper investigates the adoption of electronic data interchange (EDI) by large German firms. In particular, the positive and negative impact of various factors on EDI selection decision is analysed, along with realized benefits of EDI application. Large German user and non-user organizations have been surveyed and several follow-up interviews have been conducted. The findings are compared with the results of a similar survey conducted recently in the USA. A strong interest in trading electronically and a steady growth in the application of EDI was found as companies began to realize the early benefits. Among users the actual quality of EDI use was found to be low in many cases. Typical findings were high levels of forced EDI adoption by large organizations and only limited achievement of high level benefits of EDI. Several obstacles for widespread EDI adoption and its effective use have yet to be overcome. The far reaching impact of EDI on the organization and its integration cause major problems. Because the EDI scene in both countries is the result of a patchwork of effectively closed trading communities, we cannot yet expect any single document standard to dominate.

Electronic data interchange in international trade: frameworks for the strategic analysis of ocean port communities

As informational aspects of international trade become more important, the strategic positions of ocean port communities become increasingly dependent on the quality and availability of telecommunication and processing infrastructures. This paper develops two frameworks to assess the level and nature of electronic trade integration within the context of a port community enterprise model. Port communities throughout the world are applying electronic data interchange (EDI) to trade functions because it enables open communications among many partners, provides acceptably quick communications for relatively low cost, and offers the prospect of significant savings in time and cost through reduced data capture volume and error-rates. EDI enables not only internal efficiencies but also the creation of new trade services. The first framework specifies the information systems and technology needed to enable EDI in international trade. The framework comprises two levels of infrastructure: communications and documentary; both supporting a third superstructure of business processes. Port communities are evolving from providing not only goods-handling facilities but offering advanced data-handling and processing systems as well. As competition between ports increases, information systems become key elements in their strategic positions. A second framework provides the structure for understanding physical and informational strategies of ports and port communities, and to examine their importance. Port communities may follow several models of infrastructure integration in moving towards their strategic objectives. However, realizing this potential requires research to determine the specific configurations that will fit into each trade environment. The contributions of this research to governments and corporations are primarily to provide models of successful application of EDI to international trade, and insight into technology transfer and diffusion, corporate competitiveness and policy formulation.

Managing new information technologies: Lessons from Singapore's experience with EDI

This paper describes how Singapore managed its decision to invest in electronic data interchange (EDI) technology. It is a case study of TradeNet, the first EDI application to be implemented in Singapore. Four major areas in the management of new information technologies are discussed: the business problem that initiated a search for a technological solution, the decision on which technology to use, the delivery organizational structure, and the selection of a vendor. Lessons relevant to managing new information technologies are high- lighted from each of these four areas. These show that managers should not make a commitment to a specific technological platform too early in the process, that there is a need for a vision that goes beyond the original business problem that triggered the consideration of new ITs, that the development of new technological solutions often require separate organizations cooperating in strategic partnerships, that the adoption of new information technologies should be accompanied by a planned marketing, publicity, and educational effort, that a new organizational entity may be needed to ensure sufficient attention to the diffusion of the adopted technology, and that a vendor should be selected to meet both the immediate and strategic goals for utilizing the new technology.

Computer‐mediated communication in the organization

This article explains and explores how organizations are using Computer‐mediated communication (CMC) and its broader category, Computer‐Supported Cooperative Work (CSCW). The introduction of CMC and CSCW applications, such as electronic mail, computer conferencing, groupware, group decision support systems (GDSS), and media spaces, alters the flow of information exchange within an organization and between organizations, and creates different channels of and methods for communication. Today, CSCW is also being used with electronic data interchange (EDI) to enable reproduction and manufacture of computer‐aided designs. The combination of CSCW and EDI has enabled computer‐aided designs to be transmitted world‐wide and reproduced through computerized machinery. Other EDI applications such as Just‐in‐Time (JIT) and Quick Response have enabled the creation of electronic partnerships among suppliers, producers, distributors, and retailers. Accordingly, this article examines some of the benefits and consequences ...

EDI in retailing: implementation and prospects in Ireland

This paper presents a detailed examination of a pilot study carried out to investigate the application of Electronic Data Interchange (EDI) in the retail sector, in the Republic of Ireland. EDI is evaluated in the context of recent developments in the information technology area. The paper identifies the barriers/obstacles that need to the addressed if the diffusion of EDI is to be speeded up. Some of these barriers are common to those experienced in comparable investigations in America, the United Kingdom and mainland Europe. Finally a strategy for the implementation of EDI in the Republic of Ireland is presented, based on the findings of the pilot study. In this section, the paper highlights the difficulties arising from the situation where there is a lack of commonly internationally agreed standard in operation. While competitive advantages can be attained by adopters of EDI, this will be contingent upon other participants within the sector network also adhering to the system. It is envisaged that, by ...

Assessing the impact of EDI: a cost accounting framework

Standardization and simplification of trade procedures constitute an urgent need to line up the document flow with the goods flow in international trade. Electronic data interchange (EDI) is a co‐operative inter‐organizational information system providing electronic exchange of messages agreed between trade partners. The paper outlines a possible implementation procedure for EDI. The first part consists of a six‐step feasibility study. If this study ends with a positive recommendation the implementation procedure can start. Discussions of this process aim to: completely understand about EDI, agree on standards with business partners, modify existing systems, translate data, prepare communications, and manage and audit the whole process. Concerning the cost‐benefit analysis for the EDI application—a step which is mandatory in the feasibility study—further details are given on different types of cost (recurring and non‐recurring, direct and indirect) and on both quantifiable and non‐quantifiable benefits.

Electronic Data Interchange in International Trade

Standardization and simplification of trade procedures constitute an urgent need to line up the document flow with the goods flow in international trade. Electronic data interchange (EDI) is a co‐operative inter‐organizational information system providing electronic exchange of messages agreed between trade partners. Outlines a possible implementation procedure for EDI. A first part consists of a six‐step feasibility study. If this study ends with a positive recommendation the implementation procedure can start. Discussions of this process concern several requirements: completely understand about EDI; agree on standards with business partners; modify existing systems; translate data: prepare communications; and management and audit of the whole process. Concerning the cost‐benefit analysis for the EDI application – a step which is mandatory in the feasibility study – gives further details on different types of cost (recurring and non‐recurring, direct and indirect) and on both quantifiable and non‐quantifiable benefits.