Electronic Data Interchange is a technique for computer to computer exchange of business documents in a standard electronic format between business partners or companies. Companies use EDI systems for exchanging business information automatically by computer systems as transactions without paper and hence minimizes or completely eliminates the human intervention. Electronic data interchange is generally used for B2B transactions.
Common EDI documents:
- Shipping requests
- Purchase order
Both the enterprises have EDI applications installed in their systems. Enterprise 1 uses its EDI application to generate an EDI document that it want to share with the other enterprise. The format of this EDI document must be the standard format that has been decided by the two enterprises for sharing EDI documents during their deals. This document is shared with the other enterprise over the network. The document is received by the Enterprise 2 in the standard format on the EDI application. This is how the two enterprises exchanges business documents electronically and minimizes or eliminates the human interventions.
- As it is direct computer to computer transaction system, it is high speed.
- Due to reduced human intervention, it is very accurate.
- Simple to use.
- Highly secure.
- Reduction in paper work.
- Cost effective.
- Secure Electronic Transaction (SET) Protocol
- Data encryption standard (DES) | Set 1
- Framing in Data Link Layer
- Data Compression With Arithmetic Coding
- Asynchronous serial data transfer
- Shannon-Fano Algorithm for Data Compression
- Principle Of Reliable Data Transfer Protocol
- Maximum Data Rate (channel capacity) for Noiseless and Noisy channels
- Difference Between High-level Data Link Control (HDLC) and Point-to-Point Protocol (PPP)
- Difference between Spoofing and Phishing
- Introduction of Botnet in Computer Networks
- Difference between Bandwidth and Throughput
- Difference between EIGRP and OSPF
- OSI, TCP/IP and Hybrid models
If you like GeeksforGeeks and would like to contribute, you can also write an article using contribute.geeksforgeeks.org or mail your article to email@example.com. See your article appearing on the GeeksforGeeks main page and help other Geeks.
Please Improve this article if you find anything incorrect by clicking on the "Improve Article" button below.