Advantages And Disadvantages Of EDI

3813 Words 16 Pages
Register to read the introduction… Add to that the cost reductions afforded by eliminating the re-keying of data, human handling, routing, and delivery. The result is a substantial reduction in the cost of a transaction.
Expense, Networking Complexity, and Alternatives are the drawbacks of EDI. Although these benefits are convincing, actual acceptance and execution of EDI was far less common than might be expected. For all the benefits, the technological problems of EDI presented a number of major stumbling blocks.
"Computers, especially mainframes, and their business application systems were complex and expensive. Primarily serving the "on the edge" functions of a business, they were not regarded as being fully joined into all business activities". 2
Traditionally, the mainframe-computing consciousness was viewed as an information reservoir. EDI required that information technology be extended beyond core functions. So while there were substantial savings to be gained from the use of EDI, the cost of re-designing and deploying software applications to conform EDI into an existing portfolio of business applications was high enough to offset the anticipated
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This dictated that EDI be implemented on whatever hardware was available and choice of software was severely limited by hardware options
A business seeking to start EDI for the first time probably already has a PC that can be used to run an EDI translation package and communications software. Even if such hardware is not available, or is outdated, it can be obtained at a relatively small cost. The principal requirements for installing most PC-based packages are not any more demanding than today's word-processing or spreadsheet packages.
For software packages designed specifically for restrictive hardware, "the price-tag is likely to be higher than for a package designed for a UNIX workstation, because of the more limited market and the more specialized technical expertise required. Also this difference can be expected to grow as Reduced Instruction Set Computing (RISC) based open systems computers have gained popularity. Many software vendors are turning from strictly exclusive software to development of packages that will run under the UNIX operating system on a variety of RISC platforms with only minor modifications and

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