A1 Background Note on EDI

"Once upon a time I observed that the major problem in electronic communications began with the second computer in the world. It incorporated all the good ideas of the first, and also some valuable enhancements, as a result of which it became ‘incompatible’ with the first. Ever since, many people have tried to find standards, be they ‘open’ or ‘proprietary’, by which computers could communicate quickly and accurately with each other.”

If companies are processing their commercial and accounting information on their own computers, it makes sense for these computers to pass directly the information that needs to be sent between them — such as orders, acknowledgements, delivery notes and invoices.EDI, for Electronic Data Interchange, is the generic name given to the transfer of data electronically between computers. However, if the ability to swap information is to be efficient, the process must be independent of the individual specification of each trading partner’s computer system. Standards need to be agreed on how to exchange information so that any one computer can understand any other.

Many standards have risen and fallen, but the two that are most commonly used in the UK today are Tradacomsand EDIFACT. Tradacoms is a UK initiative which is managed by the e-Centre, formerly the ANA (Article Number Association). EDIFACT (EDIfor Administration, Commerce and Transport) is a US standard, but has been taken on board by the United Nations with the intention that it become the world-wide standard — it is often referred to as UN/EDIFACT.

It is appropriate to mention the recent phenomenal growth in the world-wide use of the Internetand it’s even faster-growing cousin, the World Wide Web (often known just as the Web), and the interest that is being raised on the concept of ­e-commerce. EDI is an integral aspect of e-commerce, dealing as it does with computer-to-computer information exchange. The Internet and the Web are very much concerned with person to computer interchange, and thus complement EDI.

There is much discussion about introducing a Web-based EDI standard, but it is far to soon to assume that this would supplant either Tradacoms or EDIFACT standards, given the existing UK and worldwide investment in those standards. It is Datafile’s view that the existing EDI standards will survive and adapt to incorporate the needs of the Web for computer-to-computer data interchange.