Interchange of electronic data is a core component of the Internet for many e-businesses, large and small. EDI history begins with the World Wide Web and the exchange of information between universities and the military. Today, it is the Internet software interface that can organize and exchange massive amounts of data for inventory and invoices for large companies like Walmart, Honeywell and NASA. It can be helpful for small businesses as well.

EDI systems are application service providers (ASPs) that make big jobs easy for ecommerce businesses. Like email and other Internet applications, EDI is an application that does not require deep training to use. It follows standardized rules set by overseers—like international measurement standards or the FDA. With the advent of ecommerce, EDI is in the news more and more. Consider a few electronic data interchange (EDI) basics to keep up with changes in EDI application software:

1. Keep up with the latest in EDI with news and blog sites.

2. Use EDI e-newsletters to learn about EDI solutions.

3. Join an EDI news forum and interact with professionals in EDI.

Action Steps
The best contacts and resources to help you get it done

Keep up with the latest EDI solutions' news and trends at these news and blog sites

You have seen the term EDI around in your ecommerce reading. Keep current with EDI technology by reading articles and blogs from companies and people who work with this technology.

I recommend: EDI Center offers news and information about EDI at their site. This is a great site for everything related to EDI. EDI Center exists to educate and help people with applications of electronic data interchange. EDI-1 blog is a lot of fun, in that they post email interchanges between companies discussing EDI issues. It’s educational, and gives you an insider’s view about how EDI works. You will read about how big companies manage to streamline, organize, ship and track deliveries. The article posted to EXTOL shows the sheer volume of data, capabilities, power that EDI systems embody.

Sign up for EDI services e-newsletters to keep up-to-date with changes and trends in EDI

With something as big as EDI, you need a solid source of information you can trust. The following companies have a strong name in the industry and keep you aware with EDI integration.

I recommend: Cygnus offers an EDI solutions e-newsletter and other supply chain information. HighBeam offers articles on EDI that you can sign up for.

Join an EDI news forum or visit an e-business network for more EDI news and trends

Read articles that explain electronic data interchange services and show the latest changes and trends revolutionizing the way EDI and business works. No longer do people need to use telephones to make big purchases and do business around the world.

I recommend: BNet is a business network news site that posts articles about EDI. You can search EDI articles at this site. EDITalk news is a forum where you can learn more about EDI.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Start reading articles and updates for electronic data interchange (EDI) news and trends to start getting the feel of this industry software. Forget technical manuals or training seminars in the beginning, and enjoy the feeling of being a savvy EDI current events reader.

As you're probably aware, EDI was created by Standards Bodies (such as ANSI & UN/EDIFACT to name a few) whose charge is the continual change and expansion of the transactions sets we use every day to accommodate the needs of global businesses to do business. The nice thing about Standards (in general) is that they "level the playing field" for any business that needs to send transactional data electronically between their Trading Partners. In essence, this means that whether you're a huge Retailer or small Supplier, the adoption and use of EDI makes you all equal (at least in the ability to communicate - ie: speak the same business language). An EDI Order sent by BigBoxMart is readily received and processed by Bob's Widget's on the PC in his garage. Bottom line, Bob gets the order essentially the same way his "many times larger" competitor does. And that's a good thing.

Now, these days, the "paths" taken by these transactions (as they make their way from the sender to the receiver) are many. Some customers (and their suppliers) have adopted direct connections between them that, one would hope, make economic and operational sense for both parties. Traditionally, EDI documents have been sent and received through "public Value-Added-Networks (VANS), much the same way as our global telephone system works. When you pick up the phone and make a call, you don't question (or care) how many "phone companies" or "paths" the call needs to take, just that the call goes through (I know, I sound like a Verizon ad!).

Much like each party get to pick their own telephone or Internet provider, so too should you be able to choose EDI communications providers. Time, superior service, and attractive pricing will dictate who survives and who doesn't. We support your "right to choose" and will lobby the guy with "the big stick" to see that our position is the right one, which benefits all parties equally.

Action Steps
The best contacts and resources to help you get it done

Data Interchange Standards Association (DISA)

DISA advances the foundation of electronic trade and commerce by supporting and promoting standards used for business-to-business data exchange.

I recommend: http://www.disa.org/

Digital Movers, EDI Outsource Provider

Digital Movers is the premier provider of Electronic Data Interchange (EDI) outsourcing services to companies that need to communicate commerce transaction data electronically with their Trading Community.

I recommend: http://www.dmovers.com/

SPS Commerce

SPS Commerce's services provide everything needed to satisfy your trading partners' EDI requirements.

I recommend: http://www.spscommerce.com/

Covalent Works

CovalentWorks is the leading EDI services company for small and medium size companies who want lasting relationships with their large-company EDI partners.

I recommend: http://www.covalentworks.com/

ECbridges

ECbridges provides businesses with software solutions & services. Offerings include process automation, Electronic Data Exchange, data mapping, and application integration. Improve how you collaborate internally and with your customers and suppliers.

I recommend: http://www.ecbridges.com/

COSI

In today's global economy, companies need to exchange information rapidly and securely in order to remain competitive.

I recommend: http://www.cosi-us.com/

Trinary

Since 1985, Trinary Systems has been known as the company with the 'Easy Button(R)' for EDI.

I recommend: http://www.trinary.com/

Interchange of electronic data is one of the core structures of our Internet business and communication. The history goes back to the beginning of the World Wide Web and Internet and exchange of information between universities and the military. Unless you are computer scientist, information systems, telecommunications or data security and systems expert, it’s not the easiest concept in the world to wrap your mind around. However, like so many other things on the web these days, you do not need to know or understand EDI systems at the core level to benefit and use the interfaces.

Yes, just like email, web surfing, building web pages and e-stores, you can use EDI integration without understand bits and bytes. However, if you do want or need to understand EDI at a deeper level the resources are there for you to learn, take courses and get training as well. Consider the following when learning electronic data interchange (EDI) basics:

1. Learn the basic fundamentals of EDI systems and how they work.

2. Read books and other guides and material about EDI.

3. Find out what big EDI businesses have to say.

Action Steps
The best contacts and resources to help you get it done

Start with basic information about EDI and how it works

The Internet first came into being when information was transferred and shared between big institutions like universities and the military. These institutions employed highly trained individuals with PhDs, and they decided these tools would be nice to share with the public and private business. Those were the beginnings of the World Wide Web.

I recommend: HowStuffWorks writes about the EDI system and its application to ecommerce here. Ecommerce and big companies who work with massive inventory, invoices and exchange of information use EDI. Small business also uses EDI. CovalentWorks gives an overview of electronic data interchange.

Read helpful information on EDI services

EDI solutions today are application service providers (ASPs). EDI is too big and too expensive for most of us to understand or afford. It is like the airline, another example of an ASP-we use the service-most of us do not buy airplanes, airstrips or learn to fly airplanes to travel.

I recommend: Read articles on EDI at SurfWax. At the EDI Center for Training, you can find all kinds of stuff about EDI integration, including a list of books they recommend to help you begin understanding electronic data interchange (EDI) basics.

Find more EDI information from the info pages of companies specializing in EDI

A company cannot just sell a service without explaining to the user or potential buyer what they do and what their service is all about. EDI is a software solution for document management. Big companies like Walmart, Honeywell and NASA use these capabilities. It is the standardized interface program (like international measurement standards of meters not feet in NASA), so that it works globally and everyone can use it and understand it.

I recommend: ProEDI gives a good explanation of what EDI is all about. 123 EDI also covers the basics of EDI at their site.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Call up one of these EDI companies if you have a small or large business and you think you need electronic data interchange services. Tell them your ecommerce and data exchange needs with other companies nationally or internationally and find out what you need to be more streamlined and organized. Understand you can use these EDI services without understanding EDI history, foundations and science.

Electronic data interchange (EDI) provides companies with a secure way to exchange information via the Internet. EDIs are used for all types of business documents from purchasing information to shipping. When browsing for electronic data interchange companies, there may be some terms that confuse or are unfamiliar to you. Learn the meanings of electronic data interchange key terms to assist you in locating a company that provides exactly what you need.

Action Steps
The best contacts and resources to help you get it done

Integrated

'Integrated' refers to software applications and programs that work together. Integrated software has data conversion tools that allow information in one software application to be transferred to another with ease.

I recommend: PC Mag provides more information about integrated software. NetSuite also has information about integrated software.

Data sync

Data sync, or data synchronization technology, allows information to be sent automatically from one device to another. With data sync, when the device is connected, the sync copies all of the information needed and places it on the device.

I recommend: Visit BusinessDictionary.com for more information about data sync. WebMediaBrands also has more information about data sync.

ASN

An ASN, or Advance Shipping Notice, is an electronic notification that is sent when a product has been packaged and a shipping label has been printed. An ASN can be generic or customized for the company.

I recommend: Understand ASNs better with information from CovalentWorks. Babylon.com also has information about advanced shipping notices.

VAN service

VAN Service, or value added service, is a professional service that works with business partners who share information and proprietary data. A type of VAN service is offered by many EDI providers. VAN services are popular B2B, or business to business, devices.

I recommend: Find out more about VAN services at TechTarget. Monica Horten also has information about VAN services.

XML

XML stands for eXtensible Markup Language. XML is a text format that is used to carry data, not display it. XML is commonly used to add structure to text as it is carried. Some EDI companies require XML coding on files.

I recommend: Visit O'Reilly Media for more information about XML. W3C also has information about XML.

FTP

FTP stands for File Transfer Protocol. FTP is a computer protocol for exchanging files via the Internet. An FTP site is a website designed for uploading and downloading files. Some EDI companies use FTP sites for file transfers.

I recommend: Find more information about FTPs at BusinessDictionary.com.