The Implementation of EDI System in the Business Communication
Electronic Data Interchange is a method to perform business data exchange that is usually employed by highly commercialized business enterprises. The data interchange is commenced by using a standard format that has been determined and agreed by the majority of existing enterprises. The purpose of EDI is to help business actors manage business documents and share them with other entities accurately, quickly and efficiently. If the entire process is carried out as best as possible, a very good internal and external communication among all actors in certain business activities can be established successfully.
The basic components of this system include the Hub (the entity that gives the order), Spoke (one that receives the command), Computer (the electronic hardware) and Electronic software. There are several benefits that can be directly derived from this technology including direct benefits of error reduction, cost reduction, and increased operational efficiency. Indirect benefits of EDI system include increased capacity to compete, better relationships with trading partners, and better customer service. However there are also several obstacles encountered in the implementation of this system such as technical constraint that is associated with transferring data via computers and telephone facilities and the cost for the procurement of computer equipment; limited number of banks that use this system; there are currently no laws regulating the utilization of this system.
Inter-Organizational Systems (IOS) is a combination of interchanging companies to establish an integrated single system. They are working together for common purposes. The companies that make up the IOS are called business partners or trading partners. The business partners are involved in the IOS with the hope of obtaining certain business benefits. However, the implementation of Electronic Data Interface in several developing countries has not experienced significant growth and development yet. There are still quite rare companies that use this system as one component of their information technology application. The main causes are probably the obstacles that are mentioned above.
