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EDI Integration stands for Electronic Data Interchange. An electronic data interchange is a standardized method for exchanging electronic data between two different systems. The process may be asynchronous (by email) or synchronous (through a computer network).
In either case, the two systems must be able to exchange data using the common language of EDI. EDI is the most widely accepted data interchange standard, and is used in most major business transactions such as software installations, maintenance agreements, bank transfers and insurance claims.
The three E's – English, Expression and Exchange – are important.
That’s the simplest explanation of what an Electronic Data Interchange is. In this article we will be discussing the different aspects of this problem, how it is solved, and why it is best to use EDI to handle data flows from your software products into the outside world.
To do this, we will cover: Is EDI Integration the Answer? On which Platforms and on which Versions of Platforms? What kind of Exchange are the Ecosystems Using? Let's have a look at what EDI is all about.
What is EDI?
The “Electronic Data Interchange” (EDI) is an XML-based standard that allows two interconnected systems to exchange data via electronic forms. EDI System can be written in any XML language, but it is most commonly used in XML-based formats, such as Microsoft's SysML XML file.
Microsoft first released EDI 1.0 in 2003, with the goal of unifying the various standards for exchanging information, and standardizing the interchange of electronic information.
But it wasn't until April 5, 2006, that EDI 1.1 and 2.0 were published and officially adopted by the Electronic Data Interchange (EDI) Forum (EDIF). EDIF is an international organization created to promote and develop EDI.
However, there are many different and overlapping standards in use and not all of them are EDIF-approved. The primary difference between EDIF and other XML standards bodies is that EDIF publishes stands for EDI Interchange Description Language.
“So there are many different ways to present the same information but you know when it comes to exchanging information, we're pretty much just using the same language.”
– Karel Sasse, Director, InfoCentre Group. Microsoft has contributed to the development of EDIF.
Microsoft's support for standardization is evident through their own Microsoft EDA and EDIF Participation. Microsoft has been actively participating in EDIF since its inception, and it has become a key facilitator of EDI in the IT world.
The ability to exchange information via a standardized and standardized language like EDI provides IT organizations with a truly universal format for exchanging information.
Businesses have a clear, documented way of exchanging information with their customers. Information that is conveyed in the EDI is accurate and trustworthy, regardless of its source.
Some of the benefits that come with EDI Interchange are: and to the benefit of the applications and services using the EDI (like Microsoft's Windows client, Microsoft Outlook).
It makes interoperability easier between vendor applications and devices. In the United States, EDI is already widely used in the finance industry.
The efficiency of clearing trades and financing transactions using EDI has been proven time and time again. Furthermore, since the 2006 publication of the EDIF 2.0 standard, finance applications and services have become more interoperable and are able to work together, saving time and effort in the acquisition of products and services, maintenance, and updates.
Financial institutions such as Fidelity, TD Bank, and ING have been pushing for more interoperability and are also participating actively in the EDIF activities. Fidelity recently announced that Phoenix will be using EDI as a standard way of exchanging information. Using EDI simplifies the purchasing process by allowing the buyer to use the EDIF standard file format.
