Electronic Data Interchange (EDI)

Electronic Data Interchange Definition (EDI)

What is electronic data interchange (EDI)? EDI is a standardized format for computer-to-computer communications transmitted via electronic networks. In addition, EDI reduces paperwork and administration relating to information transfers within a company or between companies. It also reduces mistakes and data entry errors.

Using EDI can result in time and cost savings for a business. Electronic data interchange communication can also allow businesses to exchange invoices, purchase orders, and other business documents electronically. EDI documents are also transferred in virtual real-time, leading to faster transaction processing. Furthermore, less paperwork and personnel intervention can reduce administrative costs related to transaction processing.

The American National Standards Institute Accredited Standards Committee X12, or ANSI ASC X12 develop and maintain the technological standards for electronic data interchange.

electronic data interchange

See Also:
Technology Assessment Criteria
How to evaluate IT systems
Technology Strategy for Small to Medium Sized Companies
How Redundant is Your Data Communications Link?
How to Respond to an Imminent Disaster Threat

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