Which Of The Following Is A Similarity Between Electronic Data Interchange (Edi) And Web Services?

COLLECTED BY

The IT History Club (ITHS) is a world-wide grouping of over 500 members working together to assist in and promote the documentation, preservation, cataloging, and researching of Information technology (IT) history. Nosotros offer a place where individuals, academicians, corporate archivists, curators of public institutions, and hobbyists akin tin get together and share information and resources. This catalog of resource sites concerning IT history is the only one of its kind and is a valuable resource for Information technology historians and archivists alike.

TIMESTAMPS

The Wayback Motorcar - https://spider web.annal.org/web/20160103124500/https://www.isoc.org/inet97/proceedings/C5/C5_1.HTM

Electronic Data Interchange: Concepts and Effects

Kenneth W. Copeland <kcopelan@acm.org>
U.S. Department of Veterans Diplomacy
USA

C. Jinshong Hwang <ch01@swt.edu>
Southwest Texas State University
U.s.a.

Abstract

This cursory newspaper serves to better introduce the membership of the Internet Society to the concepts of electronic information interchange (EDI) and the furnishings traditional EDI has had on those businesses using the applied science.

1. Introduction
2. What is EDI?
3. Information processing and EDI
iv. Information communications and EDI
5. The business process and EDI
6. Marriage of the three disciplines
seven. Standards
eight. Security
9. Value-added networks
10. Effects and level of automation
11. Conclusions and future of EDI
References

ane. Introduction

Traditional electronic data interchange (EDI) has been evolving for approximately 25 years and has truly go the paperless surround that is so often talked about. EDI is a complicated mixture of iii disciplines: business, data processing, and data communications. This paper examines the concepts from the perspectives of each subject field.

Internet standards are excluded from the give-and-take of communications protocols, since the audition is probably already familiar with SMTP, MIME, and other Cyberspace messaging protocols.

2. What is EDI?

Since EDI is commonly divers as the directly computer-to-computer exchange of standard business forms, it conspicuously requires a business process. Because the primal idea involved is the substitution of documents that allow a business application to take identify without human intervention, data processing is clearly necessary for application processing. Information communication is then necessary for the exchange to take identify. It is the marrying of these three disciplines that allows the "paperless trading" that comprises EDI technologies.

As well the iii career disciplines that are internal to the organization, three other issues are important for EDI trading to take place: standardization of formats, security, and value-added networks (VANs).

2.1 Looking closer at EDI

EDI is commonly defined as the directly estimator-to-computer exchange of standard business forms. The fundamental idea involved is the exchange of documents that allow a business application to take place without man intervention. The power to send business documents between machines simplifies and expedites the business process itself. Many businesses choose EDI as a fast, inexpensive, and safe method of sending buy orders, requests for quotations, quotations, invoices, payments, and other often used business documents.

Often today ane volition see the term EC/electronic data interchange (EC/EDI). This term has evolved from placing EDI under the EC (EC) umbrella, EC being the broad view of electronic trading. EDI is defined as the interprocess (computer application to computer awarding) communication of business information in a standardized electronic form. EC includes EDI, but recognizes the need for interpersonal (homo to human) communications, the transfer of moneys, and the sharing of mutual databases as additional activities that aid in the efficient conduct of business. Past incorporating a wide range of technologies, EC is much broader than EDI. However, the focus of this document in on EDI, not EC.

2.2 Comparison EDI and fax

Similarities exist between EDI and fax in that both use telephones lines and both tin travel from reckoner to figurer (Sawabini, 1995). In that location are singled-out differences however. Fax is primarily paper based and requires a human interface. Fax receipts are non generally acceptable to applications. Fax machines accept nonstandard information formats, and anything that tin be scanned tin can exist faxed, whereas EDI requires standard message formats between trading partners.

2.iii Comparison EDI and electronic mail

Similarities likewise exist between electronic mail and EDI. Both travel from calculator to computer and both use an electronic mailbox. Still, three of the four differences listed for EDI vs. fax as well apply to EDI vs. e-mail: e-mail bulletin format is not standard, e-mail requires homo interface, and email is not acceptable to applications.

3. Data processing and EDI

Ane of the technological fields required to implement EDI is data processing. Data processing allows the EDI operation to have data that is resident in a user application and transform that data into a format that is recognizable to all other user applications that have an involvement in using the data. In the EDI surroundings, data processing volition handle both outgoing and incoming information, equally depicted in figure ane.

Figure 1: Data Processing and EDI

The user-defined files in figure i are the flat files that are produced by a business application. These files may or may non be formatted by the user. These are the business files that need to be translated into the X12 format.

The translation software in figure 1 is the software that maps the elements of a user-defined file into the ANSI X12 or EDIFACT standard format. This software is available through commercial retailers on various platforms from PCs to mainframes.

The mapping of the user-divers data elements into the translation software requires some skill in mapping. The mapping itself requires cognition of both the translation software and the EDI standards existence used so new mapping and processing rules tin exist set up upwards for the translator. If a new trading partner places no new requirements on the translator, the new trading partner is just set under existing mapping rules. However, when the trading partner requires that additional or unlike data fields be sent, a new mapping scheme needs to exist identified and associated with that trading partner (Sokol, 1995).

4. Data communications and EDI

The other technological field that is heavily involved in EDI implementation is data communications. Once the standards take been employed and the required software is in place, the EDI participant withal needs to have the ability to communicate with remote trading partners to have advantage of EDI.

4.1 Ship mechanisms movement the data

Information must be transported across telecommunication lines in social club for the trading partners to trade information. Following are some bones concepts that depict mechanisms and methods used in this transport of data:

Direct connect is the term used to indicate that two EDI trading partners trade information directly to each other without a third-party connectedness service. Direct connects are normally used by big corporations for intracompany EDI transactions and for intercompany transactions with trading partners that have established loftier-volume rates of exchange of EDI data.

Modems are heavily used past EDI practitioners today. Modem-to-modem connections provide a level of security and reliability that long-time practitioners are reluctant to surrender. The standard in the industry, as this paper is written, is transmission by binary synchronous modem or "bisync." This method allows for high-speed continuous manual in which the sending and receiving modems are controlled by clock pulses. The clock pulses regulate the rate and timing of the information flow.

Routers, although not the primary transport mechanism for EDI transactions today, have the potential to become the de facto standard of manual for loftier-volume traffic. Currently, routers are used mainly over leased lines, requiring expensive setups and ongoing data communications transport costs.

4.2 Communications protocols standardize the data formats

EDI transactions tin can exist passed between trading partners using standard manual protocols. Graphic images, charts, and diagrams must be transmitted using protocols that allow the transfer of binary data. Some of these common standards are SMTP, MIME, X.400, 10.435, and X.500. Internet Protocols are excluded from this word as the audience is already very familiar with them.

10.400 is an electronic messaging standard that was developed by the Consultative Commission on International Telegraph and Telephone, which is tasked with developing standards to enable incompatible networks and estimator systems to substitution data. In this standard, an X.400 header precedes the message itself. The header allows the sender of the bulletin to specify data relating to the transmission and delivery and notice requests.

The architecture of the Ten.400 standard calls for an outer envelope that is application contained and is used to road the message. Within the outer envelope lies the content header, again awarding independent, which is used to deliver the bulletin to the recipient. A bulletin transfer agent (MTA) receives the message, discards the outer envelope, so reads the header to determine the recipient. The bulletin itself is composed of body parts, each trunk part being an awarding-specific message.

X.435 is a standard that further enhances the X.400 standard to go far bargain more effectively with EDI transmission requirements. 10.435 is the specification for the EDI body part that attaches to the 10.400 message.

X.500 is an addressing directory containing the names and characteristics of electronic messaging receivers. X.500 facilitates the delivery of X.400 messages, including those that include the 10.435 standard. The idea is the product of a global electronic directory and a guide to associated databases so the user can find an e-mail address if it is needed and not known.

5. The business process and EDI

Whatsoever concern application that tin can be improved through paperless trading in a fast, efficient environment is a good candidate for EDI. EDI is currently widely used past the airline industry, cyberbanking industry, credit card industry, and auto industry. The electric current push in the EDI world comes from companies who wish to trade with each other electronically--buyers and their suppliers--hence the term "trading partners."

5.1 Applications of EDI

The business process examined here to which to utilize EDI concepts is the procurement procedure. This business process was called for two reasons. First, within industry itself, new EDI technology is developing fastest in this expanse. 2nd, the President has issued an initiative to streamline government procurement through the utilise of EC. Since the initiative was announced in October 1993, the thrust within the authorities has been to implement the initiative using EDI technologies. These factors make the procurement process the most relevant concern process to examine at this fourth dimension

5.2 A typical pocket-size purchasing application

The business application depicted in effigy 2 is a simple purchasing awarding.

and then

Effigy 2: Business Awarding and EDI

As shown in effigy ii, the procurement process normally begins with the buyer being fabricated aware of a need within the arrangement to make a purchase. Equally soon as a demand is established and precisely described, the buyer begins the process of selecting the supplier that will be used. Routine items may be purchased using suppliers that have already been contracted with. New items or high-value items may crave investigation by the buyer in selecting an appropriate supplier.

The buyer will select a preliminary group of suppliers and so utilize the methods of competitive bidding, negotiation, or a combination of the 2 to secure the final supplier. When competitive bidding is used, the buyer problems an RFQ to the suppliers that the buyer might exist willing to exercise business with. Typically, the RFQ will contain the same basic information that will be included on the buy gild.

When a supplier receives an RFQ that the supplier has an interest in behest on, the supplier issues a quotation to the buyer. The quotation will contain pricing information so the buyer tin practice a price comparison betwixt the suppliers. For instance, an RFQ might be issued for 200 gallons of white, latex-based paint. The supplier who is issuing a quotation may quote a price of $xxx.20.

In one case a supplier has been selected, the purchasing department issues a serially numbered purchase order. The purchase gild itself becomes a legally bounden contract. For this reason the heir-apparent will carefully set up the purchase society and ensure that the wording is precise and specific. Whatsoever drawings, diagrams, or related documentation that is necessary to precisely draw the item beingness purchased will be incorporated or referenced in the purchase gild. Additionally any conditions or sampling plans will be stated precisely.

Normally a list of terms and conditions designed to give legal protection to the buyer on various matters prescribed by law are incorporated in, or fastened to, all purchase orders as boilerplate to those orders. These boilerplate terms and conditions cover a wide range of concerns including, contract acceptance, delivery performance and contract termination, shipment rejections, consignment and contracting or the social club, patent rights and infringements, warranties, compliance with regulations, and invoicing and payment procedures.

Alter orders are required when a company makes a modify in the contract later a purchase order has been issued. The buyer volition issue the change order and, when accustomed by the supplier, the change order either supplements or replaces the original purchase order.

The original copy of the buy order constitutes a legal offering to buy. The purchase contract then comes into existence when the contract is performed or when formal acquittance of acceptance of the offer is made.

Normal business concern methods suggest that the supplier may not carp to acknowledge the offering if the items are immediately shipped to the heir-apparent. When the items are not immediately shipped, and then the supplier should send the acknowledgment back to the buyer.

The supplier may admit the buyer's order accepting the buyer's terms and conditions, or may acknowledge and incorporate the supplier's own terms and conditions in the acknowledgment. If the seller's terms are dissimilar than the buyer's, the constabulary allows them to exist incorporated into the contract as long as they do non alter the buyer's intent or unless the buyer files a written objection to the inclusion of new terms and conditions. In general, terms and conditions that are in disharmonize betwixt heir-apparent and seller are excluded from the contract, leaving the settlement to negotiation or suit. For this reason information technology is imperative that the buyer beware of the terms and weather condition in the gild acceptance.

6. Marriage of the three disciplines

EDI involves three very different and distinct disciplines. First, at that place has to be a concern process. If the business process would be improved by existence accomplished more than quickly and with increased efficiency, then the business organisation process is a candidate for EDI. The business process is the domain of the business functional expanse. Second, once the business process has been identified, data processing technologies have to be practical to the business process so that the procedure tin be handled using computers. Some type of standard must come up into play in the automation process and so that paper documents that are the output of the business process can be put into a format that is interchangeable between computers. The automation of the concern procedure is the domain of the information processing bailiwick. Tertiary, the standardized business form must be transmitted from and received by computers, using data communications technologies. The data communications aspect of EDI is the domain of the information communications subject.

The marriage of these disciplines allows for the "paperless trading" that comprises EDI technologies. As EDI technologies evolve, the terminology changes.

6.1 Paper document flow

The traditional document flow for purchasing transactions starts with information entry by the purchaser to create a paper document to ship by mail to trading partners. Once the trading partners receive the data, they keystroke the information received into a local application and so perform more information entry by entering a response into a local awarding. The resultant paper document is then mailed to the purchaser.

The procedure is both fourth dimension consuming and labor intensive considering data from both trading partners has to be entered twice, one time at the point of creation and once at the point of entry to the strange organisation. In improver, the originator must await a paper response sent by mail.

6.2 EDI flow

EDI information is key in only i time, at the original point of entry. The data is then translated into a standard format electronically and sent to the trading partner electronically. At the receiving terminate, the data fields are mapped into local applications, and the only information entry required is for new information that may be needed to respond to the data received.

Time for transmission is also very fast in comparison to postal mail. Fifty-fifty on a slow modem connectedness, the time is considerably shorter than through the mail service.

7. Standards

Although communications and document standards are both critical, certificate standards are the heart of EDI (Kimberly, 1991).

vii.1 The role of standards

Standards are a necessary part of EDI. Every business has application files that are used to manipulate their data in ways that are familiar to the business. The problem is that most businesses, though using the same types of data, practise not use the same application programs or hardware and software platforms. If businesses are to be able to communicate their data to one another, they must take a common basis to meet on to permit the exchange of the information. Standards are the solutions to this problem. All business that adjust to specific standards can share data in the formats delineated past those standards.

vii.two ANSI ASC X12

The American National Standards Constitute'due south Accredited Standards Committee X12 (ANSI ASC X12) is the accepted standard for EDI transactions in the United States. The ANSI ASC X12 committee has the mandate to develop variable-length information formats for standard business transactions. The committee was accredited in 1980, and the X12 standard has been evolving always since. One of the requirements placed on the committee was and is to go on the standard open to interindustry applications. This requirement makes the standard more than circuitous than an industry-specific standard, merely the advantages easily overcome the disadvantage of complexity.

With a single standard, a business has multiple functionality and only has to use one standard for each business organization function.

7.iii EDIFACT

The International Standards Organization (ISO), an organization within the United Nations, has developed the EDI standard that is used in Europe. The Electronic Document Interchange for Administration, Commerce, and Transportation (EDIFACT) is the UN standard that the whole world has agreed to eventually prefer. The actual implementation of EDIFACT inside the U.S. has been moving at a snail's pace. The standard appears to currently exist taking the aforementioned route that metric standards have taken. Everyone agrees that EDIFACT is the international standard, just tried and true X12 standards are not abandoned in favor of EDIFACT.

seven.4 Other document standards

Other document standards are in being, virtually notably HL7, which is used past the infirmary systems and is ANSI approved.

eight. Security

One of the major roles that is provided by the data communications technology is the power to apply security to EDI transactions so that the transactions will non exist tampered with or observed, depending on the level of security needed. The security modules that are discussed in this department are depicted in figure three.

Figure three: Data Communications Security

eight.ane Confidentiality

Confidentiality requires that all communications between parties are restricted to the parties involved in the transaction. This confidentiality is an essential component in user privacy, as well equally in protection of proprietary data and as a deterrent to theft of information services. Confidentiality is concerned with the unauthorized viewing of confidential or proprietary data that one or both of the trading partners does not want known by others. Confidentiality is provided by encryption.

Encryption is the scrambling of data so that it indecipherable to anyone except the intended recipient. Encryption prevents snoopers, hackers, and other prying eyes from viewing data that is transmitted over telecommunication channels. There are two basic encryption schemes, private-central and public-central encryption. Encryption, in full general, is cumbersome and expensive.

Private-key encryption requires that both sending and receiving parties have the aforementioned private-encryption keys. The sender encrypts the data using his key. The receiver so decrypts the message using his identical key. There are several disadvantages to private-key encryption. In guild to remain secure, the keys must be changed periodically and the users must be in synch as to the bodily keys being used.

Public-key encryption is gaining wide spread acceptance as the preferred encryption technology. With public-key encryption, a bulletin recipient generates a matched gear up of keys, i public key and i individual primal. The recipient broadcasts the public central to all senders or to a public location where the key can be easily retrieved. Any sender who needs to ship the receiver an encrypted message uses the recipient's public central to encrypt the message. The private key, which is held in private by the recipient is the only fundamental that can decipher messages encrypted with the matched public key. This schema requires that the individual central cannot be generated from the public key.

Public key engineering science is the direction encryption technology is currently headed. With the advent of X.500, databases will exist built to shop public keys and enhance the applied science significantly.

8.2 Hallmark

Both parties should feel comfortable that they are communicating with the political party with whom they think they are doing business. A normal means of providing authentication is through the use of passwords.

The latest applied science to provide authentication is through the use of digital certificates that function much like ID cards. The digital document has multiple functions, including browser hallmark.

8.3 Data Integrity

Data sent as part of a transaction should non be modifiable in transit. Similarly, it should not be possible to modify data in storage. Data integrity is a guarantee that what was sent by the sender is actually what is received past the receiver. This is necessary if in that location is a need to ensure that the information has not been changed either inadvertently or maliciously. Even so, authentication schemes do not hibernate information from prying eyes.

Providing data integrity is by and large cumbersome and not used unless one of the trading partners requires it. The normal mechanism for acquiring information integrity is for the sender to run an algorithm against the information that is being transmitted and to transmit the event of the algorithm separately from the transmission. Upon receipt of the transmission, the receiver runs the identical algorithm so compares the results. If the results are identical, then data has non been modified.

8.4 Nonrepudiation

Neither party should be able to deny having participated in a transaction after the fact. The electric current technology ensures this through the use of digital signatures.

Electronic signatures are the computerized version of the signature function. Signatures are needed in some concern applications for authorization purposes. For example, a contracting officer may have a specified spending limit, say $25,000. If that contracting officer decides to place an order for $30,000, the seller may non have the authority to fill the order because the signature of the contracting officer's supervisor is needed on all orders over $25,000. The authorisation limits unremarkably volition have been agreed upon through a trading partner agreement.

A digital signature algorithm can be used to generate digital signatures. The digital signature itself is used to observe unauthorized modification to data and to authenticate the identity of the signature. The digital signature is also useful to the recipient as a nonrepudiation device whereby the recipient can evidence to a third party that the signature was in fact generated past the signatory. Thus the signatory cannot repudiate the signature at a after date.

9. Value-added networks

As seen in the previous discussions, setting upwards to employ EDI involves considerable expense. For pocket-sized businesses and businesses that do low volumes between each other the cost is not e'er worth the efficiencies achieved. Commercial Value-added networks (VANs) make the burdens of the communications complexities piece of cake past offer their communications services to prospective EDI users (Bort and Bielfeldt, 1996).

nine.1 Connectivity

VANs establish communications paths betwixt their customers and with other VANs. By using these services a business does non have to worry well-nigh the myriad of communications complexities from having trading partners using different hardware, software, and transport mechanisms. The typical heir-apparent-VAN-seller connection is depicted in figure four.

Figure 4: Value-Added Network Connection

Likewise, EDI software is not inexpensive. A business with an X12 translator nevertheless needs personnel on lath that empathise X12 and can use the software effectively. Value-added services offer the traditional VAN services and add to that the translation services required to create an X12 file. These services allow the typical business to enter the EDI arena at minimal cost and maximum efficiency.

9.2 Commitment

Mailbox software is the most important feature offered past VANs. The electronic mailbox is used for both store-and-retrieve and shop-and-forward operations. In both cases, the sender of the EDI bulletin transmits the electronic message to the VAN on its own time schedule. The VAN then acts on the message depending on whether the service is store-and-recall or store-and-forrad.

Store-and-retrieve service allows the VAN to store the bulletin in the receiver's mail service box. The receiver then retrieves its messages based upon the needs and schedules of the receiver. This service enables the sender and receiver to communicate, but at different times of the mean solar day, instead of simultaneously.

Store-and-forward service allows the VAN to forward letters to the receiver when the business need is non for immediate or event-driven notification. Result-driven mailbox services tin can be handled by forwarding of the message to the receiver or by immediate notification from the VAN to the receiver that a bulletin has been stored that meets the prearranged criteria for event-driven notification.

9.3 Security

By and large, a VAN provides security at several levels for its mailbox customers. Access control is normally provided by a login and password sequence.

Messages are screened for the individual client to ensure that they were sent by authorized trading partners of the customer. This service likewise checks for message types and formats, and ensures they are acceptable to the customer.

Some VANs offer cryptography services. The cryptography is used to cosign and encrypt messages to ensure confidentiality. This service requires that the encryption exist done at the customer site to be of any existent value.

9.4 Audit and control

Ane of the features a VAN can offering a customer is a usage bookkeeping information option whereby the VAN reports how much traffic comes to the client in a given fourth dimension period. Transmission status reports to clarify condition of an private transaction are also available (Canis, 1995).

Many trading partners require acquittance for transactions received, and VANs tin can provide automatic sending of acknowledgments. The VAN can likewise rail the transaction traffic. If specific transactions need to exist tracked, the VAN tin provide an audit trail of the requested data.

9.v Value-added services

In the typical EDI implementation, both sender and receiver utilize the services of a VAN because information technology eliminates the demand to support dissimilar communications configurations between themselves and their trading partners. Using VANs too reduces the cost of communications equipment and staff to support the multiple configurations.

All the same, not all trading partners will utilise the same VANs. This is not an result because VANs interconnect regularly with each other. The standard VAN interconnection is through bisynchronous modem connections.

Most VANs offer translation services so that customers do not take the need to purchase or maintain translation software. Normally if these services are used, the customer will supply the formats for the information and the VAN will map the data itself.

VANs have the adequacy to reply to presence of data and can fax or e-mail service a notification to the client if information is in the client's mailbox.

10. Effects and level of automation

The benefits associated with EDI oft cause overblown expectations. EDI, in and of itself, is just another way to format and transfer data. The real use of EDI and the amount of value to exist gained from its implementation depend upon whether or not EDI is integrated into the overall data processing effort of the arrangement.

The effects of EDI depend greatly on the level of automation within an organisation. If the organization is merely using EDI to send information in a format required past a trading partner, the event is much more limited than if EDI is integrated into the back-end processes of the organization. EDI applications that are fed past back-end processes and the databases that support these processes and then, in turn, feed the EDI data received dorsum into the databases and back-stop processes accept a huge impact on the total level of automation within the arrangement.

The well-known list of EDI-related benefits--lower costs, higher productivity, and reduced order-cycle times--is attainable. But if the automation level of the system is not loftier and is not integrated, the effects of EDI volition be lessened considerably.

xi. Conclusions and future of EDI

EDI is well established equally effective technology got reducing costs and increasing efficiency. EDI technologies are approximately the same historic period equally Internet technologies. In the by, the technologies have been mutually exclusive, but this is rapidly changing. As the two technological communities begin to merge and as the business concern community sees the advantages of this merger, EDI and the Internet will eventually become ubiquitous.

EDI users are already seeing dramatic cost savings by moving their traffic from the traditional VAN services to the Cyberspace. As EDI working groups within the Cyberspace Engineering science Task Force create interoperability standards for the use of EDI over the Internet and as security issues are addressed, EDI over the Internet volition exist part of normal business concern. The EDI working grouping already has a charter for an interoperability standard for process-to-procedure EDI. One time that standard is in place, real-time EDI over the Internet will supersede normal time-delayed, batch-style interactions.

References

Bort, R., and Bielfeldt, G. R. Handbook of EDI. Boston, Massachusetts: Warren, Gorham and Lamont.

Canis, R. J., Value-added networks: What to look for now and in the future. Conference Proceedings EDI 2000: EDI, Electronic Commerce, and Y'all; (pp. 141-157).

Kimberley, P. (1991). EDI. New York: McGraw-Hill.

Sawabini, S. (1995). Introduction to EDI. Conference Proceedings EDI 2000: EDI, EC, and You, (pp. one-36).

Sokol, P. Grand. (1995). From EDI to EC: A Concern Initiative. New York: McGraw-Loma.