Q3What do you understand by electronic data interchange

Q3What do you understand by electronic data interchange -...

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Q3 What do you understand by electronic data interchange? What is the purpose of EDI? State its advantages over traditional paper-based document transfer system. Ans: INTRODUCTION Everybody uses business connections of one sort or another to get orders, send bills, make collections, determine and pay what it owes, move goods, and control its money. The business connection used historically to perform these operations have been the Postal Service and the telephone. Both of these services require human intervention to get the information they deliver to the computer. This slows down the computer feeding process and retards the speed and flow of operational data. In other words, orders, status reports, and other information vital to business operations are delayed. Though both the services are being improved day by day in order to speed up the information flow. But no matter how fast the mail is moved or how much one uses the telephone, the problems are still there because neither terminates with the information directly usable by the computers. The flow is brought to the halt while the information is transcribed and, during transcribing, errors may be introduced. And these errors can adversely affect the business. To overcome all these problems the concept of Electronic Data Interchange (EDI) is being introduced. EDI has taken the place of traditional paperwork chain. It uses electronics as a medium for recording information for inter-company transactions and hence speeded up the whole process of information flow.
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Electronic Data Interchange So EDI is defined as the electronic exchange of structured business information or documents in
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This note was uploaded on 01/19/2012 for the course FINANCE 121 taught by Professor Aktiwari during the Spring '11 term at Amity University.

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Q3What do you understand by electronic data interchange -...

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