Q3What do you understand by electronic data interchange

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

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Electronic Data Interchange So EDI is defined as the electronic exchange of structured business information or documents in
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern