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EDI 101 : The Basics

EDI 101 : The Basics. ECR/EDI Technology Seminar June 2, 1998. Fleras Consulting Services. EDI/EC management consultant 26+ years in IT 11+ years in EDI/EC 1992 EDI Person of the Year in Canada chair of several EDI/EC user/interest groups. Presentation Outline. Basics of Successful EDI

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EDI 101 : The Basics

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  1. EDI 101 :The Basics ECR/EDI Technology Seminar June 2, 1998

  2. Fleras Consulting Services • EDI/EC management consultant • 26+ years in IT • 11+ years in EDI/EC • 1992 EDI Person of the Year in Canada • chair of several EDI/EC user/interest groups

  3. Presentation Outline • Basics of Successful EDI • Business Perspective • Technical Perspective • Questions ? (Answers)

  4. EDI and Teenage Sex Censored! • Lots of … • Everyone hopes ... • Those who do I ... • It’s seldom ... • It’s really ...

  5. EDI Success Factors • Understanding • what and why • Commitment • people, money, time • Action (pro-active) • expectations and methodology • integration and re-engineering • enabling and support

  6. Understanding EDI: What is it? • Technical: computer-to-computer exchange of business information between companies using a standard message format • Business: electronic integration of information between organizations to improve performance, create differentiation and enhance profitability

  7. Understanding EDI: EC - What is it? • integration of computer and communication technologies to facilitate external business processes in a secure environment • electronic transfer of value (information) between two parties • EDI, E-mail, E-forms, Internet, Intranet, imaging, bar coding, smart cards, etc.

  8. forced by customer no understanding no commitment no integration no re-engineering MIS ownership no benefits increased costs recruits partners customers/suppliers different transactions core capability consensus building simplify procedures business ownership significant benefits Understanding EDI: Re-active vs. Pro-active EDI

  9. Understanding EDI: Benefits/Results • Strategic • create mutual cost/price advantage • add mutual value • competitive advantage • Tactical • reduce administrative costs • reduce information travel time • competitive parity (“keep the business”) • Personal

  10. EDI Commitment: Justification • COST • hard and soft savings • head-counts and productivity • VALUE • business impact • revenues • quality • image

  11. EDI Commitment: Strategic Planning • how will EDI fit into the enterprise • business plan integration or alignment: • e.g. low cost provider and/or customer focus • value vs. cost vs. risk • goals to measure success (clear vision) • plans to achieve objectives (expectations) • communicated to enterprise • ability and will to execute strategy

  12. EDI Commitment:Consensus • by executives (CEO) vs. EDI team • “knock down walls” and “open doors” • internally • staff and management meetings • publications (e.g., newsletters, annual report) • externally • industry association meetings • one-on-one with key trading partners

  13. EDI Commitment: Team • EDI champion/sponsor (executive level) • EDI co-ordinator • EDI technical (e.g., standards, maps) • applications developers (interfaces) • cross-functional team • process owners • department managers/staff • non-technical specialists (e.g., auditors)

  14. EDI Commitment: Education/Training • EDI Co-ordinator • business (tactical) planning • EDI operations • interfacing with business applications • recruiting/adding trading partners • EDI technical staff • EDI business team members • EDI non-technical-specialist team members

  15. EDI Commitment: Funding • technical components • hardware, software, services, maintenance • staff • training • education • travel and living • trading partner support • trading partner incentives

  16. EDI - How? • Ben Phillips - insert here

  17. EDI Action: Tactical Planning • roll-out methodology to identify • target processes (e.g., procurement) • target transactions (e.g., PO, ASN) • target trading partners (e.g., top 20%) • target time-frames • define expectations • anticipated benefits • anticipated volume of transactions/business • potential re-engineering opportunities

  18. EDI Action: Integration/Development • Application-to-application • develop EDI maps (interfaces): • to-from legacy business systems • often not easy (“walls”, missing data, etc.) • make vs. buy • make process/system changes • develop EDI implementation guides • develop test procedures and checklists

  19. EDI Action: Re-engineering • The benefits of EDI do not come from simply moving information faster and more accurately. The real benefits come from using EDI as a business tool to simplify and improve business procedures. • “If it ain’t broke, break it!” (R.J. Kriegel)

  20. EDI Action:Trading Partner Enabling • contact trading partners (letters, seminars) • gather trading partner information • review/negotiate EDI requirements • hand-hold inexperienced partners • make necessary system/EDI changes • conduct tests (connectivity, integrity) • parallel environment (paper and EDI) • go live (eliminate paper transactions)

  21. EDI Action: Ongoing Support • track status of: • trading partners • transactions • EDI problem resolution (help desk) • upgrade standards, versions, etc. • address new information requirements • participate in industry/interest groups

  22. EDI Barriers/Obstacles • trading partner readiness • benefits? common industry direction? • legacy business systems/applications • unclear expectations (strategic, tactical) • lack of resources (people, skills, time, $) • lack of (internal) co-operation/support • complex technology • multiple standards and versions • complicated and expensive solutions

  23. Successful EDI • We have moved from using information technology to gather and analyze information, to using this technology to network with our customers and suppliers , and battle with our competition.

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