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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

EDI 101 :The Basics

ECR/EDI Technology Seminar

June 2, 1998

fleras consulting services
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
Presentation Outline
  • Basics of Successful EDI
  • Business Perspective
  • Technical Perspective
  • Questions ? (Answers)
edi and teenage sex
EDI and Teenage Sex

Censored!

  • Lots of …
  • Everyone hopes ...
  • Those who do I ...
  • It’s seldom ...
  • It’s really ...
edi success factors
EDI Success Factors
  • Understanding
    • what and why
  • Commitment
    • people, money, time
  • Action (pro-active)
    • expectations and methodology
    • integration and re-engineering
    • enabling and support
understanding edi what is it
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
understanding edi ec what is it
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.
understanding edi re active vs pro active edi
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
understanding edi benefits results
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
edi commitment justification
EDI Commitment: Justification
  • COST
    • hard and soft savings
    • head-counts and productivity
  • VALUE
    • business impact
    • revenues
    • quality
    • image
edi commitment strategic planning
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
edi commitment consensus
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
edi commitment team
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)
edi commitment education training
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
edi commitment funding
EDI Commitment: Funding
  • technical components
    • hardware, software, services, maintenance
  • staff
  • training
  • education
  • travel and living
  • trading partner support
  • trading partner incentives
edi how
EDI - How?
  • Ben Phillips - insert here
edi action tactical planning
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
edi action integration development
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
edi action re engineering
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)
edi action trading partner enabling
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)
edi action ongoing support
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
edi barriers obstacles
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
successful edi
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.