This document discusses electronic data interchange (EDI). It defines EDI as computer-to-computer communication using standard data formats to exchange business information between companies. It describes who uses EDI, including large corporations and their suppliers. It also outlines the types of EDI activities commonly used, such as purchase orders and invoices. The document discusses EDI implementation, including the need for standard data formats, communication connectivity, and assessing whether EDI makes sense for a particular company.

1. CHAPTER 9 ELECTRONIC DATA INTERCHANGE

2. Department of Computer & Infromation Sciences IS 470 Prepared By Group # 3: Ibrahim AL-Raee, 12000-0348 Khaled AL-Garnei, 12000-0636 Maged AL-Ali, 12000-0610 Mohammed AL-Muhaidib, 12000-0191 Examiner: Dr. Shehzad Khalid Ghani,PSU

4. INTRODUCTION

6. WHAT IS ELECTRONIC DATA INTERCHANGE (EDI)?

9. NORMAL BUSINESS ELIGIBILITY VERIFICATION SERVICE CLAIMS ENROLLMENT CUST SERVICE CUST SERVICE CLAIMS PROCESSING ALLIANCE DETROIT MI ALLIANCE DETROIT MI

10. 270 FUNCTIONAL GROUP INTERCHANGE EDI Delivery 837 834 FUNCTIONAL GROUP FUNCTIONAL GROUP INTERCHANGE EDI VAN

11. EDI Example

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28. EDI USERS AND TYPES OF ACTIVITIES

37. EDI USERS AND TYPES OF ACTIVITIES PAPER vs EDI Document Transaction Little Envelope Functional Group Big Envelope Interchange Postal Service VAN Courier Delivery Point-to-Point Human Audit Machine Audit

38. WHERE DOES INFORMATION TECHNOLOGY FIT IN?

42. WHAT IS NEEDED TO IMPLEMENT EDI?

55. Standard Data Formats ASC X12S/94-172 FORMAT* Source: DISA 1994 Publications Catalog, Data Interchange Standards Association, Inc., Alexandria, VA. Acme Dist. Company P.O. Box 33327 Anytown, NJ 44509 CHARGE TO N1*BT*ACME DISTRIBUTING COMPANY N/L N3*P.O. BOX 33327 N/L N4*ANYTOWN*NJ*44509 N/L 7/13/90 6/25/90 1001 P989320 DATE ORDER DATE INVOICE# CUSTOMER ORDER# BIG*900713*1001*900625*P989320 N/L Invoice ST*810*0001 N/L Inside Envelope GS*IN*012345678*087654321*900509 *2210*000001*X*002040 N/L Outside Envelope (Interchange Control Header, ISA) ISA*00*0000000000*01*01*PASSWORDME *01*123456789 bbbbbb *987654321 bbbbbb * 890714*2210*U*00204*000000008*0*P* N/L SAMPLE INVOICE CONTENT/NOTES ASC X12 FORMAT

64. INTERNATIONAL CONSIDERATIONS Standardizes programs and procedures Reduces the flow of paper between organizations Difficult to quantify return return on investment Improves accuracy of information and reduces errors Complex to use Allows for more efficient disbursement of information Lack of a common understanding and limited education Improves productivity Disadvantages EDI Advantages EDI

65. Benefits of EDI (From Net)