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EDI 101 : The Basics

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Technical: computer-to-computer exchange of business information between ... integration of computer and communication technologies to facilitate external ... – PowerPoint PPT presentation

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Title: EDI 101 : The Basics


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 ...
  • Its seldom ...
  • Its 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
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

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 aint 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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