Q3E-Commerce and ERP
Question
2 marks
What is Electronic Data Interchange (EDI)?
Answer
EDI is a highly strict, standardized digital architecture that mathematically allows autonomous computer systems in different organizations to exchange business documents without human intervention.
Electronic Data Interchange (EDI) is the absolute backbone of B2B E-Commerce. Instead of faxing paper invoices, EDI violently formats data into mathematically rigid, internationally recognized standards (like ANSI X12 or EDIFACT), allowing a buyer's ERP system to automatically trigger a digital purchase order directly inside the supplier's database.